ANALYSIS OF RURAL HOUSEHOLDS ENGAGEMENT IN RICE RELATED ENTERPRISES IN EBONYI STATE, NIGERIA

ABSTRACT

The study analyzed rural households’ engagements in rice-related enterprises in Ebonyi State, Nigeria. Specifically, the study among other things examined the socioeconomic characteristics of the rural households’ engaged in rice-related enterprises, assessed the level of rural households’ engagement in rice-based enterprises, ascertained roles of household members in rice production, processing and marketing, determined the quantity of rice marketed among rural households, estimated income, expenditure, and profit of rural households engaged in rice marketing and assessed income made by provision of ancillary services in rice-based enterprises. The study made use of multi-stage random sampling procedure in selecting 180 respondents. Data for the study were collected with the use of structured questionnaire and analyzed with the use of both descriptive (frequency, percentage and mean score) and inferential statistics (functional analysis of multiple regression). The major results revealed a grand mean of (3.60) affirming that rural households in the study area were highly engaged in rice production, processing, marketing and other ancillary services embedded in rice enterprises. The result also revealed a mean of (4.24) affirming that the rural households in the study area were highly engaged in rice production, the result also revealed a mean of (4.02) affirming that the rural households in the study area were highly engaged in rice processing. Result also revealed a mean of (4.06) affirming that the rural households in the study area were highly engaged in rice marketing. Also youth males ranked 1st in contributing to households’ labour carrying out (31.96%), (28.95%) and (38.25%) of rice production, processing and marketing activities respectively. Result revealed that (47.30%) of rural households had income of (≤₦100,000). (13%) of the rice farmers produce above 1001 kg of paddy rice,  Rural households in rice-related enterprises were constrained by lack of capital (3.76), high cost of labour (3.66), scarcity of labour (3.23), pest and disease attack (3.18), lack of storage facilities (3.09), long distance to selling point (2.93) among others. The multiple regression results revealed that the coefficients of educational status (0.242, P≤0.01), farm size (0.122, P≤0.1), monthly income (0.269, P≤0.01) and extension contact (0.227, P≤0.05) significantly influenced rural households’ level of engagement in rice production. Again, the multiple regression result revealed that the coefficients of sex (-0.230, P≤0.01), households’ size (0.228, P≤0.01), farm size (0.191, P≤0.05) and extension contact (0.337, P≤0.01) significantly influence households’ level of engagement in rice processing. Multiple regression result also revealed that the coefficients of age (0.225, P≤0.01), marital status (0.222, P≤0.01) and extension contact (0.371, P≤0.01) significantly influenced level of households’ engagement in rice marketing. The study concluded that rural households in the study area were actively engaged in production, processing, marketing and provision of ancillary services in rice-related enterprises. This engagement has generated revenues to rural households and improved livelihoods of rural dwellers. It was thus recommended that young and educated youths should be encouraged by government at all level to engage in rice-related enterprises since the industry was dominated by rural households who were relatively young, active, productive, experienced and educated.

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Rice (Oryz spp) is a cereal crop with great economic value cultivated for human consumption and it is a necessary food in West Africa (Samarendu, 2013; Jumare, 2014). It is the sixth primary crop cultivated after sorghum, millet, cowpea, cassava and yam and most important staple food for most Nigerian, Nwalieji, H. U., Madukwe, M.C, Agwu, A.E and Umerah, M. I., (2014). It is probably the world’s most valuable food crop being the staple food for over 80% of the world’s population mostly in India, China, and lots of other countries in Africa and Asia (Dogara and Jumare, 2014). Harold and Tabo, (2015) stated that rice is quite possibly the most fundamental wellsprings of dietary energy in West Africa and third generally esteemed for Africa at large.

Rice is highly valued grain after wheat and it is generally eaten in several forms (Omoare, 2016). Rice is especially eaten as food crop for family food security. Bamidele, F.S, O. O. Abayomi and O. A. Esther, (2010) asserted that a normal Nigerian eats 24.8 kg of rice inside a year which portrays 9% of annual calorie intake. It is a relevant crop that is valuable in every area of life with socio-economic and socio cultural relevance. The global growing demand for rice has made rice enterprise a means of livelihood for rural households in Ebonyi State.

