Hybrid Rice Philippines 2

8/9/2019 Hybrid Rice Philippines 2

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Hybrid RiceCommercialization

in the Philippines1

Hybrid RiceHybrid RiceCommercializationCommercialization

in the Philippinesin the Philippines11

Frisco M. Malabanan, PhD2

1 Paper presented during the Asian Seed Conference 2006 at Kuala Lumpur,

Malaysia, November 12-152 Program Director, Department of Agriculture-GMA Rice Program, 4th flr,

DA Building, Elliptical Road, Diliman, 1100 Quezon City, Philippines, and

Chief Science Research Specialist, Philippine Rice Research Institute(PhilRice), Maligaya, Science City of Muoz, 3119 Nueva Ecija, Philippines


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INTRODUCTIONINTRODUCTION

TThe flagship programhe flagship program ofof thetheDepartment of AgricultureDepartment of Agriculturess(DA)(DA) GMA Rice ProgramGMA Rice Program

Since 2002, the programSince 2002, the programaims toaims to increase farmincrease farm

productivity and incomeproductivity and incomethrough widespreadthrough widespread

promotion of the hybrid ricepromotion of the hybrid rice

technologytechnology

Hybrid Rice Commercialization ProgramHybrid Rice Commercialization Program


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Farmers can double their income over inbred riceFarmers can double their income over inbred rice

AverageAverage prodprodnn. costs & returns (hybrid. costs & returns (hybrid vsvs inbred)inbred)

CASH COSTS 10,194.00 10,494.00 13,453.00

NON-CASH COSTS 6,539.00 6,539.00 7,188.00

IMPUTED COSTS 6,511.00 6,511.00 6,748.00

TOTAL COSTS 23,244.00 23,544.00 27,389.00

GROSS RETURNS 29,790.80 40,443.00 60,050.00

RETURNS ABOVE CASH COST 19,596.80 29,949.00 46,597.00

RETURNS ABOVE CASH AND 13,057.80 23,410.00 39,409.00

NON-CASH COST

NET RETURNS 6,546.80 16,899.00 32,661.00

NET PROFIT-COST RATIO 0.28 0.72 1.19

Cost per kg. 6.90 5.15 4.56

Yield per hectare (kg) 3,370.00 4,575.00 6,005.00Farmgate price (peso/kg) 8.84 8.84 10.00

ITEM Certified Seeds Hybrid SeedsFarmer's Home-

Saved Seeds


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Inbred

Rice

Hybrid

Rice

Techno demo areas showed thatTechno demo areas showed thathybrid rice can yield more thanhybrid rice can yield more than 1212

mtmt/ha/ha and has a yield advantage ofand has a yield advantage of32%32% over the best inbred varietyover the best inbred variety



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High yieldsHigh yields

ACTUALYIELDNAME OF FARMER PROVINCE

mt/ha.

Aida Badong Camarines Sur 17.15

Eulogio Guirra, Sr. Davao del Sur 14.52

Felino Garcia, Jr. Nueva Ecija 13.30Antonio Villanueva Ilocos Sur 13.10



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Increased hybrid rice areas raisedIncreased hybrid rice areas raisedlevels of ricelevels of rice sufficiency to 85% and 86%sufficiency to 85% and 86%

in 2004 and 2005, respectivelyin 2004 and 2005, respectively

The program targets 500,000 toThe program targets 500,000 to

600,000 ha to be planted to hybrid rice600,000 ha to be planted to hybrid riceby 2009by 2009--20102010



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The HRCP generated 85,266 jobsThe HRCP generated 85,266 jobsfrom 2002 to 2004from 2002 to 2004

About 2.4 million local rice farmersAbout 2.4 million local rice farmershave stable jobs in the field throughhave stable jobs in the field through

HRCPHRCP

Source: Philippine Rice Research Institute (Source: Philippine Rice Research Institute (PhilRicePhilRice))and STRIVE Foundation surveyand STRIVE Foundation survey



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Hybrid rice commercial plantingHybrid rice commercial planting

Area plantedArea planted to hybrid rice has spirallyto hybrid rice has spirallyincreased from merely 5,472 ha in 2001increased from merely 5,472 ha in 2001WS to 374,20WS to 374,2077 ha in 2005ha in 2005

5,472 7,07821,301 25,523

54,538

77,982

225,372

130,903

189,607184,600

-

50,000

100,000

150,000

200,000

250,000

WS

2001

DS '01-

'02

WS

2002

DS '02-

'03

WS

2003

DS '03-

'04

WS

2004

DS '04-

'05

WS

2005

DS '05-

'06


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Production of commercial hybridProduction of commercial hybrid palaypalaygrewgrewfrom 168,659from 168,659 mtmt in 2002 to 2.21 M mt in 2005in 2002 to 2.21 M mt in 2005

