Rice Value Chain Research Articles

Analysis of the Rice Value Chain and Implications for Development Cooperation in Ghana

Analysis of the Rice Value Chain and Implications for Development Cooperation in Ghana

Developing Stakeholders' Participatory Framework in Rice Agribusiness: The Case of Pandan Wangi Rice from Indonesia

Rice is an important food crop in Indonesia pointing to the fact that majority of 267.7 million of Indonesian people consume rice in daily basis. Among hundreds of rice varieties in Indonesia, Pandan Wangi rice is superior rice cultivar and gains Geographical Indication (GI) certification for its unique characteristics. These attributes largely correspond with previous research finding of rice-eating consumers, which chose special features, quality of rice and certification logo as their rice preference (Sakolwitayanon et al., 2018). Despite the huge potential market and superior quality, the growth of Pandan Wangi rice agribusiness is still low. Previous research identified the need of stakeholder analysis to bring up development of rice agricultural sector (e.g. Spangenberg et al., 2018). However, current stakeholder analysis guideline is considered too general, lack applicability in stakeholder identification and good practice, and need a systematic framework particularly in a complex setting (Wang and Anies, 2019). Karakosta et al. (2017) suggested stakeholders' participatory approach which is capable of providing more accurate result based on key stakeholders' opinion in their specific area of expertise. In particular, Krywkow and Hare (2008) have developed four main phases of participatory processes: first, preparation of problem analysis and stakeholder layer; second, stakeholders' familiarization of problem and planning; third, dialogue among stakeholders to gain more solid information and contribute knowledge; and fourth, gaining response from the participants and validating the results. In view of the above, there is a need to investigate participation of key stakeholders in Pandan Wangi rice value chain as an effort to maximize Pandan Wangi rice business potential. Accordingly, the objective of this study is to develop stakeholder's participatory framework as the guideline tools to solve rice agribusiness growth problem. In particular, we assess preference of rice eating consumers, of which the result will generate input for the framework development and thus, allowing Pandan Wangi rice agribusiness to achieve the expected outcomes. Keywords: consumer preference; geographical indication; participatory framework; rice producer; stakeholders

Rice Value Chain Analysis in the Philippines: Value Addition, Constraints, and Upgrading Strategies

Using the value chain analysis (VCA) framework, this research analyzed the rice value chain (RVC) in the Philippines, examined the value additions, identified constraints, and proposed upgrading strategies to enhance the competitiveness of the rice industry and the specific segments in the RVC. Primary data were derived from key informant interviews in government and non-government agencies, surveys from farmers, paddy traders, millers, wholesalers, wholesaler-retailers, and retailers in 20 major rice-producing provinces and demand centers. Stakeholders’ workshops were also conducted to validate the preliminary findings and identify upgrading strategies. Descriptive and economic approaches were applied in data analysis. The country’s RVC starts with the provision of inputs to produce paddy, and ends with the consumption of milled rice. The RVC is dominated by a traditional multi-layered supply chain with interconnected chain actors composed of competing farmers, paddy traders, millers, and rice traders in each segment and, oftentimes, with the engagement of brokers in both paddy aggregation and rice distribution, thereby, increasing marketing cost. The major constraints identified in the RVC included high production and marketing costs of paddy and rice attributed to low yield, high labor cost and material inputs, and insufficient crucial infrastructure and market facilities (e.g., modern mills, dryer, cheap transport, and energy), which result in high domestic paddy and rice prices, and low competitiveness of the entire rice VC. To enhance the level of competitiveness, the rice industry should concentrate on generating and promoting yield-increasing, postharvest loss-reducing, and cost-minimizing technologies, as well as those that improve overall efficiency in the RVC such as investments in enabling infrastructure, and facilities for transport, handling, storage, drying and milling.

