ISSN 20944-9200 - Pinoy Rice Knowledge Bank

ISSN 20944-9200
Philippine Rice Research Institute
Copyright © 2011
i
philippine rice industry
primeR series
ta b l e o f c o n t e n t s
1
Paddy Rice (Palay) Production, 1970-2010
2
Growth in Paddy Rice Production, 1970-2010
3
Growth in Paddy Rice Production, by Semester/Ecosystem, 2000-2010
4
Area Harvested to Paddy Rice, 1970-2010
5
Growth in Area Harvested to Paddy Rice, 1970-2010
6
Growth in Area Harvested to Paddy Rice, by Ecosystem/ Semester, 2000-2010
7
Ratio of Population to Rice Area Harvested, Selected Asian Countries, 20098
Yield of Paddy Rice, 1970-20109
Growth in Yield of Paddy Rice, 1970-20101 0
Comparative Yield of Paddy Rice, Selected Asian Countries, 2000 and 20091 1
Comparative Area Harvested to Paddy Rice, Selected Asian Countries, 2009
12
Comparative Growth in Yield of Paddy Rice, Selected Asian Countries, 2000-2009
13
Yield Gap Analysis
14
Factors Affecting Yield
15
Inputs in Paddy Rice Production: Seeding Rate, 2009
iii
16
Inputs in Paddy Rice (Palay) Production: Fertilizer Rate, 2009
17
Costs of Paddy Rice Production, 2009
18
Returns to Paddy Rice Production, by Ecosystem, 2009
19
Farmgate Price of Paddy Rice, Selected Asian Countries, 2008
20
Breakdown of Rice Utilization, 2009
21
Rice Net Exports, Selected Southeast Asian Countries, 1960-2008
22
World Rice Export Supply and Import Demand, 1960-2008
23
Domestic and World Prices of Rice, 2000-2009
24
Imports of Non-traditional Rice-eating Countries, 1960-2008
25
Rationale for Self-Sufficiency in Rice
26
Rice Import Dependency and Self-Sufficiency Ratios, 1990-20102 7
The Food Staples Sufficiency Program, 2011-20162 8
Projected Paddy Rice Requirement and Production, 2011-20163 0
References3 1
Per Capita Rice Consumption, by Region, 1990/00 and 2008/09
iv
A b b r e v i at i o n S a n d a c r o n y m s u s e d :
M
mt ha kg MRR
BAS FAO
PH
USDA
BSP
FSSP
NFA
v
Million
metric ton (1000 kg)
hectare (10, 000 m2)
kilogram
Milling Recovery Rate
Bureau of Agricultural Statistics
Food and Agriculture Organization
Philippines
United States Department of Agriculture
Bangko Sentral ng Pilipinas
Food Staples Sufficiency Program
National Food Authority
Foreword
In 2009, the PhilRice Corporate Strategic Plan was crafted to serve
as a guide in identifying priority areas in research and development
(R&D) activities of the institute from 2010 to 2013. The Strategic Plan
documents three national goals on which the institute can have
an impact. These are attaining and sustaining rice self-sufficiency;
reducing the incidence of poverty and malnutrition; and achieving
competitiveness in agricultural science and technology.
In line with the Plan, this primer on the Philippine rice industry was
prepared to help researchers understand the trends and current status
of the rice sector, the recipient of their research results. This may be
useful in dovetailing rice research objectives with the current situation
of the industry.
This primer contains data and information on the country’s rice
production, area harvested, yield, farmgate prices, input-use,
production costs and returns, rice utilization, rice imports and exports,
and the Food Staples Sufficiency Program, 2011-2016. Comparisons of
area harvested, populations, yields, prices, and net exports of selected
Asian countries are also included. These data and information will be
updated every three years.
This publication is an initiative of the Impact Evaluation, Policy Research
and Advocacy Program of the Philippine Rice Research Institute
(PhilRice). It can serve as a reference material not only for researchers,
but also for extension workers, farmers, policymakers, and other rice
industry stakeholders.
Eufemio T. Rasco Jr., PhD
Executive Director
vi
Pa d dy R i c e ( pa l ay ) P r o d u c t i o n , 1 9 7 0 - 2 0 1 0
Production of paddy rice in the Philippines (PH) peaked in 2008 at 16.82 M mt
harvest, which is thrice as much as that obtained in 1970 (5.32 M mt). However,
production consistently declined in succeeding years due to natural calamities.