 Of all the food items, rice is the most widely consumed in Nigeria (Joseph, 2007). The crop is commonly consumed even as a food crop for household food security. The average Nigerian consumes 24.8 kg of   rice per year, representing 9% of annual calorie intake, (Bamidele et al., 2010). About 3 billion people eat rice everyday with Nigerians consuming 4.5 million metric tons. Though per capita consumption in Nigeria has increased, it still lags behind compared to the rest of West African sub region at 34 kg per capita according to Olaf E, Frederic L, Akande SO, Titilola SO, Akpokodje GOO, Oleg N, (2010).

The importance of rice to the economy of Nigeria cannot be over emphasized thus production of food for human consumption, employment, income to farmers and nation at large and provision of raw materials for industries. The ability to grow more rice has helped in the advancement of several communities within the country, while its failure has led to distribution of starvation, death and political uncertainty in many countries including Nigeria (Seck P.A et al., 2012; Oludare, 2014).

In Nigeria, utilization of rice remains at about 5.4 million measurement tones annually while yield is about 3.8 million tons (IFDC, 2008). The compliance to rice as food has experienced an increase not long ago by becoming a necessary crop in several countries within America and Africa (Seck P.A et al., 2012). It is critical for food security throughout Africa, and especially in Nigeria. For many decades, rice had the fastest growing consumption rate among all staple crops, determined in large part by huge growth in demand in urban centers (AfricaRice, 2011). Consumers are exhibiting a shift in preference from traditional staples (such as cassava, maize and yams) to rice (Federal Ministry of Agriculture and Rural Development, FMARD, 2012) and this has led to increase in rice consumption rate to production rate. The deficiency in production is made up by enormous importation of milled rice to overcome any barrier between home grown demand and supply in 2012 estimates, there is a demand of 5 million MT of rice yearly in Nigeria. However, only about 3.2 million MT are produced locally (Federal Ministry of Agriculture and Rural Development, FMARD, 2012) with a demand gap of 1.8 million metric tons. The inability to meet rice consumption needs through local production makes the country import-dependent (Onyenweaku and Ohajianya, (2008); Akinbile, (2010). Nigeria spends about ₦356 billion annually for about 2 million MT of milled rice (FMARD, 2011).

 Nigeria's rice processing limit is 2.8 million tons of paddy annually (Japan International Cooperation Agency (JICA), 2013). Nigeria is one of the world's significant importers of rice (Akinbile, 2010). In 2011/2012 evaluations, Nigeria was the biggest importer of rice on the planet, representing about 3.4 million metric tons (USDA/FAS, 2014).Nigeria positioned the second importer of rice in West Africa and the second biggest importer after indonesia (Cadoni and Angelucci, 2013) as referred to Onyekwena 2016. It is at present one of the biggest food importers on the planet with annual food import bill of about $10 billion (Obayelu, 2015; Oyediran, 2016). The worldwide developing demand for rice has made rice enterprises a means of livelihood for rural households and indeed a profitable enterprise for rural households in Nigeria mostly in Ebonyi State. 

Despite the enormous contributions of rice to the nation, its cultivation has dwindled regardless of the fact that Nigeria has climates that agrees with rain-fed lowland, irrigated lowland as well as upland rice production, (Sanni et al., 2005 cited in Omoare, 2016). Production is dominated by peasant farmers that utilize crude implements and local method generating greater than 80% of our national production.

Rice producers in Ebonyi State are mostly small holders who make use of crude implements with average farm size of less than two hectares and can be found growing in mixtures on farms. Out of 17 million hectares available for rice production only 4.6 million hectares are put to rice cultivation. In 2016, the quantity of rice production in Nigeria was assessed at 4.8 million tons (Food and Agricultural Organization-FAO, 2016). This further adjusts to statement by Ogunsumi, Ajayi, Amire and Williams (2013) on the gap between demand and supply of rice in Nigeria. The rice farmers focused on the degree of rice utilization in Nigeria with increase of 10% per annum because of changing purchaser inclinations in the midst of different variables. Unavailability of production resources and low productivity among rural households engaging in rice-related enterprises is occasioned by the utilization of low innovatively enabled farm implement which do not support large system of production.  In this way has been expanding weakness of these individuals who are frequently poor and denied with a base norm of life. For example, Fasoyiro and Yaiwo (2012) saw that in Nigeria, rice is primarily produced by poor farmers, whose production is characterized with low yield leading to inadequate production, aging farmers, poor technological know-how, etc. Also Uduma, Samson and Mure (2016) reported that the inability of local supply to meet up with the consumption rate (utilization) has led to the high import of rice in Nigeria. Importation of rice has further resulted to tremendous expense to Nigerian economy, rice imports opens the country to global market shocks with its related danger implications on food security.

