This study has identified the main actors in the Ndop rice value chain in Cameroon, beginning with the cost of production at the farmer’s level, then the costs or added values at each stage identified along the value chain. It has been shown that farmers incur a production cost of 114,6 Francs per kilogram of paddy rice, which they sell at 120 Francs to millers.
In the process along the value chain it is shown that the millers make the highest profit. UNDVA gets the lion’s share (154909,96 Francs) followed by the private miller (105504 Francs) per hectare, while the farmers gets only 27,200 Francs.
Further analyses show that the farmer could improve his profit margin by 78,304 Francs if he mills his rice with the private millers and sells to a wholesaler and by 127,709 Francs a if he mills with UNDVA, if he was not financially handicapped and /or restrained from pursuing such an option. Also, the farmer’s profit situation is sometimes worsened by local rice collectors when because of financial constraints he is lured into unfair production pre-financing deals involving taking loans from middlemen to repay in kind at harvest time and at giveaway rates. On other hand, millers further increase their lion’s share of the profit from the sales of rice brand, a byproduct of milled rice, which is never handed to the farmer.
Value chain analysis revealed the following weaknesses along the chain: the activities of the actors are as yet uncoordinated; income distribution is unequal and disfavors the farmers; returns to the farmers, who the principal actors, are discouragingly very low and due mainly to high cost of the labour intensive activities, unattractively low producer price(less than a third of the consumer price, and to financial constraints that hinder him from extending his production activities to include milling.
Generally in the Cameroon rice market, Ndop rice is less competitive when faced with competition from imported rice, especially that imported from India and Vietnam whose higher quality attracts consumers to the extent that rice dealers prefer dealing with imported rice despite its higher cost, because the consumer market prices are high enough to give them profits higher by up to 1250 francs per 50 kilogram bag when compared to Ndop rice deals.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Introduction
- Rice Production in Ndop Plain
- The Concept of Value Chain and Value Chain Analysis
- Objectives
- Methodology
- Target population
- DATA Collection
- Data Analysis
- Estimating the Cost of Production
- Estimating Profit per Unit Product at Each Stage on the Value Chain
- Estimating the profit of actors along the Value Chain
- Estimating Added Value, Revenue And Profit Distribution Along The Chain
- RESULTS AND DISCUSSION
- DESCRIPTION AND ANALYSIS OF THE NDOP RICE VALUE CHAIN
- Structure of Costs and Returns
- Comparing Prices of White Rice From Different Supply Sources
- SWOT Analysis
- Strengths Identified
- Weaknesses Identified
- Opportunities
- Threats
- RECOMMENDATIONS
- REFERENCES
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to analyze the Ndop rice value chain in Cameroon, identifying key actors, costs, and profit margins at each stage. It seeks to understand the efficiency and equity of the current system and to identify opportunities for improvement.
- Cost and profit analysis of Ndop rice production
- Value chain analysis of Ndop rice from farmer to consumer
- Comparison of Ndop rice with imported rice
- SWOT analysis of Ndop rice production
- Recommendations for improving the Ndop rice value chain
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the study's context by highlighting the growing demand for rice in Cameroon, the disparity between domestic production and imports, and the underutilization of domestic production potential. It uses data from 2006-2012 to illustrate fluctuating production trends, consistent high imports, and the resulting reliance on foreign rice to meet national consumption needs. The chapter sets the stage for a detailed examination of the Ndop rice value chain, aiming to identify areas for improvement within the domestic market to address the current reliance on imports.
Rice Production in Ndop Plain: This section provides background information on rice production specifically in the Ndop Plain region of Cameroon. While the provided text excerpt does not elaborate on this, it is implied that this section would provide details on the geographical factors, farming practices, and yields in the region. This sets the groundwork for understanding the specific context of the value chain analysis that follows. This would likely include data on land usage, water resources, and common farming techniques employed by local producers in the Ndop Plain.
The Concept of Value Chain and Value Chain Analysis: This chapter explains the methodology used in the study. It likely describes the value chain analysis framework, explaining how it was employed to trace the flow of rice from production to consumption, documenting costs, and profits at each stage. This would be crucial in explaining the structure of the subsequent analysis of the Ndop rice value chain. Understanding the methodology ensures that the findings and recommendations presented later in the study are correctly interpreted.