In 2010, the country harvested 15.77 M mt only, which is 6.2% less than the
production level in 2008. This resulted from the drought brought by the El Niño
phenomenon in the first semester and strong typhoons in the fourth quarter of
2010.
Production in irrigated areas is growing. From 55% in 1970, the contribution of
irrigated areas to the total production increased to 76% in 2010. On the other
hand, the share of rainfed areas to total production declined from 45% in 1970
to only 24% in 2010 as a result of expanded irrigation coverage.
1
G r o w t h i n Pa d dy R i c e P r o d u c t i o n , 1 9 7 0 - 2 0 1 0
Period/Ecosystem
1970-1984
Irrigated
Non-irrigated
All Ecosystems
1985-1999
Irrigated
Non-irrigated
All Ecosystems
2000-2010
Irrigated
Non-irrigated
All Ecosystems
Growth in Production (in mt)
January-June
July-December
January-December
92,570
19,437
112,008
109,023
13,074
122,097
201,594
32,511
234,105
99,776
(10,804)
88,972
87,594
(15,654)
71,940
187,370
(26,459)
160,911
149,027
38,828
187,855
165,089
74,987
240,076
314,115
113,815
427,930
Source of basic data: BAS
From 2000 to 2010, the annual growth in paddy rice production in all
ecosystems had far exceeded the annual growths observed during the 19701984 and 1985-1999 periods. In 2000-2010, production in all ecosystems grew
by 427,930 mt, which is 83% and 166% higher than those in the 1970-1984
and 1985-1999 periods. This growth in paddy rice production is equivalent to
268,954 mt annual increase in milled rice production.
Production in irrigated areas grew in all periods. It slowed down in nonirrigated areas in 1985-1999, chiefly due to shrinking area.
2
G r o w t h i n Pa d dy R i c e P r o d u c t i o n ,
by S e m e s t e r , 2 0 0 0 - 2 0 1 0
In 2000-2010, the growth of paddy
rice production was higher in
July-December than in the
January-June period. Fifty-six
percent of the overall growth
in all ecosystems is produced
in the second semester; 44% is
produced in the first semester.
The wet season generally occurs in
the second semester. As supply of water
is abundant, much more areas are planted during this season
thereby increasing production.
G r o w t h i n Pa d dy R i c e P r o d u c t i o n ,
by E c o s y s t e m , 2 0 0 0 - 2 0 1 0
From 2000 to 2010, 73% of the
production increase came from
irrigated areas; 27% came from
non-irrigated areas. To maximize
the opportunity to further
increase production, the current
AgriPinoy (Agrikulturang Pilipino)
Rice Program framework aims to
develop new and improve existing
irrigation facilities.
3
A r e a H a r v e s t e d t o Pa d dy R i c e , 1 9 7 0 - 2 0 1 0
Source of basic data: FAO
Area harvested in all ecosystems follows the trend in non-irrigated areas from
1970 to 1999 but reflects the upward trend in irrigated areas in later years. Total
area harvested depends on area of cultivated land and on cropping intensity.
Investments in irrigation facilities during 2000-2010 have intensified cropping
system, thus expanding the effective area for rice production.
So far, intensified cropping compensates for the reduction in physical area due
to conversion of land for other agriculture and non-agriculture uses. From
2003 to 2007, an average of 9000 ha or 0.36% of total rice area harvested were
converted annually (Francisco and Mataia 2009). Land conversion has to be
managed very well to avoid negating irrigation investments and prevent further
reduction in rice area.
4
G r o w t h i n A r e a H a r v e s t e d t o Pa d dy R i c e ,
1970-2010
Period/Ecosystem
1970-1984
Irrigated
Non-irrigated
All Ecosystems
1985-1999
Irrigated
Non-irrigated
All Ecosystems
2000-2010
Irrigated
Non-irrigated
All Ecosystems
Growth in Area Harvested (in ha)
JanuaryJune
JulyDecember
JanuaryDecember
13,666
1,642
15,308
11,828
(31,505)
(19,677)
25,494
(29,863)
(4,368)
26,089
(7,415)
18,674
24,402
(8,928)
15,474
50,491
(16,343)
34,148
15,337
3,008
18,345
23,318
6,110
29,428
38,655
9,118
47,773
Source of basic data: BAS
From 1985 to 2010, the yearly growth in area harvested to paddy rice
in all ecosystems and seasons was positive. The highest growth was
recorded in the 2000-2010 period. In the1970-1984 and 1985-1999
periods, non-irrigated ecosystem shrank, affecting the growth of area
harvested in all ecosystems.
