Making Nigerian Agricultural Markets Work for the Poor. Monograph Series # 24

Transcription

1 PrOpCom Making Nigerian Agricultural Markets Work for the Poor Monograph Series # 24 Managing Demonstration of Improved Parboiling Equipment in Kura-Kano Rice Processing Clusters By M&A s GREENERY LTD 186 Atiku Abubakar Street Gaandun Albasa, Kano Nigeria October 2, 2007 Funding for this programme is provided by the United Kingdom s Department for International Development (DFID) 40 Mississippi Street, Maitama, Abuja, Nigeria Tel: +(234) /2 Fax: +(234)

2 Disclaimer The PrOpCom Monograph Series seeks to provide a broader dissemination of the information and views collected through the efforts of the various service providers and consultants undertaking work in support of the PrOpCom programme. We believe this information will be useful in informing the policy dialogue in Nigeria and for improving the planning and execution of agricultural and agribusiness activities within the country. The documents in this series represent the final deliverables as presented by the engaged service providers or consultants in responds to terms of reference of contracts let by PrOpCom in execution of its programme. They have not been further edited or editorially polished. Consequently, there is wide variation in the editorial quality of these documents. Nevertheless, the information contained in these document is deems useful for policy and planning purposes. The views and opinions expressed in these documents are solely those of the authors of the document and do not necessarily represent the views of PrOpCom, SAII Associates, Chemonics International or PrOpCom s funding agent, the Government of the United Kingdom s Department for International Development (DFID) Information from these documents can be freely used and quoted on condition that it is properly sourced to the concerned document.

3 Executive Summary The Promoting Pro Poor Opportunities in Commodity and Service Markets (PrOpCom) Programme had ealier undertaken the technical and financial analysis of some parboiling systems within Kura Kano corridor and selected the TADCO model of parboiling equipment for demonstration and testing by parboilers in the different production and processing clusters because of its relative low cost and efficiency. PrOpCom contracted M & A s GREENERY LTD to coordinate and manage these demonstrations and to obtain feedback and reactions of the parboilers to the new technology. The demonstrations and testing of the new technology were carried out in ten sites covering six locations of Kwanar Dawaki, Tamburawa, Kura, Karfi, Tudun wada, Chiromawa and Garko in the Kano Kura rice processing corridor. Nine out of the ten sites comprised of women parboilers only, while 1 site consisted of men only. The demonstrations and training of the participants were conducted using experiential learning (hands on) techniques. A total of nine hundred and tweny seven (927) participants from the 10 sites attended the training. Reactions of the participants to the introduced technology was captured using group discussions and questionnaires. The questionnaires were administered to 30 participants per site. Generally, the trainees were very much impressed with the introduced technology, especially with the unique features of the parboiling equipment. Most of them expressed their interest in owning the parboiler, but majority indicated they could not afford the cost of acquiring it because of lack of capital. Analysis using simple and participatory budget technique revealed that even though the new technology has a higher investment cost and also higher variable cost, the output obtained from the introduced technology attracts a higher premium price as well as a higher profit margin. Based on the reaction and feedback obtained from the parboilers and the observations of M & A s GREENERY LTD, it is recommended that: TADCO needs to do make some slight improvements on the parboiler especially with respect to rusting and height of the drum. Also the sieve for initial cleaning of the paddy should be constructed in such a way that one person can handle and use it. The major challenge faced by these women is that of being contract parboilers, there is therefore a strong need for empowering these women to expand their processing activities and venture into integrated rice processing. There is a glaring need for capacity building for women group formation, development and consolidation. For these women to own the introduced technology there is the need to link them with organizations that can help them acquire the equipment or to micro credit institutions. This will make them have access to loan facilities. The local government and other state and Federal agencies need to be involved to support the PrOpCom iniative. 2

4 Appropriate packaging and branding of processed rice should go together with improved rice processing activity such that what is processed by these women can compete favourably with imported rice. There is also the need to open up better marketing outlets for the women 3

5 Table of Contents Executive Summary Introduction Methodology Site Identification Demonstration/Research Team Composition Training of M & A s GREENERY LTD Staff at TADCO Demonstration of the TADCO Parboiling System Testing of the Parboiling Units by the Women Costs and Returns Analysis Feedback from the Parboilers Technology Demonstration and Reaction of Parboilers Demonstration and testing Demographic characteristics of the parboilers Characteristics of rice processing in the various sites Parboilers reaction to the new technology Constraints faced during the demonstration and testing Input Output Analysis Inputs required for parboiling rice Analysis of Costs and Returns Analysis of Costs and Returns for real and normative integrated systems Price of milled Rice Profit Margin Conclusion and Recommendations Appendices

