Rice Facts and Figures

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    ISSN 20944-9200

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    Copyright 2011

    Philippine Rice Research Institute

    i

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    p h i l i p p i n e r i c e i n d u s t r y

    p r i m e R s e r i e s

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    i i i

    Paddy Rice (Palay) Production, 1970-20101

    Growth in Paddy Rice Production, 1970-20102

    Growth in Paddy Rice Production, by Semester/Ecosystem, 2000-20103

    Area Harvested to Paddy Rice, 1970-20104

    Growth in Area Harvested to Paddy Rice, 1970-20105Growth in Area Harvested to Paddy Rice, by Ecosystem/ Semester, 2000-20106

    Comparative Area Harvested to Paddy Rice, Selected Asian Countries, 20097

    Ratio o Population to Rice Area Harvested, Selected Asian Countries, 20098

    Yield o Paddy Rice, 1970-20109

    Growth in Yield o Paddy Rice, 1970-201010

    Comparative Yield o Paddy Rice, Selected Asian Countries, 2000 and 200911

    Comparative Growth in Yield o Paddy Rice, Selected Asian Countries, 2000-200912

    Yield Gap Analysis13

    Factors Aecting Yield14

    Inputs in Paddy Rice Production: Seeding Rate, 200915

    ta b l e o f c o n t e n t s

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    i v

    Inputs in Paddy Rice (Palay) Production: Fertilizer Rate, 200916

    Costs o Paddy Rice Production, 200917

    Returns to Paddy Rice Production, by Ecosystem, 200918

    Farmgate Price o Paddy Rice, Selected Asian Countries, 200819

    Breakdown o Rice Utilization, 200920Rice Net Exports, Selected Southeast Asian Countries, 1960-200821

    World Rice Export Supply and Import Demand, 1960-200822

    Domestic and World Prices o Rice, 2000-200923

    Imports o Non-traditional Rice-eating Countries, 1960-200824

    Rationale or Sel-Suciency in Rice25

    Per Capita Rice Consumption, by Region, 1990/00 and 2008/0926

    Rice Import Dependency and Sel-Suciency Ratios, 1990-201027

    The Food Staples Suciency Program, 2011-201628

    Projected Paddy Rice Requirement and Production, 2011-201630

    Reerences31

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    v

    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 Millionmt metric ton (1000 kg)ha hectare (10, 000 m2)kg kilogramMRR Milling Recovery Rate

    BAS Bureau o Agricultural StatisticsFAO Food and Agriculture OrganizationPH PhilippinesUSDA United States Department o AgricultureBSP Bangko Sentral ng PilipinasFSSP Food Staples Suciency ProgramNFA National Food Authority

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    v i

    F o r e w o r d

    In 2009, the PhilRice Corporate Strategic Plan was crated to serveas a guide in identiying priority areas in research and development(R&D) activities o the institute rom 2010 to 2013. The Strategic Plandocuments three national goals on which the institute can havean impact. These are attaining and sustaining rice sel-suciency;reducing the incidence o poverty and malnutrition; and achieving

    competitiveness in agricultural science and technology.

    In line with the Plan, this primer on the Philippine rice industry wasprepared to help researchers understand the trends and current statuso the rice sector, the recipient o their research results. This may beuseul in dovetailing rice research objectives with the current situationo the industry.

    This primer contains data and inormation on the countrys rice

    production, area harvested, yield, armgate prices, input-use,production costs and returns, rice utilization, rice imports and exports,and the Food Staples Suciency Program, 2011-2016. Comparisons oarea harvested, populations, yields, prices, and net exports o selectedAsian countries are also included. These data and inormation will beupdated every three years.

    This publication is an initiative o the Impact Evaluation, Policy Researchand Advocacy Program o the Philippine Rice Research Institute(PhilRice). It can serve as a reerence material not only or researchers,

    but also or extension workers, armers, policymakers, and other riceindustry stakeholders.

    Eufemio T. Rasco Jr., PhDExecutive Director

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    1

    Production o 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 theproduction level in 2008. This resulted rom the drought brought by the El Niophenomenon in the rst semester and strong typhoons in the ourth quarter o2010.