In 2000-2010, investments in irrigation systems have resulted in improved
growth of area harvested. This growth offset the increasing rate of rice
land conversion in that period.
5
G r o w t h I N A r e a H a r v e s t e d t o pa d dy
r i c e , by e c o s y s t e m , 2 0 0 0 - 2 0 1 0
Overall, 81% of the increase
in area harvested from
2000 - 2010 was due to
expansion of irrigated
areas while 19% was due to
expansion of non-irrigated
ecosystems.
G r o w t h i n A r e a H a r v e s t e d by
semester, 2000-2010
Seasonal growth in area
harvested shows that in
the 2000-2010 period, 62%
of increase in total area
harvested was gained in
July-December (wet season)
while 38% was gained in
January - June.
6
C o m pa r at i v e A r e a H a r v e s t e d t o Pa d dy
Rice, Selected Asian Countries, 2009
Source of basic data: FAO
The area harvested to rice in the Philippines is very small compared to major
rice-producing countries in Asia. In 2009, the Philippines harvested only 4.53 M
ha, which is 58.7% and 39.1% lower than in Thailand and Vietnam, respectively.
The Philippines is an agricultural country that has limited land resource to
produce its rice requirement. This leads to insufficient domestic production
relative to utilization, necessitating rice importation.
7
R at i o o f P o p u l at i o n t o R i c e
Area Harvested, Selected
Asian Countries, 2009
Source of basic data: FAO
Supplying Filipinos with enough rice pressures hard the domestic rice industry
especially when the population is rising at an average rate of at least 2% per
annum. The Philippines feeds more people per unit area compared to Thailand
and Vietnam, which are rice-exporting countries.
In 2009, the country feeds 20 persons per hectare of rice area harvested. In
contrast, Thailand and Vietnam only feed 6 and 12 persons, respectively. These
countries are able to export their produce because of their relatively lower
domestic demand for rice.
8
Y i e l d o f Pa d dy R i c e , 1 9 7 0 - 2 0 1 0
Despite the limited land resource, paddy rice yield in the Philippines has more
than doubled since 1970. Yield peaked in 2007 at 3.80 mt/ha in all ecosystems
but declined since then because of natural calamities that hit the country.
In 2010, yield in all ecosystems slightly recovered by 0.83% from its slump in
2009 (3.59) as it averaged 3.62 mt/ha. Yields in irrigated and non-irrigated areas
were 3.99 and 2.81 mt/ha.
9
G r o w t h i n Y i e l d o f Pa d dy R i c e , 1 9 7 0 - 2 0 1 0
Growth in Yield (kg/ha)
Period/Ecosystem
1970-1984
Irrigated
Non-irrigated
All Ecosystems
1985-1999
Irrigated
Non-irrigated
All Ecosystems
2000-2010
Irrigated
Non-irrigated
All Ecosystems
JanuaryJune
JulyDecember
JanuaryDecember
88
33
70
90
51
76
89
46
74
14
3
24
8
4
14
11
4
18
67
67
69
50
65
58
59
66
62
Source of basic data: BAS
Since 1970, average annual growth in yield in all ecosystems had been
positive, which pushed up total paddy rice production. Highest growth
in yield was observed in the 1970-1984 period courtesy of the Green
Revolution interventions. However, yield growth reduced to 18.1 kg/ha
in the 1985-1999 period. Paddy rice yield recovered in 2000-2010 with an
annual increment of 62.5 kg/ha.
From 1970 to 1999, growth in yield in irrigated areas was higher than in
non-irrigated areas. This was reversed in the 2000-2010 period when yield
growth in non-irrigated areas (65.7 kg/ha) overtook that in irrigated areas
(58.7 kg/ha).
10
C o m pa r at i v e Y i e l d o f pa d dy r i c e , S e l e c t e d
Asian Countries, 2000 and 2009
Source of basic data: FAO
Thailand and India have bigger rice areas harvested than the Philippines but the
latter is more productive per unit area compared to the two countries. In 2009,
the Philippines had an average yield of 3.59 mt/ha while Thailand and India had
only 2.87 and 2.98 mt/ha, respectively.
