CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
In spite of the dominance of
petroleum as the major revenue earner in Nigeria, agriculture still constitutes
a very significant sector of nation’s economy. Almost 70% of the Nigeria
populace obtains their means of livelihood from agriculture which also provides
raw materials for the manufacturing sector and the generation of foreign
exchange (Odoemenem and Inakwu, 2011).
Rice (Oryza Sativa) has been cultivated in parts of the Northern parts of
Nigeria since the sixteenth century but its importance in the food economy of
the nation dates back to the early 20th century (Agboola, 1979).
Today, rice cultivated in virtually all the agro-ecological zones in Nigeria,
but on a relatively small scale.
Rice (Oryzae sativa) is the major stable food for half of the human race
(Imolehin and Wada, 2000) it is the staple food of more than 60 percent of the
world’s population (Richardson and stubbs, 1978). According to WARDA (1993),
rice has become a staple food of considerable strategic importance in many
rapidly growing African cities where its consumption among urban poor
households has increased substantially. In Nigeria rice has become a major
staple food in most homes today and unfortunately domestic production of this
grain has not met the demand leading to food shortages. Globally, it is an
important food crop which is increasingly preferred over many traditional foods
such as sorghum, millet and most roots and tuber crops such as yam, cassava
etc. Rice ranks third after wheat and maize in terms of worldwide production
(Imolehin and Wada, 2000). Rice has the potential to improve nutrition, boost
food security foster rural development and sustain land mass.
World rice consumption rate has been
increasing due to increase in population strength and importance attached to
its as a stable food. Between the year 1961-2002, per capital consumption of
rice in the world increased by 40%. It is perhaps the world’s most important
food crop being the staple food of over 50 percent of the world’s population,
particularly of Indian, china, and a number of other countries in Africa and
Asia.
Thus, rice is the most important
cereals in the world after wheat and more than half of the human race needs it
as source of calaries (Wakatsuki et al,
2004). It is the leading ccereal crop (Marri et al 2007). African account
for about 2% of world’s Output of rice. In Nigeria rice is produced in the
middle Belt, south East and some four Northern States (Audu, 2008). The
importance of rice in Nigeria is no longer the question but rather, how we can
meet the growing demand, reduce import and be self sufficient in its
production.
According to Atande, (2003) the
demand for rice (Oryza sativa) has
been increasing at much foster rate in Nigeria than in other West African
countries since the mid 1970s. For example, Nigeria’s per-capital rice
consumption level has grow significantly at 7.3% per annum, rising form 18kg in
the 1980s to 22kg in 1990s.
Although rice production in Nigeria
has boomed over the years, there has been in a considerable lag between
production and demand level with imports making up the shortfull (Atande,
2003). As peer the Nigerian agricultural policy document (Nigeria,1989),
specific objective of agricultural sector policies is the attainment of
self-sufficiency in basic food commodities with particular reference to those
food commodities which consume considerable shares of Nigeria’s foreign
exchange and which can be produced locally within the country. In this regard
therefore, Nigeria will aim to be more than self-sufficient in the production
of all cereals expect wheat, most roots and tubers, most grain legumes, most
oil seeds and nuts, most vegetables and fruits and most vegetable oils (Atande,
2003). Going by this policy scenario therefore production of rice in Nigeria is
bound to expand for several reasons; rice import consumes considerable share of
Nigeria’s foreign exchange, the proportion of rice in the food basket of
Nigerians has continued to raise and Nigeria has the capacity for the expansion
of rice production.
Rice (Oryza sativa) is a unique crop grown virtually all the country,
because it requires a wide range of temperature between 20 and 380C
during growth and a long period of sunshine (FAO, 2001). It can be grown over a
wide range of ecological conditions. The prevalent types of rice production
systems in Nigeria are the rainfed upland, rain fed lowland and irrigate
lowland (Singh et al, 1997).
The genus Oryza belongs to the tribe oryzeae in the sub-family pooideae of the great family Gramminae.
There are 25 species of Oryza of
these, only two are cultivated Oryza
Sativa L. and Oryza glaberrima steud.
O. Sativa is the common rice grown throughout the warncer regions of the
world, whereas O. glaberrima is grown
to a limited extent in the flood plain of West Africa. India and japonica are
the main sub species of the genus sativa. O. glaberrima probably originated
around the swampy headwaters of the Nigeria River in West Africa. Its
characteristics are smooth, hairless glumes, red grains, and short legumes with
roundish tops, high seed dormancy and stiff upright panicles with few or no
secondary branches. It is importance in Africa is decreasing as it is being
replaced by modern cultivars of Oryza
sativa. O. Sativa has been
cultivated in south and East Asia, since ancient times. Zhkorsky (1962)
considered that O. Sativa was
domesticated well over 5,000 years ago. The presence of wild rice species, the
cultivar diversity, including primitive coarse grain forms and the presence of
many dominant genes lend support to this view.
In the worlds of Atande (2003)
opined that the rice cropping system and the post harvest services in Nigeria
encompass a wide range of agricultural activities raging from land clearing,
seed bed preparation, broad casting, fertilizer application, weeding and bird
scaring. Others includes harvesting, threshing, parboiling, drying, winnowing,
bagging and marketing and distribution. These activities are largely executed
manually and women and children the very vulnerable segments of the society are
largely involved. Rice production expansion in Nigeria is therefore bound to
reduce drastically the foreign exchange spending on rice importation and more
importantly it could lead to the transfer to money into hands of the very
vulnerable group of the Nigeria economy.
