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Postharvest Rice Value Chain in Arequipa, Peru: Insights into Farmers’ Storage Decisions

Author

Listed:
  • Carlos A. Zurita

    (Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105, USA)

  • Zachary Neuhofer

    (Department of Agricultural Economics, Purdue University, West Lafayette, IN 47907, USA)

  • Jorge R. Díaz-Valderrama

    (Facultad de Ingeniería y Ciencias Agrarias, Universidad Nacional Toribio Rodríguez de Mendoza de Amazonas, Chachapoyas 01001, Peru
    Instituto de Investigación para el Desarrollo Sustentable de Ceja de Selva, Universidad Nacional Toribio Rodríguez de Mendoza de Amazonas, Chachapoyas 01001, Peru)

  • Dennis Macedo-Valdivia

    (Facultad de Agronomía, Universidad Nacional de San Agustín de Arequipa, Arequipa 04000, Peru)

  • Charles Woloshuk

    (Department of Plant Pathology, Purdue University, West Lafayette, IN 47907, USA)

  • Dieudonne Baributsa

    (Department of Entomology, Purdue University, West Lafayette, IN 47907, USA)

Abstract

We examined the postharvest rice value chain among farmers in the Arequipa region of Peru, focusing on the stages of value creation after harvest. Our study is complemented by an economic analysis that provides insights into farmers’ decisions on whether or not to store rice after harvest. We found that farmers produced, on average, 65 tons of paddy rice on a 5 ha farm. Most farmers (over 85%) milled their paddy rice immediately after harvest, usually by paying a fee to a private mill. Milled rice was then sold to intermediaries (wholesalers and retailers). Approximately 13% and less than 1% of farmers stored their paddy rice before and after milling, respectively. Storage provided minimal financial benefits once grain preservation costs and price arbitrage were considered. Our findings offer guidance for policymakers and investment partners to enhance the efficiency of the postharvest rice value chain and to improve outcomes for farmers in Peru and other developing countries.

Suggested Citation

  • Carlos A. Zurita & Zachary Neuhofer & Jorge R. Díaz-Valderrama & Dennis Macedo-Valdivia & Charles Woloshuk & Dieudonne Baributsa, 2024. "Postharvest Rice Value Chain in Arequipa, Peru: Insights into Farmers’ Storage Decisions," Agriculture, MDPI, vol. 14(11), pages 1-17, October.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:11:p:1886-:d:1505887
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    References listed on IDEAS

    as
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    2. Reardon, Thomas & Minten, Bart & Chen, Kevin & Adriano, Lourdes, 2013. "The Transformation of Rice Value Chains in Bangladesh and India: Implications for Food Security," ADB Economics Working Paper Series 375, Asian Development Bank.
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