Pricing Rice Quality Attributes and Returns to Quality Upgrading in Sub-Saharan Africa

Abstract

The study applies parametric and nonparametric estimation methods to determine hedonic prices of rice quality attributes, and a partial equilibrium model to determine the payoff to investing in quality improvement in five countries in Sub-Saharan Africa. Results indicate that consumers are willing to pay price premiums for head rice, slender grains, peak viscosity, parboiled rice, and rice sold in urban markets. However, they strongly discount amylose content, rice with impurities and imported rice. Investing in quality improvement through amylose content reduction leads to net welfare gains with a benefit-cost ratio of 47.86 and internal rate of return of 90%.

Does Rice Quality Matter? Understanding Consumer Preferences for Rice in Nigeria

“…The study provides an empirically robust analysis of quality attributes, both physical and chemical, contribution to rice price for sub-Saharan Africa as a whole. Findings suggest a preference for unbroken, parboiled, slender rice (Twine et al, 2022). A preference for rice sold in urban markets, compared to rural markets, is also identified (Twine et al, 2022).…”

“…With rice commonly being purchased from an open bag in Nigeria, we focus on visually discernable traits, from looking at either the rice or the packaging, rather than characteristics that could only be determined after the rice was cooked and consumed. Existing literature (Twine et al, 2022) often includes analysis of chemical characteristics, such as peak viscosity and amylose content; however, this information is not known to consumers at the time of purchase, nor is possible for them to ascertain and thus should not affect consumers' decision at the time of purchase. Even if a consumer consistently purchases rice from the same vendor, chemical characteristics, like visual characteristics, may not remain constant.…”

“…The level of broken grains is importantly used by consumers in grading domestic rice (Diako et al, 2010). Twine et al (2022) published a nonhypothetical hedonic study of rice in sub-Saharan Africa. The authors analyzed five sub-Saharan countries in Africa, including Nigeria.…”

“…A preference for rice sold in urban markets, compared to rural markets, is also identified (Twine et al, 2022). In addition to their contribution to the rice preference literature, Twine et al (2022) add to empirical analysis by running a variety of tests to ensure the robustness of their results.…”

Sustained productivity and agronomic potential of perennial rice

“…japonica cultivar Zhonghua 11, including a lower grain length/width ratio of 2.13. These grain qualities should be widely accepted as they are similar to current consumer preferences, except in countries such as Tanzania, Ethiopia and Laos, which have specific grain quality requirements 37,38 .…”