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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
INTRODUCTIONINTRODUCTION
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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
INTRODUCTIONINTRODUCTION
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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
INTRODUCTIONINTRODUCTION
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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
INTRODUCTIONINTRODUCTION
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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
Hybrid rice commercial plantingHybrid rice commercial planting
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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
Hybrid rice commercial plantingHybrid rice commercial planting
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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
Hybrid rice commercial plantingHybrid rice commercial planting
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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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Impact of HRCPImpact of HRCP
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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Impact of HRCPImpact of HRCP
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!
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