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2002 2003 2004 2005

2,213,8182,213,818

461,847461,847168,659168,659

1,172,8631,172,863



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Hybrid seeds had an average yield of 6.0Hybrid seeds had an average yield of 6.0mt/ha from CY 2002 to 2005mt/ha from CY 2002 to 2005

5.836.18

5.615.985.936.055.78

6.85

5.44

4.474.664.504.674.444.514.424.454.28

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

WS 2001 DS 2001-

2002

WS 2002 DS 2002-

2003

WS 2003 DS 2003-

2004

WS 2004 DS 2004-

2005

WS 2005

32% YIELD ADVANTAGE OF HYBRID VS.CERTIFIED INBRED VARIETIES



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HRCP increased theHRCP increased thedemand for hybrid ricedemand for hybrid riceamong millers andamong millers and

consumersconsumers

Promotion of hybridPromotion of hybridricerice also created greateralso created greater

awareness on otherawareness on other

component technologiescomponent technologies

in rice productionin rice production



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Hybrid rice seed productionHybrid rice seed production

As a result, hybrid seed production areaAs a result, hybrid seed production area

increased from 0.2 ha in 1999 DS to 1,098 ha inincreased from 0.2 ha in 1999 DS to 1,098 ha in2005 WS, with the largest area of 2,654 ha2005 WS, with the largest area of 2,654 ha

recorded in 2005 DSrecorded in 2005 DS

Similarly, hybrid seed yield has improved fromSimilarly, hybrid seed yield has improved from

less than 100 kg/ha to 857 kg/ha in 2005 DSless than 100 kg/ha to 857 kg/ha in 2005 DS


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Private companies played a vital role inPrivate companies played a vital role inensuring the viability of the hybrid seed marketensuring the viability of the hybrid seed market

Strong seed growersStrong seed growers cooperatives were alsocooperatives were alsoable to compete with these companies andable to compete with these companies andcontinued to produce and supply seeds ofcontinued to produce and supply seeds of

public hybridspublic hybrids

Total area planted to hybrid:Total area planted to hybrid:Public sector hybrid seeds = 40%Public sector hybrid seeds = 40%

Private sector hybrid seeds = 60%Private sector hybrid seeds = 60%

Competitive Seed IndustryCompetitive Seed Industry

Hybrid rice seed productionHybrid rice seed production


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Research and developmentResearch and development

Hybrid rice R&D has significantly advancedHybrid rice R&D has significantly advancedhybrid ricehybrid rice germplasmgermplasm improvement and breedingimprovement and breeding


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Research and developmentResearch and development

Progress has also been made in seed productionProgress has also been made in seed productiontechnology, hybrid rice crop management, andtechnology, hybrid rice crop management, and

development of appropriate machines for HRSPdevelopment of appropriate machines for HRSP


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Technology demonstrationTechnology demonstration

More than 300 techno demo sites wereMore than 300 techno demo sites wereestablished nationwide during the earlyestablished nationwide during the earlystages of the HRCP to highlight thestages of the HRCP to highlight the

advantages of using hybrid seed overadvantages of using hybrid seed overinbredsinbreds

Establishment of techno demoEstablishment of techno demositessites


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Technology demonstrationTechnology demonstration

In Mindanao, a hybrid techno demoIn Mindanao, a hybrid techno demo

derby was launched in 2004 DS byderby was launched in 2004 DS by

the DAthe DA--RFUsRFUs in coordination within coordination with

private companies andprivate companies and LGUsLGUs

Similar activities were also conductedSimilar activities were also conductedby the differentby the different RFUsRFUs in Luzon and thein Luzon and theVisayasVisayas


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Training and briefingsTraining and briefings

More than 500,000 farmers, seedMore than 500,000 farmers, seedproducers, extension workers, agriculturalproducers, extension workers, agricultural

technologists, R&D personnel and policytechnologists, R&D personnel and policy

makers were trained in hybrid ricemakers were trained in hybrid ricecultivationcultivation from 2002 to 2005from 2002 to 2005


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Training and briefingsTraining and briefings

Almost 3,000 farmers/seed growers alsoAlmost 3,000 farmers/seed growers alsoattended seasonattended season--long and University Without Wallslong and University Without Walls

training to prepare them for their HRSP venturetraining to prepare them for their HRSP venture

Training and briefings were conducted inTraining and briefings were conducted incollaboration with IRRI,collaboration with IRRI, PhilRicePhilRice, ATI, DA, ATI, DA--RFUsRFUs,,

LGUsLGUs, and private sector, and private sector


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Information campaignInformation campaign

DADA--PhilRice generated and distributedPhilRice generated and distributedinformation campaign materials to the DAinformation campaign materials to the DA

andand LGUsLGUs across the countryacross the country

Hybrid rice news and success storiesHybrid rice news and success storieswere featured regularly in thewere featured regularly in the PhilRicePhilRice

website (website (www.philrice.gov.phwww.philrice.gov.ph))


