Economic analysis of drying, storing, and milling operations of rice farmers in Bay, Laguna, 2014

Date

6-2015

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Salvador P. Catelo

Abstract

The study analyzed the economics of drying, storing, and milling operations of rice farmers in Bay, Laguna. Specifically it studied (1) the drying, storing, and milling practices of rice farmers, (2) the amount of losses in drying, storing and milling operation and the impact of losses on profitability of farmers, (3) the factors affecting the losses incurred in drying, storing, and milling palay/rice were defined. The study suggested recommendations on how to minimize the drying, storing, and milling losses. Sixty rice farmers were interviewed in 2014 in three barangays in Bay, namely, Puypuy, Dila, and Masaya. The primary data collected were analyzed through descriptive, tabular, graphical and partial budget analysis. Out of the sixty palay farmers, twenty-six practiced drying operation during the dry season and six of them did the same during the wet season. Seven out of twenty-six farmers performed storage operation during dry season but only six of them continued the practice during the wet season. Five out of twenty-six farmers performed the milling operation for both seasons. Reasons for not practicing any of the operations were attributable to their being labor intensive, lack of postharvest facilities, unfavorable weather conditions, and the need to sell palay immediately to pay debts. Farmers practiced either sun or mechanical drying of palay. Sun drying was more prone to spillage losses than mechanical drying. The only loss incurred in the latter was moisture loss (reseko). The estimated spillage loss was 0.17 kg per cavan during dry season. Moisture loss averaged to 8.58 kg per cavan during dry season and 8.83 kg per cavan during the wet season. Storage operation was capital intensive due to the required storage facility. The loss in storage operation was 1.23 kg per cavan and 1.38 kg per cavan during the dry and wet season, respectively. The loss was due to infestation of rats in the storage houses. Five out of 60 farmers performed milling operation in both dry and wet seasons. The average milling recovery rate was 69 percent and 58 percent in the dry and wet season, respectively. Partial budgeting analysis for the case of 100 cavans showed that drying drying and storing and drying, storing, and milling increase the net income of rice farmers during the dry season. An increase in income worth Php 13,699 was realised from sun drying while drying and storing operation gave the farmers an additional income of Php 10,871. Sun drying, storing, and milling increased further the net income by Php 22,146. Mechanical drying, storing, and milling resulted in additional income of Php 16,355. In spite of the high price of milled-rice, huge losses from drying (17.67 percent), storing (2.75 percent), and milling (33.91 percent) prohibited the farmers from performing drying, storing, and milling operation during wet season. It was better for the farmers to sell their palay fresh during wet season rather than selling it dried or milled-rice because of the accompanying costs. The common reasons of quality loss incurred in drying and storage operations were germination of grains and discoloration of palay. Quantity losses in drying and storage operations were attributed to spillage of grains, mismanagement of laborers, infestation of pests, unsanitized facilities, and moisture loss. The reason behind the losses incurred in milling operation was the dryness of palay before milling. The following recommendations were formulated to minimize the losses incurred in drying, storing, and milling operations: (a) proper mechanical drying should be promoted during dry season (b) storage houses should be kept clean all the time and proper maintenance of the facility should be implemented and (c) palay grains should be dried properly before milling and milling machines should be kept clean all the time.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

Thesis

Document Type

Thesis

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