Market Participation of Small-Scale Rice Farmers in Eastern Bolivia

Abstract

Using a double-hurdle approach, we assess factors associated with the extent of participation in the rice market with data for small-scale farmers drawn from a nationally representative dataset. The results suggest that larger endowments and assets, animal farming and commercialization, and alternative off-farm income make farmers less likely to participate. Conversely, having access to credit, larger farm sizes, and being part of a farmers’ association all increase the likelihood of participation. Farms with better technological resources are also those with higher sales volumes. Further understanding market participation dynamics should prove useful for deriving evidence-based policy recommendations to strengthen this Bolivian sector.

Impacts of the joint adoption of improved varieties and chemical fertilizers on rice productivity in Bolivia: implications for Global Food Systems

“…Although soybeans and other industrial crops in Bolivia have become the main source of country revenue and forex, rice and other cereals remain the main source of income and food security for small and medium farmers (Ortiz and Soliz, 2007). There are over 180,000 ha of rice in Bolivia (90% cultivated under rainfed conditions), managed by approximately 45,000 farmers (Lopera et al, 2023). Approximately 95% of rice production is concentrated in the Santa Cruz, Beni, and Cochabamba regions.…”

“…However, the use of improved rice technologies among small and medium-scale farmers remains constrained (Martinez et al, 2021). This low adoption of rice technologies has restrained the Bolivian rice sector from improving yields, facilitating greater participation in local and regional markets (Lopera et al, 2023), and reducing price volatility for producers (Bauguil, 2003) and consumers in urban areas (Perez et al, 2011). With a large share of agricultural land under rice, an improvement of rice productivity to the average rice yields in Latin America could meet the domestic demand and transform Bolivia into a net exporter of this cereal.…”