||Effects of Industrial Paddy Processing on Local Rice Competitiveness in Glazoué District, Benin Republic
Ekpodilè Blandine A. ,
Honfoga Barthelemy G. ,
||British Journal of Economics, Management & Trade
||Aims: This research aimed to assess the extent to which public investment in industrial paddy
processing increases local rice competitiveness in Benin Republic, and to discuss policy
implications of the findings.
Study Design: The study was conducted in the Glazoué district using the approach of comparing
the outcome of a unique reference case (an industrial facility) with the average outcome of several
cases of indigenous private mills.
Methodology: Based on interviews with the state factory manager, 25 rice processing-and-trade
women and 30 consumers, competitiveness of three types of rice were compared: indigenous
private mill-processed parboiled rice; state factory-processed rice, and imported rice. Competitive
gains of the factory-processed rice over the indigenous one and vis-à-vis imported rice were
assessed using quality index, market-gate cost price, and quality index/cost price ratio.
Results: Imported rice is more competitive than local rice. Nonetheless, the factory-processed rice
is more competitive than the indigenous one. The factory reduces market-gate cost price of local
rice by 19.1% and brings down its overall competiveness gap vis-à-vis imported rice from 49.72%
to 13.13%, i.e. a more than 4-fold increase in competitiveness.
Conclusion: Therefore, more public investment in such factories should be promoted, provided
adequate market linkages are established.
||Competitiveness; imported rice; paddy-processing factory; private mills; local rice.
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