VALUE CHAIN ANALYSIS

FOR UPLAND RICE IN

REGION 02

Page 1
 ACKNOWLEDGEMENT

We would like to express our deepest gratitude to our beloved Regional Executive Director
Lucrecio R. Alviar, Jr., who has the attitude and substance of a genius for allowing us to
undertake this study and to our Regional Technical Director Engr. Lorenzo M. Caranguian, for
providing us necessary funding support.

Also, we thank all personnel involved in the conduct of the survey from the Municipal Local
Government Units (MLGUs) of Lal-lo, Gattaran, Lasam and Sta. Teresita in the province of
Cagayan, City of Ilagan, Jones and Echague in the province of Isabela, Ambaguio, Dupax del Sur
and Kayapa in the province of Nueva Vizcaya and Diffun and Nagtipunan in the province of
Quirino, for their invaluable support during the data gathering.

The success and final outcome of this study required a lot of guidance and assistance from
many people. Whatever we have done is only due to their guidance and assistance and we
would not forget to thank them. This study cannot be completed without the effort and
cooperation from our group members and the respondents for their support and willingness
to spend some time with us.

Above all, our God Almighty for His wisdom and guidance He bestowed us in completing this
study.

VCA Upland Rice Team

Vivien L. Delos Santos

Ma. Rosario U. Paccarangan
Oscar V. Andrada
Precious Anne S. Partible
Ma. Lourdes Mateo
Emilyn P. Allauigan
Mark Julius P. Casil
Irish Ferrer
Teddy Basug
Czarina Nova Pini
Gilbert Pascual
Page 2
CONTENTS Page
Executive Summary
Section 1: INTRODUCTION 9
A. Background Information and Objectives 10
B. Objectives of VCA 10
C. Methodology 10
Section 2: OVERVIEW OF THE INDUSTRY 14
A. Product Description 14
B. Production Trends 17
Section 3: NATURE AND STRUCTURE OF INDUSTRY 18
A. Value Chain Mapping 18
B. Key Players Description and Functions 21
C. Nature and Interfirm Relationship 30
D. Price and Cost Structure 32
Section 4: MARKETS AND MARKET OPPORTUNITIES 39
A. Global Market 39
B. Domestic Market 40
Section 5: SUPPORT SERVICES 42
A. Financial Services 42
B. Non-Financial Services 43
Section 6: BUSINESS ENABLING ENVIRONMENT 47
A. Formal Rules, Regulations and Policies 47
B. Informal Rules and Socio-Cultural Norms 48
Section 7: CONSTRAINS AND OPPORTUNITIES 49
Section 8: COMPETITIVENESS DIRECTIONS 54
A. Competitiveness Directions 54
B. Priority Constraints/ Opportunities and Interventions 55
Section 9: CONCLUSION AND RECOMMENDATIONS 59
Section 10: Annexes 60
A. List of Farmer – Respondents in Cagayan 60
B. List of Farmer – Respondents in Isabela 61
C. List of Farmer – Respondents in Nueva Vizcaya and Quirino 62
D. List of Buyer – Respondents 63
E. Questionnaire for Farmer - Respondents 64

Page 3
LIST OF TABLES Page
1 Production Volume, Area Planted Harvested of Rainfed Rice, 2012 9
2 Production Area for Upland Rice, 2007 11
3 Production Area in hectare, 2007 17
4 Disposal of Upland Rice Produce, 2013 20
5 Farmer-Respondents (per province covered) 22
6 Profile of Farmer Respondents 23
7 Farm Profile of Farmer Respondents 24
Average Cost and Return Analysis of 1 hectare Upland Rice Production in
8 33
Cagayan, 2013
Average Cost and Return Analysis for 1 hectare Upland Rice Production in
9 34
Isabela, 2013
Average Cost and Return Analysis for 1 hectare Upland Rice Production in
10 35
Quirino, 2013
Average Cost and Return Analysis for 1 hectare Upland Rice Production in
11 36
Nueva Vizcaya, 2013
12 Relative Financial Position of Value Chain Players 37
13 Supply and Demand Gap in Cagayan Valley 40
14 Comparison of Wholesale/Retail price of commercial Rice and Upland Rice 41
15 List of services provided by various Financing Institutions 43
List of Non- Financial Services provided by the Government and Non
16 44
Government Agencies
17 Constraints and Opportunities 50

Page 4
LIST OF FIGURES Page
1 Conduct of Survey for Farmer - Respondents 13
2 Conduct of Survey for Farmer - Seed Grower 13
3 Conduct of Survey for Cooperative 13
4 Conduct of Survey for Trader 13
5 VCA Team during the Consolidation and Discussion of Survey Result 13
6 Conduct of Survey for Miller-Wholesaler-Retailer 13
7 Sample of Upland Rice Forms 15
8 Grains 15
9 Upland Rice – Based Processed Products (Tapuy Wine, Rice Coffee &Cerelac) 15
10 Handicrafts from Rice Stalks/Straws (Hat, Broom & Basket) 16
11 Uses of Rice Hush Ash (Silica, Cement, Steel & Bricks) 16
12 Value Chain Map of Upland Rice 18
13 Marketing Channel of Dry Palay, Cagayan Valley 19
14 Marketing Channel of Milled Rice, Cagayan Valley 20
15 Geographical Flow of Upland Rice, Cagayan Valley 21
16 Percentage Added Cost, Relative Financial Position of Players 38
17 Percentage Profit, Relative Financial of Players 38
18 Percentage Price, Relative Financial of Players 38
19 Pigmented Rice Export Destination, 2013 39
20 Constraints and Opportunities 49

Page 5
 EXECUTIVE SUMMARY

Upland Rice is usually aromatic, grown organically, tall, late maturing, with lesser cultural
practices or management intervention, depends mainly on rain water and it has lesser yield
compared to lowland rice varieties. The term Upland Rice has nothing to do with elevation. It
is usually found in sloping or hilly land without bunds or paddies that is prone to erosion, and
drought problems. Soils are typically dry, generally acidic, fragile, and less fertile. The most
common traditional varieties are Palawan, Pinilisa, Black Rice, Galo, Aringay, and Gobyerno.
Modern upland rice varieties (NSIC Rc192, Rc9 and Rc11) are also planted. Many upland rice
farmers plant local varieties that are low yielding but are well adapted to their environment
and produce grains that meet local needs.

