Rice Value Chain Research Articles

Multi-stakeholders platforms as a process of innovation system learning: experience of sustainable and integrated exploitation of inland valleys in Benin

This research was prompted by the low used of the technologies and innovations developed by the researchers. This paper presents an experience of rice production intensification through multi-stakeholders platforms (MSP) in two provinces of Benin: Mono and Couffo. Its objective is to draw the lessons learned from this experience, especially the role and place of capacity building in the process. MSP process description and actors’ perceptions analysis serve as empirical evidence to reach this objective. Innovation systems perspective is used in this article. The innovation systems concept focuses not merely on the science suppliers but on the totality and interaction of actors involved in innovation. Innovation is viewed in a social and economic sense and not purely as a discovery and invention. MSP in this project is seen as a mechanism through which the various actors in local rice value chain, with common or divergent interests, come together to learn, act and innovate in a systemic manner. Capacity building has played a key role in the process of the MSP building. Actors’ perceptions are evaluated through the achievements so far and the weaknesses of the experience. Lessons learned and further challenges were described. The study suggested the use these lessons learned to promote MSP in the view to facilitate access the technologies and innovations for the clusters actors at grassroot level. Keywords: Multi-stakeholders platform, innovation systems, actors, capacity building, agribusiness.

Economic performance, gender and social networks in West African food systems

Abstract The objective of this article is to measure the effects of income and gender on informal social networks in the rice value chain. Using primary data collected on 490 entrepreneurs in Benin, Niger and Nigeria, the paper first demonstrates that the monthly profit of entrepreneurs is determined by their structural position within the rice value chain. The most prosperous actors are simultaneously deeply embedded in their community through numerous ties and capable of building connections with other communities outside their own ethnic groups and countries. The paper then analyses to what extent gender is a strong predictor of social ties. An econometric analysis shows that women are less central than men and that their income is much lower after controlling for age, experience, education, religion and matrimonial status.

English

This study aims to analyse the factors that influence the selection of governance structures by rice producers and processors in Benin. Unlike previous studies, the factors that influence the selection of governance structures are identified simultaneously for both producers and processors of paddy. Data were collected in Benin from about 300 producers and 140 processors of paddy randomly selected. The results indicate that 78% of producers and 92% of the processors use spot market for paddy transaction. Around a quarter of producers use at least two governance structures to sell paddy. Producers and processors belonging to an innovation platform are more likely to use formal contracts in their transactions. Also, producers and processors are more likely to use credit payment mechanism with formal contract. The findings suggest that innovation platforms can be used to facilitate contractual relationships between paddy producers and processors. Key words: Multivariate probit, market dynamics, African rice value chains, governance mechanisms. &nbsp

Inclusiveness of contract farming along the vertical coordination continuum: Evidence from the Vietnamese rice sector

The Vietnamese government is currently attempting to upgrade rice value chains in the Mekong River Delta by encouraging (i) vertical coordination between exporters and farmers through contract farming, and (ii) horizontal coordination among farmers through the “small farmers, large field” program. Previous studies on the determinants of contract farming participation assume that firms offer only a single contract type, whereas in reality, farmers may face a continuum of exclusive contract options. Devising correct and targeted policies for fostering contract inclusiveness hence crucially hinges on deploying correct econometric specification of the decision to participate in contract farming. We model contract farming participation and intensity in four different ways along the vertical coordination continuum: as a discrete, categorical, ordered, and continuous choice. We find that older, smaller and horizontally coordinated farmers with higher levels of trust in buyers tend to secure higher levels of buyer investment through increased vertical coordination. In contrast with the common finding in the literature that contract participation is biased towards larger farms, our findings from Vietnam suggest that the scale bias of contract farming could be successfully relaxed through horizontal coordination and even reversed under increasing levels of vertical coordination as smaller farmers are found to secure higher levels of buyer investment. These findings highlight the role both policies can play in fostering inclusiveness of contract farming in rice value chain upgrading in Vietnam.

Design Framework of a Traceability System for the Rice Agroindustry Supply Chain in West Java

Rice is a vital food commodity in Indonesia due to its role as a staple food for most Indonesian people. The rice supply chain in Indonesia varies from one region to another and it is difficult to trace movement along the chain from land to customers. This introduces non-transparency and uncertainty in the quantity and quality of rice at every node along the supply chain. The crucial issues of food safety and security, as well as consumer concern and curiosity in buying and consuming foods, increases the need for a traceability system for the rice value chain which can be easily and widely accessed. This paper describes the design framework of an IT (Information Technology)-based traceability system for the rice supply chain on web platforms. The system approach has been followed (where the system requirements are identified based on supply chain characteristics) and then the logical framework for implementing internal and external traceability was modeled using IDEF-0 (Integrated Definition Modeling). This paper further presents an explanation of the ERD (Entity Relationship Diagram) as an initial step to modeling the data requirements and a model of information exchange between stakeholders that explains the data that must be recorded and forwarded to the next stakeholder. Finally, we propose the CBIS (Computer Based Information System) concept to develop a traceability system in the rice supply chain.

