RICE VALUE CHAIN ANALYSIS IN A FREE TRADE AGREEMENT CONTEXT: A DEVELOPING REGION OF THE DOMINICAN REPUBLIC STUDY CASE

The aim of the work was to analyse the rice value chain in a developing region of the
Dominican Republic to avoid the rice producer´s displacement due to the Free Trade
Agreement. Primary sources of information such as personal surveys were used. Sociodemographical,
agricultural and economical variables were obtained. Absolute and relative
frequencies and accumulated percentages were calculated. The two-way dependence
between the item to be explained, farm yield, and the explanatory variables was calculated
by means of a chi-squared (c2) test of significance between the items. Two-step cluster
analysis was carried out to appraise the question of farmers displace. The competitiveness of
the farms could be improved by i) the adjustment of the fertilization and phytosanitary
doses, ii) the addition of value and price to the rice by post-harvest practice and iii) the
proper technical assistance of the farmers. It would be needed to diversify the productions
and/or to reduce the costs for the lower competitive 36.67% rice farmers of Barahona region
in the Dominican Republic not to be displaced by the CAFTA-DR. Dominican operators
cannot wait for the problems of the commercial channel to be solved by the state and so they
must be participants in and promoters of change. This report recommends initiatives that
would create sector ‘observatories’ for prices, product quality, supply and demand in each
season. These organisations should be accessible by all the agents along the chain.
 

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