6 1.0 Introduction Rice is the staple food of over half of the world s population. It ranks only second to wheat in terms of annual production for food use. In Nigeria, rice production and consumption has increased over the past decades and rice has now become a major part of the local diet. The National average annual production has increased more than 14 fold between the early 1960s and late 1990s, rising from 200,720 to 3,001,028 tons, respectively. In spite of the importance rice has assumed in recent times and potentials that exist for greater production, Nigeria remains a net importer of rice. There is also greater consumer preference for imported rice compared to the locally produced commodity. There have been several past and on going efforts by a number of governmental and non governmental organizations to improve the production, processing and marketability of locally produced rice. One of such on going efforts is the Promoting Pro Poor Opportunities in Commodity and Service Markets (PrOpCom) programme. PrOpCom is an innovative project funded by the Department for International Development of the United Kingdom (DFID) to facilitate functionality and efficiency of Nigerian commodity and service markets in such a way as to assure these markets benefit the poor. PrOpCom s goal is to improve livelihoods by facilitating growth and pro poor outcomes in commodity and service markets and to contribute to the overall goal of poverty alleviation in support of the attainment of the Millennium Development Goals. During the first two year pilot implementation phase, PrOpCom is focusing primarily on the rice commodity value chain. Studies conducted by the PrOpCom and other rice experts have identified parboiling as one of the major constraints in the rice commodity chain. Parboiling is the central activity in rice processing and an important operation that determines rice quality. It is esentially a hydrothermal treatment applied to raw paddy which involves three main steps namely soaking, steaming and drying. During the process, the grain changes its physical properties as starch gelatinizes because of the heat treatment in the presence of water. Parboiled paddy provides higher milling yield and reduces nutrient loss during milling and cooking. From commercial and consumer point of view, the main quality criteria of parboiled rice are: optimum milling yield, maximum head rice, minimum broken grains, uniform grain size, desirable color and aroma. Parboiling is mainly done by women in villages surrounding rice milling clusters as an alternative source of income. Traditional parboiling methods have been identified as important sources of quality problems in rice. The traditional method of parboiling paddy rice in large pots and barrels have a number of drawbacks, which result in poor quality of rice and also pose health risks because the work is done around open fires and involves emptying boiling water from large pots. PrOpCom has ealier undertaken the technical and financial analysis of some parboiling systems within Kura Kano corridor and has selected the TADCO model of parboiling equipment for demonstration in the different production and processing clusters because of its relative low cost and efficiency. In order to coordinate and manage these demonstrations, PrOpCom has identified 5

7 the need to get a Service Provider with requisite experience and skills. In line with this, M & A s GREENERY LTD was contracted to coordinate and manage the demonstration and testing of the technology and to obtain feedback and reactions of the participants. The specific tasks to be undertaken under the terms of reference of the contract were to: Coordinate and manage the demonstration of the TADCO improved parboiling system in approximately 10 sites, across the following clusters: Kura, Chiromawa, Tamburawa, Karfi, Tudun Wada, and Garko. In liaison with the PrOpCom team visit all the 6 locations to identify the 10 sites for the demonstration as well as identifying suitable compounds in each site where the demonstration will be conducted; and also identify and mobilise women in these locations for participation in the demonstration. Arrange for staff to receive training from TADCO Nigeria Limited in Kano with the purpose of ensuring that the staff understand how the parboiling system operates and have an opportunity to meet the TADCO staff that will be involved. The parties would also reach an agreement on when to begin the demonstrations and other logistics involved. Visit the sites, coordinate and work closely with TADCO to ensure a successful execution of the demonstration, collect and analyse the basic costs and returns data and follow up (where necessary) with the parboilers to ensure that they fully understand the workings of the system so that they can test the technologies on their own. These tests will serve as effective demonstrations for other women in the locations. Visit the different sites (after the initial demonstration) during the first day of the testing by the women in each site to observe and explain some of the little details; answer questions that the women testers might ask during the course of the testing. Follow up with the women in the various sites to document their reactions and experience with the parboiling equipment. (This will be done after 2 days of actual demonstration and 4 days of hands on testing by the women). Continue to liaise with the PrOpCom team throughout the period of the demonstration and testing to ensure a hitch free exercise. This report presents the final account of the demonstration and testing excercise, the reactions of the participants to the new technology, as well as input output analysis of the improved technology. 6

8 2.0 Methodology 2.1 Site Identification As specified in the terms of reference, demonstration of the TADCO improved parboiling system was carried out in 10 sites as indicated in Table 1. The 10 sites for the demonstration as well as the suitable compounds in each site were identified by the M & A s GREENERY LTD team in liaison with PrOpCom, millers, traders and parboilers in each location. The essense was to select sites with large concentrations of women actively involved in parboiling of paddy. The sites identified were in areas that were generally, receptive and amenable to new ideas and free from conflict. Locations and sites for the demonstration and testing Location Site Tamburawa/ Kwanar Dawaki Kwanar Dawaki (Site 1) Tamburawa (Site 2) Kura Fegin Danda (Site 3) Gangare (Site 4) Bakin Titi (Site 5) Karfi Karfi town (Site 6) Tudun Wada Tudun Wada1 (Site 7) Tudun Wada 2 (Site 8) Chiromawa Chiromawa town (Site 9) Garko Garko (Site 10) Total 10 Sites 2.2 Demonstration/Research Team Composition M & A s GREENERY LTD assembled a vibrant team of experienced and dedicated scientists with vast knowledge of the subject matter and the target areas. The team was made up of a Chief Research Officer, Senior Researchers, Enumerators, Data Analysts, and an Office Administrative Staff. The Chief Research Officer was responsible for the overall coordination and management of the project activities. The Senior Scientists facilitated the demonstration and testing of the parboiling system and obtained 7

