Competitiveness and Comparative Advantage of Rice Production in Katsina State, Nigeria

Abstract

The study was carried out to analyze the competitiveness and comparative advantage of rice production in Katsina state. A total of 196 farmers were sampled using a multi-stage sampling technique. Both primary and secondary data were utilized in the study. The primary data was collected using a structured questionnaire by trained enumerators, while the secondary data on international market prices were collected from various government and non-governmental agencies. Policy Analysis Matrix (PAM), Profit share analysis and farm budgeting techniques were used for data analysis. The result of the financial profitability analysis revealed that a typical rice farmer earned an average revenue and profit of ₦663,799.25/ha and ₦322,356/ha, respectively. The result of the Policy Analysis Matrix (PAM) indicator (Domestic Resource Cost) showed that the farmers had a comparative advantage in rice production by having a ratio of less than one (0.46). Similarly, the percentage of the Unit Cost Domestic index (UCD) and Unit Cost Export index (UCX) for the farmers were less than 0.51 and 0.57, respectively, showing that the farmers were competitive in domestic and international markets. The Effective Protection Coefficient (EPC) ratio of greater than one showed that the farmers were positively affected by the government's agricultural policies. It was recommended that the current combined trade policies in the rice sector should be sustained to strengthen the comparative advantage and increase the competitiveness of the local rice.