Production Costs and Benefits of Japonica Rice in Mwea, Kenya

Abstract

From the perspective of national food security, strengthening domestic rice production is an urgent issue for Kenya. For this purpose, it is helpful to consider varieties that generate novel and competitive values different from those of conventional varieties. Recently, domestic japonica rice, which is now being distributed, has become an attractive variety with a high market price and its production is expected to increase. Although it is competitive and promising as a crop for small-scale farmers, the production stage costs and benefits are not clear. Thus, a study was conducted to perform a cost–benefit analysis of japonica rice in comparison to conventional rice at the production stage and evaluate strategies for strengthening the domestic production of rice. We conducted an experimental cultivation of japonica rice in the Mwea region, Kenya, where japonica rice is produced. As a result, although production costs for japonica rice are higher than costs for conventional varieties (24.46 KSh/kg versus 22.63 KSh/kg), when a high-yielding variety is grown (6.44 tons/ha for japonica rice compared to 6.07 tons/ha for conventional rice), a larger net profit can be obtained (65.54 KSh/kg versus 32.37 KSh/kg). We believe that initiatives to improve difficulties at the production stage would make the production of both japonica rice and conventional rice more economically viable and facilitate strengthening of the overall domestic rice production.

The Value Chain of Locally Grown Japonica Rice in Mwea, Kenya

“…The production costs of locally grown japonica rice and conventional rice were taken from Watanabe et al [11].…”

“…The selling price of conventional rice by farmers to middlemen was 55 KSh/kg (0.5 USD/kg), while it was 65 KSh/kg (0.6 USD/kg) for sales by middlemen to private millers and 115 KSh/kg (1.1 USD/kg) for sales by private millers to retailers. The production cost of locally grown japonica rice (S1 type) at MIAD was 28.75 KSh/kg (0.3 USD/kg), while the production cost of conventional rice for farmers was 22.63 KSh/kg (0.2 USD/kg) [11]. The average unit yield of conventional rice was 6.07 tons/ha in Kenya in 2017 [4].…”

“…To increase the availability of locally grown japonica rice for general consumers, the consumer price should be made more affordable. Based on the results of Watanabe et al [11], the production cost can be reduced by 5 KSh/kg (2% of the consumer price). Such a price reduction would require improvements in the production stage as well as other stages, such as processing and distribution.…”

“…Consumer acceptability is important to the successful introduction of new varieties. The production cost has already been discussed and clarified by Watanabe [11]. This study clarified the potential demand for locally grown japonica rice, examined the potential profitability through an analysis of the profit and added value along the value chain, and determined the gap between the potential demand for locally grown japonica rice and the current value chain.…”

“…A cultivation experiment that compared the production costs of locally grown japonica rice and the conventional rice variety Basmati 370 found that the high-yield, locally grown japonica rice yielded a higher net profit than conventional rice [11]. However, because locally grown japonica rice has been available on the market for only a short time, the market price, marketing benefits, competitiveness, and expansion potential of locally grown japonica rice remain to be clarified.…”