9 feed back from the parboilers. Eighty percent (80%) of the Senior Scientists were female, this ensured free and easy interaction between them and the women parboilers who may be in purdah. The entire M & A s GREENERY LTD team comprised of experts fluent in the local language of the Kura Kano corridor (Hausa) to effectively facilitate the demonstration. 2.3 Training of M & A s GREENERY LTD Staff at TADCO Our team of scientists undertook a training and interacted with the TADCO team to fully understand the operations of the parboiling system prior to the commencement of the demonstration and testing. The training of M & A s Greenery staff at TADCO covered all aspects of the improved parboiling process as depicted in plate Demonstration of the TADCO Parboiling System The first day of the exercise at each site was mainly used in explaining and demonstrating the operations of the TADCO parboiler by the joint M & A s GREENERY LTD/TADCO team. The team led the women through every step of the improved parboiling process. At every stage of the exercise, questions were encouraged and appropriate responses offerred. The second day at each site started with a recap of what happened in the previous day. The women were then asked to lead the entire process under the close supervision of the M & A s GREENERY LTD/TADCO team; where difficulties arose the team profered solutions. This ensured the smooth conduct of the demonstration through interactive experiential (hands on) learning. 2.5 Testing of the Parboiling Units by the Women After the 2 day demonstration the parboiling units were left with the women to test on their own over a 4 day period. On the first day of the testing period, the scientist assigned to each site visited and observed the testing of the parboiling equipment by the women and ensured that the operations ran smoothly. 2.6 Costs and Returns Analysis Input output data were collected using detailed interview on the testers. The data were analyzed using simple budget technique to calculate and measure the technical efficiency of the parboiling equipment in both physical and value terms. This was necessary in order to understand the profitability of the new technology compared to the traditional system. This simple costs and returns analysis was also used to determine the financial viability of the new technology. Gross margin and profit or net margin tools were used to measure the financial efficiency. 2.7 Feedback from the Parboilers After the demonstration and 4 day testing of the parboiling equipment by the women, feedback on their experience in testing the equipment was sought. This was done through group discussions using a checklist and the administration of structured questionnaires. The questionnaires were administered to 30 participants per site. Participatory budgetting technique was employed to enable the participants understand the financial viability of the new technology. 8

10 Plate 1: Pictures showing sequence of activities in the improved parboiling technology during the training of M & A s Greenery Ltd staff at TADCO premises Removal of dirt and debris with hand Steamed paddy ready for drying Sieving to remove stones and dirt Heat is applied again to steam the paddy for about 45 minutes Most of the water drained through the upper tap Wet cleaning and sieving to remove dirt and floaters Heat source is removed and the paddy allowed to soak Heat applied The cleaned paddy is put into the parboiler for soaking 9

11 10

12 3.0 Technology Demonstration and Reaction of Parboilers 3.1 Demonstration and testing The demonstration of the TADCO improved rice parboiling system kicked off as scheduled on Monday August 6, 2007 at Kwanar Dawaki and Tamburawa (Sites 1 and 2, respectively). The excercise started with explanation of the TADCO parboiling system and its differences with traditional systems, followed by step by step demonstration of the I have been parboiling rice for over 20 years. The improved technology is better than our traditional system as it eliminates back and waist pains. The paddy is parboiled and steamed thoroughly with the new technology. I expect to get higher profit because there are no stones or impurities in the processed rice....the problem with the new technology is the sieve which requires 2 people to operate, it will be better if smaller sieve is constructed that can be used by one person. I am interested in acquiring the new equipment but I cannot afford the cost. improved parboiling process. On the second day the process was repeated, with the trainees taking the lead under close supervision of the M & A s Greenery Ltd/TADCO team. From the third to the sixth day, the trainees were left to test the parboiling system on their own, however, M & A s Greenery Ltd Scientists visited the sites on the third day (first day of testing)to ensure that the testing was going on smoothly. On the seventh day, our scientists and enumerators went back to the sites to get feedback from the trainees through group discussions and administration of questionnaires. The process above was repeated at Fegin Danda and Gangare (sites 3 and 4, respectively) in Kura location which kicked off on Wednesday August 8, 2007; and at Kura Bakin Titi and Karfi (sites 5 and 6, respectively) in Kura and Karfi locations which started on Monday August 13, The demonstrations kicked off on Wednesday August 15, 2007 at Tudun wada (sites 7 and and 8); and on Monday August 20, 2007 at Chiromawa and Garko (sites 9 and 10, respectively). The lists and addresses of the trainees that participated in the testing and demonstration of the TADCO improved parboiling technology in the ten sites are given in appendix 1. The trainees in site 5 (Kura Bakin Titi) were all male while trainees from all other sites were female. The initial plan was to have a maximum of 30 trainees per site with a total of 300 from all the 10 sites, however, 927 participants took part in the exercise. The number of participants at Kwanar Dawaki, Tamburawa, Fegin Danda, Gangare and Kura Bakin Titi were 38, 44, 111, 105 and 150, respectively. While those that participated at Karfi, Tudun Wada1, Tudun Wada2, Chiromawa and Garko were 92, 37, 50, 235 and 65, respectively. All the participants were allowed to take part in the demonstration and testing and their reactions sought through group interviews. However, the enumerator conducted survey was restricted to 30 respondents as earlier planned. 11

