ECONOMIC ANALYSIS AND MAPPING OF RICE VALUE CHAIN ACTORS IN KATSINA STATE, NIGERIA
Keywords:
rice, value chain, profitability, farmers, processors, marketersAbstract
The study was conducted to analyze the economic activities and map out the rice value chain actors in Katsina State. The rice value chain actors studied were farmers, processors and marketers. A total of 357 actors were sampled using multi-stage sampling technique. Primary data was utilized in the study. The data was collected using a structured questionnaire by trained enumerators and was analyzed using Farm Budgeting Techniques, Financial Benefit Cost Analysis as well as Value chain Mapping. The result of financial profitability analysis revealed that a typical rice farmer earned an average revenue and profit of ₦663,799.25/ha and ₦322,356/ha respectively. The rice processors earned total revenue of ₦16,560/bag of paddy from which ₦674.92/bag was the net profit whilst the rice traders earned revenue of ₦18,360/bag as well as a net financial profit of ₦800/bag. The analysis further revealed that farmers, processors and marketers generate revenue of ₦1.9, ₦1.04 and ₦1.05 for every one Naira invested respectively. The result on value chain mapping depicts that the study area was characterized by two different groups of rice value chain actors (micro level actors and meso level actors). The micro level actors include input dealers, farmers, collectors, processors etc. while the meso level actors include service providers, financial institutions and farmers’ associations. The study recommends emphasis on effective shorter value chain to support profit enhancement among the actors, since longer value chain most often depicts smaller profit.
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