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

Bailey Peterson-Wilhelm, Lawton Nalley, Alvaro Durand-Morat, Aaron Shew, Francis Tsiboe and Willy Mulimbi

Journal of Agribusiness in Developing and Emerging Economies, 2021, vol. 13, issue 3, 361-378

Abstract: Purpose - Weaknesses 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/approach - We 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. Findings - Findings 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/implications - Rice samples were purchased from market vendors and thus consumer preferences for attributes were not revealed. Originality/value - These 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.

Keywords: Broken rice; Mozambique; Democratic Republic of the Congo; Ghana; Open air markets (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jadeep:jadee-02-2021-0038

DOI: 10.1108/JADEE-02-2021-0038

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