Factors influencing farmers’ choice to sell milled versus unmilled rice

Rice mills in Uganda have increased rapidly during the past decade, presumably in response to increasing demand for milling services. Despite notable improvements in access to milling services, farmers still sell rice un-milled hence attracting lower prices. Mainly the study examined why some rice-growing households sold un-milled rice and its effect on production profitability. Data was collected in 2009, in a survey of 194 farmers. Descriptive statistics were used to characterize households and profitability estimated using gross margin analysis. Factors influencing proportions of rice sold as grain were analysed using a tobit regression. Households were categorized basing on the form in which they sold rice i.e. “un-milled”, “milled” and “both”. Results indicate that most households invest in milling. Averagely completely milling households had bigger landholdings than other cohorts. Completely non-milling households covered longer distances to the nearest mill. Rice production is associated with positive gross margins. Price of milled rice, volume harvested, household size, group membership and distance to nearest mill significantly influenced proportions sold as grain. Rice milling supporting extension services and low power consuming stationary and mobile mills need be observed to ensure better rice production returns to farmers.