13 3.2 Demographic characteristics of the parboilers The demographic characteristics of the parboilers are presented in Table 1 and figures 1, 2, 3 and 4. More than 76% of the participants interviewed were married. Majority (72.7%) of them were within the ages of 18 and 45. The modal household size of the participants was 6 to 10 people. Up to 21.7% of the participants interviewed had more than 20 I am married with over 20 years of parboiling experience. Parboiling is my main source of income, and I normally years of experience in parboiling (fig. 1). The parboil 2 to 3 bags of paddy per day. The new technology site with the highest number of new is easy to operate, requires less energy and produces parboilers was Kwanar Dawaki where about good quality rice. It will bring higher profit, however I 43.3% of the participants had less than 6 cannot afford to purchase it because I don t have the money years of experience. Around 43.3% of all Hajara Inuwa participants normally processed between 2 Gidan Abdu Dan Bebiya, Tamburawa 3 bags of paddy per day (fig. 2). Nearly 25% of the trainees processed less than 1 bag a day. Participants from Garko and Gangare (Kura) processed the least number of bags of paddy per day. More than 88% of all participants indicated parboiling as their main source of income (fig. 3). Interestingly, 28 out of the 30 men interviewed at Bakin Titi (Kura) claimed parboiling was their main source of income. This may not be completely true but could be because they see parboiling as an integral part of their major activities (farming, milling and trading). Level of formal western education among the participants was quite low (fig. 4) with only about 8.4, 6.0 and 2.3% having had primary, secondary and tertiary education, respectively. All those with tertiary education were from the male group at Bakin Titi site. About 62.5% of all participants had Islamic (islamiyya) education, while 20.7% had no formal classroom education in whatever form. Around 51% of all parboilers interviewed belonged to cooperative groups (fig. 5). I have been in the parboiling business for less than 10 years and I normally process 2 3 bags of paddy per day. I use the shafa type of parboiling pot. I believe this newly introduced technology is less hazardous compared to the traditional system....the most impressive aspect of demonstrated technology was the washing of the paddy with detergent which results in better quality and clean rice I am willing and can afford to buy the equipment now! Altine Danladi Gidan Mai Unguwar Danda, Fegin Danda, Kura 12

14 Table 1: Marrital status, age and household size of the participants Characteristic Location K/Dawaki Tamburaw a Kura (F/Danda) Kura (Gangare) Kura (B/Titi) Karfi T/Wada1 T/Wada2 Chiromaw a Garko Total Marital Status (Number of parboilers) Single Married Widowed Divorced Age <18 years years years years years >55 years Household Size < >

15 14

16 15

17 16

18 17

19 18

20 19

21 3.3 Characteristics of rice processing in the various sites Parboiling activities have been a common practice in all the locations for the past 15 to 50 years. In some locations such as Tudun Wada, the women complained that many years back, they used to source the paddy, parboil, mill and sale the rice themselves. Later the men came in and hijack the business and relegated them to mere casual labourers ; who are contracted to parboil for the men. The women have remained behind largely due to lack of capital. Unfortunately, none of them has ever received any support whether in cash or kind from any source to improve their activities. Plate 2: Shafa types of parboiling pots Water and energy are serious constraints in all the locations especially during the dry and wet seasons, respectively. The quality of the parboiled rice usually depends on the needs of the clients. While some want the shefe (unfilled grains) removed prior to parboiling, others don t mind. The most commonly used type of parboiling units in all the sites except Garko were the locally fabricated aluminium pots called Shafa (Plate 2). The preference for Shafa by most of the parboilers was because of its relative low cost, relatively high heat conductivity compared to drums, resistance to rust, and the availability of artisans who can repair any leaks or damages to the pots. Most parboilers owned more than 1 pot (fig. 6). The parboilers at Garko used traditional earthen pots and a small metal pot in parboiling their paddy (Plate 3). The metal pot is only used for boiling water which is transferred to the earthen pot in which the actual parboiling (soaking) is done. Generally, the participants in all sites except Garko and Bakin Titi (Kura) were contract parboilers. At Garko the women usually purchase, parboil, mill and sell their own paddy. In the other 8 sites, the women were normally paid between N 100 to N 200 per bag of paddy. The women normally source the water and firewood for the parboiling; and also take care of drying the parboiled paddy. However, at Tudun Wada the clients normally provide the water and fuel wood for the parboiling, collect the parboiled paddy wet and take care of the drying themselves. The typical parboiling process in all sites except Garko included initial soaking in hot water; removal of heat source and allowing the paddy to continue soaking; steaming; and finally drying. At Garko the women do not steam, after soaking the paddy is dried and sent for milling. This makes the color of the milled head rice white, which is preferred in the site. Plate 3: Earthen pots, calabash and metal (aluminium) pot used in parboiling at Garko 20

