Unveiling economic potential of rice processing among women in Patigi LGA, Kwara State: Challenges and opportunities

Abstract

Rice processing is a vital agricultural activity in Patigi Local Government Area (LGA) of Kwara state, with untapped economic potential. However, despite its significance, the sector faces several challenges that hinder its growth and profitability. This study examines the economic viability of rice processing among women, identifies challenges, and explores prospects for growth.  A cross-sectional survey of 80 women rice processors was conducted using a multistage sampling technique. The analysis of costs and returns in paddy rice processing reveals a total variable cost of ₦225,237.17, total revenue of ₦343,938.46, and a profit of ₦104,433.06, with an average profit of ₦14,494.13 per bag of paddy processed per day. The study also reports a profit margin of 30.4%, indicating that for every ₦100 revenue recover from processing, the processors earn ₦30.40 as profit and a rate of return on investment (RORI) of 43.6%, suggesting that the processors earn a return of 43.6% on their investment. The study also reported a BCR of 1.43, indicating that for ₦1 invested in rice processing, ₦1.43 is returned as benefit. The study identifies opportunities for increased profitability and poverty reduction as well as challenges such as high paddy costs and limited access to finance. The study concludes that women’s participation in rice processing has economic potential but requires strategic interventions to address challenges. The study recommends government support, women empowerment, and capacity buildings to unlock the sector’s potential and enhance food security.