Can local African rice be competitive? An analysis of quality-based competitiveness through experimental auctions

Abstract

The rise in food prices in 2008 pushed many African states to adopt strategies of selfsufficiency in food. However, if production increases at the rhythm proposed by the programs, who will buy the surplus? The permanent rice deficit in West Africa is inherent to a concept which lacks consumer focus and fails to recognize the role of quality in the competitiveness of local and imported rice in urban markets. Two types of competitiveness can be distinguished, i.e. price competitiveness and quality-based competitiveness. We analyze the quality-based competitiveness of local rice on four urban African markets through experimental auctions. The experimental results provide evidence for the hypotheses that: i) local African rice can be competitive relative to imported rice under the condition that quality is tailored to consumer preferences; and ii) quality, labeling and information can act as triggers in strengthening competitiveness of rice value chains in Africa.