Professional Documents
Culture Documents
Xristics of Rvca
Xristics of Rvca
I. Y. Ilu
National Agricultural Extension and Research Liaison Services
Ahmadu Bello University, Zaria, Nigeria
ABSTRACT
Nigeria adopted the value chain development approach to implement the agricultural transformation
agenda, to tackle the problem of poverty. For the approach, to work effectively, it requires the full
participation of the value chain actors in market activities. Hence the need to study the socio-economic
characteristics of the actors to facilitate their full integration into the value chains. The study was
conducted in Kano River Irrigation Project in Kano State, using primary and secondary data,
collected using qualitative and quantitative techniques. Results showed input dealers were male and
relatively young, with an average age of 43 years. They were well educated. Majority of the farmers
were men, within the productive ages of 45 to 50 years. About 60 percent of the farmers had post-
secondary level education. Paddy marketers were also male in their mid-forties. Majority (73%) only
had primary education. Parboiling business is dominated by women (85%) in the area. They were the
least educated, with only 20 percent having primary education. The millers were relatively younger,
with mean age 38 years. All the milled rice marketers interviewed were male with an average age of 47
years. They had lower formal education compared to millers. Less than 50 percent of the marketers had
primary education. Price was the major factor influencing the choice of domestic over imported rice.
The capacity of all value chain actors should be built to manage business associations and run modern
businesses. Introduce appropriate technologies along the value chain.
INTRODUCTION right direction, at the most opportune time. The
Nigeria is one of the largest countries in Africa. It value chain approach is aimed at satisfying a
accounts for 20% of the population of Sub- market demand. It involves not only, addressing
Saharan Africa (SSA) and is projected to be the major constraints and opportunities faced by
third most populous country in the world with producers, but also those faced by processors,
over 400 million people by 2040. It is a lower- traders, and other businesses at different levels
middle income country that is large and richly along the value chain. The process also includes,
endowed. Yet, it hosts more of the world's extreme facilitating a wide range of activities such as:
poor today than any other country (World Bank access to inputs, strengthening the delivery of
2019). Poverty alleviation and curbing youth business and financial services, enabling the flow
unemployment has remained an important of information, facilitating improved linkages
challenge in Nigeria's economic development between actors and higher-value markets, and
efforts since the 1980s. Several interventions infrastructural development. All these activities
were implemented. The cumulative effect led to are potential sources of income generation and
an impressive economic growth of about 6.9 employment creation for both skilled and
percent and an agricultural growth of 8.2 percent unskilled labour. The combined effect of these
(FMAWR, 2008), but failed to reduce poverty and activities put together lead to income generation
youth unemployment to any appreciable level. and hence poverty reduction.
The Millennium Development Goals (MDGs), It is important to note that value chain
adopted the fight against poverty as the first goal development is a demand driven approach. It is
and set “the target of reducing the incidence of different from the traditional “supply-push”
absolute poverty by half by the year 2015”. This approach, whose emphasis is production oriented.
provided an additional impetus to the Federal Under the traditional approach, producers are
Ministry of Agriculture and Rural Development encouraged and supported to improve
to adopt the value chain approach as the productivity using improved seeds, fertilizer, and
operational strategy for the implementation of the improved husbandry practices. This is the
agricultural transformation agenda (ATA) function which the Nigerian agricultural sector
(FMARD, 2011). evolved over the years to perform. The
Adopting the value chain approach is a step in the institutional settings and basic training and
Nigerian Journal of Agricultural Extension, Vol, 21, Number 4, December 2020 88
knowledge of majority of the work force are hectares of land, but only the first phase (KRIP1),
strategically structured to perform this traditional with an irrigable area of 25,606 ha, has been
function. The same is true for the rice value chain completed. This area covered Kura, Bunkure and
actors. Their attitude, knowledge, skill, and Garun mallam local government areas, and is
behavior have been attuned, over the years, to known for rice activities and is referred to as
survive under the traditional “supply push” Kura-Kano rice corridor (PropCom 2007).
approach. One of the most common features of A total of six rice value chain actors; input dealers,
the approach is information asymmetry that is producers, traders, processors (par boilers and
“hoarding” of information among business millers) marketers and consumers were involved
partners, which is legitimized and referred to as a in the study. A combination of stratified and
“business secret”. probability random sampling techniques were
In contrast, the value chain approach is a strategic used to select respondents. A total of 10 input
network of independent organizations and suppliers, 550 rice farmers, 20 paddy traders, 20
businesses, who recognize their mutual need for parboilers, 10 millers, 3 milled rice whole sellers,
one another, to work together to identify strategic 30 milled rice retailers, 50 individual and 10
objectives and are willing to share the associated institutional consumers were selected. Data
risks and benefits, and will invest time, energy, collection, including the reconnaissance survey
and resources to make the relationship work was carried out in 2014/2015 and 2015/2016
(Amanor-Boadu, 2009). The process involves growing seasons. Primary and secondary data
high level of trust between parties to the alliance. were used in the study. A combination of
There is therefore no room for an adversarial qualitative and quantitative techniques was used
attitude toward business partners. Hording of to collect the relevant data. Key informant
information or competition for prices and more interview, focus group discussion, and structured
advantageous delivery conditions is not among questionnaires were used.