According to Singh et al. (1997) disease and pests are
important natural factors limiting the production of rice and in servere cases
account for about 100% crop losses. Production of rice in Nigeria is mainly in
the hands of small scale farmers who are using unimproved farming techniques.
Actual yields of rice differ significantly form potential yields and this has
been attribute to low productivity (FMA, 2001). Large losses occur during storage,
chiefly as a result of insect and rodent damage. Fungi and bacteria may reduce
the quality, if the relative humidity of the air in the storage space remains
too high (above70%) or if rainwater enters the storage building. Fortunately,
those losses can individually eliminated. The storage should also be fumigated
to control insect damage (Onwueme, 1991). Rice has contributed to the
socio-economic well-being of Nigeria both as a major element in the nation’s
food security calculations and as a commodity for internal commercial
transactions (FAO, 2000).
1.2
PROBLEM
STATEMENT
Despite the efforts by several government agencies in
Nigeria, a wide gap continues to exist between domestic rice supply and demand
in the country. The insufficiency in rice production in Nigeria has been
attributed to low yield. Specifically, rice yield in dropped form about 1.5
tons per hectare in 1997 to 1.01 tons per hactare in 2010 (FAO, 2004). As a
result of divergence in supply and demand gap, imported rice has continued to
be source to supplement domestic production. The rice import bill for Nigeria,
which was N123.61 million in 1980
(Okoriji and Onwuka, 1994), was projected to rise to N9.72 billion in year 2000 (FOS, 1998). This did not only drain the
nation’s foreign exchange reserves but almost virtually cripped the domestic
rice industry. In Nigeria, the diverse rice production condition cover three
major ecologies of rain-fed upland, rain-fed low land and irrigated lowland
(Odomenem and Inakwu, 2011).
Massive importation of Food especially rice which have
hither to been a recurring policy initiative in recent years in an indication
of poor state of the nation’s agricultural and technological development,
occasioned by poor productive propensity of the farmers. Increase in agricultural
import is a disincentive to local farmers to produce and may cause a reduction
in farming population which can subsequently lead to a reduction in
agricultural output.
Presently, Nigerian rice sub-sector is dominated by
weak and inefficient producer-market linkages due to poor infrastructure
including lack of improved processing facilities, low rice productivity, poor
post- harvest handling and storage, expensive and poor access to inputs (High
quality seed, fertilizing and crop protection products), inadequate market information, lack of transparency among
players, low capacity to meet quality standards, and limited efficiency
distribution networks. This has declined the rice productivity and low income
for the rice farmers in Nigeria, especially in Ebonyi State. In Ebonyi State,
it has resulted massive loss of man power through the abandonment of the
farmers and the migration of rural youths to cities in search of white collar
jobs.
However, there seems to exist a gap in knowledge on
the economics of rice production in Ebonyi State which has been also declining
the income level of the farmers. Both Okoruwa and Ogundele (2008) and Nwaturu
(2008) have noted that rice farmers in Ebonyi State are not getting maximum
returns from the resources committed into their enterprises; leading to a
decline in per capital food production. This situation manifests in low output
per area which no doubt lead to low profitability.
This
study therefore aims at examining the economic analysis of rice production in
Ebonyi State. To achieve this, the following research question need to be
answered.
- What
are the socio-economic characteristics of rice farmers in Ebonyi state?
- Does rice production profitable in
the study area?
- What are the inputs used in rice
production in the study area?
- What
are the related sources of information
to rice farmers in Ebonyi state?
- What is the cost and return in rice
production in the study area?
- Does
the socioeconomic characteristics of rice farmers have any effect on their
output?
- What
are the major constraints to rice production in Ebonyi State?
- What are their systems of rice
production in the study area?
1.3 Objectives
of the Study
The broad objective of this study is
to analyze the economic analysis of rice production in Ebonyi state. Specifically,
the specific objectives are, to;
- Describe
the socio-economic characteristics of rice farmers in Ebonyi State.
- Identify
source of production-related information to the rice farmers?
- Analyse cost and returns in rice
production in the study area.
- analyze
the effect of socio-economic characteristics of rice farmers on their output in
the study area.
- Identify constraints to rice
production in the study area.
1.4 Hypothesis
Null hypothesis shall be tested in
this study:
Ho: There is no relationship between the
socio-economic characteristics of rice farmers and their output in the study
area.
1.5 Justification
for the study
The expectation of this research
work is to help the rural and urban rice farmers to know the cost and returns
of rice production. This research work will also give gap for the rural and
urban file producers in the study areas to have the knowledge on the economics
analysis of rice production that will lead to improved managerial decisions
that will improved production of rice in the study area, that is the need to
have more dynamic approach to implement available knowledge while exposing ways
to ameliorate the performance of the firm.
The research work will also direct
and help government and non-governmental organizations (NGOS) to form related
targeted policies in the aspect of rice production. The research work would
provide significant efforts towards improving the management of rice production
systems and also supporting the development of agriculture in Ebonyi State.
The students and post graduate
research students in the field of agriculture especially those who are
particularly interested to research on rice will find the outcome of this study
invaluable in filling existing research
gap and as well in supporting their future research through available
literature and result of this study.
Furthermore, the study which shall
ensure comprehensive documentation of information on rice production shall be a
useful document to the general public who from time to time might consult the
document for any purpose.