    Production in irrigated areas is growing. From 55% in 1970, the contribution o

    irrigated areas to the total production increased to 76% in 2010. On the otherhand, the share o rained areas to total production declined rom 45% in 1970to only 24% in 2010 as a result o expanded irrigation coverage.

    P a d d y R i c e ( p a l ay ) P r o d u c t i o n , 1 9 7 0 - 2 0 1 0

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    From 2000 to 2010, the annual growth in paddy rice production in allecosystems had ar exceeded the annual growths observed during the 1970-1984 and 1985-1999 periods. In 2000-2010, production in all ecosystems grewby 427,930 mt, which is 83% and 166% higher than those in the 1970-1984and 1985-1999 periods. This growth in paddy rice production is equivalent to268,954 mt annual increase in milled rice production.

    Production in irrigated areas grew in all periods. It slowed down in non-irrigated areas in 1985-1999, chiefy due to shrinking area.

    G r o w t h i n P a d d y R i c e P r o d u c t i o n , 1 9 7 0 - 2 0 1 0

    Period/EcosystemGrowth in Production (in mt)

    January-June July-December January-December

    1970-1984

    IrrigatedNon-irrigatedAll Ecosystems

    92,57019,437

    112,008

    109,02313,074

    122,097

    201,59432,511

    234,105

    1985-1999

    IrrigatedNon-irrigatedAll Ecosystems

    99,776(10,804)88,972

    87,594(15,654)71,940

    187,370(26,459)160,911

    2000-2010

    IrrigatedNon-irrigatedAll Ecosystems

    149,02738,828

    187,855

    165,08974,987

    240,076

    314,115113,815427,930

    Source of basic data: BAS

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    In 2000-2010, the growth o paddyrice production was higher in

    July-December than in theJanuary-June period. Fity-sixpercent o the overall growthin all ecosystems is producedin the second semester; 44% is

    produced in the rst semester.

    The wet season generally occurs inthe second semester. As supply o water

    is abundant, much more areas are planted during this seasonthereby increasing production.

    From 2000 to 2010, 73% o the

    production increase came romirrigated areas; 27% came romnon-irrigated areas. To maximizethe opportunity to urtherincrease production, the currentAgriPinoy (Agrikulturang Pilipino)

    Rice Program ramework aims todevelop new and improve existing

    irrigation acilities.

    G r o w t h i n P a d d y R i c e P r o d u c t i o n ,b y S e m e s t e r , 2 0 0 0 - 2 0 1 0

    G r o w t h i n P a d d y R i c e P r o d u c t i o n ,

    b y E c o s y s t e m , 2 0 0 0 - 2 0 1 0

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    Area harvested in all ecosystems ollows the trend in non-irrigated areas rom1970 to 1999 but refects the upward trend in irrigated areas in later years. Totalarea harvested depends on area o cultivated land and on cropping intensity.Investments in irrigation acilities during 2000-2010 have intensied croppingsystem, thus expanding the eective area or rice production.

    So ar, intensied cropping compensates or the reduction in physical area dueto conversion o land or other agriculture and non-agriculture uses. From2003 to 2007, an average o 9000 ha or 0.36% o total rice area harvested wereconverted annually (Francisco and Mataia 2009). Land conversion has to bemanaged very well to avoid negating irrigation investments and prevent urtherreduction in rice area.

    A r e a H a r v e s t e d t o P a d dy R i c e , 1 9 7 0 - 2 0 1 0

    Source of basic data: FAO

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    Period/Ecosystem Growth in Area Harvested (in ha)

    January-June

    July-December

    January-December

    1970-1984

    Irrigated

    Non-irrigatedAll Ecosystems

    13,666

    1,64215,308

    11,828

    (31,505)(19,677)

    25,494

    (29,863)(4,368)

    1985-1999

    IrrigatedNon-irrigatedAll Ecosystems

    26,089(7,415)18,674

    24,402(8,928)15,474

    50,491(16,343)34,148

    2000-2010

    Irrigated

    Non-irrigatedAll Ecosystems

    15,337

    3,00818,345

    23,318

    6,11029,428

    38,655

    9,11847,773

    Source of basic data: BAS

    G r o w t h i n A r e a H a r v e s t e d t o P a d dy R i c e ,1 9 7 0 - 2 0 1 0

    From 1985 to 2010, the yearly growth in area harvested to paddy ricein all ecosystems and seasons was positive. The highest growth wasrecorded in the 2000-2010 period. In the1970-1984 and 1985-1999periods, non-irrigated ecosystem shrank, aecting the growth o area

    harvested in all ecosystems.

