CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The struggles of Nigeria farmers in finding ways to increase farm income, interest in “adding value” to raw agricultural products has grown tremendously. The value of farm products can be increased in endless ways: by cleaning and cooling, packaging, processing, distributing, cooking, combining, churning, culturing, grinding, hulling, extracting, drying, smoking, handcrafting, spinning, weaving, labeling, or packaging. According to  (Kaplinsky, 2010) value addition means adding value to a raw product by taking it to at least the next stage of production. This can be as simple as retaining ownership of your calves and wintering them on wheat pasture or placing them in a feedlot. Value can be added through membership in a cooperative that processes your products, such
as a cooperative cotton gin. Or, adding value may be as elaborate as going all the way to the consumer with a “case-ready” food product. Hence rice farmers have keen interest in adding value to their rice production and processing so as to enhance the product.
Rice is an important staple food in Nigeria. Many Nigerians have developed tastes for polished and size-sorted medium to long-grained rice.  Local production of rice has been increasing over the years. Besides offering a higher return, value addition on rice production and processing can open new markets, create recognition for a farm, expand the market season, and make a positive contribution to the community like in the case of Adani in Uzo-Uwani Local Government Area of Enugu state of Nigeria. Though, value addition will enhance productivity in rice production and processing in the area but it is a long-term approach, not a “quick fix.” It requires the willingness and ability to take on risk, as well as adequate capital, management skills, and personal skills such as the ability to interact with the public to succeed (; Kaplinsky and Morris, 2000).
Production is the process of transforming certain goods and services known as inputs into other goods and services known as products (Akubiloet al., 2007). It implies a series of processes, techniques, activities or procedures involved in combining resources of land, labour, capitals, water and management to generate useful effect or products. Value on the other hand implies worth, Benefits
price or measure of importance. It is a factor of utility. Value can also be seen as the monetary term in which the utility of a product or an item can be explained.
Therefore, value addition in the production and processing of rice implies all the activities, processes or strategies and distribution of rice which in one way or the other contribute to benefit/utility maximization (Owoh, 2008). It
seeks a careful exploration into all the activities, processes or strategies of operation carried out in the production, processing, packaging and
distribution of rice which contribute to the maximization of profit or utility derived from rice.