Rice Value Chain Analysis in the Philippines: Value Addition, Constraints, and Upgrading Strategies

Using the value chain analysis (VCA) framework, this research analyzed the rice value chain (RVC) in the Philippines, examined the value additions, identified constraints, and proposed upgrading strategies to enhance the competitiveness of the rice industry and the specific segments in the RVC. Primary data were derived from key informant interviews in government and non-government agencies or NGOs, surveys from farmers, paddy traders, millers, wholesalers, wholesaler-retailers, and retailers in 20 major rice-producing provinces and demand centers. Stakeholders’ workshops were also conducted to validate the preliminary findings and identify upgrading strategies. Descriptive and economic approaches were applied in data analysis. The country’s RVC starts with the provision of inputs to produce paddy, and ends with the consumption of milled rice.The RVC is dominated by a traditional multi-layered supply chain with interconnected chain actors composed of competing farmers, paddy traders, millers, and rice traders in each segment and, oftentimes, with the engagement of brokers in both paddy aggregation and rice distribution, thereby, increasing marketing cost. The major constraints identified in the RVC included high production and marketing costs of paddy and rice attributed to low yield, high labor cost and material inputs, and insufficient crucial infrastructure and market facilities (e.g., modern mills, dryer, cheap transport, and energy), which result in high domestic paddy and rice prices, and low competitiveness of the entire rice VC. To enhance the level of competitiveness, the rice industry should concentrate on generating and promoting yield-increasing, postharvest loss-reducing, and cost-minimizing technologies, as well as those that improve overall efficiency in the RVC such as investments in enabling infrastructure, and facilities for transport, handling, storage, drying and milling.

Integrated production of food, energy, fuels and chemicals from rice crops: Multi-objective optimisation for efficient and sustainable value chains

Rice crops, which currently feed more than half of the world’s population, is crucial in global food systems. Creating more efficient and sustainable rice value chains can facilitate the realisation of United Nations’ Sustainable Development Goal of achieving zero hunger by 2050. Rice farming and milling suffer from interrelated techno-economic, policy and environmental constraints, whereas inefficient transport hamper rice distribution. Systematic and data-driven decision-making tools can help in understanding the complexity and in the formulation of effective strategies of national-level rice provision. For the first time, a multi-objective spatio-temporal mixed-integer linear programming model, based on the Value Web Model, was developed for rice value chains. The model can simultaneously optimise the value chains’ planning, design and operation for efficient and sustainable food provision with integrated production of energy, fuels and chemicals. It considers various impacts, such as costs and greenhouse gas (GHG) emissions, in order to quantify their trade-offs and identify synergies between food and energy sectors. The model was applied to the Philippines in order to determine rice value chains that will result in lowest cost and GHG emissions. Streamlining value chains can prompt the country to be 100% rice self-sufficient without additional farmlands expansion and potentially reduce retail prices. Integrating energy and food production can result in increased total farm productivity and reductions in GHG emissions by 25% and 24%, respectively, with minimal land expansion required. However, careful and strategic planning is required when implementing multi-product rice value chains as integrated production of food, energy, fuels and chemicals could require 70% more farmlands and generate twice more GHG emissions relative to the food production only scenarios.

Gender differences in rice value chain participation and career preferences of rural youth in India

ABSTRACT Ageing farming communities and youth abandoning agriculture are serious issues, with attracting and retaining youth in agriculture a key challenge. This article reports on a gender-sensitive study of rural youth conducted in eastern India. The willingness to be involved in agriculture varies across region and gender, with the high readiness of female youths signalling a feminisation in agriculture. Involvement in value chain activities has a significant and positive impact on career choice. Youth policy needs to address the different preferences and facilitation requirements of male and female youth, in order to change youth’s aspiration and be inclusive of both genders.

