ABSTRACT
This study investigated the determinants of local rice consumption among households in Abeokuta metropolis. Four research questions were formulated to guide the researcher in the conduct of there search. The study adopted survey design involved one hundred (100) respondents for the study. The study was analyzed by using simple percentage. The major findings of the study revealed that households’ consumption of local rice is influenced by socio-economic factors and the quality of the local rice and also, it revealed that household monthly expenditure on Ofada rice increases with increase in household monthly income, household size and household expenditure on food. It also showed that educational level and household monthly expenditure on Ofada rice substitute have negative relationship with household monthly expenditure on Ofada rice. Based on the findings of this study, it was recommended that investment in local rice processing should be encouraged so as to improve the quality. More participation of farmers in local production was equally recommended so as to reduce the price per measure of the local rice in the market. Advocacy on the nutritional benefits of local rice over its foreign counterpart should be intensified and adverse consequences of importing large tons of rice into the country explained to all and sundry.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Consumption of local rice among households in Nigeria has continued to decline as most households now preferthe imported rice over the local rice. This trend has persisted in spite of the heavy custom duty on imported rice.Several factors have been attributed for this preference such as its taste, neatness, quick cooking potential unlikethe local rice (Odusina, 2008). Emodi and Madukwe (2011) reported that households are dissatisfied with local rice boughtin the market and are weary of picking stones from the local rice and having to wash it several times. In spite of all effort towiden home market for the nation’s local rice, its demand has continued to decline. The inability of local rice to competewith imported rice could be as a result of poor processing resulting in a final product with a high percentage of brokengrains and debris (Food and Agricultural Organization, 2004).
Over the years, the country has continued to depend on importation of rice to meet the demand and preference forher teeming population. Available study (Emodi and Madukwe, 2011) revealed that Nigeria is the largest importer of ricein the world. The study also showed that between 1990 and 2002, Nigeria imported 5,132,616 tons of rice valued atUS$1,883,553.
Arising from the foregoing, there is a need to investigate the factors influencing household consumption of localrice. An understanding of these factors will spur innovative decisions among stakeholders in the local rice productionsystem on the product offer based on the findings about consumers’ attributes and attitudes towards the commodityoffered. This in turn will improve local rice demand and reduce Nigeria’s import on foreign rice.There are several studies on local rice consumption such as those of Bamideleet.al. (2010), Idriset.al.(2013) andOdusina(2008). Though these studies addressed local rice consumption in various locations in Nigeria, none of such studyhas been done in Makurdi metropolis. Thus, this study attempts to bridge this research gap.
Factors affecting rice consumption in Nigeria vary from one locality to another due to different socioeconomic factors. It has therefore become imperative to evaluate the effect of these factors on the socio and economic lives of the population. It was observed that, despite impressive advances in agricultural technology, Nigeria still faces acute shortage in food supply as a result of its low agricultural productivity and yield fluctuations in recent years thereby making the availability of food for human consumption an unpredictable phenomenon (Idachaba, 2013).
1.2 Statement of the Study
Estimates indicate that rice imports represent more than 25 per cent of agricultural imports and over 40 per cent of domestic consumption (FMARD, 2014). Nigeria has thus become a major rice importer in the world market and second only to Indonesia in the last five years of this decade (2000-2005). From 1999, the value of rice imports rose steadily from US $259 million to US $655 million and US $756 million in 2001 and 2002, respectively (CBN, 2013). These estimates do not take into account the unrecorded smuggled rice imports into Nigeria (Rahji, 2014).
The demerit of Nigeria’s dependence on imported rice is more so as the share of the imported rice in the Nigerian food market is far above that of the domestically produced rice. Rice imports have affected the domestic production and marketing of Nigeria’s local rice. This is due to the decreased demand for local rice by Nigerians as opposed to the imported ones. The local Nigerian variety has a lower demand due to the high cost of producing the crop and cost of production is usually not subsidized by the government. The non competitiveness could also be as a result of poor processing resulting in a final product with a high percentage of broken grains and debris (FAO, 2010).
Importation of rice is depleting the foreign reserve. There was also a leakage in revenue collection hence federal government placed barn on importation of rice through the land border.
Therefore raises pertinentquestions regarding the place of localNigerian rice in the nutrition of the nation’shouseholds. It also raises questions as to thenature and pattern of local rice consumptionin the country. The current study thereforeaimed at looking into the determinants of local rice consumption among households.
1.3 Research Question
i. What are the socioeconomic characteristics of households in the study area?
ii. What is the share of expenditure on rice in the total food budget of households?
iii. What are the other food items as substitute to rice in the households
iv. What are the determinants of households demand for local rice consumption in Abeokuta?
v. What are the households consumption preference between locally produced rice brands and imported rice brands?
vi. What are the commodity and non-commodity factors that influence household’s consumption preference between locally produced rice brands and imported rice brands in the state?
