Quality determinates of rice price in open bag markets in Sub-Saharan Africa

Abstract

PurposeWeaknesses in the grades and standards system in low-income countries across Sub-Saharan Africa undermine the transparency of agricultural markets. In the Democratic Republic of the Congo (DRC), Ghana and Mozambique rice is predominately sold in open bags and if rice price does not reflect its quality, then inefficiencies may lead to consumer welfare losses. Importantly, it is possible that impoverished communities are priced out of the market due to inflated and inefficient prices. The objective of this study is to examine determinates of rice price by estimating the impact of selected rice quality attributes on rice prices in Democratic Republic of the Congo, Ghana and Mozambique.Design/methodology/approachWe collected 363 rice samples from open air markets in Bukavu (DRC), Nampula (Mozambique) and across Ghana in 2019. Each rice sample was analyzed in a food science lab for the quality attributes: percentage of chalk and brokens, chalk impact, length and length-to-width ratio. We used multiple regression analysis to estimate if and to what extent quality attributes were the drivers of price.FindingsFindings suggest that there are irregularities in the Ghanaian market for broken rice and that regardless of quality, imported rice is priced higher than domestic rice. In the DRC and Mozambique, our results indicate price is driven by length and length-to-width ratio in the former and length-to-width ratio in the latter.Research limitations/implicationsRice samples were purchased from market vendors and thus consumer preferences for attributes were not revealed.Originality/valueThese results provide valuable insight to policymakers regarding the need for proper labeling and regulation of open bag rice sales in an effort to increase consumer welfare and improve food security.

Trade-offs of on-farm yield estimation approaches and key factors affecting yield accuracy in smallholder farming systems in sub-Saharan Africa. A review.

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“…Although, forcing farmers to report in standard units may simplify the use of the data, it could also impose a signi cant cognitive burden on the farmer, reducing the accuracy of the resulting data (Beegle et al 2012;Oseni et al 2017). Additionally, project-based distribution of "standardized" containers to farmers may also be unrealistic and costly especially on a large scale.…”

“…Note: Shaded cells = Units rarely/ never observed in that zone. Source: Adapted from(Oseni et al, 2017) …”

Credence attributes and opportunities: a cautionary tale of yerba mate in Paraguay

“…A main challenge in exploiting credence attributes is in third party verification of them to overcome inherent information asymmetries. Certification is a common response (Peterson-Wilhelm et al ., 2021).…”

Market channel participation amongst smallholder rice farmers in the northern region of Ghana

“…Rice plays an important role in enhancing food and nutrition security and poverty alleviation, especially in developing countries including Ghana. It is a critical food commodity in the African continent and has become one of the highly consumed foods in recent times (Peterson-Wilhelm et al ., 2021; Muthayya et al ., 2014). Whilst rice consumption is reducing among the Asian middle class, its consumption is increasing in the African continent due to socioeconomic advancement and rising urbanization (Nasrin et al ., 2015).…”