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

CHAPTER ONE

INTRODUCTION

1.1 Background of the 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 Adani in Uzo-Uwani Local Government Area of Enugu 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.

1.2 Problem Statement

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 do 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.

1.3 Objectives of the Study

The broad objective of this study is to study value addition as a basis for enhancing productivity in rice production and processing in Adani, Uzo-Uwani Local Government Area of Enugu state of Nigeria.

The specific objectives are as follow;

1. identify the socio-economic factors that affect the respondents in the production and processing of rice.

2. determine the available technology that affects value addition in rice business.

3. determine the cost and returns involved in rice processing

4. examine the various value chains in the production and processing of rice in the area.

5. identify the factors that encourage value addition.

1.4 Significance of the study

From all indication 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. 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. Furthermore, this study will serve as a useful tool in guiding policy makers and to students who intend to carryout a research on related topic.

1.5 Limitation of Study

This project is centered on value addition as a basis for enhancing productivity in rice production and processing. However, the scope will be limited to Adani, Uzo-Uwani Local Government Area of Enugu state.