No abstract

Many reports on consumer preference in West Africa indicate that consumers prefer imported rice to locally produced rice due to the inferior grain quality of the latter. Complementing these reports, this study was undertaken to provide valuable information to researchers and policy makers on consumer criteria for selecting alternative types of rice in Togo. Using a multiple correspondence analysis on 336 respondents in 15 prefectures in Togo, the results highlighted the features cleanness, whiteness and taste as the first, second and third purchasing criteria respectively for non-parboiled imported rice while the choice of non-parboiled local rice was based on taste, swelling capacity and, again, taste as the first, second and third selection criteria, respectively. These results were reinforced by using a random utility model to perform the consumer utility analysis and their willingness-to-pay for the most important purchasing criteria of rice types. The results clearly showed that the surveyed consumers preferred non-parboiled imported rice to the non-parboiled local rice; the average utility of non-parboiled imported rice (2.198) was considerably greater than that estimated for non-parboiled local rice (-0.197) in the first purchasing criteria. To have the same level of utility provided by non-parboiled imported rice by consuming non-parboiled local rice, the surveyed consumers were willing to pay more for cleanness (231.2 FCFA/kg) and whiteness (263.5 FCFA/kg) in the first and second purchasing criteria categories, respectively. Although these results might have some limitations due to errors and inaccuracies in the consumer responses to the survey questionnaire, they do have implications for research and policy makers in Togo and the rest of West Africa.

Latent class analysis is applied to a hedonic price model to examine the presence of heterogeneity in consumer valuation of quality attributes in the Beninese rice market. Three classes of consumers are found in proportions of 5, 56, and 39 percent. We employ a partial equilibrium model and find modest gains in consumer surplus from an increase in head rice and reduction in chalkiness. The results provide evidence of market sorting, which should be taken into consideration in upgrading rice value chains. Also, it is important to assess potential gains from quality improvement to determine priorities for research and development.

Summary In West Africa, rice produced locally falls short of meeting the demand and preferences of urban consumers. We analyzed the challenges facing local rice in urban markets and identified policies that can be implemented to improve the competitiveness of the regional rice sector. We argue that without addressing the demand side of the value chain, efforts on the supply side might fall short in reducing import dependency. Evidence suggests that while imported rice has easy access to urban markets, local rice faces more challenges in reaching urban consumers. The low market share of local rice in urban markets is in part due to consumers’ dislike of local rice as it is perceived as being of inferior quality relative to imported rice. Local rice also tends to fetch lower prices. The experimental studies reviewed suggest, however, that urban consumers are willing to pay price premiums for local rice if its quality is upgraded. We propose a two‐stage policy sequence: (i) encouraging investment in quality upgrading; (ii) gradually increasing the Common External Tariff (CET) from 10 to 35 per cent to increase cost‐competitiveness of West African rice relative to imported rice. To stabilise and finance the sector, we further advocate the establishment of a flat‐rate levy on the value of rice imports.