actors within the alliance, but rather with other The analytical techniques employed include
producers, processors, or distributors outside the Conjoint analysis, descriptive statistics, and
value chain. Since value chain actors are expected commodity chain analysis. Conjoint analysis
to change their way of doing business and (Bilyana et al, 2010) was used to measure local
embrace new ones, it is important to have clear rice attributes that appealed to consumers. The
understanding of their socio-economic and relative importance of product attributes was
demographic characteristics. Because calculated using the part-worth utility values from
socioeconomic and demographic characteristics the ordered probit model (Harrison et al., 1998,
are known to influence behavior and attitude of Yen 2006). Equation 3.1 was used for the
human beings. The overall objective of the study estimation.
is to identify the socioeconomic and demographic
characteristic of the rice value chain actors to
guide the design of appropriate sensitization
campaign to integrate the actors into the alliance.
The specific objectives are.
· To i d e n t i f y t h e s o c i o e c o n o m i c
characteristics of rice value actors.
· To i d e n t i f y t h e d e m o g r a p h i c
characteristics of rice value chain actors.
· To identify factors that influence
consumers' choice of domestic rice.
METHODOLOGY
The study was carried out in Kano River
Irrigation Project located between latitudes 130 N
0 0 0
and 11 S and longitude 8 W and 10 E in Kano
2
State. It has an area of 20,760km , with an average
annual rainfall is 700mm, and a mean daily
maximum and minimum temperatures of 350and
0
19 Celsius, respectively. Kano River Irrigation
Project (KRIP) has potential for irrigating 62,000
89 Characteristics Of Rice Value Chain Actors: A Case Study Of Kano River Irrigation Project (KRIP) Kano State, Nigeria
All the input dealers interviewed were male. They post-secondary school. About 50 percent had
were well educated. More than 27 percent of them some form of secondary education. More than 70
had passed through some form of post- secondary percent had passed through primary school (Table
education. Kura local government area had the 2).
highest number of traders that had passed through
Nigerian Journal of Agricultural Extension, Vol, 21, Number 4, December 2020 90
This might be due to the intellectual requirement primarily concerned with the sales of seeds.
of selling modern inputs which requires sound About three percent each were engaged in the
educational background to decode and interpret sales of water pump and sprayers.
technical information and instructions. This is Majority of the traders (70%) belong to one form
similar to the findings of Ogunlade et-al (2012), of association or another. However more than half
who, concluded that the high level of literacy of (60%) admitted receiving little or no benefit from
these dealers point to the fact that they could the associations (Table 3). The few that benefited
easily read and correctly interpret manufacturers' indicated; credit, market information, bulk
instructions and precaution in English Language. marketing, and training as the major areas they
Majority (87%) of the respondents indicated that benefited from. In view of the high educational
trading was their main occupation. Farming was level attained by the input dealers, it is surprising
the second main occupation. The major inputs that they do not derive tangible benefits from their
sold include, but not restricted to, fertilizer, seeds, associations. This finding is similar to that of
agrochemicals, water pumps and sprayers. Dimelu et al (2014). There is therefore the need to
Majority of them (40%) are involved in the sales introduce business development association and
of all the listed inputs. About 27 percent were build the capacities of the traders to manage it for
engaged in selling fertilizer only, 17 percent were their own benefit.
91 Characteristics Of Rice Value Chain Actors: A Case Study Of Kano River Irrigation Project (KRIP) Kano State, Nigeria
Akpokodje et-al. (2001), found similar result and Post-Harvest Losses along the Rice Value Chain
recommend increased productivity in order to in Kwara State, Nigeria. But Aku et-al (2018) in
enhance competitiveness of Nigeria rice. More their evaluation of the effect of market accessed
than 75 percent of the farmers belong to through farmer organizations on household
association (Water User Association (WUA)). income in Babati District, Tanzania found that
But the benefits derived are mainly related to market access has a significant positive and robust
market price information (table 6). Similar result effect on farm income.
was found by Babatunde et-al (2019) in a study on
Paddy rice marketers 7). The major occupation of the traders is rice
Paddy rice marketers perform an important trading. Despite their low level of educational
function of assembling and making paddy most of them (75%) belong to association. The
available to other actors in the rice value chain. major benefits obtained were linkage to agencies,
They buy paddy rice from farmers and other access to price information and credit. A few of
traders from the irrigated area, as well as, from them (7%) engaging in rice milling. About 35
other local government areas. The marketers were percent are engaged in selling milled rice, in
young energetic male in their mid- forties (Table addition to selling paddy. Taru et-al (2010) in their
7). They travel to different places, both within and study of structural analysis of paddy markets in
outside the irrigated perimeter. They travel to southern part of Taraba State, Nigeria found that
Makarfi, Soba, Zaria and Saminaka in Kaduna there were more female (62.63%) than male
state to buy paddy rice. Majority of the traders (37.37%) in paddy trading. They also found that
(73%) only had primary education. Less than 4 there were more young and middle-aged traders
percent had gone beyond secondary school (Table (63%) in the business than the old traders (37%).
