Brown rice market chain and marketing practices, Luzon, Philippines

Issue Date

5-2011

Abstract

The study involved an analysis of the brown rice market in selected provinces of Luzon, Philippines. Brown rice comprised a small portion of the rice market with 10 producers included in the study, having an annual output of approximately 397 metric tons only. The market chain consisted of producers, market intermediaries and consumers. Scale of production varied considerably, from small individual farmers to large cooperatives. The market chains were relatively simple involving at most two market intermediaries, i.e., the wholesaler/distributors and the retailers. Big producers were linked to markets via established and extensive marketing networks of NGOs while the small ones sold to households within their respective localities. Value-addition in the form of grading/ quality control, re-packaging, labeling or delivery to higher-level markets was done mainly by those who carried a brand name or sold in established wholesale and retail markets. Such value-addition provided financial incentives as reflected in the price increase through the chain. Except for one, the market participants earned positive net returns, given the current scale of operation and market capacity. Estimated monthly consumption of brown rice was low at 6.75 kg per household. Non-use or discontinued use of brown rice was due to its high price, not being readily available, poor eating quality and the limited information about it among consumers. Constraints in the supply chain were related to the lack of drying facility for palay (paddy rice) during unpredictable weather conditions, lack of rice mills specifically designed for brown rice and the limited local market for small producers.

Source or Periodical Title

Philippine Agricultural Scientist

ISSN

0031-7454

Volume

94

Issue

1

Page

54-65

Document Type

Article

Physical Description

illustrations, tables, graphs

Language

English

Subject

Brown rice, Constraints, Market chain, Price

Digital Copy

yes

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