Finally, the research institutes
whose efforts are geared towards self-sufficiency in food productions shall
re-package their programmes to suit rice farmers in Ebonyi State when they
understand through these research peculiar constraints faced by Ebonyi State
rice farmers. Thus, this study shall be of immense benefit to all and sundry.
CHAPTER TWO
2.0 LITERATURE
REVIEW
2.1 RICE
PRODUCTION IN NIGERIA
Rice production in Nigeria between 2001 and 2003 was
estimated at 2.03 million mega grams. The balance of 1.90 million mega grams
was obtained by importation (FAO, 2004). Total consumption stands at 29kg and
has contributed to income and growth in
Nigeria rice sector (USAID, 2008). But, Nigeria is the largest producer of rice
in West Africa producing over 40% of the regions total production (Singh et al, 1997 and FAOSTAT, 2007). In the
last 30years production has increased 6 folds with Nigeria producing 3.3 and
3.6 million tones of paddy rice in 2000 and 2005 respectively. Nigeria is
equally the largest importer of rice and its importation figure stood at 11.61
million metric tons since 2000, which is one third of the sub regions total. It
has a land area potential for rice estimated at 5million hectares of which 65%
are low lands. In 1999 area harvested from rice was 2.2 million hactare (FAO,
2004).
Rice has emerged as one of the foster
growing agricultural sub-sector and has moved from ceremonial to a staple food
in many Nigeria homes within the last two decades (Ume et al, 2001). Majority of rice producers in Nigeria are small
holders with average size than two hectares and can be found growing in mixtures on farms.
Rice production involves the use of
resource inputs in the production of outputs. Land, labour, capital, seeds,
fertilizers and management are the inputs used in rice production. The
productivity of these inputs depends on the farm inputs used in conjunction
with them. The rice cropping system and the post harvest services in Nigeria encompass
a wide range of agricultural activities ranging from land clearing, seed bed
preparation, broadcasting, fertilizer application, weeding and bird scanning.
Others including harvesting, threshing, parboiling, drying, winnowing, bagging,
marketing and distribution. These activities are largely executed manually and
women and children from the very vulnerable segments of the society who are
largely involved.
Ecosystems for rice production are
determined by the interplay of such variable as geology, climate, soil types
and hydrology, vegetation and a range of socio-economic factors (Barker and
herdt, 1999; WARD, 1994). Water conditions or balances and soil fertility are
two major physical factors which determines productivity of rice based cropping
systems (IITA, 1988, Anyaegbu, and Iloka, 1982). Rice is the only crop adapted
to flooded conditions; water is the most critical limiting factor of all
physical requirements.
The general approaches to increasing
rice production are boosting the yield per hectare and expansion in area under
cultivation. But increasing agricultural production comes with economic,
environmental and social costs that may ultimately limit growth (Bender and
smith, 1997).
Brown (1994) observed that many of
the techniques used increasing yield over the past decades such as increased
fertilizer use crop breeding and irrigation has been known for a century or
more and may not bring much additional growth. This argument is fundamentally
flowed to the extent that it does not recognize the strategies role of research
and development in improving and upgrading these techniques. According 11TA(1998),
constraints to rice production include shortage of farm labour, absence of efficient farm tools, and farm machinery lack
of fertilizer and credit facilities. The constraint of farm labour tends to be
more of its relative cost than being in short supply.
2.2 Rice
Research In Nigeria
Rice (Oryza globerimma Stend) is indigenous to Nigerian and has been in
cultivation for the past 3500 years (Hard castle, 1959). The earliest cultivation
of improved rice varieties (Oryza Sativa
L.) started in about 1870 with the introduction of upland varieties to the
high forest zone in western Nigeria. By 1960, O. Sativa had taken the pride of place over O. glaberimma which is now limited to some deep flood plains of
Sokoto rime river Basin and other isolated pockets of deep swamps all over the
country.
Active and systematic rice research
started in Nigeria in 1953 with the establishment of the Federal rice station
at Badeggi, Niger state, now the headquarters of the National cereals Research
institute. However, improved technologies to meet rice production needs of
Nigeria weigh heavily on the side of varieties improvement, germplasm
collection and conservation, to the exclusion of technologies that will
releases women and children from scaring birds in the farms. This has found expression in the continued use
of women and children in rice field as bird scarers (Augustine .O. and Victor
B. N.O., 2012).
2.3 Impact
of rice Production on Nigerian Economy
Rice has become a strategic Food
security Crop in Nigeria today the country being the largest producer and
consumer in West Africa, producing an average of 3.4 Million metric ton (MT) of
paddy rice, equivalent to 1.8 million metric tons of milled rice (Daramola,
2005; UNE 2005). Before independence, rice is been treated with benign neglect
as the country was self sufficient in rice production, hence, the commodity
failed to attract attention in the various schemes, programmes and policies
designed to initiate rapid transformation of the economy (Akpokodje, Lancon and
Olaf, 2001; Akande, 2002). However, this situation has since changed a status
of rice in the average diet has been transformed from being a luxury food items
that it was at independence to that of a staple, taking the place of cassava,
yam among others, as both the rich and the urban poor now rely on it as a major
source of calories (WARDA, 2003; 2004; Daramola, 2005). Rice consumption has
been tremendously since 1970 (10.3 per cent per annum), a result of the
accelerating population growth rate (2.8 percent per annum) and increasing per
capita consumption (7.3 percent per annum) leading to an increase in domestic
demand over domestic supply. In response to meeting the shortfall in the
supply-demand gap, Nigeria government has to resort to importation of milled
rice. This situation has made Nigeria to become the largest importer of rice in
Africa (Daramola 2005). The consequence of this excessive importation is the
huge drains on the country’s foreign exchange earning over time. The shift from
a self-sufficient nation to an importing nation made rice to become a strategic
commodity in Nigeria economy (Nkang et
al, 2006). The desired by successive regimes to reverse this trend led to
implementation of various policies and programmes. Frequently, the measures
used include trade protection or enhancement, and price supports designed to
increase farm income. Some of the agricultural programmes such as Agricultural
Development project (ADP), Abakaliki rice project (ARP), and presidential
initiative on rice (PI) etc were directed towards increased the output of rice.