Special or upland rice have the following nutritional values:

a.) Brown Rice has many vitamins and minerals as well as fibers which contained in its bran
layer as this has not been polished off during milling.

b.) Red Rice are known to be rich in iron and zinc, while black and purple rice are especially
high in protein, fat and crude fiber. Red, black and purple rice get their color from
anthocyanin pigments, which are known to have free-radical-scavenging and antioxidant
capacities, as well as other health benefits.

Although grown mainly for its grain which is cooked as food, in response to new consumer
needs, processing of raw rice into new products has been undertaken such as the
development of instant rice, specialty and ready to serve rice. Pigmented red rice and brown
rice is also now being use as ingredients for infant foods like Cerelac of Nestle. The Healing
Galing Products also convert milled black rice into coffee. The Tapuy Rice wine which is a
local wine known from Benguet is also made out of upland rice varieties.

Productions of upland rice were not properly recorded, even international database doesn’t
have available updated secondary data on hand. The Philippine’s Bureau of Agricultural
Statistics (BAS) has no specific or separate data for upland rice. According to BAS officials,

Page 6
data for upland rice is included in the rainfed rice data. In the country, previous
administrations focused mainly on lowland rice production, thus, with minimal government
intervention, majority of upland rice farmers cultivate only a small area for subsistence,
following traditional or conventional practices.

The average volume of production for traditional varieties of upland rice per hectare varies
from 1.3 tons to 2.6 tons, while NSIC and PSB varieties of upland rice per hectare varies from
2.4 tons to 3.0 tons (DA 02 – SCRC station, 2013). This volume can be met when proper care
and maintenance (adopt recommended production technology) for the crop is done by the
upland rice farmers.

Milled rice is the common product form of palay. Once milled, it can be stored without
refrigeration for over one year and consumed directly by the household with no further major
transformation except simple cooking. For these reason, it is generally considered as an “easy”
food.

Farmers sell majority of their produce to Municipal-Traders and/or Trader-Millers either in

dry form or as milled rice. The Municipal-Traders usually sell dried palay to Metro Manila
buyers if they have consolidated huge volume for disposal. Main buyers of the Trader-Millers
for their milled rice are wholesalers and retailers within and outside the region. There are
also Cooperatives and Traders that demand monthly supply of upland rice to as high as 500
MT, but since upland rice can only be produce once a year, the demand is almost always
impossible to be satisfied.

Based on the average cost and return for one hectare upland rice production regardless of the
method of planting used among the provinces, the Return on Investment was calculated at
92.03% when the produce was sold as dried palay and 108% when sold as milled rice. For
palay sold as dry, the average Net Income were computed at PhP20,573.83, PhP16,329.50,
PhP20,870.53, and PhP9,494.45 for the provinces of Cagayan, Isabela, Quirino and Nueva
Vizcaya, respectively. In comparison, farmers who sold their produce as milled rice had a

Page 7
higher the Net Income which were computed at PhP30,371.50 for Cagayan, PhP27,651.24 for
Isabela, PhP22,138.66 for Quirino and PhP11,677.95 for Nueva Vizcaya.

On the other hand, the cost of producing a kilo of dried palay was computed at PhP10.12,
PhP9.86, PhP8.48, PhP12.70 for the provinces of Cagayan, Isabela, Quirino and Nueva Vizcaya,
respectively.

Given the above scenarios, the following specific industry changes are required in order to
boost the competitiveness of the upland rice industry:

- Increased access to registered/certified seeds of pigmented rice

-Improved access and utilization of organic fertilizer and other inputs

-Access to government credit/lending assistance

-Upgrade farmers’ knowledge on the latest upland rice farming technologies

-Encourage LGUs to support the local upland rice industry through crafting policies that could
provide a fair playing field to all stakeholders

-Improve access to appropriate post-harvest and processing facilities/equipment

-Improved horizontal and vertical relationship of industry players

Page 8
 SECTION 1: INTRODUCTION

A. Background Information and Objectives

The advent of the government’s Philippine Rural Development Program (PRDP) influences
the use of Value Chain Approach as a tool to a.) identify priority interventions needed to
strengthen links in the commodity value chain, and therefore, the priority programs needed to
be implemented to enhance the competitiveness and/or productivity of selected
commodities; b.) efficient allocation of government resources by providing funds only to
identified priority interventions and projects; and c.) promote private-public partnership by
presenting opportunities for private sector investment to make agricultural production and
processing a viable business (PRDP I-PLAN Operations Manual).

