Comparative analysis of profitability of NERICA rice and local rice varieties production in Chukun local government area of Kaduna State, Nigeria

Abstract

This study examines the costs and returns and the problems confronting rice production. One hundred and eighty (180) farmers were randomly selected from one thousand two hundred rice producers from two districts, namely Kujama and Kakau of Chukun LGA of Kaduna State. Data collection was done using structured questionnaires. Descriptive statistic and budgeting technique were used to analyse the data. The costs and returns analysis show that labour and fertilizers inputs accounted for greater parts of the total variable costs incurred in both NERICA rice and local rice varieties and were represented by 73.99 and 52.75 percent respectively. The farm gate price of paddy rice ( N 80/kg) for NERICA and N 50/kg for local rice were used in estimating the revenue and comparing with the total variable costs to obtain the gross margin which measured the economic performance of the two rice varieties. The gross margin analysis shows that from one hectare of land cultivated, the total cost of production for NERICA rice and local rice were N116,638.10 and N85,803.45 and gross revenue of N351,280.00 and N157,500.00/ha respectively. Thus making a gross of margin of N234,641.90, and N71,699.00/ha respectively. The gross margin analysis shows that with adequate management, NERICA rice production is a more profitable venture. The major problems identified in rice production were inadequate improved seed varieties, bad road network,pests and diseases, lack of capital and storage facilities. This paper recommends that intensification of NERICA rice production will generate more returns to farmers than local rice. Therefore, farmers should be encouraged to invest their resources in the improved (NERICA rice) production for increase rice productivity which in turn will increase the farmers’ income and improve their standard of living.