In spite of government intervention aimed at achieving self-sufficiency, the
supply-demand gap continues to widen (National Rice Development Strategy 2009).
In spite of the fact that rice is
cultivated in virtually all the agro ecological zones in Nigeria, area
cultivated to rice is still small (1.8 million hectares out of 5 million
hectares). An estimate of locally produced milled rice for year 2008 was 1.8
million MT against demand of 5 million MT (NRDS, 2009). Beyond the farm gate,
there are other issues of concern particularly in the down stream activities
which are also constraining local supply of the commodity. These include issues
like the absence of standard measures in marketing of rice, transportation and
poor linkage to rice processing. All these combine with on-farm constraints to
undermine the competitiveness rice production in Nigeria (Daramola, 2005; NPC,
2006).
2.4 Nigerian
Rice Supply
The output of local rice was
estimated to be three million tons while the demand amounted to five million
tons (Falusi, 1990). The Federal government, in an attempt to boost rice
production allocated N1.5 billion for certified seeds multiplication and
distribution to rice farmers (Tribune, 2004) self-sufficiency in rice
production is now an important political-economic goal of the Nigeria
government (Bello, 2004). As a development, it is a necessary precursor to the
ultimate goal of self-reliance standards which is a desirable goal of society.
Such as economic policy has major implication for the dynamics of the
socio-economic and institutional environments within which farmers operate.
Rice can be cultivated in all the
ecological zones of Nigeria, although with varying prospects form one location
to the other. According to Daramola, (2005), paddy rice production has been
growing at a very slow rate relative to consumption in Nigeria within the last
five years. The low growth rate of paddy production can be attributed to
combination of factors namely unimproved seed varieties, poor agronomic and
post-harvest handling practices, the demand- supply gap has often been filled
with imported rice form Asia. Instability of government policies has also made
some rice farmers to switch other crops with similar ecological requirement,
especially the decision to import foreign rice into Nigeria, which depresses
domestic price. Nigeria is currently the highest rice producer in West Africa.
It is also the highest consuming nation because of the large population of
Nigeria. Majority of the rice producers are small holders with an average farm
size of less 2ha and can be found grown in mixture on farmers farms. These factors
coupled with the use of low external inputs have been responsible for the low
yields and productivity (Bello, 2004).
According to Daramola, (2005) as the
population increases, farmer must produce even more food than before in order
to stem the arising rice import bills and become less dependent on rice
importation. With the population increases today, people are being pushed to
new lands and many into marginal lands. One of the enormous challenges in the
drive to increase food to feed the growing population will be to raise
productivity and efficiency in the agricultural sector.
In the research of Daramola, He
further observed that the biggest constraint to feeding the Nigerian people now
and in the future will depend entirely on agricultural productivity and this is
related to food security. Food security, at the household level, is defined in
its most basic form as access by all people at all times to the food needed for
a healthy life. Therefore, there is need to increase agriculture growth for such
growth is the most efficient means of alleviating poverty, protecting the
environment, and generating broad based economic growth, Achieving food
security therefore, requires that resources be used efficiently, with more
attention paid to eliminating waste. With the rising income and population and
consequent rising food demand, only efficient use of production resources will
ensure food security.
According to NRDS, (2005) Achieving
sustainable economic development in Africa with confront three central challenges;
alleviating wide spread poverty, meeting current and future food needs, and
efficiently using the natural resource base to ensure sustainability. There are
only two main ways to increase natural food availability – increase the land
area planted; and increase the yield per unit of production resource (land,
labour, and capital). If food production is doubled by doubling the number of
hectares of land under cultivation, or other production resources, this would
create massive environmental damage such as large scale destruction of forests,
and with them, with life habitat and bio diversity.
Efficiency of resource use, which
can be defined as the ability to derive maximum output per unit of resource is
the key to effectively addressing the challenges of achieving food security.
Raising productivity in agriculture will certainly lead to availability of food
and reduce the real price of food. Increased food production will have to come
from increased yield.
2.5
Reason for lack of competitiveness in Nigeria Rice.
The Nigeria rice industry is currently not competitive
because it faces the following constraints: The macro economic condition under
which Nigerian rice is produced is partly responsible for the sector’s lack of
competitiveness. Some of the issues include high input cost like cost of
credit, and imported equipments, agrochemicals due to taxes (legal and illegal),
tariffs and duties. (Daramola, 2005). There is also the problem of policy
instability (ban unban, tariffs ) that makes decision making and planning
highly uncertain and put investments at great risk. All these factors combine
with discriminatory policies against agriculture to make the environment for
agricultural production and agribusiness unfavorable and uncompetitive. Other
unattractive conditions include low technology base (Mechanization), delaying
infrastructure, high interest rates, weak institution (such as poorly- funded
research institutes, public extension system, and seeds certification) and
corruption ridden fertilizer distribution system and low public sector investment
in agriculture (Daramola, 2005).