Analysis of the Operational Constraints of the Rice Value Chain in Ayeyarwaddy Region, Myanmar

The rice industry is the most important agriculture subsector in Myanmar. However, far lower profits are gained from producing rice in Myanmar compared with those gained in other rice-producing ASEAN countries. This paper analyzes the operational constraints experienced by the different actors in the rice value chain in Myanmar. Both primary and secondary data on the rice value chain in Ayeyarwaddy Region, the main rice-growing area in Myanmar, were collected. The actors in the region suffer from constraints in material input, production, financial, distributional, and institutional. This study examines the actors’ profitability, together with their sociodemographic and operational characteristics, to provide proper policy guidelines to address constraints. The analysis revealed that the value chain in the study area is structurally inefficient, characterized by a large number of actors who face numerous constraints. Diverse policy recommendations are then put forward to improve the rice value chain in the Ayeyarwaddy Region. Stakeholders need to implement projects that would increase the quantity and quality of rice produced, ranging from input quality control to more efficient extension services. Credit and sufficient working capital should also be provided to make infrastructure investments possible at each stage of the value chain in order to improve production and profitability.

Post-Harvest Losses along the Rice Value Chain in Kwara State, Nigeria: An Assessment of Magnitude and Determinants

Abstract Post-harvest losses, particularly along the rice value chain, have been highlighted as a major source of reduction in revenue among the value chain actors. It is therefore imperative that empirical assessment of the magnitude and determinants be investigated, so as to be able to provide a reliable policy stand that can help reduce these losses. Patigi and Edu local government areas were purposively sampled from Kwara state, Nigeria, since they are the major producers of rice in the State. Data were gathered through the use of a questionnaire from 40 rice farmers, 40 rice processors and 40 rice marketers. Descriptive statistics and multiple linear regression model were used to analyze the data. The result showed that the loss was highest for farmers at 41-50 kg (₦14402.40) (1 Naira = 0.002772 U.S. $), 31-40 kg (₦2383.20) for processors and at less than 11 kg (₦398.30) for the marketers. Household size and farm size were significant at 1% in determining post-harvest losses for farmers, while only the household size was significant in determining post-harvest losses for processors. It was thus recommended that efficient milling machine should be introduced, particularly to rural rice processors, such that quality grains can be achieved.

DISTRIBUSI NILAI TAMBAH BERAS ORGANIK DENGAN PENDEKATAN KONSEP RANTAI NILAI

ABSTRACT
 Consumer awareness on food safety and organic product consumption has open up an opportunity for producers of organic products. The Somya Pertiwi Farmer Group is one of the organic rice cultivator that has been certified by LeSos. The purpose of this study is to analyze the flow of actors, products, financial, and information, as well as the distribution of value added in the value chain of organic rice agribusiness produce by Somya Pertiwi. This research was conducted along the value chain using forward and backward approach from the focus point of the research which is the Somya Pertiwi Farmer Group. The research shows that the actors’ flow devided by main and supporting actors. The product flows from upstream to downstream shows the transformation of 43,900 kg of dried organic red rice grain become 20,852 kg of organic red rice and 76,700 kg of dry organic white rice grain become 36,432 kg of organic white rice. The flow of information moves both from upstream, downstream, as well as from supporting institutions such as the Somya Pertiwi Farmer Group, LeSos, and also the Internal Control System. The most balanced value-added distribution is in the organic red rice value chain through UD Sari Bulan Utama with 41%-46% added value at the farmer level, 20%-23% at the processing unit, 19%-22% at the wholesaler level, and 9%-19% at the reseller level. Increase in the percentage of sales at the farmer level to increase farmers’ income. Processing unit can increase organic white rice value added by increasing the retail price. Government need to establish supervision at the wholesaler and retailer level.

Sustainability intent transforming staple food in the Greater Mekong Sub-region: Qualitative study of Low Input and Niche Rice Value Chain

Sustainability intent transforming staple food in the Greater Mekong Sub-region: Qualitative study of Low Input and Niche Rice Value Chain

Giải pháp hoàn thiện chuỗi giá trị lúa gạo huyện Phong Điền, thành phố Cần Thơ

The value chain approach method from Kaplinsky and Morris (2001) was used in this study to analyze the rice value chain in Phong Dien district of Can Tho city. The data of the study were collected from 92 observations, including households, traders, mills, food companies and retailers. Research results showed that the rice value chain is operated through four main market channels. Of which, Channel 1 and Channel 4 are two important channels in the export market (accounting for 47.83% of rice production). Channels 2 and 3 mainly focused on the domestic market and created the quite high value added. Among stakeholders involved in the chain, the household is the stakeholder created the value added and received the highest net value added among stakeholders. In addition, three solutions were proposed to agricultural sector for improving the rice value chain in Phong Dien district of Can Tho city, including (1) Developing the high quality rice fields, (2) Improving the agricultural forecast and market information system; (3) Strengthening technology transfer to farmers.

