5. Key Commodity Performance - National Agricultural and Fishery ...

strong technical competence on processing technologies. However, postharvest
facilities are lacking during the main season. Processors complain of high cost of
mechanical drying. Facilities available for them are either outmoded or poorly
managed. There are also inadequate processing facilities in the rural areas. The
demand for the postharvest facilities enhances the research and acquisition of
the government and private sector of the modern postproduction technologies.
These technologies increase the capacity of the postproduction manufacturing
industry and after-sale services. The investment for processing technologies is
needed because there is an increasing demand for rice-based food products.
5.1.24 One of the problems of the agricultural sector is the instability of supply of
the commodity such as rice in a given time of the year. Thus, a facility like
storage is needed to make rice available at any time. The rice sector is gifted
with the availability of warehouse spaces. However, storage facilities are either
not in good condition or located at displaced areas. Farmers should consider
storage because of the seasonality in supply. Prices are high when the
commodity is not in season. The industry should take into consideration the
declining public investments in storage facilities.
5.1.25 Established marketing channels characterize the marketing subsystem of
the rice sector. However, presence of the numerous market intermediaries
makes marketing and distribution perform inefficiently. There is an increase in the
marketing costs as another middleman joins the system. High transport costs
also add to the price paid by the consumers. Also, inadequate infrastructure
increases the cost of the middleman. Although the marketing subsystem is
confronted by quite a number of inefficiencies, there are still markets not totally
exploited. Rice sector has a continually growing huge consumer base because it
is the staple food for the Filipino. Demand for rice will increase as population
increases. The threats to marketing and distribution subsystem include the
budgetary constraints of NFA limiting procurement to less than 10% of total
marketed paddy, entry of cheaper imports and rice smuggling.
5.1.26 The institution subsystem shows the rice sector having strong linkages
and partnership with institutions focusing on rice researches such as PhilRice
and Rice R&D Network, IRRI, UPLB, SCUs, NFA, and other private companies.
These institutions extend consultations and services to the rice sector with the
aim of increasing the yield per hectare and the income received by the farmers.
However, the institution subsystem performs poorly in terms of governance. Rice
programs are put off because of frequent turnover of DA leadership. There is
also ineffective implementation of the national rice programs. Access of the rice
sector to international donor agencies like the FAO and USAID make it possible
for the government to continue research and development. An expansion of the
market for the rice sector is also possible because of the country’s membership
to international trade associations such as AFTA and WTO. Coordination among
the national and local governments is imperative in the implementation of rice
programs.
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