However, the Philippines still needs to catch up with other nations like
Indonesia and Vietnam, which are also tropical countries.
11
C o m pa r at i v e G r o w t h i n Y i e l d o f pa d dy r i c e ,
Selected Asian Countries, 2000-2009
Source of basic data: FAO
In the period 2000-2009, the Philippines had higher growth rate in yield (2.19%),
compared to exporting countries such as Thailand, India, and China. If the
Philippines did not experience natural calamities in 2009, this growth could
have been better.
12
Y I E L D G A P A N A LY S I S
Source: Sebastian, L.S., F.H. Bordey, and V.L.E.B. Alpuerto. 2006. “Research and
development.” In Securing Rice, Reducing Poverty, A.M. Balisacan and L.S. Sebastian
(eds.) Science City of Muñoz: Philippine Rice Research Institute.
The national average yield in all ecosystems, which is 3-4 mt/ha, is not even
half of the scientifically attainable yield if only Good Seeds* of modern inbred
rice varieties are used as planting materials. And yet, yields of 6-7 mt/ha were
attained in on-farm demonstration trials that used Good Seeds but with best
crop management practices. Thus, the country’s total production of paddy
rice can be increased further if the national average yield is raised through
sustained use of best crop management practices.
* Note: Good Seeds are produced from varieties not yet approved by the
National Seed Industry Council but meet the standards prescribed by the
certifying agency. Additionally, any class of certified seeds that does not
conform to the Council’s standards may qualify as Good Seeds.
13
Fa c t o r s a f f e c t i n g y i e l d
FACTORS
R&D
Seeds (biotechnology, hybrid rice, certified seed nutrition)
Integrated Crop Management
Mechanization
Infrastructure
Irrigation
Farm-to-market roads
Transportation
Postharvest
Extension
Environmental Factors
CONTRIBUTION
25%
10%
10%
5%
40%
25%
5%
5%
5%
15%
20%
Source: Balisacan, AM and LS Sebastian. 2006. “Challenges and Policy Directions: Overview”
In Securing Rice, Reducing Poverty, AM Balisacan and LS Sebastian (eds.). Science City of Munoz: Philippine
Rice Research Institute.
The factors that can collectively and significantly improve average yield at the
national level are infrastructure, research and development (R&D), extension,
and environmental factors. Irrigation has the biggest impact contributing 25%
on yield improvement; R&D, through better seed quality, crop management
practices, and mechanization contribute 25%.
Among the four major factors, extension service itself has the least estimated
influence on yield (15%). However, without it, the 25% contribution of R&D
cannot be realized.
14
I n p u t s i n Pa d dy R i c e P r o d u c t i o n :
S e e d i n g R at e , 2 0 0 9
Seeding Rate (kg/ha)
Seed Class
Direct-seeded Rice Transplanted Rice Average
Hybrid
Inbred
High-quality seedsa
Low-quality seeds
Good Seeds
Farmer Seeds
Native Seeds
82
108
105
115
104
22
56
75
70
80
74
22
69
91
88
97
89
”-” no data
a
- includes Certified, Registered, and Foundation seeds.
Source of basic data: PhilRice-BAS compiled data
91 kg/ha of low-quality seeds
cost P1,365/ha.
40 kg of Certified Seeds cost
P1,200/ha
In 2009, the average seeding rate using high-quality inbred seeds was
69 kg/ha. Although lower than in 2008 (88 kg/ha), the 2009 seeding rate is still
higher than the recommended rate of only 40 kg/ha. Most farmers sow extra
seeds to replace those that may be damaged by pests during the seedling and
vegetative stages.
Average seeding rate is even higher for low-quality seeds (91 kg/ha). Higher rate
is to compensate for low germination and other possible losses.
In terms of cost, using low-quality seeds can entail higher cost per hectare
(P1,365/ha at P15/kg) than high-quality seeds (P1,200/ha at P30/kg). Thus,
farmers can save on seed cost if they would follow the 40-kg certified seeds
recommendation.
