Analysis of the Rice Value Chain in Timor-Leste: The Producer’s Perspective

Cristóvão dos Reis

(National University of Timor Lorosa'e, East Timor)

Abstract: The aim of this article is to analyze the rice value chain in Timor-Leste, from the producer’s point of view. For this purpose, the Data Envelopment +Analysis (DEA), Tobit Regression and Likert scale models were applied. The sample consisted of 300 rice producers in two municipalities, namely Baucau and Bobonaro. The results showed that the production scale presented increasing returns in about 97%. Only 2% of the sample surveyed showed an efficient scale and about 1% presented a production scale with decreasing returns. The results of multiple linear regression analyses show that the model has a degree of adjustment of 10.6%, and the model is statistically significant. The estimated coefficients are statistically significant for Seeds and Capital. There are many factors that influence the decision-making of producers when selling their rice products. Rice distribution chains operate through various channels, including traders, companies, wholesalers, retailers and agents. In the activities of the rice production and marketing chain, the logistics sector is very important in supporting all activities.

Key words: value chain, rice, Timor-Leste