Profit analyses and determinants of value added rice among farmers in Abakaliki metropolis, Ebonyi State, Nigeria

Abstract

The study assessed the practice of value addition among rice farmers in Ebonyi State, Nigeria. This study looked at the various constraints militating against value added rice in the study area, and factors affecting profitability within the value chain. Fifty rice farmers (respondents) were drawn at random from Abakaliki metropolis, for detailed analyses. Primary data were obtained through a well-structured questionnaire. The descriptive statistics used were frequency counts and percentages, and the predictors of rice value addition profit were analyzed using multiple regression analysis. The results revealed that 60% of the farmers sold rice as paddy, while 40% added value to their harvests. Lack of fund to expand the value addition enterprise was identified by 42% of the farmers as the major constraint to their desire to develop the rice value addition enterprise. The regression analysis revealed that cooperative membership, rice value addition as a primary occupation, household size, cost of labour, packaging and bagging are the significant and positively influenced the profit of rice value addition while the costs of purchasing seeds, paying for rent, and transportation were significant and negatively related to the profitability of the rice value addition farm enterprise. Based on the findings of this study, it is recommended that extended credit facilities should be employed to aid farmers to adopt innovations to prevent losses before and after harvest. There is also need for policies aimed at encouraging the formation of cooperatives societies among farmers to enable them reap the economics of scale within the value chain.