    In 2000-2010, investments in irrigation systems have resulted in improvedgrowth o area harvested. This growth oset the increasing rate o riceland conversion in that period.

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    Overall, 81% o the increasein area harvested rom2000 - 2010 was due toexpansion o irrigatedareas while 19% was due toexpansion o non-irrigatedecosystems.

    G r o w t h I N A r e a H a r v e s t e d t o p a d dyr i c e , b y e c o s y s t e m , 2 0 0 0 - 2 0 1 0

    G r o w t h i n A r e a H a r v e s t e d b ys e m e s t e r , 2 0 0 0 - 2 0 1 0

    Seasonal growth in areaharvested shows that inthe 2000-2010 period, 62%o increase in total area

    harvested was gained inJuly-December (wet season)while 38% was gained inJanuary - June.

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    C o m p a r a t i v e A r e a H a r v e s t e d t o P a d d yR i c e , S e l e c t e d A s i a n C o u n t r i e s , 2 0 0 9

    The area harvested to rice in the Philippines is very small compared to majorrice-producing countries in Asia. In 2009, the Philippines harvested only 4.53 Mha, 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 insucient domestic productionrelative to utilization, necessitating rice importation.

    Source of basic data: FAO

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    R a t i o o f P o p u l a t i o n t o R i c eA r e a H a r v e s t e d , S e l e c t e d

    A s i a n C o u n t r i e s , 2 0 0 9

    Supplying Filipinos with enough rice pressures hard the domestic rice industryespecially when the population is rising at an average rate o at least 2% perannum. The Philippines eeds more people per unit area compared to Thailandand Vietnam, which are rice-exporting countries.

    In 2009, the country eeds 20 persons per hectare o rice area harvested. Incontrast, Thailand and Vietnam only eed 6 and 12 persons, respectively. Thesecountries are able to export their produce because o their relatively lowerdomestic demand or rice.

    Source of basic data: FAO

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    9

    Despite the limited land resource, paddy rice yield in the Philippines has morethan doubled since 1970. Yield peaked in 2007 at 3.80 mt/ha in all ecosystemsbut declined since then because o natural calamities that hit the country.

    In 2010, yield in all ecosystems slightly recovered by 0.83% rom its slump in2009 (3.59) as it averaged 3.62 mt/ha. Yields in irrigated and non-irrigated areaswere 3.99 and 2.81 mt/ha.

    Y i e l d o f P a d d y R i c e , 1 9 7 0 - 2 0 1 0

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    G r o w t h i n Y i e l d o f P a d d y R i c e , 1 9 7 0 - 2 0 1 0

    Since 1970, average annual growth in yield in all ecosystems had beenpositive, which pushed up total paddy rice production. Highest growthin yield was observed in the 1970-1984 period courtesy o the GreenRevolution interventions. However, yield growth reduced to 18.1 kg/hain the 1985-1999 period. Paddy rice yield recovered in 2000-2010 with anannual increment o 62.5 kg/ha.

    From 1970 to 1999, growth in yield in irrigated areas was higher than innon-irrigated areas. This was reversed in the 2000-2010 period when yieldgrowth in non-irrigated areas (65.7 kg/ha) overtook that in irrigated areas(58.7 kg/ha).

    Period/Ecosystem

    Growth in Yield (kg/ha)

    January-June

    July-December

    January-December

    1970-1984

    IrrigatedNon-irrigated

    All Ecosystems

    8833

    70

    9051

    76

    8946

    74

    1985-1999

    IrrigatedNon-irrigatedAll Ecosystems

    143

    24

    84

    14

    114

    18

    2000-2010

    IrrigatedNon-irrigated

    All Ecosystems

    6767

    69

    5065

    58

    5966

    62

    Source of basic data: BAS

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    C o m p a r a t i v e Y i e l d o f p a d d y r i c e , S e l e c t e dA s i a n C o u n t r i e s , 2 0 0 0 a n d 2 0 0 9

    Thailand and India have bigger rice areas harvested than the Philippines but thelatter is more productive per unit area compared to the two countries. In 2009,the Philippines had an average yield o 3.59 mt/ha while Thailand and India hadonly 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.

