PROFITABILITY ANALYSIS OF RICE MILLING AND MARKETING IN BAUCHI STATE, NIGERIA

Abstract

The study analysed the profitability of rice milling and marketing in Bauchi State, Nigeria. Multi-stage sampling procedure was used for the selection of respondents. The respondents comprised rice processors (millers) and marketers. Data were collected using questionnaire and analysed using descriptive statistics, farm budgeting techniques and multiple regression analysis. The findings revealed that majority (87.5%) of the millers and all (100%) of marketers were male and married with a mean age of 39 and 44 years respectively. However, 43.8% of the millers and 40% of the marketers had a family size of between 6-10 people per household with majority (62.5%) of the millers having tertiary education. The analysis also shows that half (50%) and more than half (53%) of the millers and marketers had a marketing and milling experience of between 11-20 years. The result of the budgeting model revealed that millers had a net income of N714 per bag with a return per naira of N1.46 and marketers had a net income of N1, 672 per bag with a return per naira of N 0.12. The results of the regression analysis revealed that years of milling experience and education level were the factors influencing rice milling while household size and membership of association were significant factors influencing rice marketers’ income. However, high cost of diesel (96.7%) and transportation cost (95%) were the major constraints faced by the millers and marketers in the study area. The study concluded that, milling and marketing of rice is a profitable ventures in the study area. It is therefore, recommended that government together with stakeholders should provide adequate infrastructure and introduce favorable policies to strengthen the rice value chain in the study area.