The Department of Agriculture Regional Field Office 02 (DA RFO 02) management sees the
potential for development of the upland rice which will not only improve the plight of the
industry stakeholders but will also contribute to the attainment of the government’s goal of
food sufficiency. As of 2012, Region 02 has the following production volume and area
planted/harvested to rainfed rice to which upland rice belongs:

Table 1. Production Volume, Area Planted/Harvested of rainfed rice, 2012

Province PRODUCTION VOLUME AREA PLANTED/ HARVESTED
(MT) (HAS.)
TOTAL 197,970.00 74,948.00
Cagayan 103,366.00 40,351.00
Isabela 76,383 27,838.00
Quirino 12,492.00 4,542.00
Nueva Vizcaya 5,729.00 2,217.00
Batanes … …
Source: Philippine Statistics Authority (formerly Bureau of Agricultural Statics, BAS)

With the current practice of focusing interventions on the production sides of the upland rice,
Value Chain Analysis is therefore necessary to be able to determine and focus priority
interventions to other segments of the value chain (input supply, production,
assembly/consolidation, processing and marketing)
Page 9
B. OBJECTIVES OF VCA

The main objective of the study is to conduct an in-depth scrutiny on the value chain of the
upland rice using Value Chain Analysis as the method to determine the values that are created
as they are transform from seeds to final products for consumption.

Specifically, this study aims to:

1. Identify the various key players or stakeholders of the upland rice industry;
2. Prepare the Value Chain Map of the upland rice;
3. Identify constraints and opportunities surrounding the industries as well as support
services, both from the government and the private sector, that are already in place;
4. Formulate upgrading strategies and priority interventions in terms of
programs/projects from the government and the private sector that can contribute to
the development of the industry; and
5. Strengthen public-private partnership by presenting opportunities for private sector
investment in production and processing and other viable value-adding business
ventures of the industry.

C. METHODOLOGY

Selection of Study Areas and Farmer Respondents

Based on the available data, the study areas were identified by the Rice Coordinators of each
Research Stations of the Department of Agriculture – Regional Field Office No. 02 (DA-RFO
02). Data from the on-going Community Seed Bank Program of the DA-RFO 02 and the
available data from BAS were utilized to identify the top three upland rice producing
municipalities for each province involved. In coordination with the Office of the Municipal
Agriculturists (MAs) of the identified municipalities, the top three producing barangays were
identified. At least three farmer respondents were selected for each identified barangay.

Page 10
Table 2. Production Area for Upland Rice
Production Area (ha)
Province Municipality Barangay
as of 2007
Sicalao
497 Lasam Peru
Viga
Naddunganan
Cagayan 275 Gattaran Mabuno
Capissayan
Bicud
182 Lal-lo Magapit
Allaguia
Cadu
841 Ilagan City Salindingan
Sta. Victoria
Minuri
Isabela 388 Jones Villa Belo
Namnama
Babaran
341 Echague San Manuel
San Juan
Labang
81 Ambaguio Poblacion
Tiblac
Buyasyas
Nueva Vizcaya
109 Kayapa Amelong Labang
Kabanglasan
Canabay
31 Dupax del Sur
Karulutan
Source: Bureau of Agricultural Statistics, 2007 (Production Area, ha)
Municipal Agriculturist Offices (MAOs)

Types and Sources of data and Methods of Data Collection

Primary and secondary data were used in the study. Collection of primary data was done
through consultation/dialogue, survey and interview with the respondents. This study used a
pre-tested questionnaire in gathering data from the various stakeholders who are involved in
the value chain segments of the industry. On the other hand, secondary data was collected

Page 11
from pertinent government agencies and the private sector as well as other entities that may
ensure the success of this study.

Purposive sampling and tracing methods were used to identify the various respondents of this
study. For the respondents coming from the producers/growers side, at least three
respondents from the top three producing barangays of the top three producing
municipalities among the four (4) provinces of the region were considered. On the other hand,
respondents coming from the traders sector were identified from the information provided by
the producers/growers.

Tracing Approach

Four Provinces (Cagayan, Isabela, Nueva Vizcaya & Quirino)

Top 3 Producing Municipalities

Top 3 Producing Barangays

Top 3 Upland Rice Producers

Buyers

Page 12
Methods of Analysis

Descriptive and quantitative analysis were utilized in this study. Data collected were analyzed
using averages, frequency counts and percentages which were presented in graphical and
tabular forms.

Figure 1: Cagayan and Nueva Vizcaya

Figure 2: During the conduct of survey (Seed Grower) Figure 3: During the conduct of survey (Cooperative)

Figure 4: During the conduct of survey (Trader) Figure 5: VCA Team during the Consolidation & Discussion of Figure 6: During the conduct of survey (Miller)
Survey Result

Page 13
 SECTION 2: OVERVIEW OF THE INDUSTRY

A. PRODUCT DESCRIPTION

Upland Rice is usually aromatic, grown organically, tall, late maturing, with lesser cultural
practices or management intervention, depends mainly on rain water and it has lesser yield
compared to lowland rice varieties. The term Upland Rice has nothing to do with elevation. It
is usually found in sloping or hilly land without bunds or paddies that is prone to erosion, and
drought problems. Soils are typically dry, generally acidic, fragile and less fertile.

The source of seeds for planting is generally transferred from generation to generation
without the benefit of the technology on seed purification, plant breeding and other advanced
technologies commonly practiced in the lowland production areas. The most common
traditional varieties are Palawan, Pinilisa, Black Rice, Galo, Aringay, and Gobyerno. Modern
upland rice varieties (NSIC Rc192, Rc9 and Rc11) are also planted. Those were the most
planted varieties during the conduct of the study.

Many upland rice farmers plant local varieties that are low yielding but are well adapted to
their environment and produce grains that meet local needs. The population growth and
demand from health conscious buyers triggers the need to improve and enhance the volume
of production, milling quality, packaging and labeling of special/pigmented or upland rice in
order to compete and improve its value on the market.

