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Darwin R. Gevaña
____________________ 1 A research paper prepared and submitted in partial fulfillment of the requirements in EMG 272P: Supply Chain Management under Engr. Elisier Fantillo, 3rd term, AY 2010-2011.
Filipinos highly depend on rice. . 2004). et al. majority of the population depends on the said crop which is irreplaceable.INTRODUCTION Rice is the most staple food in the Philippines. deteriorating irrigation systems. among others (Dawe. corruption. 01 million of Filipinos are in the country and abroad. According to the Philippine Rice Research Institute. damages caused by natural calamities. the supply of the rice in the country is still having difficulties in ensuring stability and adequacy in providing sufficient rice availability in the market all the time. Many reasons are typically advanced for the failure to achieve rice self-sufficiency—faulty government policy. and lack of farm credit. conversion of rice land to other uses. backward rice farmers. The population of the Philippines is growing. According to the National Statistics Office as of the year 2010 the projected population reaches to 94. However. decreasing hectarage. 2002). It is the single most important agricultural crop in the Philippines. there are still many factors why the country experiences such problem in supply and distribution of the crop and these are. With this fact. therefore. and also man-made problems such as poor management of reserved rice and etc. increasing population. and is therefore a major source of income for millions of Filipino farmers (Cororaton.
Research Objectives The main objective of the study is to analyze and determine the supply and demand of rice in the Philippines the problems that goes with the supply chain of rice from the farmers to the end users. • Identify the issues behind the insufficiency in the production and supply of rice in the Philippines resulting to importation. . Moreover. Thus this research focuses merely in the data obtained from the government organizations that concern about the production. Specifically this study aims to: • • Define rice as one of the most valuable crop in the Philippines. Scope and Limitations The concept of supply and demand of rice in the Philippines and other underlying economic factors and processes is very complex in a nationwide perspective. supply. However. Determine the demand and consumption of rice of Filipinos in recent years. and demand of rice. time also set as a limitation in obtaining pertinent data to further explain the issues mentioned above. this research followed an organized presentation of data to compensate its limits.
and consumption of rice in the Philippines in relation to the concept of supply chain management review of related literatures was conducted. the problem of shortage as the government . Research Methodology In determining the supply. electronic sources from the government organizations were also included in the study. such changes in the supply would actually affect the prices but not the demand since there it is inelastic demand for it in the country. Statistical data were also incorporated from the said sources. Almost all Filipinos eat rice for breakfast. 2008). RESULTS AND DISCUSSION The rice crop in the Philippines is the most politically sensitive commodity (Palatino. dinner. lunch. and even in between meals. Therefore. Thus. Despite the fact that the country is agriculturally based. Furthermore.Significance of the study Rice is the most important commodity among all kinds of crops in the Philippines. demand. this study will be helpful in identifying further the cause(s) of such problem in the supply of rice specifically the supply chain management. Even though Philippines is an agri-based nation. still it encounters various problems in rice supply making it available to the public consumers.
6 kg/year in 10 years’ time only. Agriculture statistics also show that rice is the biggest agricultural crops subsector covering 4 million hectares or about one-third of the total 11. Rice is also the source of income of about 30% of the 11.16 103.92 . 2005).7 126.91 99.8 118.says during the regime of former President of the country Gloria Macapagal Arroyo making the Philippines as one of the top importers of the rice in the world. In 2009 the consumption of Filipinos dropped by approximately 8 kg/year (table 1).2 million Filipino farmers and agricultural workers (Ignacio.68 103.4 kg/year to 25.77 108. Rice 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Bureau of Agricultural Statistics UT Per Capita kg/yr 91.09 118. Table 1.24 128.03 107. According to the Bureau of Agricultural Statistics the consumption of each Filipino grew from approximately 92 kg/year in 1998 to 128 kg/year showing an increase of 36 kg/year in just 10 years implying each and every Filipino consumes 18.10 119.02 116. year and item.9 million hectares of agricultural lands and contributing more than one-third of the total value of crops production. Rice: Supply and utilization accounts by commodity.
