Abstract

The article sought to discuss the impact of value chain development and local economic development among rice farmers in Asutuare in the Shai-Osudoku District Assembly of Ghana. The study specifically examined the actors in the rice value chain development process, their roles and how their roles shaped the final output for the consumer and the extent to which the value chain development and local economic development resulted in job opportunity creation, income generation, and poverty reduction in the area. Using the mixed method, the study found that the actors in the value chain process could be grouped into four. They are pre- production actors, which is made of actors involved in activities such as land preparation, tilling, bonding and spraying; production actors who are mainly made up of the actual rice farmers; post production actors who include those involved in harvesting, threshing milling among others; and financing system actors, which involves financial institutions and individual financiers (sponsors). The study opines that rice value chain and local economic development resulted in both direct and indirect employment and income generation for the rice farmers and the “agrigators”. However, there was a mixed outcome in poverty reduction in that 5.3% of the actors sampled for the study were below the poverty line, while the remaining 94.7% were above the poverty line. Challenges such as lack of access to finance, absence of sufficient rice processing factories, poor road networks, and lack of modern agriculture equipment were hindrances to effective rice value chain and local economic development promotion. Based on the findings and challenges, the following were recommended: the establishment of a rice processing factory in the Asutuare area as part of the One District One Factory policy, consistent fiscal policy aimed at supporting rice farmers in the locality, and the provision of modern equipment to modernize rice production.

Key words: Local economic development, value chain, value chain development, poverty reduction.