Analysis of the Demand for Rice-Corn Blend in San Pablo City, Laguna, 2020

Date

7-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Charis Mae T. Neric

Committee Member

Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

White rice is the country's most consumed staple food, however local production is not enough to suffice for its demand. One solution to address the shortage in the local production of white rice is the consumption of alternative food staples such as corn, sweet potato, cassava, brown rice and the rice-born blend. Moreover, white rice has lower protein and dietary fiber, and a higher glycemic index as compared to white corn.

Rice-corn blend is a relatively cheaper and alternative staple to white rice which is being produced in the Institute of Plant Breeding (IPB). By shifting to this alternative, the country may ease its reliance and dependency on rice importation and may further aid in sustaining the food security of the country. Hence, the study was conducted to analyze the demand for rice-corn blend in San Pablo City, Laguna. The specific objectives of the study were to: (1) describe the consumption pattern for rice-corn blend; (2) determine the association of the socio-economic characteristics of the respondents to their purchasing and consumption behavior; (3) analyze the preferences of the household consumers for rice-corn blend; (4) assess the consumer's willingness to pay for rice-corn blend; (5) estimate the household demand for rice-corn blend; (6) identify the factors affecting the quantity demanded for rice-corn blend; and (7) identify the problems encountered by household consumers when purchasing rice-corn blend.

Primary data was obtained from 70 household decision-maker respondents, consisting of consumers and non-consumers of rice-corn blend in San Pablo City, Laguna. The respondents were selected randomly through systematic sampling. Primary data were analyzed using descriptive analysis, Chi-square test for independence, Cramer's V, multiple regression analysis, attribute importance rating and contingent valuation method (CVM).

In analyzing the consumer behavior for rice-corn blend, results of the study revealed that majority of the consumers purchase and consume rice-corn blend due to its cheap price and its health benefits. Further, results of the chi-square test for independence revealed that occupation, sex, household income and age are the factors associated with the purchasing behavior for rice-corn blend. On the other hand, age, BMI, sex, and civil status were reported to have an association with the consumption behavior for rice-corn blend. In analyzing the consumer preference for rice-corn blend, aroma was revealed to the the most important product attribute, while packaging was deemed to be the least important. It was also found out that majority of the respondents were willing to purchase rice-corn blend at its SRP (Php 35/kg). Meanwhile, through the chain ratio method, the demand of the households residing in San Pablo City, Laguna was estimated to be 9,284,738.11 kg annually. It was also revealed that the own price of rice-corn blend has a positive relationship with its demand according to the results of the multiple regression analysis.

The study recommends that the distribution of rice-corn blend in stores and supermarkets should be highly prioritzed by the DA, IPB and other concerned institutions. In order to increase the demand for rice-corn blend, it is also recommended to promote the commodity across all age groups, Moreover, the recommended price of rice-corn blend per kilogram should fall between 35 PhP and 40 PhP to sustain it as a cheaper alternative for white rice.

Language

English

LC Subject

Rice industry, Supply and demand

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 L37

Notes

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Document Type

Thesis

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