PROCESSING TECHNIQUES AND EFFICIENCY DIFFERENTIALS AMONG RICE PROCESSORS IN NIGERIA

Abstract

The quality of processed rice is optimised by processing techniques used. It also impacts on the efficiency differentials among processors when paddy is transformed into edible rice. However, information on the nexus between processing techniques and efficiency differentials among rice processors is scanty. Hence, processing techniques and efficiency differentials among rice processors in Nigeria were investigated.

A four-stage sampling procedure was adopted. Ogun and Ekiti (South-West), Ebonyi (South-East) and Nassarawa (North-Central) States were purposively selected based on high rice processing activities. Twenty-three Local Government Areas (LGA) were selected in Ogun (4), Ekiti (5), Ebonyi (7) and Nassarawa (7) States using sample proportionate to size with respect to processing centres in the state. Twenty-five (Ogun), 20 (Ekiti), 15 (Ebonyi and Nassarawa) rice processors were randomly selected from each LGA resulting into 410 rice processors. Information on socio-economic characteristics (age, household size, marital status, educational status) and processing characteristics (years of processing experience, paddy-source, processing-techniques, membership of processing association, processing activities, distance to processing centre) were collected using structured questionnaire. Index of processing techniques was categorised into Traditional-Techniques (<0.2-0.39), Traditional and Modern-Techniques (0.40-0.79) and Purely Modern-Techniques (>0.79). Data were analysed using descriptive statistics, Multinomial Logit regression, Data Envelopment Analysis and Tobit regression model at ά0.05.

Age and household size of processors were 47.8±9.9 years and 6.5±4.2 persons, respectively. Majority (88.7%) were married, 73.6% had formal education and years of experience was 16.4±9.2. Overall, 65.7%, 20.4% and 13.9% used Traditional and Modern-Techniques, Traditional-Techniques and Purely Modern-Techniques, respectively. Main processing activities were parboiling and drying (50.0%), milling (40.0%) and de-stoning (10.0%). The probability of choice of Traditional-Techniques relative to Traditional and Modern-Techniques reduced by years of education (4.5%), paddy source (1.8%) and distance to processing centre (4.4%), while probability of choice of Purely Modern-Techniques relative to Traditional and Modern-Techniques increased for male processors (7.3%), membership of processing association (18.0%) and other income sources (6.2%). Technical Efficiency (TE) was 0.4±0.3, 0.5±0.6 and 0.8±0.9 for Traditional-Techniques, Traditional and Modern-Techniques and Purely Modern-Techniques, respectively. Allocative Efficiency (AE) was 0.4, 0.6 and 0.9 for Traditional-Techniques, Traditional and Modern-Techniques and Purely Modern-Techniques, respectively; while Economic Efficiency (EE) was 0.8, 0.3, 0.2 for Purely Modern Techniques, Traditional and Modern-Techniques and Traditional-Techniques, respectively. The TE differentials of Purely Modern-Techniques relative to Traditional and Modern-Techniques and Traditional-Techniques were 0.4 and 0.5, respectively. The AE differentials of Purely Modern-Techniques relative to Traditional Modern Techniques and Traditional-Techniques were 0.3 and 0.5, respectively, while EE differentials of Purely Modern-Techniques relative to Traditional and Modern-Techniques and Traditional-Techniques were 0.5 and 0.6, respectively. This implies Purely Modern-Techniques had higher TE, AE and EE than Traditional and Modern-Techniques and Traditional-Techniques. Efficiency of rice processors increased with years of education (β=0.01); paddy source (β=0.01); membership of processing association (β=0.09) and years of processing experience (β=0.02) while it decreased with distance to processing centre (β=-0.01).

Technical, allocative and economic efficiency were low among rice processors that used traditional, and traditional and modern techniques; and high among processors that used purely modern techniques.