Assessing the market power of millers and wholesalers in the Bangladesh rice sector

PurposeBecause of the increasing differential between farm and retail prices, the study proposes to investigate the extent of market power in the rice value chain of Bangladesh using advanced econometric techniques.Design/methodology/approachUsing a Stochastic Frontier Estimation approach on cross-sectional data, the study examines the price spread along the rice value chain to determine whether millers and wholesalers exercise market power.FindingsEmpirical results reveal that, on average, rice millers and wholesalers charge 33 and 29% above the marginal cost, respectively. This study confirms the non-competitive behavior of the rice market with wholesalers and millers wielding substantial market powerResearch limitations/implicationsA limitation of the study is that it does not include the retailers who also play a major role in the Bangladesh rice value chain. This is left for future study.Originality/valueThis study combines primary and secondary data collected on the Bangladesh rice sector to examine the market power of two major players along the value chain, millers and wholesalers, using an advanced econometrics approach.

Policy options for mitigating impacts of COVID-19 on domestic rice value chains and food security in West Africa

Rice plays a strategic role in food security in West Africa. However, the region increasingly relies on rice imports due to a growing and structural deficit, and domestic value chains face constraints in technology, finance and coordination. As a result, West Africa is very vulnerable to international and local trade disruptions, such as the ones currently inflicted by the COVID-19 pandemic. We build on evidence of the current state of domestic rice value chain upgrading in West Africa to anticipate the impacts of the COVID-19 pandemic on rice value chains’ resilience and their capacity to sustain food security in the region. Several policy options are proposed to help West African governments mitigate the impacts of the COVID-19 crisis on food security.

Social networks, rice value chain participation and market performance of smallholder farmers in Ghana

AbstractThis paper examines the impact of rice value chain participation and social networks on smallholder farmers' market performance outcomes (paddy price, quantity of paddy traded, and net returns), using data from a recent survey of 458 smallholder rice farmers in northern Ghana. We employed a treatment effects model to account for potential selection bias associated with observable and unobservable factors. The empirical results reveal that smallholder farmers' participation in a rice value chain is associated with increased paddy price, quantity traded, and net returns. We also find that value chain participation decisions and market performance are positively and significantly influenced by social networks. The empirical results also suggest that sex, farm size, mobile phone ownership, and access to credit significantly increase paddy prices, quantity traded, and net returns of smallholder rice farmers in the value chain.

Market and Welfare Effects of Food Security Policies on Smallholder Rice Farmers and Consumers in Sierra Leone

This research examines the market and welfare effects of three food security policy options in Sierra Leone in response to the high rate of rice importation and rising rice prices over the last decade. These policies aimed at curbing the rate of rice importation, promoting local rice production, and enhancing welfare of smallholder rice farmers in rural communities. The policies investigated included: 1) reinstating tariffs on rice imports, 2) promoting value-chain strengthening interventions that increase production of locally produced rice and 3) instituting a quota (or some quantity restriction) on rice imports. A log-linear comparative static displacement model was used to carry out the analysis. For the first policy, 20%, 30% and 40% shocks were introduced in the equilibrium system to represent decreases in the quantity of rice imported as a result of reinstating tariffs on imported rice. Results revealed that welfare of consumers and or smallholder farmers of locally produced rice was enhanced by 9.4% at a 10% tariff increase and 17.8% at a 20% tariff increase. Consumers of imported rice had their welfare enhanced by 3.5% at a 10% tariff increase while welfare was dis-enhanced by 5.4% at a 20% tariff increase. With a 10% increase in the supply of locally produced rice, there was a corresponding welfare enhancement on smallholder rice farmers and consumers by 14.43% and by 27% for a 20% increase in supply. Marginal increases were recorded for consumers of imported rice. The results show that the optimal policy in the current post-Ebola national recovery environment is one that increases local rice production through cultivation intensification and rice value chain efficiency.

