Rice Market in Rural Cameroon: An Empirical Analysis Assessing the Market Structure and Conduct
Tieh Clifort Njonyi *
College of Technology, University of Bamenda, Bambili, Cameroon.
Balgah Roland Azibo
College of Technology, University of Bamenda, Bambili, Cameroon.
Bime Mary Juliet Egwu
College of Technology, University of Bamenda, Bambili, Cameroon.
*Author to whom correspondence should be addressed.
Abstract
Rice is the most important grain in the world, providing income and food security for many households as half of the world’s 8.2 billion people rely on rice to meet their 80% of food needs. The justified growth of rice research has not sufficiently focused on analysing rice value chains which has implications on the efficiency of the rice market and the agribusiness sector. This study analyses the rice market in Ngoketunjia division, a major rice-producing basin in the northwest region of Cameroon. Using a structured questionnaire, primary data was collected from a random sample of 386 rice actors. Further information from the focused group discussion and key informant interviews facilitated the analysis of choice of marketing channels. Market structure was captured using four firms (CR4) concentration ratio, while conduct measured using rice actor’s behaviour on pricing, channels and market information. The four-firm’s concentration ratio for Cooperation and Cooperative is over 51% of the total paddy sold in the Ngoketunjia division. Based on the rule of thumb criteria, a strong oligopolistic market structure was observed in the study area. Malpractice selling methods (47%), transportation services (42%), and Price fluctuations (35%) are the main barriers to market participation, with availability of seed (95%), capital (76%), improved milling technology (74%) and land (72%) being the main conditions for market entry. Information on rice price, rice quality, grading and inputs has positive effects on transparency in the market structure (reported by about 90%, 75%, and 73% respectively). Regarding the conduct of the rice market, pricing was strongly determined by cooperative, cooperation and is also strongly influenced by older and experience actors. The majority of farmers (68%) sell their rice between November and February which coincides with the harvesting season. More men (42%) store rice to be sold later as compared to women (21%). For all other variables considered in this study, there are higher market participation rates among men compared to women. The study concludes that there is inequality in the market power concentration, as pricing decisions are contingent on a few giant organisations rather than on the farmers. The study recommends that Cooperative participation should be encouraged. Rice market policies should focus on improving road infrastructure and providing timely and accurate market information systems to enhance efficiency and profitability.
Keywords: Rice, structure, conduct, marketing, supply chains, cooperation, market efficiency