ACCESSING THE IMPACT OF CONSUMER PREFERENCE FOR THE CONSUMPTION OF LOCALLY PRODUCED RICE IN ABIA STATE, NIGERIA.

ABSTRACT

The study examined the impact of consumer preference for consumption of locally produced rice in Abia State. The study examined that price, quality, availability, packaging influence the consumption of local rice in Abia State. Questionnaire was used to sought information from respondents in Abia State. Data was analyzed with logistic regression model. It was discovered that price, quality.  Availability influence the consumption of rice in Abia. Product packaging was not a major factor in Abia State. It was recommended that producer/ Marketers should improve on the product quality and add attributes like the foreign rice.

TABLE OF CONTENTS

Title  -          -         -         -         -         -         -         -         -          -         -                   i

Declaration -          -         -         -         -         -         -         -          -         -                   ii

Certification -        -         -         -         -         -         -         -          -         -                   iii

Dedication -           -         -         -         -         -         -         -          -         -                   iv

Acknowledgement -         -         -         -         -         -         -          -         -                   v

Table of contents-  -         -         -         -         -         -         -          -         -                   vi

List of tables-         -         -         -         -         -         -         -          -         -                   vii

Abstracts -   -         -         -         -         -         -         -         -          -         -                   viii

           CHAPTER ONE

1.0       INTRODUCTION-          -         -         -         -         -         - -         -         -         1

1.1       Background of the Study -         -         -         -         -         - -         -         -         1

1.4       Statement of the Problem -         -         -         -         -         -      -         -         -         3

1.5       Objective of the Study-    -         -         -         -         -         -      -         -         -         4

1.6       Research Questions-        -         -         -         -         -         -      -         -         -         5

1.5       Research Hypotheses-      -         -         -         -         -         - -         -         -         5

1.6       Significance of the Study -         -         -         -         -         - -         -         -         6

1.7       Scope of the Study-         -         -         -         -         -         - -         -         -         6

           CHAPTER TWO

           REVIEW OF RELATED LITERATURE

2.1     Conceptual Framework-  -         -         -         -         -         - -         -         -         7

2.2     Consumer Preference on Locally Produced Rice-    -         - -         -         -         8

2.3     Impact of Trade on Domestic Rice Production in Nigeria  - -         -         -         11

2.4     Consumers’ Perception on locally Produced Rice Abia State- -         -         -         11

2.5     Determinants of Consumer Preference for Rice -     -         - -         -         -         16

2.6     Government Intervention in locally produced Rice in Nigeria -         -         -         18

2.6.1 Sectorial Policies aimed at Boosting Rice Production over the years -          -         -         19

2.7     Theoretical Framework-  -         -         -         -         -         - -         -         -         24

2.8     Empirical Review -         -         -         -         -         -         - -         -         -         25

          CHAPTER THREE

          RESEARCH METHODOLOGY

3.1     Research Design    -         -         -         -         -         -         - -         -         -         29

3.2     Area of the Study  -         -         -         -         -         -         - -         -         -         29

3.3     Population of the Study   -         -         -         -         -         - -         -         -         30

3.5      Sampling Procedure         -         -         -         -         -         -     -         -         -         30

3.6          Method of data Collection -       -         -         -         -         -      -         -         -         31

3.6      Validation of the Instrument-     -         -         -         -         -     -         -         -         31

3.7     Reliability of the Instrument-     -         -         -         -         - -         -         -         32

3.8     Method of Data Analysis-          -         -         -         -         - -         -         -         32

3.9     Models of Consumer Preference -        -         -         -         - -         -         -         32

          CHAPTER FOUR

          RESULTS AND DISCUSSION

4.0     Presentation and analysis of data-        -         -         -         - -         -         -         35

4.1    Distribution of questionnaire     -         -         -         -         -         -         -         -         35

  4.1.2 General demographic variables  -         -         -         -         - -         -         -         36                                                                    4.1.3  Response to key components of hypothetical variables-    - -         -         -         38

 4.1.4   Test of Hypothesis -         -         -         -         -         -         - -         -         -         39

          CHAPTER FIVE

5.0     Summary, Conclusion and Recommendation 

5.1      Summary and Conclusion-         -         -         -         -         -     -         -         -         43

5.2     Recommendation- -         -         -         -         -         -         - -         -         -         43

References   -         -         -         -         -         -         -         -         - -         -         -         45

Appendix -   -         -         -         -         -         -         -         -         - -         -         -        

List of Tables

4.1    Distribution of questionnaire     -         -         -         -         -         -         -         -         35

  4.1.2 General demographic variables  -         -         -         -         - -         -         -         36                                                                    4.1.3  Response to key components of hypothetical variables-    - -         -         -         38

 4.1.4   Test of Hypothesis-          -         -         -         -         -         - -         -         -         39

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Rice is one of the world most important cereal. It is a staple food for more than 50% of the world population (Okoruwa and Ogundele, 2004) and accounts for about 60 – 70% of total food intake in the world (FAO, 2004). About 90% of rice is eaten in the form of various cooked preparations (FAO, 2010) in addition to its uses as livestock feed, raw material for industries, fuel and mulching material. Furthermore, rice production generates employment and provides income to its operators. In view of the enormous importance of rice, there has been growing concern on how resources can be efficiently utilized to boost its production, especially by minimizing production cost to maximize profit.