English

The article sought to discuss the impact of value chain development and local economic development among rice farmers in Asutuare in the Shai-Osudoku District Assembly of Ghana. The study specifically examined the actors in the rice value chain development process, their roles and how their roles shaped the final output for the consumer and the extent to which the value chain development and local economic development resulted in job opportunity creation, income generation, and poverty reduction in the area. Using the mixed method, the study found that the actors in the value chain process could be grouped into four. They are pre- production actors, which is made of actors involved in activities such as land preparation, tilling, bonding and spraying; production actors who are mainly made up of the actual rice farmers; post production actors who include those involved in harvesting, threshing milling among others; and financing system actors, which involves financial institutions and individual financiers (sponsors). The study opines that rice value chain and local economic development resulted in both direct and indirect employment and income generation for the rice farmers and the “agrigators”. However, there was a mixed outcome in poverty reduction in that 5.3% of the actors sampled for the study were below the poverty line, while the remaining 94.7% were above the poverty line. Challenges such as lack of access to finance, absence of sufficient rice processing factories, poor road networks, and lack of modern agriculture equipment were hindrances to effective rice value chain and local economic development promotion. Based on the findings and challenges, the following were recommended: the establishment of a rice processing factory in the Asutuare area as part of the One District One Factory policy, consistent fiscal policy aimed at supporting rice farmers in the locality, and the provision of modern equipment to modernize rice production. Key words: Local economic development, value chain, value chain development, poverty reduction.

Evaluation of Factors Affecting Sustainability of Upland Rice Value Chain Development for Food Security in Kakamega County, Kenya

Upland rice value chain development for food security studywas done in Kakamega county to contributeto knowledge on sustainability of new innovative technologies thus achieve food security and overall development as intended.

What is the value of sustainably-produced rice? Consumer evidence from experimental auctions in Vietnam

Little is known about the value of sustainably-produced rice and incentive mechanisms for the adoption of sustainable production standards throughout rice value chains in Southeast Asia. This study tests the feasibility of a market-based incentive mechanism by eliciting consumers’ willingness-to-pay (WTP) for rice produced and labeled under a national sustainable production standard in the South of Vietnam through experimental auctions. Domestic consumers are willing to pay a 9% price premium for certified sustainably-produced rice. This premium gradually increases up to 33% when incremental levels of information on certification and traceability are provided. Consumers willing to pay premiums for sustainably-produced rice are more health-conscious, have better knowledge of and greater trust in food quality certification for rice, and tend to be more environmentally conscious and to read food labels before purchasing. Findings suggest that sustainable production labels for rice should be accompanied by supplementary information on certification and traceability to increase consumers’ awareness and appreciation of sustainably-produced rice. Promoting certified sustainably-produced rice hence crucially hinges on strengthening consumers’ knowledge of and trust in food quality certification. Communication strategies are recommended to focus on the environmental and health benefits of sustainably-produced rice.

Impacts of contract farming in domestic grain chains on farmer income and food insecurity. Contrasted evidence from Senegal

Contract farming in export chains may upgrade producers’ livelihoods thanks to the access to improved inputs and high-value markets. We tested the hypotheses that contracts in domestic grain chains improve farmers’ incomes and reduce food insecurity. We studied the rice value chain in Senegal, where the national agricultural bank and rice millers draw up production and marketing contracts. We applied instrumental variables and propensity score matching models to a dataset of 470 observations to correct selection bias. We found that as a financial device, marketing contracts had no impact on agricultural practices, product quality or income but reduced food insecurity by mitigating price seasonality. Production contracts had a positive impact on the income of producers who were excluded from bank credit but included implicit interest and insurance costs, meaning that these producers make less profit than those financed by the bank. Policies supporting the modernization of domestic grain value chains in West Africa should promote credit insurance systems and support the negotiation of an incentive price in contracts.

Systemic Sustainability of the French Organic Rice and PGI Einkorn Value Chains: A Preliminary Assessment Based on Network Analysis

Public authorities and consumers increasingly support food value chains that are more environmentally friendly. However, these value chains are faced with technical, economic and institutional limitations, calling into question their long-term viability. Based on two case studies of alternative food chains in France, namely einkorn (Triticum monococcum) in Haute Provence and organic rice in the Camargue, we evaluated their capacity to remain both viable and environmentally, economically and socially sustainable. After assessing the traditional economic, social and environmental performance of their sustainability, we performed a network analysis to determine the survivability of the systems. The combined use of the traditional pillars of sustainability and the network analysis forms what we term the systemic sustainability. Results suggest that the einkorn value chain is characterised by a high degree of centrality represented by a producers’ association, although the systemic sustainability of the chain is reduced by its dependence on a leading processor. As for the organic rice value chain, centralised power is exerted by three companies embedded in a strong network of actors characterised by diversified connections. The paper concludes by highlighting the potential interest of conducting a network analysis to better determine the sustainability of food value chains.