    Source of basic data: FAO

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    C o m p a r a t i v e G r o w t h i n Y i e l d o f p a d d y r i c e ,S e l e c t e d A s i a n C o u n t r i e s , 2 0 0 0 - 2 0 0 9

    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. I thePhilippines did not experience natural calamities in 2009, this growth couldhave been better.

    Source of basic data: FAO

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    1 3

    The national average yield in all ecosystems, which is 3-4 mt/ha, is not evenhal o the scientically attainable yield i only Good Seeds* o modern inbredrice varieties are used as planting materials. And yet, yields o 6-7 mt/ha wereattained in on-arm demonstration trials that used Good Seeds but with bestcrop management practices. Thus, the countrys total production o paddyrice can be increased urther i the national average yield is raised throughsustained use o best crop management practices.

    * Note: Good Seeds are produced rom varieties not yet approved by theNational Seed Industry Council but meet the standards prescribed by thecertiying agency. Additionally, any class o certied seeds that does notconorm to the Councils standards may qualiy as Good Seeds.

    Y I E L D G A P A N A LY S I S

    Source: Sebasan, 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. Sebasan

    (eds.) Science City of Muoz: Philippine Rice Research Instute.

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    F a c t o r s a f f e c t i n g y i e l d

    The actors that can collectively and signicantly improve average yield at thenational level are inrastructure, research and development (R&D), extension,and environmental actors. Irrigation has the biggest impact contributing 25%on yield improvement; R&D, through better seed quality, crop managementpractices, and mechanization contribute 25%.

    Among the our major actors, extension service itsel has the least estimated

    infuence on yield (15%). However, without it, the 25% contribution o R&Dcannot be realized.

    FACTORS CONTRIBUTION

    R&DSeeds (biotechnology, hybrid rice, certied seed nutrition)Integrated Crop ManagementMechanization

    InfrastructureIrrigationFarm-to-market roads

    TransportationPostharvest

    ExtensionEnvironmental Factors

    25%10%10%5%

    40%25%5%5%5%

    15%20%

    Source: Balisacan, AM and LS Sebasan. 2006. Challenges and Policy Direcons: Overview

    In Securing Rice, Reducing Poverty, AM Balisacan and LS Sebasan (eds.). Science City of Munoz: Philippine

    Rice Research Instute.

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    In 2009, the average seeding rate using high-quality inbred seeds was69 kg/ha. Although lower than in 2008 (88 kg/ha), the 2009 seeding rate is stillhigher than the recommended rate o only 40 kg/ha. Most armers sow extraseeds to replace those that may be damaged by pests during the seedling andvegetative stages.

    Average seeding rate is even higher or low-quality seeds (91 kg/ha). Higher rateis to compensate or low germination and other possible losses.

    In terms o 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,armers can save on seed cost i they would ollow the 40-kg certied seedsrecommendation.

    I n p u t s i n P a d d y R i c e P r o d u c t i o n :S e e d i n g R a t e , 2 0 0 9

    Seed Class

    Seeding Rate (kg/ha)

    Direct-seeded Rice Transplanted Rice Average

    HybridInbred

    High-quality seedsa

    Low-quality seedsGood SeedsFarmer SeedsNative Seeds

    -82

    108105115104

    2256

    75708074

    2269

    91889789

    - no dataa - includes Cered, Registered, and Foundaon seeds.

    Source of basic data: PhilRice-BAS compiled data

    91 kg/ha o low-quality seeds

    cost P1,365/ha.

    40 kg o Certied Seeds cost

    P1,200/ha

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    FertilizerGrade

    Fertilizer Rate

    Irrigated Rained

    Jan-Jun Jul-Dec Jan-Jun Jul-Dec

    Fertilizer (in 50-kg bags/ha)

    UreaAmmosulAmmophosComplete

    2.340.430.661.49

    2.300.480.571.51

    1.210.390.300.66

    1.710.490.501.18

    Component Nutrients (in kg/ha)

    NitrogenPhosphorusPotassium

    741710

    731611

    3985

    57138

    Source of basic data: BAS

    Nutrient conversion used: 46-0-0 for urea, 21-0-0 for ammosul, 16-20-0 for ammophos, and 14-14-14for complete.

