The Contributions of Rice Processing and Marketing to Poverty Reduction in Gboko Local Government Area of Benue State, Nigeria

Abstract

This study analysed the contributions of rice processing and marketing to poverty reductions in Gboko Local Government Area of Benue state. Data were collected on access to income and employment generated from rice processing and marketing activities. Indicators related to access to healthcare, educational level, access to basic amenities such as food, clothing, shelter and living standards in communities involved in rice activities. In this study, random sampling techniques were employed to select the respondents. A total of 368 respondents were randomly selected. Data for this study were collected using structured questionnaire and oral interview. Descriptive statistics such as simple percentages, tables and charts were used to analyse the data. Also, to analyse the poverty levels among the various groups, the Foster, Greer and Thornbecke (FGT) index and a logit regression model were used. The result shows that there is a positive and statistically significant relationship between quantities of rice processed and marketed and the income of the processors. A 1% increase in the quantity of rice processed and marketed will increase the income of the processors by 0.33%. Also, the result shows that there is a positive and statistically significance relationship between the price of rice and the income of the processors. A 1% increase in the price of rice processed lead to 0.45% increase in the income of the processors. Also, rice processing and marketing have improved access to basic needs such as access to food, healthcare, clothing, education and housing. The study concludes that rice processing and marketing play a significant role to poverty reduction in the area by improving incomes, creating employment opportunities, and enhancing food security. The study recommends targeted interventions from both the government and private stakeholders. In order to improve the livelihoods of those involved in rice processing and marketing but also contribute to the broader socio-economic development of the Area.