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23 3.4 Parboilers reaction to the new technology The general reaction of the trainees to the new technology was quite positive. Aspects of the new technology that highly impressed the participants in all locations were: 1. The taps attached to the drum for draining out water after soaking 2. The perforated pan with sieve which prevents direct contact between the bottom of the drum and the paddy (plate 4) 3. The steamer (perforated pipe) inside the drum, which ensures uniform steaming Plate 4: The inner side of the TADCO parboiling unit showing the perforated pan and pipe The opinion of more than 87% of the trainees was that the taps for draining water will reduce drudgery and eliminate waist pain associated with bending and scooping to remove water in the traditional method. It also reduces the risk of burns from steam and hot water. The perforated pan that separates the paddy from the bottom of the drum eliminates the problem of over cooking and burning of the paddy that normally occurs with their traditional methods. Another component of the TADCO parboiling equipment that impressed the trainees was the sieve (Plate 5) for initial cleaning and removal of small stones, weed seeds and other impurities. The unanimous opinion of the participants after the demonstration and testing exercise was that the quality of output from the improved parboiling equipment was by far better than what they were getting with their traditional methods. In all the sites except Garko, the trainees got higher price of milled rice using the TADCO technology compared to the price of their traditionally parboiled milled rice (see section 4.0). Plate 5: Use of sieve to remove impurities impressed the trainees 22

24 All the participants that attended the training sessions expressed their desire to own the improved parboiling system. However, among the 300 parboilers that were interviewed using the structured I am 55 years old, a widow and I have been in the parboiling business for about 20 years. I don t believe the new technology will reduce any drudgery or cost of operation. The disadvantage of the technology is that the drum is too high and does not fit short people like me. I am not interested in the equipment as it is. I hope you will improve the technology by making drums that are not as tall but a bit wider to compensate for the height. Adama Adamu Gidan Ali DanKwari, Gangare, Kura questionnaire, only seven of them indicated no interest to own the improved parboiling equipment (figure 7) and 66.6% of those interested said they could not afford the cost of buying it (figure 8). At Tamburawa, some of the participants indicated their willingness to purchase the equipment if it is subsidized. The names and addresses of the trainees who indicated that they could afford to purchase the equipment among those interviewed using questionnaires are shown in appendix 2. Some drawbacks of the technology pointed out by the trainees include rusting of the drums which discoloured the rice. This particular problem was noticed especially during the testing and demonstration at Tudun Wada. The participants felt that if the components of the TADCO drum such as the perforated pan and pipe could be fitted into their own type of pot (Shafa) which does not rust, this problem would be solved. Some participants were of the opinion that the TADCO system uses more water (for washing) and consumes more fuel for heating. The question they asked then was would the clients be ready to pay higher to compensate for this increase in the input cost. Other aspects of the demonstrated technology that some of the trainees felt need to be modified were: The height and size of the drum. Some of the trainees felt that the drum is too high for them to work comfortably. Others felt that the drum should have a capacity of about 2 bags. The sieve for initial cleaning of the paddy should be constructed in such a way that one person can handle and use it conveniently, since many of them operate alone. They suggested the sieve to be smaller in size and circular in shape. The trainees will prefer to use stones instead of metal stoves, which they claimed is easily rusted and corroded. There was a problem observed with the rope placed inside the drum to prevent seapage of the rice from the upper to the lower segment of the drum. It usually collapses and gives ways to rice seeping into the lower segment of the drum and blocking the draining pipes. 23

25 3.5 Constraints faced during the demonstration and testing All the participants interviewed using the structured questionnaire espressed satisfaction with the conduct of the training. However, the major challenges faced during the demonstration were rainfall, which sometimes disrupted our schedules; and the large turn out in most of the locations thereby requiring us to use extra hands in coordinating and managing the demonstrations. On the first day of the demonstration at Garko, entry to the training site (Rariyar Kampa, about 20 km from Garko town) was only possible on motor cycle because of the heavy rainfall and bad road. We therefore suggest that when PrOpCom is planning similar activities in the future, they should be carried out in the appropriate season. 24