15
I n p u t s i n Pa d dy R i c e P r o d u c t i o n :
F e r t i l i z e r R at e , 2 0 0 9
Fertilizer Rate
Fertilizer
Grade
Irrigated
Jan-Jun
Rainfed
Jul-Dec
Fertilizer (in 50-kg bags/ha)
Urea
Ammosul
Ammophos
Complete
2.34
0.43
0.66
1.49
2.30
0.48
0.57
1.51
Component Nutrients (in kg/ha)
Nitrogen
Phosphorus
Potassium
Jan-Jun
74
17
10
73
16
11
Jul-Dec
1.21
0.39
0.30
0.66
1.71
0.49
0.50
1.18
39
8
5
57
13
8
Source of basic data: BAS
Nutrient conversion used: 46-0-0 for urea, 21-0-0 for ammosul, 16-20-0 for ammophos, and 14-14-14
for complete.
In both semesters, farmers in irrigated areas apply more fertilizers than those in
rainfed areas.
Fertilizer rate in irrigated areas during the dry season (Jan-Jun) is not
significantly higher than in the wet season (Jul-Dec) despite greater economic
benefits of applying more fertilizers in the DS. Increasing fertilizer rate during
the DS can further increase yield and production. This should be given attention
in extension and information dissemination.
Rainfed farmers apply more fertilizers in the WS when water is more available.
Although it is theoretically more efficient to apply more fertilizers during the
DS, water constraint could easily result in under-application of fertilizers. The
low fertilizer application of rainfed farmers during the DS could be one of their
risk-mitigating measures. Water source must be reliable so rainfed farmers can
optimize fertilizer use.
16
C o s t s o f Pa d dy R i c e P r o d u c t i o n , 2 0 0 9
Variable Cost
Seeds
Fertilizers and Soil Ameliorants
Pesticides
Rental of Machines, Tools, and
Animals Including Repairs and
Depreciation
Irrigation
Interest Payment on Crop Loan
Labor
Others (fuel & oil, food, transpo,
etc.)
Total variable cost (P/ha)
Amount
(Pesos/ha)
% of Total Variable
Cost
1,903
4,725
1,069
1,830
7
18
4
7
678
2,158
11,522
1,691
3
8
45
7
25,576
100
Source of basic data: BAS
In 2009, labor accounted for the largest share (45%) in the total variable cost of
rice production. This indicates that rice production can be more competitive if
we reduce labor cost.
17
Returns to Paddy R i c e P r o d u c t i o n , by
E c o sys t e m , 2 0 0 9
Items
Yield (kg/ha)
Farmgate price (P/kg)
Gross returns (P/ha)
All
Irrigated
Ecosystems
NonIrrigated
3,587
15
52,478
3,952
15
57,818
2,833
15
41,447
25,576
6,694
20,208
26,902
27,934
7,370
22,514
29,884
20,130
5,139
16,178
21,317
Variable cost per kg of yield (P/kg)
Returns to land per kg of yield (P/kg)
Returns to own labor per kg of yield (P/kg)
7
2
6
7
2
6
7
2
6
Total variable cost per hectare (P/ha)
Returns to land (P/ha)
Returns to own labor (P/ha)
Returns above variable cost (P/ha)
Source of basic data: BAS
In 2009, average net returns above variable costs were positive. Irrigated
farmers obtained better returns than non-irrigated farmers.
At the farmgate price of P15.00/kg, if a farmer is the landowner he would
receive a net return of P8.00 per kg of paddy rice produced. Six pesos of which is
returns to own labor and two pesos is the returns to land. If the farmer is a land
renter/lessee, the return would be slightly lower at P6.00/kg.
Since Filipino rice farmers cultivate only a hectare of land on individual average,
income from rice farming is still not enough to sustain a household even
though the return per kilogram of paddy rice is high.
18
Fa r m g at e P r i c e o f Pa d dy r i c e ,
Selected Asian Countries, 2008
Source of basic data: FAO
The farmgate price of paddy rice in the Philippines is higher than those in
China, Thailand, and Indonesia. In 2008, Filipino farmers sold their produce at
US$319/mt while Thai, Indonesian, and Chinese farmers sold theirs at US$267/
mt, US$280/mt, and US$278/mt, respectively.
Nevertheless, the farmgate price in PH is lower than in India (US$386/mt).
19
B r e a k d o w n o f R i c e U t i l i z at i o n , 2 0 0 9
Source of basic data: BAS
Eighty-nine percent of all rice is used as food. Seeds account for 2% of total
utilization, processed rice products for 3% , and feeds and wastes for 6% .