Rapid participatory system mapping builds agri-food system resilience: evidence from Nigeria

ABSTRACT Participatory methods can be used to build food system resilience. However, it is widely acknowledged that these methods are usually highly time and resource consuming, which reduces their applicability. This study developed a novel rapid participatory system mapping method to elicit system conceptualizations from distinct value chain actors. This study also tested the method in a case study of rice value chains in Benue State, Nigeria. Participant evaluations of the rapid participatory system mapping method provide evidence of this method’s potential to contribute to resilience building by facilitating social learning, informing better decision making, and promoting community problem solving. These contributions especially strengthen the two resilience factors of social self-organization and reflective and shared learning. This novel rapid participatory system mapping method can be used in the future as a self-standing research approach, or to complement other participatory methods of food system resilience building.

Towards a more sustainable circular bioeconomy. Innovative approaches to rice residue valorization: The RiceRes case study

The paper reports an overview of the RiceRes project aiming at the multivalorization of all the wastes of the rice value chain, namely straw, husk and bran in order to improve resources eco-efficiency.A wide range of bio-products and bio-materials with different added value has been produced starting from these wastes in the framework of the RiceRes project. Among them, insulating materials for green building have been obtained from rice straw mixed with waste wool, biofillers from husk for polymer composites, mono- and di-glyceride mixtures and high-added value molecules for the food industry from bran.

The modernization of the rice value chain in Senegal: A move towards the Asian Quiet Revolution?

AbstractMotivationThe modernization of domestic food chains in India, Bangladesh and the People’s Republic of China is characterized by technological change and the integration of the collection function by the midstream segment. This has improved product quality and resulted in increased value added for value chain (VC) actors. In Africa, since the first world food crisis, governments have endeavoured to develop domestic value chains.PurposeThe purpose of this article is to review the dynamics of the rice value chain in Senegal in order to see the extent to which it follows the same trends as in Asia.Approach and methodsWe have completed the paradigm of Structure‐Conduct‐Performance with the Global Value Chain analysis framework, which highlights the influence that one stakeholder in a steering position can have on the distribution of tasks, skills and margins among the actors in the chain. We conducted 154 qualitative interviews to understand changes in governance. We also used data about 913 stakeholders to assess the competitiveness of the value chain.FindingsWe found that the Senegalese rice value chain is undergoing modernization as in Asia. Nevertheless, in Senegal, (a) midstream actors already carried out paddy collection through spot transactions with a trend towards relational governance, (b) credit policies contributed directly to the shift in governance towards integration, and (c) the modern rice VC was able to compete in terms of cost with imports thanks to state intervention.Policy implicationsIn order to improve the competitiveness of this value chain, we recommend the inclusion of small‐scale processors in the modernization process through improved access to credit. We also suggest carrying out feasibility studies relating to the use of small‐scale mechanization.

Impact of Marketing Contracts on the Rice Yield of Senegal River Valley Producers

Rice is a strategic commodity for Senegal. However, local supply covers only 20-30% of domestic demand. The paradox is that this local rice has difficulty being marketed. Thus, agricultural marketing contracts could be an excellent lever to address this problem of rice marketing. The purpose of this study is to analyze the impact of these agricultural marketing contracts on the performance of producers in the Matam region using the LATE/LARF method. The data was collected in the Matam region in 2016-2017. The average local effect of treatment (LATE) has reduced the selection bias generated by observable and unobservable characteristics. The results of the estimate of the impact of the agricultural contract on the income of rice producers show that the participation of producers in the agricultural contract has increased their yields by about 2305.31 kg and income to 219,527.5 FCFA. The study allowed us to affirm that agricultural marketing contracts represent a resilient system of rice marketing in the Senegal River valley, as they can be a lever to link all the rice value chain’s stakeholders, for the benefit of everyone, especially small producers.