Nutritional Value

Special or upland rice have the following nutritional values: a.) brown rice retains the bran
layer as this has not been polished off to produce white rice, contains many vitamins
and minerals as well as fiber; and b.) Red rices are known to be rich in iron and zinc, while
black and purple rices are especially high in protein, fat and crude fiber. Red, black and purple
rice get their color from anthoncyanin pigments, which are known to have free-radical-
scavenging and antioxidant capacities, as well as other health benefits.
Page 14
1. Product Forms

Palay. Farmers practice to separate good quality seeds for their next
cropping. It was done by selecting through its physical appearance,
long panicles, round in shape and firmness. Figure 7: SAMPLE UPLAND RICE FORMS

Milled Rice. The common product form of palay. Once milled, it can
be stored without refrigeration for over one year and consumed
directly by the household with no further major transformation
except simple cooking. For these reasons, it is generally considered
Figure 8: GRAINS
an “easy” food.

Processed Rice Products. In response to new consumer needs, processing of raw rice
into new products has been undertaken such as the development of instant rice,
specialty and ready to serve rice. Other processed rice products also include rice flour
and starch, cakes and puddings, baked bread and crackers, breakfast cereals, rice
snacks and noodles, baby/weaning foods, rice milk, fermented foods and beverages,
pet foods and bran products.

Pigmented rice like red and brown rice are now being use as ingredients for infant
foods like cerelac of Nestle. The Healing Galing Products also convert milled black rice
into coffee. The Tapuy Rice wine is local wine known from Benguet.

Figure 9: UPLAND RICE – BASED PROCESSED PRODUCTS

(Tapuy Wine, Rice Coffee and Cerelac)

Page 15
2. Uses of Palay

Stem/Straw/Stalk. This part of palay has many uses. Among

others, rice straws can be used as fuel, livestock bedding
and fodder, thatching and basket-making.
Figure 10: HANDICRAFTS FROM RICE STALK/STRAWS
(Hat, Broom and Basket)

Grains. Rice is grown mainly for its grains. Aside from rice grains cooked as food, there
are other uses of rice-based value-added products as mentioned above.

Rice hull. Rice husk ash is used in the steel industry for producing high-quality flat
steel, a plate product or a hot rolled strip product usually used in automotive body-
panels manufacturing; used in the manufacturing of low-cost building blocks and in the
production of high-quality cement; Silica source, some of the uses of silica are in the
rubber industry as a reinforcing agent, in cosmetics, in toothpastes as a cleansing agent
and in the food industry as an anti-caking agent; used in the manufacture of refractory
bricks because of its insulating properties; used in the manufacture of low-cost,
lightweight insulating boards; and has been found to be effective as an oil spill
absorbent, and for use in waterproofing chemicals, flame retardants, and as a carrier
for pesticides and insecticides.

Figure 11: USES OF RICE HUSK ASH (Silica, Cement, Steel and Bricks)

Page 16
PRODUCTION TRENDS

Global Production

Upland Rice is grown in Asia, Africa and Latin America. About 14 million hectare of land is
dedicated to upland rice, accounting to 4% of global rice production (www.jgsee.kmutt.ac.th).
However, in further research in official data bases like FAOStat or IIRI, area and volume of
production for upland rice were not properly recorded, international database don’t have
available updated secondary data on hand as to top Producing Country for upland rice
(volume and area).

Domestic Production

In the country, previous administrations focused mainly on lowland rice production. Thus,
with minimal government intervention, majority of upland rice farmers cultivate only a small
area for subsistence, following traditional or conventional practices. The Bureau of
Agricultural Statistics has no specific or separate data for upland rice. According to BAS
officials, data for upland rice is included in the rainfed rice data. Meanwhile, they only provide
us the Physical Area in hectare devoted to Upland Rice Production as of April 1, 2007. Table 3
shows the production area planted/harvested for upland rice as of April 1, 2007.

Table 3. Production Area in hectare, 2007

Province 2007
Cagayan 1,864
Isabela 3,455
Quirino 887
Nueva Vizcaya 672
Source: Bureau of Agricultural Statistics

Page 17
 SECTION 3: NATURE AND STRUCTURE OF THE INDUSTRY

A. VALUE CHAIN MAPPING

Figure 12 below is the Value Chain Map for upland rice showing various segments of the
industry: input provision, primary production, transformation, distribution/ marketing and
final sale. There are tasks along each segment, operators that perform the tasks and enablers
that have means to support the operators to keep the chain moves towards final sale. The
Value Chain Map shows how various activities affect the whole chain and what are the
relationships built between linkages.

Input Primary Transformation/

Function Trading Final Sale
Provision Production Processing

-Seeds -Land Preparation -Buying/ -Milling -Buying

-Fertilizers -Crop Consolidation -Quality Control -Wholesale/ Retail
Tasks

-Pesticides Establishment -Delivery/ -Packaging & Sales of Milled

-Crop Transport Labelling Rice
Maintenance - Proper Storage -Selling
-Post Harvest -Delivery/ -Promotion/
Activities Transport Advertising

-Upland Rice -Upland Rice -Cooperative/ -Cooperative/ -Wholesalers

Operators

Farmers Farmers Association Association -Retailers

-Cooperative/ -Palay Traders -Distributors/ -Cooperatives/
Association Sales Agents Associations
-Agricultural -Millers
Input
Suppliers

PCIC NFA/DTI
Enablers

LBP

PhilMech

DA/LGU

Figure 12. Value Chain Map of Upland Rice

Page 18
Upland rice farmers usually set aside portion of their harvest for home consumption and the
rest are sold directly to local traders or millers as dry palay or as milled rice to cooperatives,
local traders or DA LGUs as promotional materials.