MRR is one of the factors that affect the amount of milled rice available for
utilization; based on the study of Vallesteros (2010), MRR is only 62.85%. This
means that it will take almost 160 kg of paddy rice to produce 100 kg of milled
rice. If MRR is improved to 65%, only 154 kg of paddy will produce 100 kg of
milled rice.
20
Rice Net Exports, Selected SouthEast Asian
Countries, 1960-2008
Source of basic data: FAO
Many Filipinos wonder why they import rice when they even host the
International Rice Research Institute, which is the source of modern rice
technology for many exporting countries in Southeast Asia like Thailand. Trends
show that PH had been importing rice and Thailand had been exporting even
before the advent of modern rice technology. The ability to export rice does not
rest on technology alone.
Dawe (2006) says exporting countries (Thailand, Vietnam, Cambodia, Myanmar)
occupy river deltas with large areas suitable for rice production. On the
contrary, importing countries have less arable land per person and more varied
landscape, which favors alternative crops such as corn, palm oil, or coconut.
Indonesia and the Philippines are islands, while Malaysia is part island and part
narrow peninsula. Thus, natural endowments of land and water are strong
forces that determine the ability of a nation to export rice.
21
W o r l d R i c e E x p o r t S u p p ly a n d I m p o r t
Demand, 1960-2008
Source of basic data: USDA
The gap between world rice export and import has widened since 2000. Yet,
net world supply is still very thin, indicating vulnerability of world rice prices to
supply and demand shocks.
The recent Australian drought and the shift in land use toward energy crops in
the USA are examples of supply shocks.
The persistent shift in preference of African nations toward rice consumption is
an example of a demand shock.
22
Domestic and World Prices of Rice, 2000-2009
Source of basic data: PhilRice-BAS, FAO, USDA, BSP
Since 2000, the world price of rice had been generally stable and lower than the
domestic price. All this changed in 2008 when the world price sharply increased
during the first semester creating a crisis. World price receded toward the end
of 2008 but did not return to pre-crisis level.
Dawe and Slayton (2010) said market fundamentals were not the cause of
the 2008 rice crisis. External factors such as rising oil prices since 2004, weak
US dollar, biofuel mandates and tariffs that contributed to rising maize and
soybean prices, and weather-induced decline in world wheat production
altogether set the stage for the crisis.
Policies of exporting and importing countries that lead to market uncertainty
and panic caused the surge in the world price of rice. India and Vietnam
decided to ban their exports. Thailand did not restrict their exports but their
policy statements on doing so contributed to uncertainty in the world market.
On the other hand, the Philippines put out larger tenders and agreed to buy at
high prices, which fueled further speculations. Malaysia and Nigeria joined PH
in stockpiling. All this shows the vulnerability of the world rice market to price
shocks.
23
I m p o r t s o f N o n -t r a d i t i o n a l R i c e - E at i n g
Countries, 1960-2008
Source of basic data: USDA
*Middle East refers to Iran, Iraq, and Saudi Arabia
Changes in world demand also affect the volume of rice available in the
international market. An example of this is the increasing demand for rice of
non-traditional rice-eating countries such as those in Africa, Middle East, South
America, and the USA. The demand of these countries competes with traditional
rice-eating countries in Asia. Except for high-income China and Japan, rice
consumption in Asian countries have not declined significantly.
24
R AT I O N A L E F O R S E L F - S U F F I C I E N CY I N R I C E
T h i n World Supply
^ ^ ^
E X P ORT BANS
rice
self-sufficiency
Increasing
d emand from
n o ntraditional
rice-eating
countries
Dependence on imports holds the country vulnerable to supply and demand
shocks that can cause significant changes in the world price of rice. With the
occurrence of thin world stocks, export bans during times of volatility in the
world market, and the increasing demand from non-traditional rice-eating
countries, growing reliance on local rice production would help shield the
country from the negative effects of the fluctuations in the world price of rice.
Hence, the quest for self-sufficiency in rice.
25
P e r C a p i ta R i c e C o n s u m p t i o n , By R e g i o n ,
1990/00 and 2008/09.
