ABSTRACT
This study examined regulatory agencies effectiveness in positioning of made in Nigeria goods (A study of rice production and marketing). The specific objectives include to: ascertain the role of regulatory agencies in ensuring quality control of made in Nigeria rice; investigate the problems facing the production and marketing of made in Nigeria rice; determine the effect of product certification on consumer patronage of made in Nigeria rice; identify marketing techniques best for rice positioning in the study area. The data used in this study were primary data collected through the distribution of questionnaires. The Taro Yahmane method of sample size determination was used to select 151 farmers that engaged in rice production. Data obtained were analyzed using descriptive statistics. The socio-economic characteristics showed that the study area comprised of rice producers who were males with 80.1%, between 26-36 years (34.4%). The study showed that 55.0% and 37.1% of the respondents specialized on rice marketing/supply and rice production while 7.9% specialized on both rice production and marketing. The study showed that majority of the farmers (51.0%) had regulatory agency permit from Standard Organization of Nigeria (SON), while 21.9%, 19.9% and 9.3% had their regulatory agency permit from National Agency for Food and Drug Administration and Control (NAFDAC), other third party certification. The result showed that regulatory agencies plays a vital role in ensuring quality control of made in Nigeria rice with mean value of 2.5 and above. The result also showed that the respondents encountered several problems such as lack of finance, high transportation cost in rice production and marketing, price fluctuation and poor faming knowledge on modern rice technology. The result showed that product certification had no effect on consumer patronage of made in Nigeria rice with mean value of less than 2.5. The result further showed that bringing product closer to people, making sure that the product is never scarce, good/acceptable policy and regulatory framework, positioning through event/shows were the marketing techniques best for rice positioning in the study area with mean value of 2.5 and above. Based on the findings of the study, the researcher recommended that the government should set up programmes to enlighten the rice producers and marketers on the problem they faced and provide them with the necessary and adequate standard machineries that will aid them in large production and marketing of made in Nigeria rice; the government and trade unions should make favourable policies that will not infringe on the rights of the ice producers; regulatory agencies should educate the rice producers and marketers on the best marketing techniques for repositioning.
TABLE OF CONTENT
Title Page i
Declaration page ii
Certification Page iii
Dedication iv
Acknowledgments v
Table of Content vi
List of Tables ix
List of Figures x
Abstract xi
CHAPTER ONE
INTRODUCTION
1.1 Background to the
Study 1
1.2 Statement of the problem 5
1.3 Objectives of the Study 6
1.4 Research Questions 6
1.5 Research Hypotheses 7
1.6 Significance of the Study 7
1.7 Scope of the Study 8
1.8 Limitations of the Study 9
CHAPTER TWO
LITERATURE REVIEW
2.1 Conceptual
Framework 10
2.1.1 Concept
of Rice Production 10
2.1.2 Rice
production in Nigeria 10
2.1.3 Rice production systems in Nigeria 11
2.1.4 Rice
processing 14
2.1.4.1 Methods of rice processing 14
2.1.4.1.1 Traditional
Methods of Processing Rice Paddy 14
2.1.4.1.2 Modern
Methods of Processing Rice Paddy 15
2.1.5 Rice Storage 15
2.1.6 Concept of Agricultural Marketing 16
2.1.6.1 The Marketing
Techniques best for Rice Positioning 18
2.1.7 Regulatory agencies in Nigeria 19
2.1.7.1 Activities of the regulatory agencies 22
2.1.8 Problems Facing the Production and Marketing
of Made in Nigeria Rice 23
2.2 Theoretical Framework
2.2.1 Agency Theory 24
2.3 Empirical Review 25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 28
3.2 Area of the Study 28
3.3 Population of the Study 29
3.4 Sample Size Determination 29
3.5 Sources of Data 30
3.6 Method of Data Analysis 30
CHAPTER
FOUR
DATA
ANALYSIS, RESULTS AND INTERPRETATION
4.1 Presentation of Data: Analysis of
Questionnaire 31
4.2 Socio-Economic Characteristic of
Respondents 31
4.3 Area(s) of specialization 35
4.4 Level of Operation 36
4.5 Regulatory agencies permit 37
4.6 Role of regulatory agency in ensuring quality control of made in Nigeria Rice
4.7 Problems encountered by both rice marketers and producers 39
4.8 Effect of Product certification on consumer patronage on made in
Nigeria Rice 42
4.9 Marketing techniques best for rice positioning 43
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1
Summary 46
5.2 Conclusion 47
5.3 Recommendations 48
5.4 Limitations of the Study 48
REFERENCES 50
LIST OF TABLES
Table
4.1: Rate of Return of Questionnaire 31
Table 4.2 Distribution of respondents according to socio-economic characteristics 32
Table
4.3. Distribution of respondents according to Area of specialization 36
Table
