Postharvest Rice Value Chain in Arequipa, Peru: Insights into Farmers’ Storage Decisions

We examined the postharvest rice value chain among farmers in the Arequipa region of Peru, focusing on the stages of value creation after harvest. Our study is complemented by an economic analysis that provides insights into farmers’ decisions on whether or not to store rice after harvest. We found that farmers produced, on average, 65 tons of paddy rice on a 5 ha farm. Most farmers (over 85%) milled their paddy rice immediately after harvest, usually by paying a fee to a private mill. Milled rice was then sold to intermediaries (wholesalers and retailers). Approximately 13% and less than 1% of farmers stored their paddy rice before and after milling, respectively. Storage provided minimal financial benefits once grain preservation costs and price arbitrage were considered. Our findings offer guidance for policymakers and investment partners to enhance the efficiency of the postharvest rice value chain and to improve outcomes for farmers in Peru and other developing countries.