 Absence of storage facilities associated with rice production, processing and marketing have strongly limited rural households’ level of engagement in these enterprises (Gourichon, 2013). The major constraints of rice production is in consistent with the findings of Matanmi, Adesiji, Owawusi and Oladipo (2011) which saw lack of rice processing machine (such as thresher and destoner) and financial constraints as the major perceived limiting factors in rice production. With respect to production, the use of crude implements has limited production rate. For rural households, this traditional system of rice farming contrasted with mechanical strategies and requires a generous proportion of workforce. Milling cost of production is high, which brings about excessive costs. The lack of infrastructure such as storage facilities, transportation systems, access to good roads, communication channels are also source of inefficiencies in the enterprise (Eden, 2012). Small scale production, processing and marketing of rice among rural households seems to be the key to rural poverty reduction. Nevertheless, it is observed that traditional method of rice production is inefficient and tedious. Nwalieji and Ojike (2018) observed that production and processing activities are dominated by small holders located in the rural communities of Nigeria. These small holders account for the greater percentage of rice output in the area but their output cannot satisfy local demands both quantitatively and qualitatively In 2016, the quantity of local rice production in Nigeria was estimated at 4.8 million tonnes (Food and Agricultural Organization-FAO, 2016).

In the developing world, rural areas are the economic backbone and contribute to overall economic growth by supplying surplus labor, food and raw materials to other growing sectors of the economy and hence contributed to the world’s development. Despite these significant contributions, however, rural areas are the most marginalized. They are characterized by food insecurity, unemployment, poverty, income inequality and lack of important socio-economic services. Subsistence producers  in the rural areas of low-income countries constitute over two-thirds of the global poor and food insecure populations (IFAD., 2010, FAO, 2014). In view of the above, this study tends to analyze rural households’ engagement in rice-related enterprises in Ebonyi state.

1.2  PROBLEM STATEMENT

Many rural farm households in Nigeria are constrained by  host of challenges such as low productivity; high cost of labour; limited access to productive assets and inputs; inadequate support services (extension and research); inadequate market and rural infrastructure; post-harvest losses and a constrained enabling environment (IFAD, 2012). The extent to which these challenges have constrained rural households engaged in rice-related enterprises in Ebonyi State is equally not known. Thus such information needs to be established through an empirical study.

Also, many rural households in Ebonyi State, Nigeria are actively involved in several rice-related businesses such as rice production, processing, marketing and other ancillary services embedded in rice enterprises. However, the status of rice-related enterprises as livelihood strategies, their underlying determinants, and outcomes among rural households in Ebonyi State have been seldom documented. It is important to fill such knowledge gaps.

Similarly, Ebonyi State is a commercial hub for rice production, processing, marketing and other related enterprises with most rural households wholly dependent on them for sustenance. However, there is still dearth of information on the extent and patterns of rural households’ engagement in these enterprises. There is also still paucity of empirical information on contributions of the various enterprises to the economy of rural households in Ebonyi State, Nigeria. This study is therefore conceived and designed to analyze rural households’ engagement in rice-related enterprises in Ebonyi State, Nigeria.

Rural households in Ebonyi State are making frantic efforts to pull out of poverty and strengthen their household economy through engagement in rice-related enterprises.  These efforts indeed have contributed immensely in securing the livelihoods and general wellbeing of the rural households owing principally to the regular income generated thereby. Nevertheless, the proportions of contribution of the various enterprises to the households’ economy have not yet been established. It is therefore needful to provide such information through an empirical study.

