Bose, A. A.1,
Jatbong, J. N.2,Danwanka, H. A. 1
and Zayyad, B.1
1Department of Agricultural Economics and Extension A.T.B.U.
Bauchi, Nigeria
2Department of Agricultural Economics and Extension, Taraba
State University, Jalingo, Nigeria
Corresponding author: abdullahi.bose@yahoo.com
ABSTRACT
The study assessed small scale paddy rice processing and marketing
in Dass Local Government Area of Bauchi State, Nigeria. Purposive and random
sampling techniques were used and data were collected from 75 respondents with
the aid of a structured questionnaire. Data were analyzed using descriptive
statistics, farm budget model and regression analysis. The result reveals that average age of the farmers was 40.3
years and majority (60%) of the respondents were female. Also, 93.3% of the
respondents had acquired various forms of formal education and 58.7% of the
respondents engaged in rice milling and marketing as their primary occupation. The total variable cost and gross income for processing a 100kg bag
of paddy rice were N8,938.40 ($24.83)
and N11,394.42 ($31.65), respectively.
The marketing margin and marketing efficiency were 33% and 284%, respectively.
Net income and Return per naira invested were N2,456.02
($6.82) and N0.27, respectively. Thus,
small scale paddy rice milling is a profitable enterprise in the study area.
The average quantity of paddy milled was 97.5 bags per week. Result on
regression reveals that price had positive coefficient and significant at
P<0.05, which implies that increase in selling price, might lead to increase
in gross income. Cost of milling had negative coefficient and significant at
P<0.001, which implies that decrease in milling charges might lead to
increase in gross income. The R2 was estimated at 0.947 which
implies that about 95% of the variation in the gross income is explained by the
explanatory variables included in the model and F-value of 165.038 was
significant at P<0.001. However, inadequate market information; inadequate credit facilities; variability in
price of rice and high
cost of milling machines were some of the
constraints affecting small scale paddy rice milling in the study area. The
study recommends that rice processors/marketers should be encouraged to form
co-operatives so as to have easy access to credit facilities and to market
their products collectively.
Keywords:Marketing, Nigeria, Paddy rice, Processing, Small-scale