Region
Philippines
NCR
CAR
Ilocos Region
Cagayan Valley
Central Luzon
CALABARZON
MIMAROPA
Bicol Region
Western Visayas
Central Visayas
Eastern Visayas
Zamboanga Peninsula
Northern Mindanao
Davao Region
SOCCSKSARGEN
Caraga
ARMM
Per Capita Rice Consumption (kg)
1999/00
2008/09
Percent
Change
106
90
121
118
116
111
108
108
111
122
67
113
90
91
108
103
114
122
119
101
132
125
122
123
113
136
124
134
95
127
109
116
113
137
128
145
13
12
9
6
6
11
4
26
12
10
41
13
21
28
5
32
13
18
Per capita rice consumption (PCRC) in the Philippines has risen by 13% from
106 kg/year in 1999/2000 to 119 kg/year. PCRC rose in all regions, with Central
Visayas increasing the largest (41%) and CALABARZON region the least (4%).
Central Visayas has a large population that are traditionally corn-eaters.
Consumer preference has shifted from white corn to rice. The increasing
urbanization in CALABARZON can be the cause of its tempered increase in
PCRC.
In 2008/2010, Central Visayas region has still the least PCRC at 95 kg/year while
ARMM has the highest at 141 kg/year.
26
R I C E I m p o r t D e p e n d e n cy a n d s u f f i c i e n cy
R at i o s , 1 9 9 0 - 2 0 1 0
Source of basic data: BAS
Despite our relatively high production, the Philippines contends with a
declining level of self-sufficiency and increasing dependence on imports.
From 91% in 1990, our level of self-sufficiency decreased to 80% in 2010.
This is because of the fast-increasing population and rising per capita rice
consumption.
27
T h e f o o d s ta p l e s s u f f i c i e n cy
program (2011-2016)
The Department of Agriculture and its bureaus and attached agencies working
on the development of the rice sector crafted the Food Staples Sufficiency
Program (2011-2016). The following outlines its basic strategies to achieve selfsufficiency in rice:
1 . P r i o r i t i z e investments that can increase and sustain
p r o d u c t i o n growth
A.Production interventions. Expansion of area harvested and
improvement of yield or productivity per unit area can increase paddy
rice production. The FSSP for 2011-2016 outlines the following basic
interventions that have long-term positive effects on productivity:
a.Development and maintenance of irrigation systems
b.Increase farmers’ access to high-quality seeds
c.Research, development, and promotion of appropriate technologies
d.Extension and farmers’ education
B.Creation of enabling mechanisms. These are support services that aim
to engender a favorable environment that will entice farmers to increase
investments in rice farming. These services are expected to provide
economic incentives that can stimulate farmers’ interest to further raise
their production.
a.Reform the National Food Authority (NFA) – increase its domestic
palay procurement; phased increase of selling prices of NFA rice;
replacement of untargeted consumer subsidy by conditional cash
transfer; and focused role on buffer stocking and price support to
farmers.
28
b.Increase credit guarantee fund – this will encourage private banks to
cater to credit needs of farmers, thus, leading to better credit access to
formal lenders.
c.Increase number of farmers covered by crop insurance – this will ease
production risks like typhoons that burden the farmers.
2 . I n t e n s i f y fa r m mechanization and reduce postharvest
losses
A.Farm mechanization. Efficiency and timeliness of farm operations can be
attained if farm mechanization is intensified. This will be helpful in times
of labor shortage and in areas where labor cost is expensive.
B.Modernization of postharvest facilities. Current postharvest processes
such as drying and milling can lead to palay losses estimated at 16.47%
of total production. Reducing postharvest losses is one way of increasing
available rice for consumption.
3 . M a n ag e m e n t o f Consumption
The following strategies to attain an ideal demand level for rice can also
contribute to the attainment of self-sufficiency in rice:
A.Promoting the consumption of brown rice. Since brown rice is
unpolished, its production can lead to higher milling recovery as rice
bran is retained on the grains, making it even more nutritious.
B.Reduction of rice wastage. Families are encouraged to cook and eat just
the right amount of rice every meal, thus, reducing table wastage. This
can further increase the availability of rice for consumption.
C.Diversification of staples. Increasing the production and market
availability of alternative staples (i.e., white corn, kamote, cassava,
and banana) can make the prices of these substitutes affordable to
consumers. This will trigger a shift of consumption from rice to other
staple foods, hence, reducing the demand for rice.
