Profit Efficiency of the Rice Milling Industry and Sustainability of the Rice Value Chain in Nigeria

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Fascicle

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2021 - 3

Title

Profit Efficiency of the Rice Milling Industry and Sustainability of the Rice Value Chain in Nigeria

Authors

Oluwasogo Dammy Abegunrin, Fatai Abiola Sowunmi

Publisher

Vita e Pensiero

Format

Article |

Pdf

Online from

11-2021

Doi

10.26350/000518_000074

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

Ebook format Pdf readable on these devices:

Computer
with Software:
- Adobe PDF Reader
Android
iPhone/Ipad
with App:
- Adobe PDF Reader
E-Book Reader
Ibs Tolino
Kobo

Description

Consistent profit making is a factor that sustains investment and encourages growth in business. This study was prompted by the need to examine the performance of the rice milling industry in Southwest Nigeria based on profit efficiency and reveals that the annual cost of labour and energy incurred by rice mills is high. The percentage of installed capacity utilized was 56.9% in the study area and the average profit efficiency was low (39.0%), with no significant variation among states (p>0.05). The state of Ekiti showed the highest (49.2%) profit efficiency, while Oyo had the lowest (15.5%). The age and milling experience of the manager/owner and the per day milling capacity of their machines were found to influence the profit efficiency of rice mills in the study area. Boosting rice production in order to enhance the capacity utilization of the rice milling industry and the adoption of strategies to reduce labour costs are recommended to ensure the sustainability of the rice milling industry in Nigeria.

keywords

Rice value chain, Rice mill, Stochastic frontier approach, Profit efficiency.

Authors biography

Fatai Abiola Sowunmi, Department of Agricultural Economics, University of Ibadan, Ibadan, Nigeria. Email: fasowunmi@live.co.uk.
Oluwasogo Dammy Abegunrin, National Centre for Genetic Resources and Biotechnology, Moor Plantation, Ibadan, Nigeria. Email: sogo_dammy@yahoo.com.