Effect of Agglomeration Economies on Rice Production in Southeast Nigeria
Keywords:
agriculture, agglomeration, determination, riceAbstract
Background: Rice forms a significant portion of food consumed in most households, and it is one of the few food items whose consumption has no cultural, religious, ethnic, or geographical boundaries in Nigeria.
Objective: This study analysed the effect of agglomeration economies on rice production in Southeast Nigeria. Specifically, the study estimated the level of agglomeration economy among rice farmers in their clusters, compared the degree of rice production concentration among different levels of agglomeration, and determined the major benefits of agglomeration economy to the rice farmers.
Methodology: The researchers applied the descriptive survey research design for the study. A multistage sampling technique was used to select the 298 respondents. Primary data were used, and data were collected through the use of a well-structured questionnaire. Data were analysed using inferential and descriptive statistics such as ANOVA, means and standard deviation and percentages.
Results: Agglomeration economy exists in the Southeast with three levels low, medium, and high and is a major benefit to the farmers. The Gini coefficient of 0.34 indicates equality in rice production among all the clusters except Abakaliki, whose result was 0.66, indicating inequality. The agglomeration location quotient is greater than one and thus greater than the national average, showing that the zone has evidence of agglomeration economies and great potential for rice export. The degree of rice production concentration among clusters is significantly different at 1%, with access to labour and farm credit having the most significant influence. The benefits of agglomeration to farmers include access to skilled labour, workable cooperatives, and low transport costs, among others.
Conclusion: Agglomeration has been of great advantage to the farmers in the study areas. Such benefits include having easy access to farm labour due to the labour pooling associated with agglomeration.
Key recommendation: Rice farmers should form cooperatives to access credit, and the government should formulate favourable agricultural policies to favour agglomeration to reduce diseconomies and increase the advantages of agglomeration economies.
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