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30 4.0 Input Output Analysis 4.1 Inputs required for parboiling rice The key inputs for parboiling rice are divided into two: The variable inputs as well as the fixed inputs. The variable inputs are those inputs that are needed for the day to day operations of parboiling; these include the raw paddy, water, energy source, labour, and transport. The fixed inputs however, are the input required to start up or invest in parboiling. The fixed input must be in place before parboiling can take place, this include the parboiling equipment itself and other accessories like washing basins and bowls, sieves, drying mats etc. Most of the inputs used for the traditional systems are similar in all sites with little or no variation. All the sites, with the exception of Garko use the traditional alluminium drum called Shafa while Garko women use the traditional pots made from alluminium in addition to their traditional clay pots. Plate 6: M & A s Greenery staff obtaining feed back from some trainees The fixed inputs for the TADCO parboiler differ from the traditional parboiler. The TADCO parboiler is made from iron and also come with other accessories like the wooden sieve and the drying mat that is different from what is obtained in the traditional system. But all other variable inputs are the same for all the sites including TADCO only that this technology uses more water than all the traditional systems. 4.2 Analysis of Costs and Returns There is no market for parboiled paddy but a high percentage of the women are involved in contract parboiling. Meaning that, the women do not own the paddy to be processed. But rather, it is a kind of contract between the owner of the paddy and the woman who is to parboil the paddy, after which she is paid a fee for parboiling the paddy. Out of the ten sites where the demonstration took place, contract parboiling is the most common practice in nine sites. Only the women in Garko engage in integrated rice processing where these women are the owners of the rice they process. Profit margin in parboiling can be calculated by deducting the cost of parboiling (variable & fixed) from the fee charged per unit weight or bag of paddy. This is the basis of comparism (Table 2) between the profit margins of the traditional parboiling systems with the TADCO improved parboiler. 29

31 Table 2: Input output analysis for contract (real practice) parboiling Kwanar Dawaki Tamburawa Fegin Danda (Kura) Gangare (Kura) Karfi Bakin Titi (Kura) Tudun Wada 1 Tudun Wada 2 Chiromawa Garko TADCO Installed capacity (bag) Average bag size (kg) Number of batches/day Bags parboiled/day Number of days of operation/week Number of bags/year Total variable cost of parboiling/bag contract(n) Annual Depreciation/bag(N) Total cost of parboiling/bag contract(n) Contract parboiling fee/bag(n) Profit Margin/bag(N) Total Fixed Cost Start up Investment(N) 4,820 4,790 8,580 5,850 3,980 5,850 4,270 5,090 6,200 5,670 2,

32 The installed capacity of all the traditional parboilers in all of the nine sites is commonly a one bag capacity pot, however, a few of the women own parboilers that are more than a bag capacity. However, the women in Garko own pots that are not up to a bag capacity, they therefore parboil several batches before a bag is obtained. These women also process only a bag of paddy for the entire week, but this can be associated with the fact that their market I am Impressed by the TADCO technology because it is less hazardous, will reduce drudgery and costs of operation and the output is more hygienic than in the traditional system. However, the drum takes longer time to respond to heat. It will be better to use the shafa type of material in making the drum Salisu Mato (Jinjilo) Kofar Yamma, Bakin Titi, Kura is a weekly type which can be the reason for the women sticking to processing only a bag. Unless they have more marketing outlets before they can be able to expand their processing. The TADCO parboiler on the other side has a capacity of 1.5 bag of paddy but the drum can accommodate two batches of parboiling in a day meaning that three bags of paddy can be parboiled in a day with the TADCO parboiler. The normal bag size for raw paddy in all the sites is 75 kg except in Garko where the normal size for their bag is 85 kg. There are averagely about 40 mudus of raw paddy for the 75 kg bag which turns out about 20 mudus of milled rice while the 85 kg bag has an average of 50 mudus of raw paddy that turns out about 25 mudus of milled rice on the average. Most of the women parboilers operate one batch per day but some women in Kwanar Dawaki and Karfi operate two batches in a day with their one bag capacity parboiler, these women therefore, parboil two bags in a day while the other parboilers parboil one bag in a day except for the Garko women who parboil a bag of paddy in three days of the week. The TADCO improved parboiler can accommodate two batches in a day if timed properly thereby making the number of bags to be parboiled in a day to be three. The days of operation for most of the women parboilers is through out the week but in Kwanar Dawaki and Tamburawa, the women parboil for only four days of the week. The number of batches parboiled in a day with the number of bags parboiled in each day as well as the number of days of operation is all related to the number of bags parboiled by the women within a year. The women in Garko parboil the least number of bags (52 bags) while the women in Karfi and Chiromawa parboil about 728 bags of paddy which is the highest number of bags parboiled in a year for all the sites. Fegin Danda, Gangare, Bakin Titi (all in Kura) and Tudun Wada are parboiling 364 bags of paddy in a year. The total variable costs of parboiling for contract parboiling in the nine sites that engaged in contract parboiling were N , 50.52, , and for Kwanar Dawaki, Tamburawa, Fegin Danda, Gangare and Karfi, respectively. The rests were 92.08, 1.19, 2.08 and for Bakin Titi, Tudun Wada 1, Tudun Wada 2 and Chiromawa, respectively. The Garko women on the other hand incur N as their variable cost in parboiling but the price of paddy alone cost about N7000. This indicate that paddy alone constitute a major percentage of the variable cost of parboiling. The higher the price of paddy, the higher will be the variable cost and the lower the price of paddy, the lower will be the total variable cost of parboiling. This means that to reduce the cost of parboiling, it is advisable for rice processors to look for the best price for paddy. 31

