Rice marketing system in Southern Luzon, Philippines

Issue Date

4-2013

Abstract

The purpose of the study is to assess the market structure, conduct, and performance in 2010 of the rice industry in the provinces of Quezon, Oriental Mindoro, and Albay, Philippines. secondary data were collected from respective provincial agricultural offices and attached agencies. Interviews of the various stakeholders were also conducted. Total area planted to rice ranged 25,496-108,201 ha. cultivated by 21,468-61,372 farmers in Southern Luzon. Palay production was highest in Oriental Mindoro with 414,876 t and lowest in Quezon with 177,176 t. Oriental Mindoro consistently had rice surplus, while Albay and Quezon experienced a deficit. Farmers' profits reached Php16,395-36,560 per season for inbred/certified seeds, 44-102% more than production expenses. Through the National Food Authority (NFA), the government was able to intervene in the marketing and pricing of palay/rice.

Oriental Mindoro had the largest number of licensed rice wholesalers-retailers, and millers. For the three Provinces, PSB Rc18 was the most popular variety grown. While farmers need PhP40,000- 50,000 haˉ¹ as capital in rice production, millers spend millions-wholesaler-retailers, either direct or through commission agents, and the NFA. Wholesaler-retailers and retailers sell rice to other retailers and consumers. The millers handled the largest volume of palay, had the highest marketing costs, and highest profits. Metro Manila is the destination of more than half of the marketed surplus of Oriental Mindoro. Sources of palay/rice include Bicol and Oriental Mindoro for Quezon and Camarines Sur for Albay. Also sold in the local markets are NFA rice imported from Vietnam and Thailand. The provision of credit and postharvest facilities to the various stakeholders were found crucial in improving the performance of the palay/rice market system.

Source or Periodical Title

Philippine Journal of Crop Science

ISSN

0115-463x

Volume

38

Issue

1

Page

12-23

Document Type

Article

Frequency

tri-quarterly

Physical Description

tables, charts

Language

English

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