Moving smallholders up rice value chain: a system dynamics approach

PurposePaddy farmers form the backbone of food security. However, poverty plagues them despite having linked them to the rice value chain. To overcome this, the concept of involving smallholders in post-farm value chain stages is promoted. The purpose of this paper is to explore the potential of upgrading smallholder involvement in rice value chains through the adoption of a sustainability standard.Design/methodology/approachThe authors built a system dynamic model to capture both conventional and certified sub-value chains. The latter deviates from the conventional one and capitalizes on compliance to a sustainability standard.FindingsWhen compared to conventional farm gate sales methods, the simulations revealed obvious profitability of direct marketing with respect to certified sustainable rice. Although coupled with productivity growth, the simulations indicated the shift to standard adoption would likely to be both limited and slow.Originality/valueThe findings suggest that the profitability of a certified rice value chain will remain fettered. In order to enhance both farmer livelihood and food security, given the limited prospect of moving smallholders up that chain, the authors conclude that national policy should be rationalized and concentrated on the possibility of diversifying the end-use of rice through research, development and subsequent commercialization.

Lenders and borrowers’ collaboration-based risk mitigation credit market

Purpose The purpose of this paper is to study an innovative rice value chain financing system (VCFS) established in Benin, to identify the determinants of producers and processors access to formal credit, both at intensive and extensive margins. It focuses on multi-stakeholder platforms (MSP) which connect producers and processors in need of credit to potential financial lenders. Design/methodology/approach The empirical analysis uses rich cross-sectional survey data collected in Northern Benin in 2018. The sample consists of 215 rice producers and 217 rice processors randomly selected through a multi-stage sampling and interviewed with structured questionnaires. The empirical models analyze the determinants of the likelihood to receive a credit and the amount of credit received. To account for the sample selection and censored nature of the main outcome variable, the study considers a Heckman two-stage model coupled with a Tobit model for robustness checks. Findings The study finds that the MSP are effective in increasing access to formal credit and the amount borrowed. Producers and processors who are members of the MSP are more likely to receive credit and, conditional on being approved for credit borrower, a larger amount. Other key factors that significantly explain access to credit include the use of soft guarantee for securing a loan, the degree of participation in the platform and demographic characteristics. These findings are consistent across the Heckman and Tobit models. Research limitations/implications The study attempts to rigorously analyze the factors explaining producers and processors access to credit using cross-sectional survey data. But it has some limitations. The main limitation is the type of data used. Ideally, one would like to run a randomized control trial (RCT) to randomly assign participation in the MSP to causally estimate its impact of access to credit. The second-best option would be to have a panel data covering the period before and after the establishment of the platform. However, in the absence of an RCT or panel data, the study resorts to cross-sectional data and empirical models that account for sample selection bias and the censored nature of the credit received. Practical implications One of the key findings of the study is that participation in the MSP (through different value chain stages associations) increases access to formal credit. This highlights an important and effective mechanism, a well-coordinated value chains that integrated lenders, that policymakers can leverage to facilitate access to credit in the agricultural sector. Social implications Access to credit is important to boost agricultural productivity and income. Hence, the findings of the study have social implications in terms of poverty reduction in rural areas. Originality/value The study contributes to earlier theories and empirical studies on the demand for credit. It focuses on an innovative VCFS, increasingly adopted in many developing countries, adds originality and value to the understanding of mechanisms to unlock agricultural actors’ access to credit in low-income countries.

Towards Circular Economy Solutions for The Management of Rice Processing Residues to Bioenergy via Gasification

A techno-economic assessment of two circular economy scenarios related to fluidized bed gasification-based systems for combined heat and power (CHP) generation, fueled with rice processing wastes, was conducted. In the first scenario, a gasification unit with 42,700 t/y rice husks capacity provided a waste management industrial symbiosis solution for five small rice-processing companies (SMEs), located at the same area. In the second scenario, a unit of 18,300 t/y rice husks capacity provided a waste management solution to only one rice processing company at the place of waste generation, as a custom-made solution. The first scenario of a cooperative industrial symbiosis approach is the most economically viable, with an annual revenue of 168 €/(t*y) of treated rice husks, a very good payout time (POT = 1.05), and return in investment (ROI = 0.72). The techno-economic assessment was based on experiments performed at a laboratory-scale gasification rig, and on technological configurations of the SMARt-CHP system, a decentralized bioenergy generation system developed at Aristotle University, Greece. The experimental proof of concept of rice husks gasification was studied at a temperature range of 700 to 900 °C, under an under-stoichiometric ratio of O2/N2 (10/90 v/v) as the gasification agent. Producer gas’s Lower Heating Value (LHV) maximized at 800 °C (10.9 MJ/Nm3), while the char’s Brunauer Emmet Teller (BET) surface reached a max of 146 m2/g at 900 °C. Recommendations were provided for a pretreatment of rice husks in order to minimize de-fluidization problems of the gasification system due to Si-rich ash. With the application of this model, simultaneous utilization and processing of waste flows from various rice value chain can be achieved towards improving environmental performance of the companies and producing energy and fertilizer by using waste as a fuel and resource with value.