Figures 13 and 14 show the movement of upland rice from the hands of the farmers to final
consumption. There are two forms sold by farmer: dry palay and milled rice.

The result of the survey shows a total of 324,025 kgs produced by the farmer-respondents.
Forty five percent (45%) or 145,770 kgs were produced in Isabela, forty percent (40%) or
129,920 kgs in Cagayan, five percent (5%) or 15,200 kgs in Quirino and ten percent (10%) or
33,135 kgs in Nueva Vizcaya.

Specifically, Figure 13 shows the marketing channel of dry palay in the region. Farmer-
respondents sold their excess production majority to Municipal Traders (44,465 kgs).
Meanwhile, Cooperatives and DA-LGUs bought a total of 15,800 kgs which were given back to
the farmers as good quality seeds for the next cropping season. On the other hand, Trader-
Millers directly bought a total of 13,525 kgs from the farmers, transformed and distributed it
as milled rice to wholesalers and retailers for commercial sale to individual consumers. There
were also individual consumers who bought directly to farmers which they either use as
seeds or milled for home consumption.
2%
Cooperative 2%

21%*
19% MLGU 19%

100%
68% Wholesaler
58% Municipal Trader
Farmer 62%
58%
76%
8% Retailer
18% Trader-Miller 76%

70%
6%
3% Consumer 21%*

*for planting material

Figure 13. Marketing Channel of Dry Palay in Region 02

Page 19
On the other hand, there were number of farmer-respondents who sold their produce as
milled rice (Figure 14). This system is commonly practice in the municipalities of Jones and
Echague, in Isabela and Lasam and Gattaran, in Cagayan. In Quirino, large portion of farmer-
respondents’ produce were sold directly to consumers as milled rice. Cooperatives and DA-
LGUs also bought milled rice which was intended for promotional activities during trade fairs
and exhibits as part of their product displays.

52% Municipal Trader 52%

11% Cooperative 11%

Consumer
Farmer 100%

20%
DA-LGU 20%

17%

Figure 14. Marketing Channel of Milled Rice in Region 02

Table 4 shows the disposal of upland rice produce in year 2013. It shows that big portion of
the rice produce was set aside for home consumption, followed by dry sold and milled sold.

Table 4. Disposal of Upland Rice Produce, 2013

SUPPLY UTILIZATION Volume (kg)
Total Production 324,025.00
Perceived Loss (5%) 16,201.25
Good Seeds 10,627.00
Home Consumption 173,088.50
Given Away 4,489.50
Dry Sold 76,500.00
Milled Sold 21,982.50

Page 20
Figure 15 shows the geographical flow of upland rice from the various provinces of Cagayan
Valley. Based on the primary data, only a minimal volume of 1,909 kgs were being exported
outside the region. This is due to the fact that farmers generally produce palay for home
consumption which is a majority practice of upland rice farmers in the region. It was noted
during the survey that buyers require a large volume of rice from farmers’ produce due to
high demand of consumers especially in Metro Manila.

Figure 15. Geographical Flow of Upland Rice, Cagayan Valley

B. KEY PLAYERS DESCRIPTION AND FUNCTIONS

1. Input suppliers. They provide the farm supplies needed by farmers. These are
commercial establishments who sell farm inputs such as fertilizers (organic/inorganic)
and farm chemicals (pesticides, herbicides, fungicides either in powder or liquid forms).
Cooperatives are other option of farmers in procuring their farm supply needs, be it on
cash or credit basis.

Page 21
 The government has also programs supporting the upland rice farmers when it comes to
seeds and technology. Through the Department of Agriculture, farmers can now avail of
improved and good quality seeds as planting materials. The DA RFO 02 Research Stations
like the Southern Cagayan Research Center (SCRC) in Iguig, Cagayan, the Northern
Cagayan Experiment Station (NCES) in Abulug, Cagayan, the Cagayan Valley Research
Center (CVRC) in Ilagan City, Isabela, the Quirino Experiment Stations (QES) in Aglipay,
Quirino and the Nueva Vizcaya Experiment Station in Bagabag, Nueva Vizcaya, are among
the pilot stations who conduct seed production and characterization of upland rice
varieties.

2. Primary Production

Farmers. They do the actual production of rice from land preparation, crop
establishment, crop maintenance and other post-harvest activities. Upland rice farmers
usually have a practice of producing their own seeds needed for the next cropping season.

FARMER-RESPONDENTS’ PROFILE

There were 133 farmer-respondents interviewed. Thirty nine point eighty five percent
(39.85%) were from Isabela, thirty five point thirty three percent (35.33%) were from
Cagayan, twenty one point eighty percent (21.80%) were from Nueva Vizcaya and three point
zero one percent (3.01%) were from the province Quirino.

Table 5. Farmer-Respondents (per province covered)

Province No. of Respondents % Share
Cagayan 47 35.34%
Isabela 53 39.85%
Quirino 4 3.01%
Nueva Vizcaya 29 21.80%
Total 133 100%

Majority or seventy nine percent (79%) of the farmer-respondents are male, and twenty one
percent (21%) are female. Of the total farmer-respondents, fourteen percent (14%) were 25-

Page 22
34 years of age (young ones) and three (3%) were 65 years old and above (old ones). Around
23% of the total farmer-respondents are elementary graduates, while 14% finished their
Bachelor’s Degree Courses. Farming is the primary source of income of 83% of the farmer-
respondents, while 17% have other source of income such as sari-sari stores or as
government or private employees. Meanwhile, seven percent (7%) of the farmer-respondents
started planting upland rice in 1970’s, twelve percent (12%) started in 1980’s, fifteen percent
(15%) in 1990’s and fifty three percent (53%), which is the majority, started in 2000’s. In
terms of household size, fifty seven (57%) accounts for families with four to six members,
twenty four percent (24%) have one to three family members and nineteen percent (19%)
have seven and above members of their families.