29
References:
Balisacan, A.M. and L.S. Sebastian [2006] “Challenges and Policy Directions:
Overview”, in A.M. Balisacan and L.S. Sebastian, eds., Securing Rice,
Reducing Poverty: Challenges and Policy Directions. Los Banos, Laguna:
Southeast Asian Regional Center for Graduate Study and Research in
Agriculture. pp. 1-19.
Bangko Sentral ng Pilipinas (BSP) [n.d.] Monetary, External, and Financial
Statistics, http://www.bsp.gov.ph/statistics/statistics.asp Accessed
August 2010.
Bureau of Agricultural Statistics (BAS) [n.d.] Database, http://countrystat.bas.
gov.ph/index.asp, Accessed August 2010.
Dawe, D. [2006] “The Philippines Imports Rice Because it is an Island Nation”, in
D. Dawe, P.F. Moya, and C.B. Casiwan, eds., Why Does the Philippines
Import Rice? Manila: International Rice Research Institute. pp. 3-7.
Dawe, D. and T. Slayton [2010] “The World Rice Market Crisis of 2007-2008”, in D.
Dawe, ed., The Rice Crisis. London and Washington DC: The Food and
Agriculture Organization and Earthscan, pp. 16-28.
Food Staples Self-Sufficiency Program, 2011-2016. Department of Agriculture
2011.
Francisco, S.R. and A.B. Mataia [2009] “Policy Advocacy”, in, The Philippine Rice
R&D Highlights 2008. Munoz City, Nueva Ecija: Philippine Rice Research
Institute. pp. 319-321.
Sebastian, L.S., F.H. Bordey, and V.L.E.B. Arpuerto [2006] “Research and
Development”, in A.M. Balisacan and L.S. Sebastian, eds., Securing
Rice, Reducing Poverty: Challenges and Policy Directions. Los Banos,
Laguna: Southeast Asian Regional Center for Graduate Study and
Research in Agriculture, pp. 39-69.
United States Department of Agriculture (USDA) [n.d.] Agriculture Data and
Statistics, http://www.usda.gov/wps/portal/usda/usdahome, Accessed
August 2010.
Vallesteros, R., Jr. [2010] The New National Rice Milling Recovery Rate: Its Effect
on the Level of Rice Per Capita Consumption in the Philippines, CY
2000-2008. Paper presented at the 23rd National Rice R&D Conference
of the Philippines held in IRRI, Los Baños, Laguna. 4 March 2010.
30
Credits:
Subject Matter Specialists
Flordeliza H. Bordey, Ph.D.
Aileen C. Castañeda
Managing editor/Layout artist
Alfred Caballero
Editorial Adviser
Eufemio T. Rasco Jr., Ph.D.
Consulting Editor
Constante T. Briones
31
notes
32
PHILIPPINE RICE RESEARCH INSTITUTE
RICE SCIENCE FOR DEVELOPMENT
We are a chartered government corporate entity under the Department of Agriculture. We
were created through Executive Order 1061 on 5 November 1985 (as amended) to help
develop high-yielding, cost-reducing, and environment-friendly technologies so farmers can
produce enough rice for all Filipinos.
We accomplish this mission through research and development work in our central and
seven branch stations, coordinating with a network that comprises 57 agencies and 70 seed
centers strategically located nationwide.
To help farmers achieve holistic development, we will pursue the following goals in 20102020: attaining and sustaining rice self-sufficiency; reducing poverty and malnutrition; and
achieving competitiveness through agricultural science and technology.
We have the following certifications: ISO 9001:2008 (Quality Management), ISO 14001:2004
(Environmental Management), and OHSAS 18001:2007 (Occupational Health and Safety
Assessment Series).
You may visit our websites:
www.philrice.gov.ph
www.pinoyrkb.com
or text:
PhilRice Text Center: 0920-911-1398
PhilRice Stations:
Central Experiment Station Maligaya, Science City of Muñoz, 3119 Nueva Ecija•Trunklines: (44)4560258; -0277, -0285•0920-970-2629 (only for connection to local#) •Email: [email protected].
ph•PhilRice Agusan Basilisa, RTRomualdez, 8611 Agusan del Norte•Tel: (85) 818-4477; 343-0778•Tel/
Fax: 343-0768•Email: [email protected]•PhilRice Batac MMSU Campus, Batac City,
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