1.4 Objective Question
1.4.1 Broad Objective
The broad objective of the study is to investigate the determinantsof local rice consumption among households. (A case study of households in Osiele, Abeokuta, Ogun State).
1.4.2 Specific Objective
The specific objectives of this study are:
i. To describe the socioeconomic characteristics of households inAbeokuta,
ii. Estimate the share of expenditure on rice in the total food budget of households,
iii. Ascertain the determinants of households demand for local rice consumption in the study area,
iv. Examine the households consumption preference between locally produced ricebrands and imported rice brands,
1.5 Significance of the Study
High dependency on rice as a staple food has several negative effects (Hariyadi, 2009). First,it could be a constraint for the development of local food resources which gave implications on lessresearch investment into non-rice-based foods. Second, obtaining food security with one or two fooditems can be viewed as a vulnerable point of national security. Third, other kinds of food need to bepromoted as staple food because rice supplies are likely to be decreasing from time to time. The poorcondition of food security in Nigerian is becoming worse as Nigeria suffers from high population.The Nigerian Statistical Bureau reported that Nigeria has already more than 191, 525,140people(Nigerian Statistical Bureau, 2010). With a population of more than 191, 525,140 people and stilldepending on imports to fulfill its need for staple food (i.e., rice), food security in Indonesia isalarming.
To solve food security problem, besides attempting to increase domestic rice production, theIndonesian government is trying to implement a program to socialize the idea of food diversificationprogram. Food diversification means having the presence of a broader food variety. It could alsomean the enhancement of food availability, accessibility and stability (FAO, 2008). Considering theimportance of food diversification, effort for food diversification has been invested for years in manycountries such as Japan (Uehara, 2012). As a matter of fact, Nigeria has a big opportunity to reachits national food security by implementing food diversification. Almost every region in Nigeria hastheir own potential traditional staple food; some are even easier to grow than rice, such as corn in theislands of Maluku and cassava in Papua. Therefore, it is obvious that there is a huge possibility toreorient the regional food development to obtain food diversification in Nigerian.
1.6 Justification of the Study
Food demand studies have been a subject of research all over the world and it is especiallymeaningful in developing countries where food expenditures account for a relatively large share of household income. These food demand studies provide estimates of how foodconsumption is affected by changes in prices, income, and taxation policies (Dunne and Edkins, 2010). For instance, the recent policy change on fuel subsidy in Nigeria had impactedon food prices and relative income of food consumers in Nigeria and therefore an
understanding of how the changes in food prices and relative income had impacted on food
demand can be achievable from reliable estimates of a food consumption study. Food
consumption in Nigeria has been an important issue, not only because it is related to poverty
and food security, but also because it is highly correlated with living standards and household
resource base. Consumption parameters provide necessary information on linkages from food
consumption to incentives for agricultural production through the marketing sector
(Kormawa and Akoroda, 2013). Efficient production and marketing techniques ensure large
scale production and marketing at low cost in order to increase the quality and quantity of
food available for consumption. However, before efficient production and marketing
techniques are adopted, reliable food demand data has to be obtained. The knowledge of
demand structure is essential for defining policy interventions to improve the nutritional
status of particular individuals, households, or individuals within households such as infants
and pregnant women and sectorial and macroeconomic policy analysis (Sadoulet and Janvry,
2010).
The result of this study would be useful in providing up to date information on rice consumers responsiveness to price and expenditure changes that are useful in designing
people-oriented food policy, subsidy and tax policies as well as formulating long term policy
for food security and poverty reduction. It is ultimately expected that policy makers will find
the results of consumption preference between imported rice and locally produced rice from
this study very relevant in formulating policies and programmes that will ensure consumer
preference for high quality local rice, encourage local production and processing of rice and
minimize the loss of foreign exchange earnings from rice importation into Nigeria. Therefore, this study will contribute to the existing empirical information on rice consumption for the
use of all stakeholders in the rice industry towards ensuring a viable rice industry in Nigeria.
1.7 Scope of the Study
The scope of this study is to examine the determinants of local rice consumption among household in Abeokuta metropolis.
1.8 Definition of Terms
Local Rice: is the seed of the grass societies Oryza sativa or Oryzaglaberrima. As a cereal grain, it is the most widely consumed staple food for a large part of the world’s human population.
Consumption: the action of using up a resource.
Households:collectively, all the persons who lives in a given house, family including attendants, servants etc.
Determinants: an element that determines the nature of something.