4.4. Distribution of respondents according to level of operation 36
Table
4.5. Distribution of respondents according to regulatory agencies permit 37
Table 4.6. The role of regulatory agency in ensuring quality control of made in Nigeria Rice 38
Table 4.7. Problems encountered by both rice marketers and producers 40
Table 4.8. Effect of Product certification on consumer patronage on made in
Nigeria Rice 42
Table 4.9. The marketing techniques best for rice positioning 44
LIST OF FIGURES
Figure 1: Production of
Made in Nigeria rice 12
Figure 2: Processing of
Made in Nigeria rice 12
Figure 3: Packaging of
Made in Nigeria rice 12
CHAPTER ONE
INTRODUCTION
1.2 Background to the Study
The sustainability of economic development cannot ignore basic food
commodities particularly in developing countries such as Nigeria. Thus, basic
food commodities play important roles in economic development as their
availability and costs impinge on food security, expenditures and incomes of
households, particularly among poor segments of the population in both rural
and urban areas. Rice is one of such basic food, which occupies important lace
in household food basket and global food security. It is an important staple
food with rich cultural identity (Idris et
al, 2013). Thus, in America and Europe, it is frequently taken. In Africa,
rice is more important in the urban centres where evidence of rising level of
income is more prominent (Cruiz, 2009; Falaju, 2016).
More so, governmental policies enshrined under agricultural tends to
promulgate farming so as to meet the rising global food prices which has led to
the encouragement, local food production in Nigeria (Idris et al., 2013). Thus, local production of food such rice whose
demand is growing quickly due to population growth and urbanization. Nigeria’s
estimated annual rice demand is put at 5 million metric tons while annual
production on the average, was about 2.21 million tons of milled rice product
leaving a deficit of 2.79 million tons which is bridged by importation (NRDS,
2009). Domestic demand for rice is projected to rise to 7.5 million tons by
2013, on the assumption that demand rises at 10% per annum, with demand for
local rice growing at half the rate of the imported rice (NRDS, 2009). This
increase in demand is because rice has changed from being an elitist to a
staple food for many Nigerians.
Many local dishes are prepared with rice because of its relative case in
terms of storage and preparation. In terms of local production, rice is now one
of the main cereals produced by Nigerian farmers; it is cultivated in virtually
all the agro-ecological zones of Nigeria. It covers both the upland and the
swamps, depending on the variety (Agidi, 1993).
However, despite the increase in the production capacity of local rice
in Nigeria; it has not kept pace with the population density of its consumers.
NBS (2002) elucidated that the annual growth rate of food sub-sector is 2.0
percent while the annual population growth rate is 3.3 percent. This means that
a wide gap exists between food supply and the demand for food by Nigerians. As
against this backdrop has Nigerian government gone into agricultural policies in order to increase and diversify the production of
locally made goods especially local rice production among the member states of
Nigeria.
Okeoworo (2012), opines that it is consumption that adds value to
the product hence from marketing perspective, a product is not complete until
it gets to the final consumer. It is instructive to note that consumer have
varying factors that influence their choice of product. From the point of
rational choice, economic considerations most times do not favour good choice
due in the past to increase in demand for food safety and health consciousness
in the face of rising cases of healthcare related challenges occasioned by food
consumption. The need to increase food safety have seen rise in issues of
product traceability and certification. These are seen as measures to improve
consumer product acceptance and confidence.
The increase in production capacity of local rice has an explicit relation with its marketing in order to ensure availability to its consumers. Thus, marketing as a central channel through which supply can be equate with the demand of a product aimed at ascertaining the profitability of the local production. In Nigeria rice value chain, the main agent on the supply side are farmers, petty traders, millers, rice wholesalers and retailers adding value activities in production, harvesting, storage and paddy aggregation at traders’ level while parboiling, milling, wholesaling and retailing (Idris et al., 2013) aimed at the demand side —final consumer. These activities make marketing a cardinal determinant of frequency and intensity of product distribution facilitated through marketing intermediaries who add value along the supply chain. Through supply chain, the local produced rice are easily made available with its pricing, quality, quantity and returns accruing to each participant at every state (Okonkwo, 2016).