Rice is grown in over 100 countries of the world (Oko et al., 2012). Over 95% of the global rice production comes from the developing countries (FAOSTAT, 2008) and Nigeria is the leading producer of the commodity in the West African sub-region (FAOSTAT, 2008). Rice is grown in virtually all the Agro-ecological zones of the country with the highest proportion of the production coming from the North Central Agro-ecological zone. However, the production of the commodity did not meet the increasing demand due to the rapidly increasing population growth and shift in consumers’ preferences towards rice (Ahmadu, 2011).

Despite the recent increase in Nigeria’s production of rice, rice importation is still required to meet the national demand. The inability of Nigeria’s to supply enough rice to meet the national demand could partially be attributed to challenges facing local rice farmers which include unpredictable weather, shortage of storage facilities and low farm returns.  

A number of factors could explain consumer’s preference for locally produced rice. Usually, consumers are more concerned about the price and the quality of the commodity they purchase (Diako et al 2010). Consumer preference for rice may vary from one country to the other. Whereas consumers in America have high preference for rice with specific cooking types, menu and processing characteristics, consumers in Middle East have high affinity for long grain and well-milled rice with strong aroma; however, consumers in Europe tend to favour long grain rice with no scent (Musa et al, 2011). Nigerian consumer’s high affinity for imported rice could partly be attributed to the poor quality and non-availability of the domestically produced rice. Domestically milled rice is of poor quality and only a small portion of it is made available at the key urban markets. This is because local rice is produce mostly by farm households at subsistence level of which a portion is kept for family and the surplus been sold at the village market centers. Moreover, Nwanze et al., (2006) and Tomlins et al., (2005) reported that consumers in Nigeria pay particular attention to grain quality and favourable pricing in their choice for rice types. Similarly, Asante et al., (2013) reported that Nigerian consumers prefer imported rice to locally produced rice because of absence of foreign material, better grain quality, ease of cooking and fragrance. Apart from price and grain characteristics that influence consumer’s rice preference, there are other socio-economic factors that could explain consumer’s preference for locally produced in Nigeria and other parts of the world. Kassali et al., (2012) in analyzing the determinants of rice in Abia state, Nigeria concluded that income of household head and household size among other factors significantly influence consumer’s demand for rice.

1.2 Statement of the Problem

Rice is an important staple food worldwide. According to Jones (1995), rice is the second most important cereal in the world after wheat in terms of production. Nigeria is the largest net importer of rice in Africa and the second largest importer in the world; while Nigeria is ranked the highest producer and consumer of rice in the West Africa sub region. In spite of the importance of rice in Nigeria, its production does not exist without challenges. The small farmers have small holdings besides scarcity of capital and labour. Occasionally, crop failure is experienced due to the flooded rice field. In addition, productivity is often low (Oko et al., 2012). Increasing yield per unit area of the rice crop to boost its production remains a challenge. Other challenges facing farmers in the production of rice includes; unpredictable weather, shortage of storage facilities and low farm returns.   Ahmadu (2011) identified efficiency of resource use as one of the measures to increasing rice productivity and production. Thus, efficiency study has assumed an important dimension in rice production because resources are scarce and there is need to improve rice productivity.

The success of any farm business largely depends on the ability of the farmer to efficiently combine scarce resource in the right proportion to achieve a given level of output. However, farmers are characterized with inefficiency due to lack of facilities needed to boost their production, Availability, price and quantity of packaging have affected consumer preference and patronage of rice in Abia state, Nigeria. Many studies have been carried out in this area, either abroad or in the western part of the country towards enhancing production of locally produced rice in Abia State.

1.3 Objective of the Study

The main objective of the study is to examine the impact of consumer preference on locally produced rice in Abia State.

The specific objectives are to;

(i)            Ascertain the impact of price in consumption of locally produced rice in Abia State

(ii)          Ascertain if availability of product quality influences the consumption of locally produced rice.

(iii)        Ascertain the impact of packaging in consumption of locally produced rice.

(iv)         Ascertain the impact of product quality in consumption of locally produced rice.

1.7 Research Questions

(i)            To what extent determines consumer preference for locally produced rice in Abia State?

(ii)          How does the variables for consumer preference affect locally produced rice in Abia State?

(iii)        To what extent is the relationship between price and the consumption of locally produced rice in Abia State?

(iv)         How does the availability of product significantly influence the consumption of locally produced rice in Abia State?

(v)          To what extent is packaging a major determinant of consumption of locally produced rice in Abia State?

1.5 Research Hypotheses

For the purpose of the study, the following hypotheses will be tested in null form

H₀₁: There is no significant relationship between price and the consumption of local rice in Abia State.

H₀₂: There is no significant relationship between product quality and consumption of local rice in Abia state.

H₀₃: There is no significant relationship between availability and consumption of local rice in Abia State.

H₀₄: There is no significant relationship between packaging and the consumption of local rice in Abia State.

1.6 Significance of the Study

This study will be quite significant to the following group of people;

Producers of local rice: the study will enable them to know the importance of rice to the society, the study will also enlighten them on the challenges that cause their inefficiency in rice production. The study will also guide producers (farmers) to knowing the ways through which the challenges could be handled.

Government: rice is a very important food in Nigeria and one of the most consumed food in Nigeria. Irrespective of the importance of rice, Nigeria have not been able to meet up with the demand. However the study would enable the government to know the areas at which the production of local rice faces challenges as well as to bring solution to those challenges.

Consumers: consumers are affected when their demands are not met. An in-depth knowledge of this work will assist consumers in knowing the reason why local producers of rice have not been able to meet their demands.

Academic community: the study will serve as a reference material to scholars and researchers who would like to research on a similar topic in their future research.

1.7 Scope of the Study

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