Rice Farmgate Price Estimation and Collection Modality in Oromia, Ethiopia

Abstract

The main aim of this analysis to estimate minimum farmgate price for paddy rice and to indicate paddy rice collection modalities from farmers and provide an overview of current rice production status in Oromia. Rice (Oryza sativa) is one of the most stable foods and expected to contribute to ensuring food security in Ethiopia. The success of rice production depends somewhat on its high yield potential, processing technologies and marketing facilities. Improving rice production and productivity as well as facilitating its processing and marketing access is therefore one of a key part of the economic growth strategies in the Oromia government’s food self-sufficiency initiatives. Both local production and import are the two key sources of rice grain supply and meet consumption demand of Oromia people. Consumption trends in Oromia as well as in Ethiopia have shown a substantial increase from time to time. Using a quantitative secondary data and a review of existing literature, this study provides an overview of the rice production and estimating the farmgate price of paddy rice. The study stresses the need for estimation of farmgate price, formulation of rice processing technologies and market-enhancing policies, such as supplying and installing rice processing technologies, better access to market facilities and market information and to improve rice productivity.