One of the key problems facing the farmers in addition
to lack of improved varieties is that of scarcity and high input costs. This
has led to farmers not using inputs such as fertilizers and other agrochemicals
and those who use them use sub-optimal proportions of the inputs resulting in
low and poor quality yields. RIFAN (Rice farmers Association of Nigeria) has
the objective of supporting their members on production, processing and
marketing of rice as well as the possibility of supplying inputs at low prices.
However, the ability of the association to under take such activities is hazy
(Bello, 2004).
Over the past two decades, inconsistency, shifting
between open and protectionist trade policy have characterized Nigeria rice
policy. Such changes hinder the ability of stakeholders to develop long- term
strategies. While trade policy has been viewed as the only option for
developing the rice sector, there has been a lack of policy to take advantage
of the protection and enhance the domestic sector’s efficiency. In addition,
the import ban itself is difficult to enforce, which reduce its efficiency. Key
issues for the domestic sector are the availability of inputs and credit, and
processing, marketing and quality management. Farmer remain committed in
producing rice, despite the lack of input as it is the best crop for the flood-
prone low lands (`Fadama areas). In summary, the local rice has a very poor
image in the market place compared to the imported rice (Daramola, 2005).
Beside the external factor (Macro economic) to the
agricultural sector, there are other factors that are both sector wide and rice
specific factors that also impede competitiveness. Such factors include genetically-
inferior (unimproved) varieties of seeds that exhibit low productivity, high
cost of land preparation scarcity of labor due to alternative (and more
remunerative) off- farm employment opportunities (eg construction sites and
motor- bicycle riding). There are other like land tenure, non-availability of
fertilizers, absence of extension advance, high transportation costs, and
expensive credit, when available there are also marketing problems that result
in middleman not paying prices that are attractive enough to keep the farmers
producing importation of cheaper and better- processed rice from more
competitive countries like their land and other Asian countries (eg India) has to a
large extent contributed to depress domestic rice cultivation.
Beyond the farm gate, there are issues like the
absence of standard measures in the marketing of farm produce including rice.
Transportation is another serious constraints for the conveyance of paddy to
the mills or markets. All these combine with on-farm constraints to make rice
production in Nigeria uncompetitive. Another factor responsible for
uncompetitive of Nigerian rice is the protection offered by the very high
tariff of 110% slammed on imported rice. The twin effects of production behind
high tariff walls are inefficiency and lack of competitiveness. This has
resulted in very high cost of production for the Nigerian rice (Daramola,
2005).
However, the farmers supply response for Nigerian rice
has been extremely low because of the largely uncompetitive economic
environment within which rice is being produced in Nigeria. Obsolete and
inefficient processing technology (especially parboiling) lead to smelling and
unappealing products presence of stones, uneven grain etc. There is also
limited knowledge of consumers’ preference and taste, especially the urban
population for well processed rice. The is no uniformity in the variety of rice
cultivated and processed hence the frequency of broken and uneven gains.
2.6 Technology
in rice Production
Most rice in West Africa is produced
small-scale farmers who use little or no external resources and have varying
balance between subsistence and commercial objectives (WARDA, 1994). These
farmers largely operate under traditional rain-fed rice production technologies
and move from extensive to more intensive cultivation without adapting their
traditional practices to the new objectives.
According to Swanson, (1996)
technology is the application of knowledge for practical purpose aimed at
improving the condition of human and national environment and also carryout
some other socio-economic activities. It is a means of increasing and
exploiting our understanding of nature for our own benefit (Ikeme and Uvere,
1995). Establishing a symbolic relationship between science and technology,
Williams (1985) referred to science as a systematic search for truth which
provides the basis for technology. It should be pointed out that art, conceived
as practical and human skill and their application, additionally forms the
bedrock for technology. With respect to technology, Williams (1985) referred to
is a the application of techniques which leads to increase in production.
In terms of production, agricultural
technology adds greatly to farm productivity (Salvatore and Dowling, 1987). The
Modern miracle of technology that has increased agricultural potential
throughout the world is referred to as the Green Revolution. According to
Ruttan and Binswanger (1978), Green revolution ordinarily refers to the
development and diffusion of high-yielding cereals varieties, particularly
wheat and rice, in the developing countries of the tropics and semi-tropics,
beginning in the mid-1960s.
According to Mafimisebi (2010), two
categories of technologies exists material technology and knowledge based
technology.
Also known as ‘hardware” components
an example of material technology is improved rice varieties. An example of
knowledge based technology also known as “software” component is planting date.
The development of technology be it
material or knowledge based is driven not only by the imperatives of
engineering but also by the cultural and ideological values of the society
concerned (Ikeme and Uvere, 1995). According to miller (1976) modern
large-scale technology is basically a result of the cultural demand or values
of western society. This concept of culturally-driven technologies has given
impetus to the exploitation and adaptation of imported technologies to suit
local environmental, social and economic needs.
Going by the argument of cultural
and ideological values imprinting on the development of technology, the need
arises to investigate why bird scaring technologies in rice production is still
dominated by the manual use of women and children in the rice farms. Since the
1920’s when research began in Ibadan (NAERLS, 2005), the popularity of rice as
a food has been growing in Nigeria. However, the same cannot be said of
releasing women and children form bird scaring operation in rice farms in
Nigeria.
