LOCAL RICE INDUSTRIES' READINESS TO MEET LOCAL RICE DEMAND AND CONSUMERS WILLINGNESS TO PAY FOR LOCALLY PRODUCED RICE IN THE NORTHERN REGION, GHANA

Abstract

The study assesses the preparedness of local industries in meeting the demands of consumers of locally processed rice in the Northern Region. High importation of rice into the country places a significant strain on the country's foreign reserves and exchange rate, affecting the government's budget. Thus, increasing local rice production and consumption requires local industries to meeting local rice demand and consumers’ willingness to consume locally produced rice. Theory of plan behaviour was the theory underpinning this study. The study adopted a descriptive survey design with a mixed research approach to achieve the study objective. A sample size of 140 was used for this study. Three (3) districts in the Northern Region were selected. These districts are Sagnarigu Municipal, Tamale Metro, Tolon District. Where a proportional sampling procedure was used to distribute the total sample size across the selected districts as Tamale Metropolitan (40.0%), Sagnarigu Municipal (35.0%), and Tolon District (25.0%). A questionnaire with personal and key informant interviews was employed in gathering data for the study. Descriptive statistics such as percentage, frequency distribution, Kendall’s Coefficient of Concordance, logistic regression model and content analysis were employed in analysing the data. While the results were presented using tables and graphs. The study revealed that the majority (67.9%) of the respondents preferred imported rice, whiles 18.6% of the respondents preferred local rice and 13.6% preferred both imported and local rice. Also, the study found that local rice farmers and processors were fully prepared to meet the local processors and consumers' demands respectively. The rice producers acknowledged that whenever there is a bumper harvest, it is a loss for them since the cost of production is very high. Also, the study, therefore, recommends that investors should take advantage of the ready market for improved local rice, by investing in efficient processing facilities in upscaling the production of improved local rice compared with imported rice commodities.