Rice industry is a source of livelihood to large proportion of households in the rural area of Ebonyi State, Nigeria. The employment opportunities in rice industry are numerous ranging from nursery of rice, plantation farming, processing activities, rice milling and marketing, but the level of engagement of rural households in these all important, self sustaining and occupational activities in Ebonyi State Nigeria is unknown. It is against this backdrop that this study analyzed rural households’ engagement in rice-related enterprises.

Furthermore, researches (Nwalieji and  Ojike, 2018; Ukwuten., Eboh and Ochejaa 2018), have revealed other fundamental problems such as tenure- right which is the most tenancy- right through leasing and rent, lack of land for planting of rice, inefficient method of harvesting and conveying rice, poor market price also pose serious challenges to rice production and processing among rural households in the study area, the extent to which these challenges have constrained these rural households is not known. It is very important that this information is established empirically.

1.3  RESEARCH QUESTIONS

The study was guided by the following research questions:

      i.         what are the socioeconomic characteristics of the rural households engaging in rice-related enterprises?

     ii.         what is the level of engagement of rural households in rice-related enterprises?

   iii.         what are the roles of household members in rice production, processing and marketing activities?

   iv.         what is the quantity of paddy rice produced among rural households?

     v.         what are the income, expenditure, and profit of rural households engaged in rice production, processing and marketing?

   vi.         what are the quantities of rice processed (milled) among rural households?

  vii.         what is the quantity of rice marketed among rural households?

viii.         what is the income made by provision of ancillary services in rice-based enterprises?

   ix.         what are the constraints associated with rice production, processing and marketing?

1.4 OBJECTIVES OF THE STUDY

The broad objective of the study is to analyze rural households’ engagement in rice-related enterprises in Ebonyi State, Nigeria. The specific objectives of the study include:

      i.         describe the socioeconomic characteristics of the rural households engaging in rice-related enterprises in the study area

     ii.         assess  level  of engagement  of rural  households in rice-based enterprises

   iii.         ascertain roles of household members in rice production, processing and marketing

   iv.         determine the quantity of paddy rice produced among rural households

     v.         estimate income, expenditure and profit of rural households engaged in rice production, processing and marketing

   vi.         determine the quantity of rice  processed (milled) among rural households

  vii.         determine the quantity of rice  marketed among rural households

viii.         assess income made by provision of ancillary services in rice-based enterprises

   ix.         ascertain the constraints associated with rice production, processing and marketing.

1.5 HYPOTHESES OF THE STUDY

H0₁: The socioeconomic characteristics of rural households have no significant effects on the level of their engagement in rice production in the study area.

H0₂: The socioeconomic characteristics of rural households have no significant effects on the level of their engagement in rice processing in the study area.

H0₃: The socioeconomic characteristics of rural households have no significant effects on the level of their engagement in rice marketing in the study area.

1.6 JUSTIFICATION OF THE STUDY

The study aimed to analyze the rural households’ engagement in rice-related enterprises in Ebonyi State, Nigeria. The findings of this study will provide relevant information to households’ that would enhance the competitiveness among participants of rice-related enterprises in Ebonyi State. This exploration will in general bring to the front the ideal rice endeavor blends in the investigation region, just as the distribution of the increases inside the value chain. This would be of tremendous advantage to the value chain actors, particularly the households who are asset constrained and need empirical data on the right production situation to receive in other to advance profit.

The implementation of such data from the after effects of this investigation would inspire improvements in rice production, processing and marketing.  Increased agricultural output can reduce food prices, to the benefit of all net food buyers in both rural and urban settings. Hence, if the results of this study are adopted by the rural households engaging in rice-related enterprises in Ebonyi state and in Nigeria generally, it would translate to higher supply of milled rice and in the long run translate to high prices of rice for producers and enable the rural household participants to maximize profit.

Researchers and students will benefit from this research as this will add to available literature on analysis of livelihoods of rural households engaging in rice-related enterprises as well as provide a stepping stone for further research.

In addition, the result of this research will be of immense benefit to the Federal, State and Local Governments. This work identified constraints and points of intervention that will assist government policy makers to introduce policies and programs that will strengthen the rural households participating in rice-related enterprises. The implementation of the findings would translate to increased rice production and thereby create markets and jobs that will in the end alleviate poverty. Foreign exchange could be saved and channeled to other developmental projects.

