commodity system analysis of rice production in baao

7/31/2019 Commodity System Analysis of Rice Production in Baao

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Commodity System

Analysis of Rice Productionin Baao, Camarines Sur

Andrea Jane B. BibaresABM 203 - EC


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Technical Description

Rice (Oryza sativa L.) is one of thestaple foods of the Philippines.Cultivated rice or palay is an

annual grass with round, pointedculms, flat leaves and terminalpanicles. The grain is ripened ovary.

When it matures, 90-100% of thefilled spikelets turns yellow.


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Economic Importance ofthe Commodity

Rice is one of the staple foods in thecountry. It is also called a politicalcrop since it can trigger significant

effects in the politics and economyespecially in developing countries.


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Economic Importance ofthe Commodity

It can topple government leaders,spark mass protests, trigger foodriots, and generate mass hoarding of

stocks, and it often serves as thesustaining staple of Third Worldcountries. (Benett, 2008)


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Input Subsystem

Volume Utilization and Prices ofInputs

Utilization of inputs in the townvaries depending on the practice ofthe farmer. Some farmers use puresynthetic fertilizers. Some would use

synthetic and organic and others usepure organic inputs.

Major Fertilizer inputs:

Urea P1090/sack (


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Input Subsystem

Sources of inputs:

Fertilizers

Synthetic fertilizers and pest control chemicalsAgri-vet stores mostly retailers

Organic inputs

Independent producers

Farmers produce their own inputs

Seeds

Government DA-LGU

Seed breeders


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Input Subsystem

Problems of the Sector

Rising prices of synthetic inputs.

Shifting of some farmers to organic farming for suppliers of synthetic fertilizers.


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Production Subsystem

Production Concentration

Most of the rice farms are located at the lowareas of the town.

Total land area of Baao: 14,305 hectares

23.1% are rice fields

Irrigated farms - 3,233.47 hectares

Rain-fed farms - 53.85 hectares

Upland farms - 17 hectares


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Technological Developments

Most of the rice farms in the town

are still labor-intensive from landpreparation to harvesting.

Organic Farming. Was introduced to some farmer groups in

2009

The project was initiated by a certain NGO


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Production Issues

Rising prices of inputs.

Low value of produce. Calamities

Information gap technical/scientific wayof rice farming


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Processing Subsystem

Postharvest Process

Palay Threshed Dried MechanicalDryer/Solar

Milled EdibleRice


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Volume and Value of Products

At every stage in the postharvest

system, the value of the produceincreases but the volume (per sack) ofthe product decreases due to thedecrease in removal of water and rice

bran from the paddies.

About 88% is used as food, 4% forprocessing, 2% for seeds and 6%

goes to feeds and waste.


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Processing Opportunities

Maintaining the Quality of RiceMost farmers practice solar drying ofpalay which was said to decrease thequality of rice.


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Marketing Subsytem

Source: Department ofA riculture AFMIS


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Marketing Subsytem

Rice considered as undifferentiated

commodity.Price taker

Producers: Look for buyers with the highest

or fairest price. Buyers: Set the best price for them to get

the largest volume

Distribution:


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Marketing Subsytem

Prevailing Prices as of the currentharvest:

Wet/Fresh harvest P13/kilo

Dried P15-16/kilo

NFA P17/kilo

Milled P28 40/kilo (depending on thevariety)


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Marketing Subsytem

Marketing Opportunities andProblems

Lack of market for organic produce in thetown.

For family consumption

Sell the produce at a lower price

Farmers tend to go back to synthetic farming less labor-intensive, less costly


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Support Subsystem

Institutions Supporting theCommodity System

Department of Agriculture municipaloffice.

Philippine Rural ReconstructionMovement (PRRM). - non-government

organization


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Support Subsystem

Development Programs and Projects

Government

Seeds subsidies.The government buys seedsto breeders at P1,200 and sells them to farmersat P600 for certified seeds and P700 for hybridseeds.

Palay Check. A cropping season-long seminarand consultation offered to farmers to solvefarming issues and problems encountered of ricefarmers in the town.

Crop Insurance.

P800 per hectare P13, 000 per hectare (covers


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Support Subsystem

Development Programs and Projects

PRRM.

Organic farming.

Project started in 2009

Conducted trainings and seminars to farmersinterested

Monitoring of the farms and additional consultation tofarmers

Soil testing and matching of crops viable

to soil classification within the town.


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Integrated Analysis

Critical Problems

Information Gap

Support from the Government Control over the prices

Prospects/Outlook Unless the government could give sufficient

support to farmers in the town.

Connect the information gap

commodity system analysis of rice production in baao

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