Hedonic Pricing of Rice Attributes, Market Sorting, and Gains from Quality Improvement in the Beninese Market

Latent class analysis is applied to a hedonic price model to examine the presence of heterogeneity in consumer valuation of quality attributes in the Beninese rice market. Three classes of consumers are found in proportions of 5, 56, and 39 percent. We employ a partial equilibrium model and find modest gains in consumer surplus from an increase in head rice and reduction in chalkiness. The results provide evidence of market sorting, which should be taken into consideration in upgrading rice value chains. Also, it is important to assess potential gains from quality improvement to determine priorities for research and development

Gender Analysis Of The Access To Factors Of Rice Production In Sub-Saharan Africa

This paper aims to assess the access to rice production factors in SSA and its determinants. The data were collected from 268 farmers. The results show that male farmers had larger land for rice cultivation than females. They had lower access to extension service, chemical fertilizer and mechanization for land preparation than females. Both males and females used children for bird and rat control. The experience, the membership to associations, the education and the cropping system are the determinants. Holistic approach taking into account gender and youth is needed for enhancing the access to various rice production factors in SSA

Contribution of improved processing equipment to rice value chain upgrading in West Africa: Evidence from Benin

Consumers in Benin developed strong preference to imported white rice. It is suggested that upgrading local rice value chain will require efforts on post-harvest segments by adding value to the product. Therefore, efforts have been deployed in the recent years to upgrade the value chain. Using experimental auction based on Becker-DegrootMarshack (BDM) mechanism combined with the endow-and-upgrade and a two stage approach, this study assessed: i) consumers’ willingness to upgrade and to pay for different parboiled rice types, ii) the competitiveness of local parboiled rice relative to imported parboiled and iii) the price premium of each improved processing technology. Results show that consumers will accept parboiled rice only if it is high quality rice. Among the local parboiled rice, the one produced with GEM parboiling technology, milled with rubber roll mill and sorted with optical sorter is more competitive than imported rice. Among technologies, optical sorter is the most important in the parboiled rice value chain upgrading. Econometric results revealed that rice attributes and information exchange on the benefit of parboiled rice are the most important to be considered in the value chain upgrading. Results suggest to combine improved processing technologies for an effective value chain upgrading

Price transmission analysis using threshold models: An application to local rice markets in Benin and Mali

In most African countries, spatial dispersion of production and consumption often results in high transaction costs that prevent farmers from accessing markets and causes asymmetry in price transmission. The objective of this study was to provide the baseline information on local rice price transmission between paired producer and consumer markets in Benin and Mali. To achieve this, we used Enders and Siklos’s threshold models on monthly price series from 2000 to 2010 to examine the nature of price transmission between selected markets in the surplus zones and the nearest important consumption markets. The results for Benin indicated that price transmission between markets in the surplus zone and the consumption markets was asymmetric, probably because of the prevalence of high transaction costs. These results showed that increases in price in the surplus-zone market were more quickly transmitted to the consumer market than decreases in price. Conversely, the results for Mali indicated symmetric price transmission between the market in the surplus zone and the consumer market, suggesting the prevalence of lower transaction costs. These results highlight the need for policies aiming to lower transaction costs observed in selected local rice markets in Benin. Specific policies, such as investment in public infrastructure, e.g. roads, could promote the vertical integration of local rice production with marketing. This would be crucial to achieving rice farmers’ food security and hence their wellbeing

Agribusiness opportunities for youth in Nigeria: Farmers perceptions and willingness to pay for mechanized harvesting equipment

Nigeria is facing two major problems. The high rate of post-harvest losses in rice value chain and high rate of youth unemployment. This study assessed farmers perception on business opportunities for youth as well as farmers willingness to upgrade and to pay for two mechanized harvesting equipment, mini-harvester and reaper that youth can use to provide services. The study is conducted in the two rice development hubs in Nigeria on 290 farmers. Contingent valuation method combine with a two stage approach is used to elicit farmers willingness to pay. Descriptive statistics show that farmers perceive harvesting and threshing as the main business opportunities for youth in rice value chain. Moreover, majority of farmers prefer mechanized harvesting equipment to traditional method and are willing to pay for that with a strong preference to reaper. Compared to the cost of traditional method, farmers are willing to pay 27.33% and 21.59% less respectively for mini-harvester and reaper. Double hurdle model reveals that access to credit, extension, training and perceptions increase farmers willingness to upgrade and to pay. The study suggest many policy actions Key words: Youth, Nigeria, Rice value chain, willingness to pay, contingent valuation Acknowledgement : Authors are grateful to CGIAR research program on rice for financing the study. Thanks to partners of State Agricultural and Rural Development Programs of the two rice hubs, executive of innovation platforms and all enumerators and facilitators in Nasarawa and Kano rice hubs

Parboiling as a diversification strategy to improve rice market value in Senegal

This study used an experimental approach involving 144 rice shoppers in Dakar market to assess market value of parboiled rice compared to traditional white rice as consumed in Senegal. Four different rice types produced locally were used in the experiment: one standard rice, Sahel 108 white rice and three alternatives parboiled rice of Sahel 108, 134 and 177. The descriptive analysis shows that the market price of each alternative parboiled rice was over the double of one of the standard rice with a premium estimated at 71% for parboiled rice of Sahel 108 and134, and 129% of Sahel 177 over the standard rice. In addition to the strong preference for broken rice, taste (80%), whiteness (60%) and cleanliness (60%) were revealed as the most important rice criteria in Dakar market respectively. The robust regression analysis suggests that poor and non-educated people are an important market segment for Sahel 108 white rice in comparison to richer and educated consumers who value more the parboiled rice. Word of mouth communication appears to be a potentially marketing strategy to promote Sahel 108 non-parboiled rice in poor households while promoting Sahel parboiled rice among rich and educated households in Dakar in Senegal

Application of Portfolio and Stochastic Simulation Analysis for a Decision of Governance Structures Choice of Benin s Rice Producers

Prices volatility is one of the critical problems that highly affects smallholder producer s income and so, might contribute to deeper poverty. This study applies both portfolio and stochastic simulation analysis to decision of governance structures (GS) selection to find the income that can allow producers to maximize their revenue and minimize the risk of its fluctuation. Data were collected in Benin in 2015 about 300 rice producers. The respondents were randomly selected from forty-one (41) villages. The simulations of the incomes generated by the highest revenue portfolio and the lowest risk one indicate that for both a risk averse and a risk loving producer, the optimal portfolio consist of selling 17% and 83% of their production through spot market and formal contract, respectively, in the case of two GS. In the case of three GS, the best portfolio consists of selling 13%, 57%, and 30% of the production through spot market, formal contract, and farmer association. Finally, a portfolio that consist of selling 10%, 25%, 43%, and 22% of the production through spot market, informal contract, formal contract, and farmers association, respectively, is the best one in the case of four GS. Acknowledgement