    I n p u t s i n P a d d y 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 a t e , 2 0 0 9

    In both semesters, armers in irrigated areas apply more ertilizers than those inrained areas.

    Fertilizer rate in irrigated areas during the dry season (Jan-Jun) is notsignicantly higher than in the wet season (Jul-Dec) despite greater economicbenets o applying more ertilizers in the DS. Increasing ertilizer rate duringthe DS can urther increase yield and production. This should be given attention

    in extension and inormation dissemination.

    Rained armers apply more ertilizers in the WS when water is more available.Although it is theoretically more ecient to apply more ertilizers during theDS, water constraint could easily result in under-application o ertilizers. Thelow ertilizer application o rained armers during the DS could be one o theirrisk-mitigating measures. Water source must be reliable so rained armers canoptimize ertilizer use.

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    C o s t s o f P a d d y R i c e P r o d u c t i o n , 2 0 0 9

    In 2009, labor accounted or the largest share (45%) in the total variable cost orice production. This indicates that rice production can be more competitive iwe reduce labor cost.

    Variable CostAmount

    (Pesos/ha)% o Total Variable

    Cost

    SeedsFertilizers and Soil AmeliorantsPesticidesRental o Machines, Tools, andAnimals Including Repairs and

    DepreciationIrrigationInterest Payment on Crop LoanLaborOthers (uel & oil, ood, transpo,etc.)

    1,9034,7251,0691,830

    6782,158

    11,5221,691

    71847

    38

    457

    Total variable cost (P/ha) 25,576 100

    Source of basic data: BAS

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    R e t u r n s t o P a d d y R i c e P r o d u c t i o n , b yE c o s y s t e m , 2 0 0 9

    In 2009, average net returns above variable costs were positive. Irrigatedarmers obtained better returns than non-irrigated armers.

    At the armgate price o P15.00/kg, i a armer is the landowner he wouldreceive a net return o P8.00 per kg o paddy rice produced. Six pesos o which is

    returns to own labor and two pesos is the returns to land. I the armer is a landrenter/lessee, the return would be slightly lower at P6.00/kg.

    Since Filipino rice armers cultivate only a hectare o land on individual average,income rom rice arming is still not enough to sustain a household eventhough the return per kilogram o paddy rice is high.

    ItemsAll

    EcosystemsIrrigated

    Non-Irrigated

    Yield (kg/ha)Farmgate price (P/kg)Gross returns (P/ha)

    3,58715

    52,478

    3,95215

    57,818

    2,83315

    41,447

    Total variable cost per hectare (P/ha)Returns to land (P/ha)Returns to own labor (P/ha)Returns above variable cost (P/ha)

    25,5766,694

    20,20826,902

    27,9347,370

    22,51429,884

    20,1305,139

    16,17821,317

    Variable cost per kg o yield (P/kg)Returns to land per kg o yield (P/kg)

    Returns to own labor per kg o yield (P/kg)

    72

    6

    72

    6

    72

    6

    Source of basic data: BAS

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    1 9

    F a r m g a t e P r i c e o f P a d d y r i c e ,S e l e c t e d A s i a n C o u n t r i e s , 2 0 0 8

    The armgate price o paddy rice in the Philippines is higher than those inChina, Thailand, and Indonesia. In 2008, Filipino armers sold their produce atUS$319/mt while Thai, Indonesian, and Chinese armers sold theirs at US$267/mt, US$280/mt, and US$278/mt, respectively.

    Nevertheless, the armgate price in PH is lower than in India (US$386/mt).

    Source of basic data: FAO

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    B r e a k d o w n o f R i c e U t i l i z a t i o n , 2 0 0 9

    Eighty-nine percent o all rice is used as ood. Seeds account or 2% o totalutilization, processed rice products or 3% , and eeds and wastes or 6% .