Table 6. Profile of Farmer-Respondents

Information No. of Farmer Percent
Gender
Male 105 79%
Female 28 21%
Age
25-34 19 14%
35-44 39 29%
45-54 47 35%
55-64 24 18%
65 and above 4 3%
Educational Education
Elementary Level 20 15%
Elementary Graduate 30 23%
High School Level 21 16%
High School Graduate 27 20%
College Level 16 12%
College Graduate 18 14%
Source of Income
Farming 111 83%
Farming & others 20 17%
Year started planting upland rice
1960’s 1 1%
1970’s 9 7%
1980’s 16 12%
1990’s 20 15%
2000’s 71 53%
No indicated 16 12%
Page 23
Household size
1-3 32 24%
4-6 76 57%
7 and above 25 19%

FARM PROFILE

With regards to the tenurial status of farmer-respondents, seventy four percent (74%) owned
the land they cultivate, while five percent (5%) and six percent (6%) are leaseholders and
tenants, respectively. The remaining percent (8%) were landowner/leaseholder and (7%)
ancestral domain areas. Majority or forty four percent (44%) of the farmer respondents
cultivate a total land area ranging from 1ha to 3ha, while eighty two percent (82%) of the
respondents devoted only 1ha and below for upland rice. In terms of topography of areas
devoted to upland rice, thirty nine percent (39%) are sloping areas, twenty seven percent
(27%) are plain, twenty percent (20%) are hilly and the remaining percent are either sloping,
plain or hilly areas.

Table 7. Farm Profile of Farmer-Respondents

Farm Profile No. of Farmer Percent
Tenurial Status
Landowner 98 74%
Leaseholder 7 5%
Tenant 8 6%
Landowner and Leaseholder 10 8%
Ancestral Domain 10 8%
Total farm area
1ha and below 26 20%
1.1ha to 3ha 58 44%
3.1ha to 6ha 29 22%
6.1ha to 9ha 9 7%
9.1ha and above 11 8%
Farm area devoted to upland rice
1ha and below 109 82%
1.1ha to 2ha 11 8%
2.1ha to 3ha 9 7%
3.1ha to 4ha 1 1%
4.1ha to 5ha 2 2%
5.1ha and above 1 1%
Topography
Plain 36 27%

Page 24
 Sloping 52 39%
Hilly 27 20%
Plain and Hilly 5 4%
Plain and Sloping 6 5%
Plain, sloping and hilly 7 5%

FARM PRACTICES

Land Preparation

Upland rice cropping intensity is only once a year due to longer maturity period compared to
lowland rice varieties. “Slash and burn” is the common practice of farmers in the
establishment of upland rice production areas. This starts during the onset of rainy season
before the month of May.

Crop Establishment

Planting starts after experiencing two consecutive rains. There are four planting methods
practice, namely: dibble, drill, hill to hill and broadcasting methods.

Dibble Method is an old method of planting practiced by subsistence farmers in hilly/up lands.
Farmers use a dibbler (a pointed, spear-like stem) held by one hand, strikes the ground to
make holes about 2 inches (5 cm) deep and 1-2 steps apart. As the pointed tip of the dibbler is
lifted, someone else immediately drops 6-10 seeds of palay into the hole. The hole is not
refilled with soil, that part is done naturally by the cascading downward movement of surface
soil and fragments of rock.

In Cagayan, 26% of famers use the dibble method, 3% in Isabela, 22% in Nueva Vizcaya and
2% in Quirino. Cagayan and Nueva Vizcaya preferred this planting method due to the
topography of area they planted; sloping or hilly or the combination of two. With these

Page 25
methods of planting, farmer respondents spend highest on labor which includes land
preparation, weeding, harvesting and threshing.

Drill method is done by releasing seeds continuously and is usually done by hand. The seeds
are drilled at the bottom of the furrow, covered with soil by raking or by foot, and stepped on
to press the soil.
Among the provinces covered in this study, farmer-respondents in Isabela mostly preferred
this kind of method of planting (15%) followed by Cagayan with 6%.

Hill to hill method has a desired row-to-row spacing. In contrast, there is no uniform spacing
between plants in the row of drill method, but uniformity in number of plants per linear
meter is intended.

Seventeen percent (17%) of the farmer-respondents from Isabela preferred this planting
method while 6% and 3% prefer this method in the provinces of Cagayan and Quirino,
respectively.

Broadcasting method consumes too much labor when it comes to land preparation. The area
to be planted must first be cleared. After clearing of weeds, harrowing and furrowing follow.
Volume of seeds is held by hand and thrown with a wide swath. Skill is important to ensure
even distribution of seeds. After which, a tooth harrow or rake is pass to cover the seeds. The
soil covering will hide the seeds from seed-harvesting organisms like chicken, rats and birds.
It will also ensure that the seeds have full contact with the soil which will maximize
germination and improve the chance of the seedlings to fully develop.

The Dibble and Hill to hill methods of planting have more advantages compared to drill and
broadcasting methods. In these methods of planting, seeding in rows made weeding and
application of farm inputs easy. Also these methods also promote good stand and higher yield.