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Impact of HRCPImpact of HRCP

In the five major hybrid riceIn the five major hybrid rice--producingproducing

provinces, namely:provinces, namely: IsabelaIsabela, Nueva Ecija, Iloilo,, Nueva Ecija, Iloilo,Davao del Sur, and Davao del Norte, hybrid riceDavao del Sur, and Davao del Norte, hybrid rice

yielded more than inbred riceyielded more than inbred rice

Hybrid rice has a price advantage over theHybrid rice has a price advantage over theinbred by about 25 centavos/kginbred by about 25 centavos/kg

More hybrid farmers got a higher net incomeMore hybrid farmers got a higher net incomeof PhP32,661/ha than the inbred farmers whoof PhP32,661/ha than the inbred farmers who

got PhP16,899/hagot PhP16,899/ha

PhilRicePhilRice--STRIVE studySTRIVE study


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Farmers start to plant 20Farmers start to plant 20--25 kg seeds per25 kg seeds perhectare, adopt synchronous and straight rowhectare, adopt synchronous and straight rowplanting, and the use organic fertilizersplanting, and the use organic fertilizers

The estimated financial and economicThe estimated financial and economicbenefitbenefit--cost ratios of the HRCP are 1.56 andcost ratios of the HRCP are 1.56 and

1.13, respectively, from 2002 to 2009. This1.13, respectively, from 2002 to 2009. This

implies that the financial and economicimplies that the financial and economic

benefits from the program outweigh its costs.benefits from the program outweigh its costs.

PhilRicePhilRice--STRIVE studySTRIVE study


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4,04729,307

75,470

157,111

330,718

14,567

604

93,524

37,513

5,4440

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2001 2002 2003 2004 2005

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

milled rice US$ '000-CFR

Milled Hybrid RiceMilled Hybrid RiceIncremental Production and ValueIncremental Production and Value

IncrementalProduc

tion(mt.)m

illedrice

IncrementalProduction(mt.)m

illedrice

US

$

US

$000CFR

000CFR


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Future directionsFuture directions

Further expansion of hybrid rice areas, through theFurther expansion of hybrid rice areas, through theclustering approach, would realizeclustering approach, would realize HRCPHRCPss goals ofgoals of

higher farmershigher farmers income and selfincome and self--sufficiencysufficiency

SelfSelf--sufficiency would produce savings from ricesufficiency would produce savings from rice

importation, and an adequate supply of rice would giveimportation, and an adequate supply of rice would givestable prices for consumersstable prices for consumers

The Rice Program moves to create greaterThe Rice Program moves to create greaterawareness among farmers, LGUs, and the privateawareness among farmers, LGUs, and the privatesector. Ultimately, the private sector will lead thesector. Ultimately, the private sector will lead the

commercialization of hybrid rice.commercialization of hybrid rice.


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Future directionsFuture directions

Through these efforts, farmers will continue to gainThrough these efforts, farmers will continue to gaingreater mastery of the technology and eventually lowergreater mastery of the technology and eventually lower

production costsproduction costs

The Program currently conducts technical briefingsThe Program currently conducts technical briefingsand other trainings on hybrid seed production andand other trainings on hybrid seed production andcultivationcultivation

The hybrid rice technology can significantlyThe hybrid rice technology can significantlycontribute to the economy and improve the way ofcontribute to the economy and improve the way of

living of Filipino farmersliving of Filipino farmers


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SUMMARY AND RECOMMENDATIONSSUMMARY AND RECOMMENDATIONS

Despite unfavorable factors, it is still the best optionDespite unfavorable factors, it is still the best optionto invest in hybrid rice cultivation in the Philippinesto invest in hybrid rice cultivation in the Philippines

Average yields have constantly been rising the pastAverage yields have constantly been rising the pastfive years, which increased individual farmer's incomefive years, which increased individual farmer's income

These can be sustained through partnershipThese can be sustained through partnershipbetween the public sector and private companiesbetween the public sector and private companies


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Private seed companies can make cultivation morePrivate seed companies can make cultivation moreattractiveattractive byby assisting farmers from preproduction toassisting farmers from preproduction to

postproduction activities to ensure increased productivitypostproduction activities to ensure increased productivity

SUMMARY AND RECOMMENDATIONSSUMMARY AND RECOMMENDATIONS

Other stakeholders'Other stakeholders' respectiverespective contributions wouldcontributions would

setset not onlynot only the rice industrythe rice industrys direction towards selfs direction towards self--sufficiency but could alsosufficiency but could also transform the Filipino farmertransform the Filipino farmer

from being a producer to an agricultural entrepreneurfrom being a producer to an agricultural entrepreneur


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Thank You

Very Much!

Have a RICE day!

Documents

Hybrid Rice Philippines 2