    MRR is one o the actors that aect the amount o milled rice available orutilization; based on the study o Vallesteros (2010), MRR is only 62.85%. Thismeans that it will take almost 160 kg o paddy rice to produce 100 kg o milledrice. I MRR is improved to 65%, only 154 kg o paddy will produce 100 kg omilled rice.

    Source of basic data: BAS

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    2 1

    R i c e N e t E x p o r t s , S e l e c t e d S o u t h E a s t A s i a nC o u n t r i e s , 1 9 6 0 - 2 0 0 8

    Many Filipinos wonder why they import rice when they even host theInternational Rice Research Institute, which is the source o modern ricetechnology or many exporting countries in Southeast Asia like Thailand. Trendsshow that PH had been importing rice and Thailand had been exporting evenbeore the advent o 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 or rice production. On thecontrary, importing countries have less arable land per person and more variedlandscape, which avors alternative crops such as corn, palm oil, or coconut.Indonesia and the Philippines are islands, while Malaysia is part island and partnarrow peninsula. Thus, natural endowments o land and water are strongorces that determine the ability o a nation to export rice.

    Source of basic data: FAO

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    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 tD e m a n d , 1 9 6 0 - 2 0 0 8

    The gap between world rice export and import has widened since 2000. Yet,net world supply is still very thin, indicating vulnerability o world rice prices tosupply and demand shocks.

    The recent Australian drought and the shit in land use toward energy crops in

    the USA are examples o supply shocks.

    The persistent shit in preerence o Arican nations toward rice consumption isan example o a demand shock.

    Source of basic data: USDA

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    2 3

    D o m e s t i c a n d W o r l d P r i c e s o f R i c e , 2 0 0 0 - 2 0 0 9

    Since 2000, the world price o rice had been generally stable and lower than thedomestic price. All this changed in 2008 when the world price sharply increasedduring the rst semester creating a crisis. World price receded toward the endo 2008 but did not return to pre-crisis level.

    Dawe and Slayton (2010) said market undamentals were not the cause othe 2008 rice crisis. External actors such as rising oil prices since 2004, weakUS dollar, biouel mandates and taris that contributed to rising maize andsoybean prices, and weather-induced decline in world wheat productionaltogether set the stage or the crisis.

    Policies o exporting and importing countries that lead to market uncertaintyand panic caused the surge in the world price o rice. India and Vietnamdecided to ban their exports. Thailand did not restrict their exports but theirpolicy 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 athigh prices, which ueled urther speculations. Malaysia and Nigeria joined PH

    in stockpiling. All this shows the vulnerability o the world rice market to priceshocks.

    Source of basic data: PhilRice-BAS, FAO, USDA, BSP

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    2 4

    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 a t i n gC o u n t r i e s , 1 9 6 0 - 2 0 0 8

    Changes in world demand also aect the volume o rice available in theinternational market. An example o this is the increasing demand or rice onon-traditional rice-eating countries such as those in Arica, Middle East, SouthAmerica, and the USA. The demand o these countries competes with traditionalrice-eating countries in Asia. Except or high-income China and Japan, riceconsumption in Asian countries have not declined signicantly.

    Source of basic data: USDA

    *Middle East refers to Iran, Iraq, and Saudi Arabia

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    T h i n W o r l d S u p p l y

    E X P O R T B A N S

    r i c e

    s e l f - s u f f i c i e n c y

    I n c r e a s i n g

    d e m a n d f r o m

    n o n t r a d i t i o n a l

    r i c e - e a t i n g

    c o u n t r i e s

    ^

    ^

    ^

    R AT I O N A L E F O R S E L F - S U F F I C I E N C Y I N R I C E

    Dependence on imports holds the country vulnerable to supply and demandshocks that can cause signicant changes in the world price o rice. With theoccurrence o thin world stocks, export bans during times o volatility in theworld market, and the increasing demand rom non-traditional rice-eatingcountries, growing reliance on local rice production would help shield the

    country rom the negative eects o the fuctuations in the world price o rice.Hence, the quest or sel-suciency in rice.

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    2 6

    P e r C a p i t a R i c e C o n s u m p t i o n , B y R e g i o n ,1 9 9 0 / 0 0 a n d 2 0 0 8 / 0 9 .

