Modeling rice consumption preferences: an improved approach

Abstract

Rice is considered the second most important cereal to maize in Africa. Unlike maize, its consumption outweighs its domestic production leading to a high import wage bill. Ghana has been tackling this problem through various policies and programs which include increasing domestic production. However, consumer preferences for certain characteristics of rice have impeded the effort to reverse this trend, despite increasing domestic production. Studies on rice consumption preferences have often lacked a broader contextualization of rice consumption patterns. These studies have often targeted consumption at the household level ignoring the fact that consumption at the vending level is equally important, especially in cities and cosmopolitan areas. This study has been able to model consumption preferences at both household and vending levels. The studies analyzed data from 100 food (rice) vendors and 200 households in the Tamale Metropolis and Sagnarigu Municipality. A probit model is used with a suspected endogenous variable (origin of rice), which is controlled for using the Wooldridge control function approach. The study revealed preference for imported rice is less likely in the household compared with the vending level. Other characteristics of rice such as cooking time, cleanness, color, aroma, grain size, texture, expansion capacity, perceived nutritional benefits, and packaging were found to affect consumer’s preferences both at the household and vending levels. 10 local rice processors were interviewed on their ability to produce rice reflecting these characteristics consumers consider. The challenges they faced were also analyzed. The study recommends factoring in rice vendors in both research and policy formulation relating to decreasing rice importation. It also recommends consideration of rice processing companies in the One District One Factory (IDIF) program.