Broadening the Market for 'OFADA RICE' reducing Youth Unemployment. Part 1

  Ofada is a generic name used to describe all rice produced and processed in the rice producing clusters of South-West Nigeria. The short grain robust rice, believed to be OS6 and ITA 150 varieties, is named after Ofada, a small rural community in Obafemi Owode Local Government Area of Ogun State. Ofada rice is becoming more prominent and is gaining attention and appeal amongst elites at parties, eat-outs and at homes; sold in fast-food restaurants, and also in 500g boxes by marketers in major cities in Nigeria and beyond.

Many believe that the uniqueness of the product which comes in aromatic and non-aromatic flavors is a function of several factors, namely the seed variety, fermentation process, the sauce and the traditional leaf used for serving.

 As a niche and special product originating from certain geographical areas, ofada rice could be likened to the popular "basmati rice" from India and Pakistan estimated to have an export market value of over $1 billion dollars annually.

The study presented by CMRG - a market research agency, and Emerging Market Economics Limited (EME) based in the U.K, showed that among cities and towns in the South West, Abeokuta in Ogun State recorded a significantly higher consumption level with 58 per cent, followed by Ilesa in Osun State (38 per cent), Ado-Ekiti in Ekiti State (34 per cent), Ibadan in Oyo State (34 per cent) and Lagos (31 per cent). Abuja generated 18 per cent score in this regard thus suggesting that prevalence of ofada rice consumption is in the South-West. Members of the trade and professional buyers also confirm the South-West as the dominant producing and consuming areas for ofada rice.

Indications from the study established no linkage between ofada rice consumption and any particular traditional/cultural practices. Only a few who eat ofada rice at special periods do so at parties and commemorative events. Choice at such times was due mainly to the "natural" and "local" taste/flavour of the rice.

The average household consumer of ofada rice buys 6.46kg of the product per month. Abeokuta (11.62kg) and Ibadan (7.04kg) again recorded remarkably higher household volume purchases compared with other locations. Retailers in the local markets account for the bulk (90 per cent) of all purchases even though, average quantity bought from this source seldom exceeds 5.09kg. Wholesalers/distributors and farmers also emerged as sources of obtaining ofada rice, albeit, with higher quantities (ranging between 12.5kg – 13.61kg) when patronized.

Average monthly expenditure on ofada rice stands at N871.70 per household. However, consumers in Lagos far exceeded this limit with average monthly spend of N1,264.00, followed by Ado-Ekiti and Abeokuta with N1,205 and N1,079 respectively.

On the whole, indications from this survey suggest an aggregate market estimate of 8,763 metric tonnes per month in the South-West region and Abuja.

This is going by the 36 per cent consumption incidence amongst the sampled respondents and a monthly average volume of 6.46kg per household. This also translates to total annual estimated market size of 105,156 metric tonnes or monetary value of N1.2 billion in the sub-region and Abuja alone.

 On the Diaspora, study revealed that there is a huge potential for Nigerian foods, especially ofada rice. It shows that the population of Nigerians in the UK is high and out of this, 70 per cent are of Yoruba origin that is ready to eat ofada rice as regular meal. Potential demand of ofada rice stands at 120 tonnes per annum in England which is above present demand level of 60 tonnes per annum.