VALUE ADDITION AS A BASIS FOR ENHANCING PRODUCTIVITY IN RICE PRODUCTION AND PROCESSING

1.1 Introduction

Rice is the most important staple food for a large part of the world’s population providing more than one fifth of the calories consumed worldwide by the humans (Sharif et al., 2014). Rice sector being a critical sub-sector of agricultural sector can serves as a means of conserving foreign exchange and improve the nation economy. Increasing rice productivity and acceptability, enhancing better marketing, poverty alleviation and increasing value addition of rice through the rice value chain are some of the major targets of Nigeria government over the years. Rice production is however low which make the country to be a net importer of rice. It is a major staple food in Nigeria. Value chain is the full range of activities required to bring a product or service from conception, through the different phases of production, delivery to final consumers and final disposal after use (Kaplinsky and Morris 2001).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

1.2 Background of Study

The struggles of Nigeria farmers in finding ways to increase farm income, interest in “adding value” to raw agricultural products has grown tremendously. The value of farm products can be increased in endless ways: by cleaning and cooling, packaging, processing, distributing, cooking, combining, churning, culturing, grinding, hulling, extracting, drying, smoking, handcrafting, spinning, weaving, labeling, or packaging. According to (Kaplinsky, 2010) value addition means adding value to a raw product by taking it to at least the next stage of production. This can be as simple as retaining ownership of your calves and wintering them on wheat pasture or placing them in a feedlot. Value can be added through membership in a cooperative that processes your products, such as a cooperative cotton gin. Or, adding value may be as elaborate as going all the way to the consumer with a “case-ready” food product. Hence rice farmers have keen interest in adding value to their rice production and processing so as to enhance the product.

Rice is an important staple food in Nigeria. Many Nigerians have developed tastes for polished and size-sorted medium to long-grained rice. Local production of rice has been increasing over the years. Besides offering a higher return, value addition on rice production and processing can open new markets, create recognition for a farm, expand the market season, and make a positive contribution to the community like in the case of Afikpo North Local Government Area of Ebonyi State of Nigeria. Though, value addition will enhance productivity in rice production and processing in the area but it is a long-term approach, not a “quick fix.” It requires the willingness and ability to take on risk, as well as adequate capital, management skills, and personal skills such as the ability to interact with the public to succeed (Kaplinsky and Morris, 2000).

Production is the process of transforming certain goods and services known as inputs into other goods and services known as products (Akubiloet al., 2007). It implies a series of processes, techniques, activities or procedures involved in combining resources of land, labour, capitals, water and management to generate useful effect or products. Value on the other hand implies worth, Benefits price or measure of importance. It is a factor of utility. Value can also be seen as the monetary term in which the utility of a product or an item can be explained. Therefore, value addition in the production and processing of rice implies all the activities, processes or strategies and distribution of rice which in one way or the other contribute to benefit/utility maximization (Owoh, 2008). It seeks a careful exploration into all the activities, processes or strategies of operation carried out in the production, processing, packaging and distribution of rice which contribute to the maximization of profit or utility derived from rice.

Therefore, in Ebonyi State where the research was carried out, the activities that was conducted is to know the Value Addition as a Basis for Enhancing Productivity in Rice Production and Processing in Afikpo North Local Government Area.

1.3 Statement of Problems

Investigation revealed that the rate of rice importation is high due to insufficient production and lack of value addition to enhance the productivity of the rice production and processing. 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. Nigeria has great potential to greatly enhance productivity in rice production and processing.

Nigeria is one of the largest rice producing country in Africa. Though the rice locally produced and processed does not compare the foreign rice product in the market and this has made Nigeria the second world largest importer of rice. This is as a result of poor production and processing of locally produced rice. The application of value addition to rice production and processing will enhance the product. Therefore, the basis for value addition is a necessity for enhancing productivity of rice production and processing.

1.4 Aim and Objectives of Study

The aim of the study is to examine the Value Addition as a Basis for Enhancing Productivity in Rice Production and Processing in Afikpo North Local Government Area of Ebonyi State. In achieving this aim, the following specific objectives were laid out as follows:

1. To determine the available technology that affects value addition in rice business;
2. To determine the cost and returns involved in rice processing;
3. To examine the various value chains in the production and processing of rice in the area under study;
4. To identify the factors that encourage value addition; and
5. To identify the socio-economic factors that affects the respondents in the production and processing of rice.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Are there factors that encourage value addition?
• What is the available technology that affects value addition in rice business?
• What is the cost and returns involved in rice processing?
• What are the various value chains in the production and processing of rice in the area under study?
• What is the socio-economic factors that affect the respondents in the production and processing of rice?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: There are no socio-economic factors that affect the respondents in the production and processing of rice
• H1: There are socio-economic factors that affect the respondents in the production and processing of rice

Hypothesis Two

• H0: There is no available technology that affects value addition in rice business.
• H1: There is available technology that affects value addition in rice business.

1.7 Significance of Study

The result of this study will enable researcher, government and policy makers to know the problems and constraints that have hindered adequate local rice production, as this will help them to make policies that will tackle this problem. Also the result of this study will educate farmers on the importance of value addition on rice production and processing in order to improve productivity.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.8 Scope of Study

The scope of the research is focused on the Value Addition as a Basis for Enhancing Productivity in Rice Production and Processing in Afikpo North Local Government Area of Ebonyi State.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 Definition of Terms

Rice: Rice is the seed of the grass species Oryza sativa or Oryza glaberrima. As a cereal grain, it is the most widely consumed staple food for a large part of the world’s human population, especially in Asia

Enhancing: Intensify, increase, or further improve the quality, value, or extent of.

Productivity: Productivity describes various measures of the efficiency of production. A productivity measure is expressed as the ratio of output to inputs used in a production process, i.e. output per unit of input.

Production: Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is the act of creating output, a good or service which has value and contributes to the utility of individuals.

Processing: Processing is an open-source computer programming language and integrated development environment built for the electronic arts, new media art, and visual design communities with the purpose of teaching

1.11 Organization of the Study

Chapter one of the study, provides background of the study, stating the problem of the study and the research questions and hypotheses to be tested in the study. It also highlights the significance of the study and scope of the study.

Chapter two reviews related literature on the Value Addition as a Basis for Enhancing Productivity in Rice Production and Processing.

Chapter three discussed the research methods to be used in designing the study which will include research design, population, sample size and sampling technique, data collection and data analysis methods.

Chapter four presents the data gathered in frequency and percentage tables. The data will also be analyzed and research hypotheses will be tested with chi-square statistical test.

Chapter five summarizes the outcome of the study, draw conclusions based on the findings of the study and make necessary recommendations.