Page 26
Crop Maintenance

Upland rice requires lesser application of fertilizers and pesticides. Crops depend on nutrients
that are available and dissolved in soil moisture needed for its growth and development.
However, weed management requires major labor activity. Upland fields most always have
more weeds, which compete for nutrients and light than lowland fields. Flooding has been
recognized as an effective weed control method for many years 1. Weeding is done 2-3 times
during the production cycle. The common insect pests are rodents, birds and rice bugs.
Traditional pest management practices of farmers are installation of buntings or scarecrows,
rat’s baitings, creating striking sounds that prevent the attack of birds. Farmers are dependent
on rainfall as source of water supply for their crop.

Harvesting

Manual harvesting is done after four to five months, when eighty percent (80%) of the whole
panicle are already golden yellow in color. Tools used for harvesting were scythe and rakem.
Rakem are fabricated by the farmers for single panicle harvesting while the scythe were
locally available in the market for hill to hill harvesting. Harvested panicles were tied up into
bundles for indoor drying and delayed threshing. Harvested grains using scythe were
manually or mechanically thresh right after harvest. In Nueva Vizcaya and in some part of
Cagayan, majority of farmer-respondents manually thresh their palay.

Farmers harvest first the good seeds for next cropping season. This practice gives leeway to
the farmers to choose quality seeds. Harvesting in Nueva Vizcaya and in some part of Cagayan
usually last for 1 day through Innammuyo system or 5 days through family labor. Innammuyo
system is a traditional practice in far flung rural areas that consist of more or less 20 persons
who work for free in return to the rendered labor. Other respondent municipalities hired
laborers during harvest.

Page 27
Postharvest

Drying of newly harvested palay is usually done two to three days at normal weather
condition to attain the desired moisture content. Majority of the farmer respondents (33%)
used drying pavement for drying. Others are using canvass, wager or road side during sunny
days if there’s no available space on the drying pavement. When grains are already dried,
farmer respondents segregate certain amount for home consumption, given away as gifts and
for sale. Seeds for the next cropping are either place on a tin can, sacks or hanged with
panicles on one corner of the farmers’ house.

3. Trading

Municipal Traders usually have many outlets within or outside the region. They demand bulk
volume of upland rice in dry palay form from the farmers. Pricing scheme depends on the
quality of the palay and is usually based on the price of lowland rice.

4. Transformation/Processing

Milling

Milling is done either in manually or mechanically. Every respondent municipality has

different method in milling grains.

In Lasam, Cagayan, there are walay na kiskisan that roams around the municipality and the
terms of payment depend on the distance travelled by the walay na kiskisan. Far flung areas
usually pay 7.5 kgs of milled rice for every 2 cavans of palay or 60 kgs of milled rice. In
Gattaran, Cagayan, majority of households mill their palay manually using the mortal and
vessel and only thirty percent (30%) of the total number of respondents milled their palay
through the registered milling facilities. Meanwhile, household consumers in Sta. Teresita and
Lal-lo, Cagayan brought their palay to established milling facilities.

Page 28
In Isabela, all farmer-respondents milled their palay through mechanical method. There are
two terms of payment being observed, one is cash basis which costs about PhP2.00 per kilo of
milled rice, while the other one is in kind, that is, for every 45 kilograms of milled rice, 4
kilograms goes to miller.

In Nueva Vizcaya, due to the distance of millers, farmer-respondents practiced to mill their
palay manually. Seven percent (7%) of the farmer-respondents still practiced the traditional
method of drying their palay prior to milling. Bittek or bundles of palay with panicle are hang
on the ceiling of their houses or above their kugon(traditional kitchen stove) to attained the
moisture content for milling. They only mill their palay if they need a rice to be cook using
mortal and vessel. Usually, a kilo of rice can be milled (bayo) for one hour and the rice hulls
removed were used to induce fire for cooking. Meanwhile, Rice Millers collect fees ranging
from PhP2.00-3.00 per kilo of milled rice.

Trader-Millers buy the farmers produce. They prefer to buy dried palay with good quality
like size, color and shape for milling purposes (quality usually goes with the variety of rice).
Trader-Millers either own stalls or have contacts with wholesalers/retailers within or outside
their municipality as outlet.

5. Final Sale

Marketing

Marketing of upland rice is not as easy as selling lowland commercial rice varieties. There is
still a need to capacitate farmers in dealing and linking with the market. There still a need to
create awareness on the part of consumers regarding the benefits that can be derived from
eating less chemical or naturally grown rice. There still a need to improve facilities and
equipment needed to produce high quality milled upland or special rice.

Page 29
In Isabela, all farmer-respondents availed the services of established Rice Millers. There are
two terms of payment being observed:

1. Cash basis where farmers pay PhP2.00 for every kg of milled rice; and
2. In kind where farmers pay 4 kgs of rice per 45 kgs of milled rice.

There are two forms sold by farmer-respondents to buyers, either fresh/dry palay or as
milled rice. Majority of farmer respondents sold their produced as fresh/dry palay due to the
fact that most of the available buyers within the area are municipal traders. However, traders’
price for upland rice is usually the same as their buying price for lowland varieties.
Sometimes, price for upland rice also vary depending on the quality of palay.

On the other hand, farmer-respondents who sold their produced as milled rice can demand
for higher price ranging from PhP40.00-60.00 per kg. However, they usually have limited
market because majority of buyers of milled rice are individual consumers who can only
absorb an average of about 1 cavan per purchase. Of the total number of respondents, 51%
have an extra production for commercial sale while 49% of the farmer-respondents produce
just enough for home consumption.

