The commercial rice milling industry of Central Luzon

Date

1988

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Perilla, Mario V.

Abstract

The rice milling industry is agro-industrial in nature. Palay flows into the industry from the farm via, the farmer's on account or through the palay traders. To facilitate case in procurement operations the millers sometimes utilize the services of commission agents. Rice is also purchased when it is not possible to meet orders through the milling of own stocks. The purchased palay is processed in the milling plants and subsequently distributed within or outside the region. When rice distribution is accomplished within the region, common outlets are the transient buyers and retailers. Wholesalers are tapped as outlets for inter-regional distribution. The industry also markets the by-products produced in the milling process direct to the feed mills, to translent buyers or to backyard swine and poultry raisers. The procured palay stocks are sometimes resold when conditions warrant such practice. Rice millers also perform, contract milling in large quantities, and to a limited scale, warehousing services. The industry structure, is characterized by high entry barriers, intense rivalry among existing competitors, wavering bargaining powers relative to the production cycles, existence of minimal threat from substitute products, by-products, and extensive government intervention. The government policy had produced narrow official price spreads, consequently, creating the necessary pressure on the millers to be efficient in their operations. Due to the limiting nature of the industry, improvement of its viability can be achieved in a number of ways. First, is preservation of the integrity of the sector to which the industry is unable to pose a credible threat of integration. Second, is the employment of measures which can bring about the cost efficiencies. And lastly, is effective lobbying for the industry's interest.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993.5 1988 M17 B36

Document Type

Thesis

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