    Region

    Per Capita Rice Consumption (kg) PercentChange1999/00 2008/09

    PhilippinesNCR

    CARIlocos RegionCagayan ValleyCentral LuzonCALABARZONMIMAROPABicol RegionWestern VisayasCentral VisayasEastern Visayas

    Zamboanga PeninsulaNorthern MindanaoDavao RegionSOCCSKSARGENCaragaARMM

    10690

    12111811611110810811112267

    113

    9091

    108103114122

    119101

    13212512212311313612413495

    127

    109116113137128145

    1312

    966

    114

    2612104113

    21285

    321318

    Per capita rice consumption (PCRC) in the Philippines has risen by 13% rom106 kg/year in 1999/2000 to 119 kg/year. PCRC rose in all regions, with CentralVisayas increasing the largest (41%) and CALABARZON region the least (4%).Central Visayas has a large population that are traditionally corn-eaters.Consumer preerence has shited rom white corn to rice. The increasingurbanization in CALABARZON can be the cause o its tempered increase inPCRC.

    In 2008/2010, Central Visayas region has still the least PCRC at 95 kg/year whileARMM has the highest at 141 kg/year.

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    Despite our relatively high production, the Philippines contends with adeclining level o sel-suciency and increasing dependence on imports.From 91% in 1990, our level o sel-suciency decreased to 80% in 2010.

    This is because o the ast-increasing population and rising per capita rice

    consumption.

    R I C E I m p o r t D e p e n d e n c y a n d s u f f i c i e n c yR a t i o s , 1 9 9 0 - 2 0 1 0

    Source of basic data: BAS

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    The Department o Agriculture and its bureaus and attached agencies workingon the development o the rice sector crated the Food Staples SuciencyProgram (2011-2016). The ollowing outlines its basic strategies to achieve sel-

    suciency in rice:

    1 . P r i o r i t i z e i n v e s t m e n t s t h a t c a n i n c r e a s e a n d s u s t a i n

    p r o d u c t i o n g r o w t h

    A. Production interventions. Expansion o area harvested andimprovement o yield or productivity per unit area can increase paddyrice production. The FSSP or 2011-2016 outlines the ollowing basicinterventions that have long-term positive eects on productivity:

    a. Development and maintenance o irrigation systemsb. Increase armers access to high-quality seedsc. Research, development, and promotion o appropriate technologiesd. Extension and armers education

    B. Creation o enabling mechanisms. These are support services that aimto engender a avorable environment that will entice armers to increaseinvestments in rice arming. These services are expected to provideeconomic incentives that can stimulate armers interest to urther raisetheir production.

    a. Reorm the National Food Authority (NFA) increase its domesticpalay procurement; phased increase o selling prices o NFA rice;replacement o untargeted consumer subsidy by conditional cashtranser; and ocused role on buer stocking and price support toarmers.

    T h e f o o d s t a p l e s s u f f i c i e n c yp r o g r a m ( 2 0 1 1 - 2 0 1 6 )

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    2 9

    b. Increase credit guarantee und this will encourage private banks tocater to credit needs o armers, thus, leading to better credit access toormal lenders.

    c. Increase number o armers covered by crop insurance this will easeproduction risks like typhoons that burden the armers.

    2 . I n t e n s i f y f a r m m e c h a n i z at i o n a n d r e d u c e p o s t h a r v e s t

    l o s s e s

    A. Farm mechanization. Eciency and timeliness o arm operations can beattained i arm mechanization is intensied. This will be helpul in timeso labor shortage and in areas where labor cost is expensive.

    B. Modernization o postharvest acilities. Current postharvest processessuch as drying and milling can lead to palay losses estimated at 16.47%o total production. Reducing postharvest losses is one way o increasingavailable rice or consumption.

    3 . M a n a g e m e n t o f C o n s u m p t i o n

    The ollowing strategies to attain an ideal demand level or rice can alsocontribute to the attainment o sel-suciency in rice:

    A. Promoting the consumption o brown rice. Since brown rice isunpolished, its production can lead to higher milling recovery as ricebran is retained on the grains, making it even more nutritious.

    B. Reduction o rice wastage. Families are encouraged to cook and eat just

    the right amount o rice every meal, thus, reducing table wastage. Thiscan urther increase the availability o rice or consumption.