2.7 Strategies for improving Rice Innovation system in Nigeria.
Rice production and innovation in many developing
countries has largely focused on attaining food security and alleviating, by
enhancing crop yield for farmers and improving food availability for consumers
with limited market access or purchasing power. Investment in science and
technology have featured prominently and consistently in most strategies to
promote sustainable agricultural development at the national levels,
irrespective of the rapidly changing agricultural context. It is now widely
recognized that the value of traditional pattern of agricultural science and
technology investments such as research and extension, though necessary is not
sufficient to enable agricultural innovation. No doubt, investment in science
and technology may increase knowledge, but they are not enough to stimulate
high innovative stride/culture in the whole process. Also changes in
agricultural development context which calls for the need for innovation in the
agricultural sector are apparent (Bharghonti et al, 2004).
The concept of innovation as a social process which
occurs in a social system referred to as innovation system; involving not only
scientific research and research organization, but also other bodies and
non-research tasks. By definition it is a system of all major social actors,
affecting the revealing, acknowledgement, generation and diffusion of technical
and institutional knowledge over time (Clark, et al, 2003; Hall et al
2001). Walts et al,(2003) further
opined that innovation system also include the interaction learning that occurs
when organization engage in generation, diffusion, adaptation and use of new
knowledge; and institution (Norms, rules) that govern how this interaction and
processes occurs. In other words, production of rice takes place along the
entire community chain and according to Erenstein et al (2003) different actors are involved in each step of
production. However, the innovative strength of the whole process is a function
of interaction, Linkages, alliance and knowledge flow. Janssen and Braunschewig
(2003) rightly pointed out the technical change and innovation have become much
more interactive processes, which can be led by many different types of actors.
Innovations are therefore not solely the product of
organized research and development activities
undertaken within universities, research and development institutes; and
it should not be assumed that the results of formal research or increased
investments in research and development in science and technology infrastructure
will automatically spur innovation or be put into economic use. It is the
enabling environment that encourages continuous learning, creativity and
knowledge flows which facilities innovation for socio-economic development
(Myteika, 2000). Therefore rice innovation system embraces the totality of the
component actors, and their interaction and the policy environment. It tends to
go beyond the creation of knowledge to encompass the factors affecting demand
for and use of knowledge in useful ways. Innovative performance depends not
only on how the individual actors perform in isolation, but also on how they
interact with each other as element of a collective system of knowledge
creation and use.
In essence innovation in rice commodity chain required
for enhanced production demands that institution including the policy and
legislative framework and nature of human capital, physical infrastructure,
finance, and investment climate and system of facilitating information and
knowledge flow among the actors and institution be sufficiently addressed. The
widely agreed potential for rice production Nigeria is highly concentrated in
the south eastern geo-political zone. The states provides diverse ecological
conditions for rice production. According to USDA/FAS (2003) rice production is
wide spread in the country, extending from the northern to southern zones with
most rice growth in the eastern and middle belt of the country.
Moreover, the technological capability in terms of the
number of research institutes, education, infrastructure (rice mills and
markets) are relatively concentrated in the zone.
2.8 Major
issues on Rice Production over the World
a. Low
temperature
Low temperature is the greatest
concern of rice growers in the temperature regions. Although farmers have tried
to deplay varieties with tolerance to low temperature and recommended cultural
practices, such as planting date and water depth during panicle development,
rice crops still suffer from poor establishment and high grain sterility, due
to variable climate every year. It is well known that japonica rice is, to some
extent, tolerant to cold. However it is less productive if it grows under very
low temperature. The critical temperature of rice is around 150C
depending on the varieties. Recent breeding work has focused on cold tolerance,
improving seedling vigour, and reducing floret sterility of rice. Date of
planting, early maturing cultivar, and maintaining high water depth during the
panicle development could help the rice corps escape from cold (FAO, 1995).
b. Water
Problems
Water is a critical and the most
important factor in rice production. It is the primary factors determining the
success of the rice crop. Wetlands have been widely exploited for rice
production in many parts of the world. Many problems relating to this matter
are well known: water efficiency, water availability and water quality. About 55 percent of the areas cultivated for
rice are under irrigation. It is known that in irrigated systems, more than
4-5,000 litres of water are used to produce 1kg of rice in many areas (CGIAR,
1996a). The cost of developing new areas under irrigation and rehabilitation of
large-scale irrigation schemes are high. It is fore important to improve water
use efficiency in rice production systems through the use of appropriate water
control and crops management techniques, with emphasis on irrigation
technologies combined with genetic improvement. At present, the improvement of
water use efficiency has drawn little attention from rice breeders.
Poor drainage is the major factor
connected to water problems including water logging, salinity, toxicity and
water pollution. This poor drainage situation is mainly due to inappropriate
development of irrigation schemes and passive reaction of farmers to the
schemes’ operating organization and their economic conditions. Salinity is
caused by saline water intrusion form the sea in the coastal regions and by the
upward movement of salt-water through capillary action in soils, and slat
accumulation on the soil surface due to fast evaporation (Postel, 1989).
c. Land
Constraints
The rapid expansion of modern rice
varieties has exhausted favourable lands. Fast urbanization, industrialization
and the demographic pressure have encouraged farmers to exploit. Marginal land
for increased rice productive to meet their family’s demands. Therefore, acid
soils, tidal lands, forest lands, etc., have been reclaimed and brought under
cultivation, thereby limiting crop yield potential. In intensive irrigated rice
farming systems, the major soil problems include change in soil
characteristics, soil mining affects and soil pollution.