The findings on viable production system would encourage farmers to increase their production, hence encouraging local (domestic) supply. If this is sustained, the demand supply gap would be bridged, and in the long run, Nigeria can be an exporter of rice. The multiplier effect would be visible in areas of international trade, trade balance, gross domestic product, as well as foreign exchange earnings. It would also attract private investments in the rice sector. The observed gaps in this research would also be of immense benefit to researchers to carry out further studies that would make the rice sector competitive.

1.7  SCOPE OF THE STUDY

The scope of the study is delimited to the analysis of rural households’ engagement in rice-related enterprises in Ebonyi State, Nigerian. The target groups for this research were actors in rice-related enterprises such as rice farmers, processors, marketers and ancillary service providers in rice-related enterprises. The study described the socioeconomic characteristics of the rural households engaging in rice-related enterprises in the study area, assessed their level of engagement in rice-based enterprises. It also ascertained the  roles of household members in rice production, processing and marketing, determined the quantity of paddy rice produced among rural households, estimated income, expenditure and profit of rural households engaged in rice production, processing and marketing, determined the quantity of rice  processed (milled) among rural households, determined the quantity of rice  marketed among rural households, assessed income made by provision of ancillary services in rice-based enterprises and ascertained the constraints associated with rice production, processing and marketing.

1.8 DEFINITIONS OF TERMS

The following terms were used

Rice: Rice is a cereal grass that is cultivated extensively in warm climates for its edible grain. The starchy grain of this plant is used as a staple food throughout the world.

Rural Area: This is a geographical area situated outside urban setting with low population density and agriculture is their major source of livelihood.

Household: This comprises people who live in one house and share resources together as one united entity.

Rural households: Rural households are all the people who live together under the same roof and share resources in common in the rural area.

Production:  Production   involves combining raw materials to create utility.

Rice production: It is the growing of rice as food crops. It includes all the activities relating to pre-planting, planting and post planting activities.  For this study, production activities include site selection, land clearing and cultivation of land, rice planting, weeding, fertilizer applications, bird scaring, harvesting, threshing, bagging and transportation.

Rice processing: This is the removal of husk, milling the shelled rice to remove the bran layer, and additional whitening steps to meet market expectations for the appearance of rice grain. It includes all the activities relating to soaking rice in water, parboiling, sun drying, rice milling, winnowing of milled rice, destoning, etc

Rice marketing: Marketing here implies distribution of processed rice from the point of production to the final consumers. It can also be defined as a process of satisfying human needs by bringing products to people in the proper form and at a proper time and place. Marketing has economic value because it gives form, time, place, utility to products and services. In this study, rice marketing involves all the activities relating to buying and selling of rice such as buying, grading of rice, packaging, selling, etc.

Ancillary services: It involves provision of necessary supports to the primary activities in rice-related enterprises. In this study, ancillary services include supply of water, firewood, loading and off loading of rice, selling of bags, transportation, etc.

Enterprise: Enterprise is any project taken to make profit

Engagement: Engagement here refers to ones’ participation in rice production, processing, marketing and ancillary activities as rice-related enterprise.

1.9 LIMITATIONS OF THE STUDY

The study encountered the following limitations during data collection:

      i.         During the distribution of questionnaires, respondents were reluctant to accept the questionnaires for reasons best known to them. But with constant persuasion, they accepted and filled the questionnaires.

     ii.         The distribution of the questionnaires was very cumbersome, time and money demanding because, the three agricultural zones were far apart and to ensure proper representation of each of these zones, time, energy and money were committed to achieve it. It was also stressful travelling to such a long distance.

   iii.         The retrieval of the questionnaires was not too easy because, most of rural households in rice-based enterprises complained that they have busy schedule while some could not read nor write but with constant persuasion and commitment, they were able to comply.  

   iv.         There was a dearth of information due to lack of adequate record keeping. This gave room for some data to be estimated.

     v.         There were some difficulties in getting accurate information from the rural households because most of them believed that they were exposing their business strategies, but with constant persuasion and commitment, they were able to comply. 

         In spite of the above mentioned challenges, with serious perseverance and commitment, all the objectives of the research work were achieved.

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