In Nigeria, rice consumption has risen tremendously at about 10% per annum due to changing consumer preferences (Akande, 2003). However, (Ebuehi et al., 2007) opines that despite all the efforts put-up by the Government to encourage high capacity of local rice production it was observed that most Nigerians prefer to consume imported rice brands as compared to local rice varieties. The reason is that most Nigerian rice processors lack adequate technology of rice processing to meet international standard. It is against this slack back that lead to the establishment of regulatory agencies which was promulgated in Nigeria by decree No. 66 of 1992, and signed into law on November 23, now the consumer protection council Act Cap; C25 LFN 2004, hereinafter referred to as the Act.
Furthermore, administrative intervention institutionalizing appropriate legal framework has been put in place, leading to the creation of some regulatory agencies. Hence, to achieve optimum utility of goods, there is need for regulations that would guide the quality of such goods. The agencies are citation with authority to supervise, monitor and regulate the activities of producers and providers of services (Basorun, 2013). The regulatory agencies of goods and services in Nigeria include the standards organization of Nigeria (SON), National Agency for Food, Drug Administration and Control (NAFDAC) and Nigeria Agricultural plant Quarantine Service (NAQS) and consumer Protection Council (NPC). A regulatory agency is a governmental body that is created by a legislature to implement and enforce specific laws.
An agency has quasi-legislative Functions, executive functions and judicial functions (Emodi and Madukwe, 2008). Regulatory agencies serve two primary function in government: they implement laws and they enforce laws. Regulations are the means by which a regulatory agency implements laws enacted by the legislature. Regulatory agencies deal in the areas of administrative law, regulatory law, secondary legislation, and rulemaking (codifying and enforcing rules and regulations and imposing supervision or oversight for the benefit of the public at large).
Over the last decade, NAFDAC has played a leading role in enforcing regulation and control of processed food imports, manufacturing, distribution and promotion. NAFDAC is the government of Nigeria’s (GON) food safety authority and responsible (Cruiz, 2009). For the regulation and distribution in Nigeria, it defines food as any “article manufactures, processed, packaged, sold or advertised for use as Food or drink for human consumption, chewing gum and any other ingredient which may be mixed with food for any purpose whatsoever.”
Made in Nigeria goods are locally produced goods whether consumable of non-consumables. This study will focus on rice production and marketing. Globally, rice is a very important food crop. It is an ancient crop consumed as healthy and staple food by more than half of the world population rice is very important staple food in the diet of the estimated 120 million Nigerians. It is consumed in various form but the most popular is as grains. Rice can be cultivated in, all the ecological zones of Nigeria, although with varying prospects from on location to the other (Echiegu, 1998).
Rice cultivation is widespread within the country Nigeria extending from the northern to southern zone with most rice grown in the eastern (Enugu, Cross River arid Ebonyi State) and middle belt (Benue, Kadunna, Niger and Taraba State) of the country (Bamidel, 2010).
1.2 Statement of the problem
Neglect of agricultural activities has been a very serious problem affecting both producers and marketers of agricultural produce in the country. This situation appears to be aggravated by government and policy makers who have not considered production and marketing of food crops as serious problems to the economic development of the nation (NBS, 2012; Okonkwo, 2012).
Thus, Nigeria’s (rice), supply chain has continued to grow more complex following the fast growing population of Nigeria. There is a widespread of fake and adulterated goods in the country which pose a significant threat to the health of consumers and the economy, such goods go unnoticed most of the times except in such cases where it results in mass deaths. Okeoworo (2012) opined that various government regulating agencies are poised with so many challenges ¡n their efforts to curb substandard are fake goods in the country while making efforts to improve made in Nigeria goods. Beside the above, several authors have highlighted challenges of marketing locally produced rice to include low quality of made in Nigeria goods, low patronize of local rice, marketing myopic tendencies, poor positioning of made in Nigeria rice/foods, absence of certification label/approved from regulatory authorities, trust issues, poor consumption of rice, sub-quality of manufactured rice, and corruption on the part of the agencies in charge of ensure standards in goods produced and distributed in the country. Poor government policies also hinder the growth and patronage of made in Nigeria goods.