The hard pan, which has a bulk soil
density with less medium and large pores, reduces the soil permeability, and
the root ability to exact nutrients from subsoil’s, and increases the formation
of soil toxicities due to long water logging condition, thereby hindering the
growth of dry land crops after rice. The widespread of modern rice also
encourages the increased utilization of machinery in rice farming, particularly
in rice-producing developing countries, which in turn induces soil compaction.
Permanent water logging and rice
monoculture have commonly caused micro element deficiencies, especially zinc
and sulphur, and toxicities, notably iron. Zinc deficiency is the most
widespread micro element disorder of wetland rice. Zinc deficiency can be observed
under one or more of the following soil characteristics: high pH, high organic
matter content, high available p or si, high mg/Ca ratio, and low available zn (Ponam
Peruma and Deturck, 1993).
Modern rice varieties exhaust soil
fertility more rapidly than traditional varieties. Farmers usually compensate
these nutritional losses, especially macro-elements, with chemical fertilizers
while neglecting some essential micro-elements. In the long run, the
micro-elements become deficient and cause an imbalance in soil nutrition,
increase demand for phosphorous and potassium and cause nitrogen inefficiency,
affecting the ultimate grain yield. Therefore, the soil nutritional status
requires periodic monitoring, particularly for intensive cropping systems,
(Tran and Ton That, 1994).
(d) High
costs of rice production
High labour cost, mechanization, the
use of chemical inputs and the slow increase in grain yield contributed to the
high cost of rice production in irrigated rice, especially in developed
countries. Subsidy has become the national policy in many countries. It is
known that an increase in rice yield can substantially compensate for the high
cost of production, but it increases slowly and cannot catch up with latter. In
addition, the yield potential has reached the plateau and the price of rice is
not sufficiently high to provide farmers with an incentive for increased
production.
(e) Improvement
of rice yield.
Productivity of rice does not only vary between one
country and another, but also within the same country based on the different
agro-ecological zones and production systems used. The gap between the farmers
yields and those obtained by research stations is still large, even though some
reduction has been reported recently. This indicates the various limiting
factors affecting rice productivity and production, ranging from land
development, production and marketing.
2.9 Constraints
to Rice Production
There are many constraints within
the rice sub-sector. They are factors in immediate business environment but
having implications for the performance and out comes of the players. The
highlights of these constraints are;
1. The
cost of inputs are high: This has made it difficult for the farmers to
afford them. These inputs such as improved seeds, fertilizer and agro chemicals
enhance productivity. The high cost exert limiting effects on the extent
farmers can expand their farms. The lot therefore full on processors to
programmatically support services the rice farmers if it is expecting to source
rice paddy from them.
2. The lack of infrastructures: the state of Nigeria’s infrastructure is parlous
especially roads and power electricity. The farm are not serviced by good roads
nor electricity.
3. There
are challenges with importation of machinery into Nigeria as evidenced by some
prospective processors. The customs tariffs/duty on paper being different from
what is being implemented or demanded at the ports.
4. There
is the problem of sourcing labour to work on the farms. The youth who are key
labour providers have gone to the cities in search of while collar jobs or into
popular motorcycle transport business where they can make quick money.
5. At the
production level, constraints include the methods of production, scarcity of
labour scarcity and high costs of input. These are the major constraints that
face the small-scale rice farmers.
6. Inconsistent
government policies on rice import, rent-seeking altitude of government
officials and their agent in the distribution/sale of fertilizer and other
input (including improved seed).
7. There
is a huge market for local rice therefore is a potentially high demand for
quality seeds. At present there is serious supply-demand gap.
8. The
alternative to manual labour which is mechanization is expensive and farmers
cannot afford it on their farms. With scarcity of labour, it becomes difficult
to push the production of large hectares of rice.
CHAPTER THREE
3.0 METHODOLOGY
3.1 Study
Area
The Study will be conducted in
Ebonyi State of Nigeria. Ebonyi State is divided into three(3) agro-political
zones, Namely: Ebonyi South, Consisting of Five (5) Local government Areas
while Ebonyi Central and North zones each has four Local Government Areas.
Ebonyi State have a land mass of
approximately 5,932 square kilometers lying between latitude 70 30E,
and 80 30E, and Longitude 5040N and 6O 40N and
60 45N, with population of about 2.1 Million (NPC, 2007) people of
which 85 percent reside in rural areas, (Ebonyi State blue print 1997).
The state is located with the
tropical rainforest zone of Eastern Nigeria with favourable climate and
sufficient moisture that is ideal for agricultural production. The mainstay of
her economy is agriculture, although it is endowed with abundant mineral
resources such as limestone, salt, zinc etc. Crops cultivated include rice,
yam, cassava, cocoyam etc, and most farm household keeps livestock’s such as
native cow, sheep, goat poultry birds etc. on a small scale.
3.1 Sampling
Technique
A combination of multi-stage and
purposive sampling techniques will be used to select the respondents for the
study. A multi-stage random sampling technique will be used to sample the Local
Government Areas and the antonymous communities at the first level while
purposive sampling techniques will be used to sample the respondents.
These were conducted in the
following manner.
