Postharvest Rice Value Chain in Arequipa, Peru: Insights into Farmers’ Storage Decisions

Carlos A. Zurita, Zachary Neuhofer, Jorge R. Díaz-Valderrama, Dennis Macedo-Valdivia, Charles Woloshuk and Dieudonne Baributsa ()
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Carlos A. Zurita: Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105, USA
Zachary Neuhofer: Department of Agricultural Economics, Purdue University, West Lafayette, IN 47907, USA
Jorge R. Díaz-Valderrama: Facultad de Ingeniería y Ciencias Agrarias, Universidad Nacional Toribio Rodríguez de Mendoza de Amazonas, Chachapoyas 01001, Peru
Dennis Macedo-Valdivia: Facultad de Agronomía, Universidad Nacional de San Agustín de Arequipa, Arequipa 04000, Peru
Charles Woloshuk: Department of Plant Pathology, Purdue University, West Lafayette, IN 47907, USA
Dieudonne Baributsa: Department of Entomology, Purdue University, West Lafayette, IN 47907, USA

Agriculture, 2024, vol. 14, issue 11, 1-17

Abstract: We examined the postharvest rice value chain among farmers in the Arequipa region of Peru, focusing on the stages of value creation after harvest. Our study is complemented by an economic analysis that provides insights into farmers’ decisions on whether or not to store rice after harvest. We found that farmers produced, on average, 65 tons of paddy rice on a 5 ha farm. Most farmers (over 85%) milled their paddy rice immediately after harvest, usually by paying a fee to a private mill. Milled rice was then sold to intermediaries (wholesalers and retailers). Approximately 13% and less than 1% of farmers stored their paddy rice before and after milling, respectively. Storage provided minimal financial benefits once grain preservation costs and price arbitrage were considered. Our findings offer guidance for policymakers and investment partners to enhance the efficiency of the postharvest rice value chain and to improve outcomes for farmers in Peru and other developing countries.

Keywords: rice production; postharvest management; rice processing; storage profitability (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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