Economic assessment of the Tamale parboiled rice improvement programme

English

This report presents an economic assessment of the FSRPOP-Tamale Parboiled Rice Improvement project. The main highlights are on the profitability analysis for the various activities (i.e. Farming, processing and the APEX organisation), marketing options available, perceptions of the different stakeholders and lessons from the implementation strategy. The methodology included participatory appraisal techniques, a semi structured interview, group discussions and informal interactions were conducted among the different stakeholders participating in the programme. Estimates of financial profitability analysis of LRDP cropping and rice parboiling enterprise using Benefit Cost Ratio and Return on Revenue/Sales are presented in Tables 1-3. The profitability analysis yielded a break-even price (for 1 0bags per acre yield) of 157,000cedis per 83kg bag while that for 12 bags per acre was 131,000cedis per 83kg. The profitability analysis for Processors considered four scenarios. These included purchasing paddy at 140,000cedis and 160,000cedis for both Tamale and Kumbugu situations. The results showed that at purchase price of 140,000cedis per bag of paddy and ex-fuctory price of parboiled milled rice at 4,444 cedis per kg, processors earn margin per man-day of 41,144 cedis and 43,644 cedis in Tamale and Kumbugu respectively. Generally, the project provided support to FBOs to strengthen their capability to be able to relate better with the bank improving on access to credit, organise production inputs and also improve on access to market. At the funner level, the FSRPOP project sought to remove constraints especially lack of access to market in order to improve on the livelihood of farmers. At the processor level, the FSRPOP sought to provide technical assistance on best processing practices that would enhance rice quality. At the miller level, two mills were rehabilitated. They were supplied with shafts sieves, blades, bearings, belts and housing.

Quaye, W.; Manful, J. T.; Gayin, J.; Yawson, I.