RESULTS AND DISCUSSION: This section presents the core findings of the value chain analysis. It details the cost of production for farmers, the added value at each stage (millers, wholesalers, retailers), and the profit distribution among the actors. It reveals that millers receive the highest profit, significantly more than farmers, who face challenges due to high labor costs, low producer prices, and financial constraints. The comparison between locally produced and imported rice highlights the Ndop rice's competitiveness challenges. This is the heart of the study, providing empirical evidence to support the conclusions and recommendations.
DESCRIPTION AND ANALYSIS OF THE NDOP RICE VALUE CHAIN: This chapter delves into a detailed description of the Ndop rice value chain, likely providing a visual or textual representation of the different stages and actors involved. The analysis highlights the structural issues within the chain, such as uncoordinated activities, unequal income distribution, and the low returns to farmers. A crucial aspect of this analysis is the comparison between the costs and returns at each stage, highlighting the disparities in profit margins. This chapter lays the foundation for the SWOT analysis and subsequent recommendations.
SWOT Analysis: This section presents a SWOT analysis of the Ndop rice production project. It outlines the strengths (availability of land and water resources), weaknesses (low rice quality due to poor processing and the disadvantaged position of smallholder farmers), opportunities (potential for increased yield and improved quality), and threats (consumer preference for imported rice). The SWOT provides a comprehensive overview of the internal and external factors affecting the Ndop rice production, setting the stage for targeted recommendations.
Schlüsselwörter (Keywords)
Ndop rice, value chain analysis, Cameroon, rice production, cost of production, profit margins, SWOT analysis, smallholder farmers, imported rice, competitiveness, income distribution, milling, post-harvest management.
Ndop Rice Value Chain Analysis: Frequently Asked Questions
What is the main focus of this study?
This study analyzes the Ndop rice value chain in Cameroon, examining the costs, profits, and efficiency at each stage, from farmer to consumer. It aims to identify areas for improvement and promote more equitable income distribution.
What aspects of the Ndop rice value chain are examined?
The study investigates various aspects, including rice production methods in the Ndop Plain, the cost of production at each stage (farming, milling, wholesaling, retailing), profit margins for different actors, a comparison with imported rice, and a SWOT analysis to identify strengths, weaknesses, opportunities, and threats.
What methodology is used in this study?
The study employs a value chain analysis framework to trace the flow of rice from production to consumption. This involves estimating the cost of production at each stage, calculating profit per unit at each stage, and analyzing the overall profit distribution along the chain. Data collection methods are not explicitly detailed in this preview but are implied to be quantitative, including cost and profit data.
What are the key findings of the cost and profit analysis?
The analysis reveals significant disparities in profit distribution. Millers appear to receive the highest profits, while farmers face challenges due to high labor costs, low producer prices, and financial constraints. The study also compares the cost and profitability of locally produced Ndop rice with imported rice.
What are the key strengths and weaknesses of Ndop rice production identified in the SWOT analysis?
Strengths include the availability of land and water resources. Weaknesses include low rice quality due to poor processing and the disadvantaged position of smallholder farmers. Opportunities exist for increased yield and improved quality, while threats include consumer preference for imported rice.
What are the main recommendations likely to be included in the study?
While the full recommendations are not provided in this preview, it is implied that the study will likely suggest strategies to improve the efficiency and equity of the Ndop rice value chain. This may include recommendations related to farmer support, improved processing techniques, and strategies to enhance the competitiveness of Ndop rice in the market.
What data is used to support the findings?
The preview mentions using data from 2006-2012 to illustrate fluctuating production trends and high imports. The specific data used in the cost and profit analysis is not detailed in this preview, but it implies quantitative data related to production costs, prices, and profits at each stage of the value chain.
Who are the key actors in the Ndop rice value chain?
The key actors include farmers, millers, wholesalers, and retailers. The study likely details the roles and interactions of each actor within the value chain.
How does the study compare Ndop rice with imported rice?
The study compares the cost, price, and competitiveness of Ndop rice with imported rice to highlight the challenges faced by local producers and identify potential areas for improvement.
What is the overall goal of improving the Ndop rice value chain?
The overall goal is to improve the efficiency and equity of the Ndop rice value chain, leading to increased profitability for farmers, better quality rice for consumers, and reduced reliance on imported rice.
- Citation du texte
- Fuh George Cheo (Auteur), Sama Joseph Nkwain (Auteur), 2015, Profit and profitability of Rice Production in Ndop Plain, Cameroon, Munich, GRIN Verlag, https://www.grin.com/document/316390