Rice market information transfer system (mits) in the Mekong delta, Vietnam?

MITS had an important role in farmers’ production and trade. However, MITS in the Mekong delta, Vietnam was very weak. There were lacks of good sources and channels of market information, the market information was outdated, inaccurate and inadequate. In addition, farmers’ ability and knowledge to collect, analyze and use market information were also limited. Therefore, the aims of the paper are to have a real clear picture about the current MITS in the rice value chain in the Mekong delta of Vietnam (rice farmer’s demands of rice market information, sources of rice market information, channels of rice market information, rice market information utilization and impacts of MITS on rice farmers in the Mekong delta, Vietnam). This paper gives an overview about 15 structural interviews made with 15 rice farmers in the Mekong delta, Vietnam. The findings of this study show that rice farmers in the Mekong delta, Vietnam have been accessing and using market information from formal and informal sources (Governmental agencies, traders, farmers, and mass media) via 7 main channels (Television, newspaper, radio, Internet, phone, face-to-face meetings, loudspeaker) to increase the selling prices, rice income, to decrease the risks in rice production and trade and to improve negotiation ability of farmers with traders.

Determinants of smallholder farmers’ participation in rice value chains in Uganda

This study explored the key determinants of smallholder farmers’ participation in the One Stop Centre Farmer Association (OSCA) rice value chains in Uganda. Data were collected from 98 respondents in Luwero and Bugiri districts using focus group discussions and 20 key informant interviews, and analysed with NVIVO software. The findings indicated that style of leadership, trust, cohesive networks and support services were key determinants of participation. Minimal participation of some members occurred due to unrealistic expectations and incompetent leadership. Further, addressing OSCA objectives can mitigate ensuing expectations. Along with this, strengthening the OSCA leadership to entrench transparency and establishment of business models for integration of value chain interventions into the wider livelihood strategies is important in order to cater for interests of all the members.Key words: Participation, Smallholder farmers, Value chains, Networks.

Effect of agricultural trade openness on the producer prices of rice in Nigeria: Implications for agricultural trade policies

Recently, economies of the world have become increasingly linked through expanded international trade with discernible ffects on the developing nations, especially Africa, and in particular, Nigeria. This article therefore determined the effect of agricultural trade openness on the producer prices of rice in Nigeria.The study was based on secondary data, spanning 1993-2015.The study showed that agricultural trade openness reached all-time low in 1996 while noticeable peaks were observed in 2001, 2007 and then in 2011. In terms of the growth, the highest trade openness growth rate of 164.8 per cent was observed in1997, followed by 140.3 per cent in 2011. The review of producer prices revealed that producer prices had been on the rise, with noticeable peaks between 2005 and 2007, 2009 and then in 2013. Evidence from this article further establishedlong run inverse relationship between agricultural trade openness and producer prices of rice.The study recommended a follow-up on the Agricultural Transformation Agenda’s initiatives of integrated rice value chain development, substitution of local for imported rice and implementation of favourable tariff, operationalisation of favourable exchange rate regime and private sector led marketing boards, with the view to stabilizing the price of rice, ensuring quality, competitiveness and enhancing producers’ returns.Key words: Agricultural Trade openness; Producer Prices; Rice; Trade Policies

Innovation platform and governance of local rice value chains in Benin: Between game of power and internal democracy?

In Benin, rice plays a major role in the food security of the poorest rural and urban populations. However, the rice value chains have failed to achieve their potential because of some systemic con...

Moving toward Sustainable Rice Production in Northwest Dominican Republic

Pesticide runoff from the rice production area of Las Matas de Santa Cruz in NW Dominican Republic degrades biodiversity in the ecosystems of the Yaque del Norte River, Montecristi National Park, and Caribbean Sea. This degradation prompted the Dominican NGO AgroFrontera to develop a program for the creation of a new sustainable rice value chain, starting with the formation of a rice growers association in Las Matas. This project was to evaluate “organic” as a potential certification for the new growers association. The project found that while organic certification is years away, other barriers to a sustainable rice value chain exist: competition with US rice imports due to Dominican Republic-Central American Free Trade Agreement (DR-CAFTA), an informal labor system, and access to credit. Recommendations for the new growers association include: to lower the cost of production to compete with imports, to formalize the labor system, to mediate financing for rice producers, and to maintain balanced leverage across the value chain. A recommendation for future research is the resiliency of farmer institutions against internal corruption and in-fighting.