Value Chain Analysis on Pigmented Rice: A Case Study in Sleman Regency, Special Region of Yogyakarta, Indonesia

White rice has become the main source of carbohydrates, but in the last few years, red and black rice are getting more popular. Red and black rice can be an alternative food for people who wish to reduce the risk of diabetics due to its low glycemic index. Pigmented rice demand in Yogyakarta is continuously increasing. However, farmers are reluctant to plant pigmented rice because of their lower yields. Value chain analysis on pigmented rice is performed to provide the condition of the business’ performance for farmers who are not willing to work on pigmented rice yet. The objective of this study was to identify the main activities and to measure the performance of the value chain. The value chain performance was measured by calculating profit, marketing margin, and farmer’s share. In the business of pigmented rice nowadays, there are 5 actors involved, i.e. farmer, farmers group, association of farmers groups, distributor, and retailer. These five actors formed 5 value chains for red rice and 4 value chains for black rice. The main activities were cultivating, cropping, milling, sorting out, packing, and selling. The performance of the pigmented rice was as follows: on the red rice value chain, farmers earned the highest profit in each chain, except on the chain where the association of farmers groups was involved. The largest marketing margin was found on the farmer – association of farmer groups – retailer – end-user consumer chain. On the black rice value chain, farmers earned the highest profit in each chain, except on the chain where the farmers group was involved. The largest marketing margin found on the farmer – farmers group – distributor – retailer – end-user consumer chain. For both the red and the black rice value chain, the farmer’s highest share was obtained on the farmers – distributor – end-user consumer chain.

Social Dynamics of Gender Role in Rice Value Chain and Decision Making in Rural Bangladesh

The tribal women enjoyed more flexibility about mobility than the Muslim women in the study villages may due to religious and social custom. However, despite higher flexibility about mobility, the tribal women were not significantly empowered in decision making process than the Muslim women. A few women had registered ownership on agricultural land in the study villages. Similarly, ownership of other household resources was male dominated. There was wide variation in the participation of women in the farming activities between the Muslim dominant and tribal villages. Although some women participated in the intercultural operations of non-rice crops, homeyard crops and rearing livestock but men were extensively participated in the intercultural operation of rice cultivation, and buying farm inputs and selling of marketable surplus in Mymensingh. However, the tribal women were equally participated in the farming activities (cultivation and marketing) with male.

Social Dynamics of Gender Role in Rice Value Chain and Decision Making in Rural Bangladesh

The tribal women enjoyed more flexibility about mobility than the Muslim women in the study villages may due to religious and social custom. However, despite higher flexibility about mobility, the tribal women were not significantly empowered in decision making process than the Muslim women. A few women had registered ownership on agricultural land in the study villages. Similarly, ownership of other household resources was male dominated. There was wide variation in the participation of women in the farming activities between the Muslim dominant and tribal villages. Although some women participated in the intercultural operations of non-rice crops, homeyard crops and rearing livestock but men were extensively participated in the intercultural operation of rice cultivation, and buying farm inputs and selling of marketable surplus in Mymensingh. However, the tribal women were equally participated in the farming activities (cultivation and marketing) with male.