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Assessing The State Of The Rice Milling Sector In Nigeria: The Role Of Policy For Growth And Modernization

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  • Johnson, Michael
  • Masias, Ian

Abstract

We use an industry profit maximization model to conduct an ex-post impact assessment on the extent the rice milling sector in Nigeria has grown and improved its performance in producing high quality premium rice following major public sector interventions made under the Agricultural Transformation Agenda. Given challenges with the availability and quality of data, this assessment looks at the changes between two periods, 2009 and 2013, and simulates the performance of the sector under different technology capacities and policy scenarios. We find that the government has been successful in expanding quality paddy production and milling capacity in the country along with an increase in capacity utilization in the medium and large-scale milling sub-sectors. As a result, the production of premium quality rice has increased by approximately 0.5 million metric tons between the two periods. Despite these gains, the industry did not see any overall increase in employment in the medium and large-scale sub-sectors. Further focus by the government on expanding the supply of high quality rice paddy, while maintaining high tariffs to keep the medium and large scale milling sector viable, may provide the best opportunity for Nigeria to reach its goal of self-sufficiency in rice production.

Suggested Citation

  • Johnson, Michael & Masias, Ian, 2017. "Assessing The State Of The Rice Milling Sector In Nigeria: The Role Of Policy For Growth And Modernization," Feed the Future Innovation Lab for Food Security Policy Research Papers 259580, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    • Handle: RePEc:ags:miffrp:259580
    DOI: 10.22004/ag.econ.259580
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    References listed on IDEAS

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    4. Gyimah-Brempong, Kwabena & Johnson, Michael E. & Takeshima, Hiroyuki, 2016. "The Nigerian rice economy: Policy options for transforming production, marketing, and trade: Synopsis," IFPRI synopses 9780896299726, International Food Policy Research Institute (IFPRI).
    5. repec:rre:publsh:v:39:y:2009:i:3:p:269-86 is not listed on IDEAS
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    Cited by:

    1. Mavrotas, George & Mogues, Tewodaj & Oyeyemi, Motunrayo & Smart, Jenny & Xiong, Zhe, 2018. "Agricultural public expenditures, sector performance, and welfare in Nigeria: A state-level analysis," NSSP working papers 60, International Food Policy Research Institute (IFPRI).
    2. Amolegbe, Khadijat B. & Upton, Joanna & Bageant, Elizabeth & Blom, Sylvia, 2021. "Food price volatility and household food security: Evidence from Nigeria," Food Policy, Elsevier, vol. 102(C).

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