Rice Marketing Outlets, Commercialization, and Welfare: Insights From Rural Ghana

Abstract

We investigated rice marketing outlets, commercialization, and welfare implications in rural Ghana. Primary data was gathered from 225 rural rice farmers. Fractional response, multinomial logistic, multivariate probit, and propensity score matching were estimated. Rice farmers in rural Ghana sell at farm gates, processing centers, local, district or regional capital markets. Rice marketing outlets are wholesalers, retailers and rice millers. About 62% of farmers produce rice mainly for sale, and 70% of rice produced in rural Ghana is sold. Majority of producers are high or medium commercialization rice farmers. Thus, rice commercialization (market participation) in rural Ghana is high. Credit, association membership, farm size, irrigated rice production, and commercial production enhance rice commercialization. However, rice commercialization reduces with education, household size, and distance to district capital. Welfare is highest for high commercialization rural rice farmers compared with low and medium commercialization farmers. Rice commercialization has positive implications on rural farmers’ welfare.