Nigerian Journal of Agricultural Extension, Vol, 21, Number 4, December 2020 94
Education as a means of acquiring knowledge and primary education. Most of the women were
skills essential for the improvement of livelihood taught the art of parboiling at early age by their
through efficient utilization of resources has parent. Parboiling was also the major source of
eluded majority (80%) of the parboilers. The few employment, as well as income for the women
(20%) that were educated did not pass beyond (Table 9).
Nigerian Journal of Agricultural Extension, Vol, 21, Number 4, December 2020 96
Millers respondents were female. Similarly, Ibitoye et-al
Rice milling in Nigeria is a cottage industry, (2014) in their study of economics of rice
dominated by medium size workshops with a processing in Bassa local government Kogi state,
processing capacity of 150 to 300 kg/hr. and found that there are more female (84.4 %) than
small-scale workshops that process less than 50 male in rice processing and marketing. This
kg per hour (Lançon et al., 2003). Nigerian rice difference can be attributed to the cultural
millers use simple Engleberg type rice mills. The difference between the two communities. Millers
mills are typically operated by a single individual are more educated than the farmers. More than
and have a 500 kg per hour or less capacity. The half of them had secondary education and about 7
millers operated on a custom mill basis. They mill percent had tertiary education. Majority (60%) of
the rice for one customer at a time. The fee for the millers were involved in farming in addition to
milling is predetermined and fixed by the miller milling. Ninety percent of the millers belong to
and does not vary for custom milling jobs (Bayou, association. But fifty percent indicated not
2009). Although rice mills are mainly owned by receiving any form of benefit from the
men, the workshop areas are usually surrounded association. The 10 percent that benefited,
by women, old and young, providing cleaning reported accessing loans with the help of the
services such as winnowing and removal of stones association. Another 10 percent of the respondent
and other unwanted debris. The millers were indicated that training was the major benefit they
generally male and most of them (90%) were obtained from the association. About 30 percent
married. But Bose et al (2018) in their study on of the respondents indicated 'having access' to
assessment of small-scale paddy rice processing inputs as the major benefit obtained from the
and marketing in Dass local government area, association (Table10)
Bauchi state found that majority (60%) of the
The millers are relatively younger than other rice the income of less than one million naira
value chain actors. Their mean age varies from 33 generated annually. This finding is similar to that
to 43 years. But they have been in milling business of Omoare and Oyoleke (2017), who found that
for about 6 to 8 years (Table 11). The average more than forty percent of their respondents were
family size of between 5 to 8 persons per between 30 – 40 years of age, predominantly male
household is also relatively small, compared to (80.3%), married (83.1%), had relatively large
what used to obtain in the area. Perhaps this is household size (6 people) and were formally
related to their age, educational attainment, and education (80.6%).
Omoare O.A., and O.W.Oyeleke (2017): Tsega, M.M., Alemu, D. and Kiyoshi, S. (2005).
Assessment of Factors Affecting Rice Socio-economic characteristics of
(Oryza Spp.) Value Chain (Rvc) In smallholder rice production in Ethiopia.
Ogun And Niger States, Nigeria. Global Research Report 100 Ethiopian Institute
Journal of Agricultural Research Vol.5, of Agricultural Research, pp 53.
No.4, pp.43-59, November 2017. United State Agency for International
PrOpCom (2007a): Making Nigerian Agricultural Development (2009). Nigerian Rice Value
Markets Work for the Poor Monograph Chain Analysis. www.micrilinks.org/pdf.
Series # 18. “Financial Analysis of USAID (2010). Attachment IV to The Global
Parboiling and Milling Techniques in the Food Security Response West Africa Rice
Kura Kano Corridor” Prepared by Value Chain Analysis. Global Food
Professor Olabisi Ogunforowa March. Security Response. Nigeria Rice Study
PropCom 2007b: Baseline Survey of the Kano Rice micro-REPORT #159.
Value Chain. Final Report submitted by Usman, R.K. (2009). Problems Associated with
Optimum Agricultural Consultants to Marketing of some selected grains in
promoting pro-poor opportunities in Bosso Local Government Area of Niger
c o m m o d i t y a n d s e r v i c e m a r k e t s State. Journal of Agricultural Extension,
(PrOpCom). Funded by Department of
International Development, U.K. April 2007
13(2) pp. 55- 63.
Sahel (2014): Sahel Newsletter, Creating Value, World Bank (2019): Advancing Social Protection
Building Businesses, Transforming in a Dynamic Nigeria. ASA P165426 –
Communities. Volume 6, July/August (formerly “Adapting Social Protection in
2014. a Changing Nigeria”). Main Report,
Taru V.B., R. Jonathan and H. Lawal (2010). August 7, 2019.
Structural analysis of paddy markets in Zalkuwi J. (2019): Economics Analysis of Rice
southern part of Taraba State, marketing in Mubi North LGA, Adamawa
Nigeria. J. Agric. Soc. Sci., 6: 110–112. State, Nigeria. Agricultural Science and
Technology, Vol. 11, No 4, Pp 356-359,
2019 Doi: 10.15547/ast.2019.04.061