Stage
1: The first stage of the level will be randomly sampling of one (1) local government
areas from each of the agricultural zone of Ebonyi State. This gave a total of
three (3) Local Government Area Sampled.
Stage II: At the second stage of the same level, two autonomous communities were randomly sampled form
each of the three (3) local Government Areas. This gave a total of six (6).
Finally, 10 rice farmers will be
administered the questionnaires for the study. That is a total of 120
respondents will be sample.
3.3 Data
Collection
Both primary and secondary data will
be collected for the study. Primary data will be collected using questionnaire
that will administered on the 120 rice farmers while secondary data will be
collected from the existing records of the rice farmers.
3.4 Data
analysis
Data collected for the study will be
analyze using descriptive statistics such as frequency distribution,
percentage, tables etc inferential statistics such as multiple regression
analysis and factor analysis, Gross margin analysis.
Descriptive statistics such as
frequency distribution, percentage and tables will be used to analyze objective
(i) & (ii) Gross margin analysis will be used to analyze objective (iii)
while the multiple regression analysis will be used to analyze objective (iv)
means while, objective (v) will be analyze using factor analysis.
3.5 Model
specification
3.5.1 Gross
margin analysis.
Gross margin is stated as
GM = TR - TVC
Where;
Gm = Gross
margin (N)
TVC = Total
variable cost
TR = Total
Revenue
Profit
will be given by
p = GM - TFC
Where
p = Profit
GM = Gross
margin
TFC = Total
Fixed cost
3.5.2 Multiple
Regression analysis
Y = F(X1,
X2, X3, X4, X5, X6, X7,X8,
X9 )implicit form
Y = a0
+ a1x1+ a2x2+a3+a4x4+
a5x5+ a6x6+ a7x7+
a8 + x8 + et
Explicit form.
Where;
Y = Out
put of rice production (N)
X1 = Age(yrs)
X2 =
gender
X3 = Marital
status
X4 = Household
size
X5 = Educational qualification (yrs)
X6 = Farming experience (yrs)
X7 = Occupation
X8 = Farm
size (ha)
X9 = Annual
income (N)
ao = Constant.
a1-a9 = Multiple
coefficient
et = Stochastic
Error term.
QUESTIONNAIRE
Department of Agric,
Economics Management
and Extension,
Ebonyi State University,
P.M. B 053,
Abakaliki.
23rd July, 2013
Dear
respondents,
I am a student of the above named University
carrying out a research work on Economic analysis of rice production in Ebonyi
State. Please assist me with some relevant information by providing answer to
these questionnaires. Information supplied will be used only for academic
purpose and shall be handed with strict confidence; your co-operation will be
highly appreciated.
Yours faithfully,
INSTRUCTION: Please tick( ) where appropriate
SECTION A
Socio-economic
characteristics of respondents.
Your
name:……………………………………
Community:……………………………………
L.G.A:……………………………………………
1. Age
(a) <20
(b) 21-30
(c) 31-40
(d) 41-50
(c) 51
and above
2. Gender (a) Male (b) Female
3. Marital
status (a) single (b) Married (c)
widow
(d) Separated (e)
Widowers
4. Household size (a) 1-5 (b) 6-10 (c) 11-15
(d) 16 & above
5. Educational
qualification (a) No formal educational
(b) primary school (c)
secondary school (d)tertiary institution
6. Farming
Experience (a)1-5yrs (b) 6-10yrs
(c) 11-15yrs
(d) 16 and above yrs
7. Primary
occupation (a) farming (b) civil services,
(c) trading (d) Artians
8. Farm
size (a) 0.5-1.00ha (b)
1.5-2ha (c)2.5-3ha
(d)3.5-4ha (e)
4.5 & above
9. Annual income (a)< 20,000(a)N21000- N30,000(c)31,000-40000
(d) 41,000-50000 (e) 51000 & above
10. Do you belong to any social organisation? (a) yes (b) No
11. If yes,
please indicate ----------------------
SECTION B
Sources of information to the rice farmers
12. What are
your sources of information in production of rice your are?
(a) ADP
(b) Ministry
of Agriculture
(c) FADAMA
(d) Local
government
(e) Extension
agent
(f) Co-operative
society
(g) Neighbour
(h) Radio
(i) TV
(j) Other
specify
13. What are your sources of labour
(a) Hired
labour (b) Family labour (c) Relative labour
14. What is
your source of income (a) personal (b) Bank
(c) Cooperative society (d) relative/groups.
15. What
are source of input (a) market, (b) Neighbour (c) Local government (d)
cooperative society
16. What is
the input used in production of rice? (a) Fertilizer (b) improved seed (c)
labour (d) land
SECTION C
Cost and returns in rice production
17. Please
write the amount spent on following items in table below.
Materials
used
|
Amount
(
|
Rice
seed cost
|
|
Fertilizer
cost
|
|
Pesticides
cost
|
|
Cost
of land
|
|
Weeding
|
|
Planting
|
|
Land
clearing
|
|
Harvest
cost
|
|
Transportation
cost
|
SECTION D
Constraints Associated with the rice production in the
study Area.
18. What
are the constraints associates with production of rice in your area.
(a) Inadequate
capital
(b) Problems
of pest and diseases
(c) High
cost of transportation
(d) High
cost of labour
(e) Poor
marketing outlet
(f) Inadequate
supply of farm inputs
(g) High
cost of Agro-chemicals
(h) Land
tenure system
(i) High
cost of fertilizer
(j) Poor
storage facilities
(h) Government
policies