33 The availability of certain inputs in each site especially water and fire wood also increase or decreases the cost of parboiling. This variation is common even within a particular location but different sites. Example is in the variable cost incurred by thw women in Gangare, Fegin Danda and Bakin Titi, which are not exactly the same. This difference within a location is as a result of the availability of some inputs in any given site. Where these inputs are available like water, the women do not have to buy which reduces the cost of operation. But where these inputs are not available in a particular site, the women will have to buy these inputs, which increase the cost of parboiling. Cost of labour is nil because labour is not employed in contract parboiling in all the sites. The women parboilers use their own labour in parboiling, this decreses the total variable cost. Also in other sites like Gangare and Chiromawa, the women pay land rent for space to dry paddy because of the unavailability of drying space. In Gangare, land rent/bag isn30 while the land rent/bag is N50 in Chiromawa. All these differences in the variable cost will also reflect in the total cost of parboiling after depreciation has been added. TADCO parboiler has N as its variable cost. This cost is higher than the variable cost of all the traditional system apart from Garko. Annual depreciation for all the sites also varies based on the equipment or the accessories used in parboiling. Depreciation for the TADCO parboiler is N20.47 while for the traditional system, depreciation/bag range from N5.59 in Gangare to N37.45 in Fegin Danda while Chiromawa and Tamburawa have N5.79 and 27.65, respectively. Contract parboiling fee which is the fee paid to the women for parboiling the paddy also varies in the nine demonstration sites. This fee is also related to the availability of variable parboiling inputs in a particular site. The higher the cost of inputs such as water and firewood, the higher will be the fee paid for parboiling and vice versa. Contract parboiling fee is from N50 in Tudun Wada to N 300 in This new technology is very good because water drains easily and bending down to scoop hot water and rice is eliminated. It really saves time, makes work easier and the grain quality after parboiling is good because dirt and unwanted materials have been removed The cost of firewood has reduced but more water is needed. I am Interested in the new technology but cannot afford it due to my low income. Kaka Mato Tudun Bayero Layin Yan Shayi, Karfi Chiromawa. The women in Tudun Wada are paid N50 as parboiling fee because cost of water and firewood is not incurred by the women but rather by the clients who supply water and fuelwood along with the paddy to the women. The parboiling fee cuts across all the sites apart from Garko women who do not engage in contract parboiling. However, the parboiling fee for the TADCO technology is N 500. This difference between the two systems is as a result of the higher cost of variable inputs and site location of the TADCO technology. Profit margin which is being used to compare the viability of the TADCO improved parboiler with the traditional system of parboiling also varies for all the sites. Out of the nine sites that are engaged in contract parboiling, the women in some sites are making profit while others are loosing. Women engaged in contract parboiling in Gangare, Fegin Danda, Karfi, and Bakin Titi are loosing with a negative 32

34 profit margin of N27.66, N18.94, N6.75 and N7.79, respectively. While women in Kwanar Dawaki, Tamburawa, and Tudun Wada 1 and 2 are recording profits of N35.35, N71.83, N37.56 and N35.78, respectively. The negative profit margin supports the fact that even though parboiling is the major and central activity as well as the most labour intensive, the women still operate at a loss. However, TADCO parboiler despite its high variable cost of parboiling is still making a profit margin of N The fixed cost or start up investment for all the traditional systems ranges from N3980 N8580 depending on the accessories that are used with the parboiler. This means that a minimum of N3980 is needed to start up any parboiling business depending on the number of accessories used. However, the TADCO technology has an investment cost of N23, 950 which is on the high side when compared with the traditional systems. The parboiler itself which comprises of accessories like the taps, wire mesh, false bottom and taps cost about N18000, while the other accessories like the sieve and washing basins add up to the total cost of investment. All the traditional system parboilers are made from alluminium sheets which conduct heat very easily but can also be destroyed by the same heat, sand & stones present in the raw paddy. Even though the women claimed that the traditional allumininium drum has a lifespan of about 5 7 years, this durability depends on so many other factors because a drum can last for as short as 6months. But the TADCO drum is made from iron which conduct heat gradually and also more resistant to heat than the alluminium sheet. These qualities of the TADCO parboiler make it to have a longer life span than the traditional parboilers. The accessories in the TADCO parboiler like the pipes and false bottom allows for uniform steaming of paddy which increase the quality of the paddy. The taps attached to the drum allows for easy drainage of water which reduces health hazards. These unique features of the TADCO parboiler make it to be quite different from the traditional parboilers the women have been using over decades. I use shafa for parboiling because of its durability, but I am satisfied with the new invention because it is less hazardous. However, the drum is too heavy. In my opinion shafa should be fitted with all the accessories of the new technology I am particularly most impressed by the perforated plate placed at the bottom of the drum to separate the rice and water. The output of the tested technology is more hygienic and free from stones and other debris. I believed that the new system will be more profitable. 4.3 Analysis of Costs and Returns for real and normative integrated systems Yalwa Abdulrazak Ch di G bi T d d Most of the women in all the sites of demonstration do not engage in integrated rice processing. The most common practice is contract parboiling, it is only the women in Garko that practice an integrated system of rice processing. However for better comparison of the traditional parboiling system with that of the TADCO technology, the nomative situation of integrated system in all the sites was assumed in order to really get the diffrences in the output (milled rice). This is very important because there is no market for parboiled paddy and parboiling is only an activity in rice processing. Also technology is better 33