824 11.786. it dropped by 549. Therefore.554.824 in 1998 to 16.On the other hand.389.412 12.625 12. in terms of the local production of rice (palay) statistics showed that there total production of rice in metric tons was increased from 8.326.954. .711.870 13.706 16.417 in 2009 which shows that there was an increase of production of 7.194 16.270.593 metric tons in just 10 years. although.499.653 13. Volume of local production of rice per year. the local production of rice from 1998 to 2008 seemed to improve as the consumption of rice increases.884 14. importation of such volume of rice shouldn’t a priority of the government. Rice 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Bureau of Agricultural Statistics Metric tons 8. Table 2.005 15.784 14.554.496.417 Based on the data shown above.603. 131 metric tons in 2009 (see table 2).815. Perhaps the issue of distribution from the rice producers to the end users seemed to have some loopholes resulting a problem of shortage of the supply of rice.266.548 16.266.240.
. the government has no exact data to tract such warehouses that keeping rice to lead rice supply problem.The problem of such shortage in rice supply in the country are dramatized by some firms or even the government itself to incur higher profit engaging in one of the endemic diseases of the country which is the issue of corruption. The diagram below shows that monitoring the rice supply distribution was not actually specified and emphasized. while. According to ABSCNS News anomalies among the agricultural government organizations manipulates the data of bloating the statistics of consumption to import more rice. the local rice industry suffers from loss. Figure 1. Undeclared warehouses proliferates the issue of rice shortage. Moreover. Rice activities in the Philippines. The issue of hoarding in country seemed to have an effect in the supply of rice.
.Conclusion and Recommendation Rice as mentioned is the most politically sensitive commodity in the country making it vulnerable to price changes in accordance to supply. Also. adapting and implementing new technologies. system that tracks the movement of rice from producer to warehouses to end user will help us in some rice shortages problem. post harvest facilities. and etc. problems in production such as insufficient financial support to farmers still a hinder in progress of local rice supply. The government definitely lacked in this part since there are those that hoard rice supplies which are not observed. In this case they have traceability where the rice going through and one advantage of this is that they will have a good inventory system of the rice.T. The supply of rice in the Philippines is increasing by approximately 6% each year. the government should allocate more budget in the production level by providing sufficient financial support to farmers for seeds. A very effective I. Solving such problem in the supply of rice. If they could have the access and data it will help them in the forecasting of rice for imports. The government should design or have a system tracking all the production of rice from the farmers going to the government warehouses. However. one of the crucial factors in this concern is the supply management system of monitoring the whole rice industry from the farmers to the end users. irrigation.
B. from http://www.gov.ph//index.rp57. M. Retrieved March 14. 2011.14. Retrieved March 14. (2005).irdfphil. C.reforms.org/docs/tradingoffphilippinerice. 2011. from http://www. Rice Reforms and Poverty in the Philippines: A CGE Analysis. 2011.php? option=com_content&task=view&id=12&Itemid=296 Ignacio.rice.01. 2011. 2011. J.census. from books. (2002). from http://www. et al. from www. (April 2008).org/9712202097_content. (2004). Trading-off Philippine Rice.ph/ Philippine Rice Research Institute Retrieved March 14.gov.com/Economics/2008/04/02/why_a_rice_shortage_in_the_phil ippines/6495/ Dawe.REFERENCES Palatino.pdf Cororaton.philippines.pdf National Statistics Office Retrieved March 14.pdf . Integrated Development Foundation of the Philippines. Why a rice shortage in the Philippines? UPIAsia Retrieved March 14.upiasia. Retrieved March 14. from http://www.irri. Why the Philippines Import Rice? International Rice Research Institute. D. 2011.philrice. ADB Institute Research Paper Series.org/files/2005.adbi.