Price and non-price determinants and supply response of rice in Côte d’Ivoire

Boansi, David (2013): Price and non-price determinants and supply response of rice in Côte d’Ivoire.

Abstract

Characterized by weak local rice productivity, inefficient marketing and processing of paddy among other constraints, the local rice sector in Côte d’Ivoire has failed to meet domestic rice consumption needs. In the absence of comprehension action, the country is expected to face a deficit of 1,731,583 Mt in supply of rice by the year 2020, which could consequently result in huge drainage of foreign exchange through imports. To inform future policy decisions on rice towards mitigation of the adverse effect such occurrence may have on producers, consumers and the country as a whole, this study analyzed the acreage and output responses of rice in Côte d’Ivoire for the period 1966-2009. The results suggest that rice farmers respond more to changes in price of competitive maize crop than they do own-price due to inefficiency of collection, processing and marketing in the local rice industry, limited participation of various stakeholders in development of the rice supply chain, failure of most buyers to observe contract terms and surtax on producer price due to high cost of transportation. The stagnation observed in output between the years 1988 and 2009, is found to result from a significant inverse association between area cultivated and yield of rice. As a major importer of rice and based on results of the current study, it is believed that Côte d’Ivoire could improve on its rice supply and effectively meet the anticipated deficit by putting in place measures to increase land area under cultivation, ensure a harmonization between yield and acreage cultivated, reduce labor shortages, ensure continuous government support to the sector, address the adverse fiscal effect of the exchange rate system and promote stakeholder participation in development of the rice supply chain.

• Item Type: MPRA Paper
• Language: English
• Keywords: Acreage response, output response, nominal rate of assistance, deficit in supply
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

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