35 assessed if the output as well as the value for such an output is known. Profit margin will therefore be calculated from the total cost of processing subtracted from the revenue obtained from milled rice of the nine assumed or normative integrated systems. In comparing the profit margin for the normative integrated systems, the price of paddy used in the traditional system was used for the TADCO technology while the other variables used for the TADCO techonology were those incurred by TADCO in addition to the land rate paid for dying I am about 45 years old, with over 20 years experience in spaces where applicable. parboiling. I parboil between 4 5 bags of paddy every day. The drum you brought is not ideal because it gets rusty, The total cost of parboiling for all the sites which discoloured the rice while consumers prefer bright is added to the milling cost which is also rice. I suggest that our shafa should be improved by fitting contract milling (a fee is charged). The total the draining tap on them. cost of rice processed is then subtracted from the revenue obtained from the sale of Hajia Dije Ibrahim the milled rice. Revenue from rice is Kwanar Karefa, Tudun Wada obtained by multiplying the price of rice/mudu with the number of mudus obtained from a bag of paddy (Table 3). The average number of mudus obtainable from a 75 kg of raw paddy is 20 mudus of milled rice while 25 mudus of milled rice is obtained from the 50 mudus of raw paddy used by the women in Garko. Profit margin is calculated by subtracting the total cost of rice processing from the revenue obtained from the milled rice. This profit margin was then used to compare the differences obtained in the sale of rice parboiled using the traditional system of parboiling with the rice parboiled using TADCO technology in all of the ten sites that demonstration took place. This criteria is one of the most important budgetary techniques that is both theoretical as well as participatory. This method clearly show the participants the difference between their own technology with that of TADCO because they parboiled the paddy themselves when the improved parboiler was left with them after demonstration. In some of the sites, the women were very impressed with the improved parboiler and decided to utilize it to the fullest. Instead of using the drum to parboil paddy in a single batch, they decided to parboil two batches in a day which made them to parboil 3 bags of paddy each day for the four days of testing. Looking at the price of milled rice parboiled using TADCO technology and milled in their own mills, there is a positive difference in the price when compared with the price of rice parboiled using their own traditional technology in all the sites apart from Garko. The new technology is very interesting and will reduce drudgery and cost of our parboiling activities. I am impressed that a whole bag can be parboiled in a single cycle within a day unlike our traditional system where a bag takes 3 days to be processed. I also like the washing of the paddy with detergent, we don t do it here. I will like to buy the parboiler if the price is low. Bilki Audu KeragaudawaGidan Alhaji Garko 34

36 4.4 Price of milled Rice The table above shows a significant difference in the prices of milled rice. There is a difference of N30 N60 across all the sites except site 10 which is Garko which is recording a loss of N30. The reason for this loss is as a result of the colour that was obtained from rice parboiled using the TADCO technology. The preference of rice buyers in Garko market is for a very bright rice which is one of the quality criteria associated and known with rice processed by these women. However, the colour of the rice processed using TADCO technology is not as bright which is the only difference but the quality is the same. But with time if the buyers realize that the colour is natural and not artificial using palm oil as practiced by some processors, they might appreciate the rice and increase the price. 4.5 Profit Margin The profit margin obtained from rice processed during traditional technology is positive for all the sites except Kwanar Dawaki where the profit margin is N This negative margin can be associated with the high price of paddy (N4000) but despite the high price of paddy, the profit margin of rice parboiled with the TADCO technology in the same Kwanar Dawaki is N The differences in the profit margin which range from N21.83 in Tamburawa to N in Chiromawa for rice processed with the traditional system and also N in Kwanar Dawaki and N in Chiromawa for the rice processed using TADCO technology. There is a significant difference therefore between the traditional technology and the TADCO improved technology, which the women could clearly notice. However the profit margin of Garko women who in real practice are the integrated processors, there is a negative difference between the traditional technology with that of TADCO(N and N509.29). This loss in profit margin is as a result of the difference in price of the milled rice from N370/mudu for the rice processed with the traditional technology and N340/mudu for the rice processed with TADCO technology. I am thankful to God for the demonstration of the TADCO technology that is less hazardous to the health. I am most impressed by the way water is drained (taps), sieves, and the cover of the drum. The system saves time, makes work easier and produces good quality rice in terms of the colour, length and strength of the grains... I want to buy the new parboiling set of equipment now. Sadiya Musa The difference within a particular technology for all the sites is, as a result of the differences in the cost of variable inputs used especially the price of paddy. Price of paddy is an important variable that can significantly affect the total cost of processing. While others like the women in Chiromawa are buying paddy at N2700, other women like those in Kwanar Dawaki are buying theirs at N4000. This will finally reflect in the profit margin. Even though the variable cost incurred by the TADCO parboiler is higher than variable cost of all the traditional systems, the profit margin for the TADCO technology is higher than that of all the traditional system. Which implies that the rice parboiled using the introduced technology has a better quality, when compared with the rice processed using traditional technology. The prices also attract a higher premium price compared 35