    C. Diversifcation o staples. Increasing the production and marketavailability o alternative staples (i.e., white corn, kamote, cassava,and banana) can make the prices o these substitutes aordable toconsumers. This will trigger a shit o consumption rom rice to otherstaple oods, hence, reducing the demand or rice.

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    3 0

    R e f e r e n c e s :

    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 or Graduate Study and Research inAgriculture. pp. 1-19.

    Bangko Sentral ng Pilipinas (BSP) [n.d.] Monetary, External, and FinancialStatistics, http://www.bsp.gov.ph/statistics/statistics.asp AccessedAugust 2010.

    Bureau o 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, inD. Dawe, P.F. Moya, and C.B. Casiwan, eds., Why Does the PhilippinesImport Rice? Manila: International Rice Research Institute. pp. 3-7.

    Dawe, D. and T. Slayton [2010] The World Rice Market Crisis o 2007-2008, in D.Dawe, ed., The Rice Crisis. London and Washington DC: The Food andAgriculture Organization and Earthscan, pp. 16-28.

    Food Staples Sel-Suciency Program, 2011-2016. Department o Agriculture2011.

    Francisco, S.R. and A.B. Mataia [2009] Policy Advocacy, in, The Philippine RiceR&D Highlights 2008. Munoz City, Nueva Ecija: Philippine Rice ResearchInstitute. pp. 319-321.

    Sebastian, L.S., F.H. Bordey, and V.L.E.B. Arpuerto [2006] Research andDevelopment, in A.M. Balisacan and L.S. Sebastian, eds., Securing

    Rice, Reducing Poverty: Challenges and Policy Directions. Los Banos,Laguna: Southeast Asian Regional Center or Graduate Study andResearch in Agriculture, pp. 39-69.

    United States Department o Agriculture (USDA) [n.d.] Agriculture Data andStatistics, http://www.usda.gov/wps/portal/usda/usdahome, AccessedAugust 2010.

    Vallesteros, R., Jr. [2010] The New National Rice Milling Recovery Rate: Its Eecton the Level o Rice Per Capita Consumption in the Philippines, CY2000-2008. Paper presented at the 23rd National Rice R&D Conerenceo the Philippines held in IRRI, Los Baos, Laguna. 4 March 2010.

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    3 1

    C r e d i t s :Subject Matter SpecialistsFlordeliza H. Bordey, Ph.D.Aileen C. Castaeda

    Managing editor/Layout artistAlred Caballero

    Editorial AdviserEuemio T. Rasco Jr., Ph.D.

    Consulting EditorConstante T. Briones

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    n o t e s

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    We are a chartered government corporate entity under the Department o Agriculture. Wewere created through Executive Order 1061 on 5 November 1985 (as amended) to helpdevelop high-yielding, cost-reducing, and environment-riendly technologies so armers canproduce enough rice or all Filipinos.

    We accomplish this mission through research and development work in our central andseven branch stations, coordinating with a network that comprises 57 agencies and 70 seed

    centers strategically located nationwide.

    To help armers achieve holistic development, we will pursue the ollowing goals in 2010-2020: attaining and sustaining rice sel-suciency; reducing poverty and malnutrition; andachieving competitiveness through agricultural science and technology.

    We have the ollowing certications: ISO 9001:2008 (Quality Management), ISO 14001:2004(Environmental Management), and OHSAS 18001:2007 (Occupational Health and SaetyAssessment Series).

    Phil Ric e Sta tio ns:

    Central Experiment Staon Maligaya, Science City of Muoz, 3119 Nueva EcijaTrunklines: (44)456-

    0258; -0277, -02850920-970-2629 (only for connecon to local#) Email: [email protected].

    phPhilRice Agusan Basilisa, RTRomualdez, 8611 Agusan del NorteTel: (85) 818-4477; 343-0778Tel/

    Fax: 343-0768Email: [email protected] Batac MMSU Campus, Batac City,

    RICE SCIENCE FOR DEVELOPMENTPHILIPPINE RICE RESEARCH INSTITUTE

    You may visit our websites:

    www.philrice.gov.ph

    www.pinoyrkb.com

    or text:

    PhilRice Text Center: 0920-911-1398