It is against this backdrop that this study is anchored to evaluate the regulatory agencies effectiveness positioning of made in Nigeria goods using rice production and marketing as a study.
1.3 Objectives of the Study
The main objective of this study is to evaluate the regulatory agencies effectiveness in positioning of made in Nigeria goods using rice production and marketing as a study. The specific objectives are to:
i. ascertain the role of regulatory agencies in ensuring quality control of made in Nigeria rice.
ii. investigate the problems facing the production and marketing of made in Nigeria rice.
iii. determine the effect of product certification on consumer patronage of made in Nigeria rice.
iv. identify marketing techniques best for rice positioning in the study area.
1.4 Research Questions
Sequel to the specific objectives, the following research questions are formulated:
i. What is the role of regulatory agencies in ensuring quality control of made in Nigeria rice?
ii. What are the problems facing the production and marketing of made in Nigeria rice?
iii. What is the effect of product certification on consumer patronage of made in Nigeria rice?
iv. What is marketing techniques best for rice positioning in the study area?
1.5 Research Hypotheses
The following hypotheses formulated are stated in null form:
H01: there is no significant problems affecting the production and marketing made in Nigeria rice
H02: product certification has no significant effect on consumer patronage of made in Nigeria rice.
H03: there are no marketing techniques best for rice positioning in the study area.
1.6 Significance of the Study
The rationale behind embarking on this research to delve a means of curtailing some factors that hinders the consumption of local rice which include impeding factors such as poor quality, myopic tendency as it is perceived that goods produced in Nigeria arc of low standard. Thus, through this work the masses (Nigerian) will be enlightened on the need to believe in local produced goods.
Furthermore, this research work will be an invaluable source of literature for researchers and students, agricultural practitioners (farmers), government agencies and related field who might be interested in knowing the importance of effective positioning of made in Nigeria goods by regulatory agencies using rice production and marketing as a study.
Researchers and Students: the findings of this work serve as a stepping stone for further researches and can also serve as reference material.
Agricultural Practitioners (Farmers): This work will elucidate to farmers on the need to go into farming (rice farming) in conjunction with agricultural industrialization especially within Abia State.
Government Agencies: It will also help the government in her policy formulation as it relates to agriculturalist and their empowerment programs. Thus, programs, seminars, workshops should be sponsored by government so as to educate the masses on the need to incorporate agriculture in their curriculum. Grants and loans should be granted to farmers at minimum discount so as to encourage them to produce more rice that contribute positively towards food security. The government will equally enlighten regulatory agencies on the need to ensure quality control as well as quality labelling of product.
1.7 Scope of the Study
This study is delimited to evaluate the regulatory agencies effectiveness in positioning of made in Nigeria goods using rice production and marketing as a case study. The geographical scope of the study will be Ebonyi State. Meanwhile, the unit of coverage will be rice farmers in Abakiliki of Ebonyi Stale and rice dealers/marketers.
Rice processing involves several steps: removal of the husks, milling the shelled rice to remove the bran layer, and an additional whitening step to meet market expectations for appearance of the rice kernels. This process generated several streams of material which include the husks, the bran, and the milled rice kernel (Schramm, 2006). Nigeria has the potential to be self-sufficient in rice production, both for food and industrial raw material needs and for export purpose. However, a number of constraints have been identified as limiting factors to rice production; these include problems with research, pests and diseases management. Addressing at least most of these problems is good first step towards attaining the target of rice self-sufficiency (WARDA, 2004).
1.8 Limitations of the Study
No research work is devoid of limitation (Bamidel, 2010)
hence, this study is no exception in this regard. The researcher encountered
the following limitations in the process of carrying out this research work.
i.
Geographical: There
are thirty (36) states in Nigeria and most of these states such as Taraba, Adamawa
etc. specializes in rice production and supply. Due to financial constraints,
the researcher could not cover or carry out a study in all these states.
ii.
Paucity of data: lack of data from regulatory agencies concerning
the approval/permit to the rice farmers due to the fact that the regulatory
agencies had no offices in the area where the rice farmers are situated.
iii. Analytical tools: There are several
analytical tools that one can use, due to availability of funding and time, the
researcher only adopted descriptive statistics. The researcher is of the
opinion that advanced inferential statistics could have given the work more
taste.
All
these notwithstanding, the study achieved its aim and objective.
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