Abstract
Self-sufficiency in rice production has been an essential issue in the Liberian agriculture sector. With the increasing demand and low national productivity of rice (1.2 t/ha), Liberia remains a net importer of rice unless domestic production improves significantly. This study was conducted to analyze smallholder rice farmers’ level of efficiency and profit-loss due to allocative and technical inefficiencies. A two stage random sampling with stratification was adopted to collect data from 400 rice farmers in Central Liberia. The results show that high level of inefficiency exist with 33% of profit-loss among smallholders rice farmers due to a combination of technical and allocative inefficiencies. The average profit-loss is about 19,900 LRD/ha. Factors that are related to profit-loss and inefficiency are lack of credit and extension services and the non-usage of yield improving technologies such as high yielding improved seeds, fertilizer and herbicide. Lastly, inefficiency and profit-loss were high in upland rice production than lowland rice production. Key words: Liberia, profit-loss, inefficiency, smallholder rice farmers.
Highlights
Rice is the primary staple food crop for Liberia's 3.5 million people representing over 33% of their food consumption and accounting for approximately 50% of adult caloric intake; with an annual per capita consumption estimated at 133 kg (USAID-BEST, 2014)
Profit loss according to profit efficiency level per hectare among rice farmers The indication of profit loss is a chance of enhancing profit efficiency by identifying the source of profit loss
The study shows that high level of inefficiency exists with 33% of profit-loss among smallholder rice farmers due to a combination of technical and allocative inefficiencies
Summary
Rice is the primary staple food crop for Liberia's 3.5 million people representing over 33% of their food consumption and accounting for approximately 50% of adult caloric intake; with an annual per capita consumption estimated at 133 kg (USAID-BEST, 2014). Rice is largely a price-inelastic commodity in the household, reinforcing the colloquial expression that “one has not eaten that day if one has not eaten rice” (USAID, 2009). In Liberia, rice and its price are considered politically sensitive. Tsimpo and Wodon (2008) estimated that a 20% rise in the price of rice would increase the poverty headcount by 3 to 4% points. The significance of rice in the Liberian diet can be elucidated by its demand and consumption pattern over the years.
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