Wholesalers and Retailers buy milled rice to Trader-Millers and sometimes upland rice
farmers who sell their produce as milled rice. Pricing scheme depends on the quality of the
rice which is usually based on shape, color and variety.

C. NATURE OF INTERFIRM RELATIONSHIPS

Inter-firm relationship describes the pattern of interaction among key players along the value
chain segments. Vertical and horizontal linkages determine the kind of relationship between
key players in order to address the market demand.

Page 30
Horizontal Linkages

Farmer to farmer shares information to each other when it comes to production technology.
This can be observed as a majority practice in Isabela and Cagayan. There are respondent
municipalities that have Farmer Led-Extensionist (FLE) or Local Farmer Technicians (LFT)
who share improved production technologies to their co-farmers. These FLEs/LFTs were
trained by the Department of Agriculture in partnership with the Local Government Units.
However, despite of the effort of LGUs/DA on the dissemination of improved production
technologies, there are still farmers who follow traditional practices (no proper land
preparation, no application of fertilizers and chemicals) due to farmers’ insufficient capital to
practice the recommended production technologies.

Buyer to buyer relationships were only limited to sharing of price information. Buyers’ buying
prices are set depending on the quality of the palay. There’s no uniform preference among
buyers, but the commonly followed quality standards in setting price are shape, size and
color. Buyers, like the municipal traders, have contacts of different types of buyers in nearby
municipalities or in other province or even outside the region who serves as their outlets once
they have procured large volume of palay.

Vertical Linkages

Input Suppliers-Farmers link is usually concentrated on a seller - buyer relationship. Farmers

buy inputs such as fertilizers or chemicals to agricultural suppliers based on his farm needs
and apply it using his experiences or just by the influence of his co-farmers.

Farmers-Traders. Farmers sold their produce individually. Buyers usually have a standard in
buying the farmers’ produce: class A (highest price), class B (average price), and class C
(lowest price). These three types of standard of buyers refer to size, shape, color and
sometimes varietal preference. Due to lack of huge supply coming from the farmers, buyers
don’t pay too much attention on buying upland rice varieties. On the other hand, farmers lack

Page 31
the bargaining power to negotiate better price due to the small volume being sold as well as
the quality and variety of rice they produced. However, such is not the case in Jones, Isabela
where farmers can demand a better price for their produce due to an existing LGU ordinance
setting a minimum buying price per kilo of farmers’ produce.

In Jones, Isabela and in Quirino Province, most of their buyers were individuals who demand
milled rice. It can be noted that there were already informal marketing agreements between
farmers and buyers before harvest. Buyers will request farmers to set aside specific volume
for them to buy, and in this way, farmers can demand a better price for their produce.

D. PRICE AND COST STRUCTURE

1. Income and Profits

Farmers were classified according to their method of planting. As can be seen in the following
tables, farmers who use dibble method were noted to have the least cost of production due to
lesser cost of labor for land preparation and minimal use of fertilizers and chemicals.

This is in contrast to farmers who practiced the drill method and hill to hill method where
they have to follow the rigorous activities of land preparation such as plowing, harrowing and
furrowing.

Based on the average cost and return for one hectare upland rice production regardless of the
method of planting used among the provinces, the Return on Investment was calculated at
92.03% when the produce was sold as dried palay and 108% when sold as milled rice. For
palay sold as dry, the average Net Income were computed at PhP20,573.83, PhP16,329.50,
PhP20,870.53, and PhP9,494.45 for the provinces of Cagayan, Isabela, Quirino and Nueva
Vizcaya, respectively. In comparison, farmers who sold their produce as milled rice had a
higher Net Income which were computed at PhP30,371.50 for Cagayan, PhP27,651.24 for
Isabela, PhP22,138.66 for Quirino and PhP11,677.95 for Nueva Vizcaya.

Page 32
On the other hand, the cost of producing a kilo of dried palay was computed at PhP10.12,
PhP9.86, PhP8.48, PhP12.70 for the provinces of Cagayan, Isabela, Quirino and Nueva Vizcaya,
respectively.

CAGAYAN

On the average, farmers who practiced the hill to hill method of planting had the highest net
income per hectare amounting to PhP27,774.87, followed by the drill method PhP19,455.21
and the dibble method PhP14,490.97. Though this maybe the case, farmers who practiced the
dibble method still showed the highest Return on Investment (ROI), 89.09%, compared to
those who practiced the hill to hill and the drill methods with only 82.33% and 79.47%,
respectively. This was due to the fact that those who practiced the dibble method incurred the
least cost of production per kg, PhP9.78, compared to the PhP10.15 per kg and PhP10.31 per
kg spent by those who practiced the hill to hill and drill methods, respectively. The major cost
items observed were those spent on labor and inputs.

Table 8. Average Cost & Return Analysis for 1 hectare Upland Rice Production in
Cagayan,2013.
Planting Methods
PARAMETERS
DIBBLE DRILL HILL TO HILL
AVERAGE YIELD/ha (kg), dry 1,662.50 2,375.00 3,325.00
Price per Kilo 18.50 18.50 18.50
SALES 30,756.25 43,937.50 61,512.50
Less: Cost of Production
Labor 13,265.00 18,477.50 21,890.00
Inputs 1,882.50 4,660.00 9,745.63
Depreciation (tools & equipment) 392.78 379.29 249.05
Market Expenses 365.00 515.00 715.00
Transport Cost 360.00 450.50 1,137.50
Total Cost of Production 16,265.28 24,482.29 33,737.63
NET INCOME 14,490.97 19,455.21 27,774.87
ROI 89.09% 79.47% 82.33%
BEP 9.78 10.31 10.15

Page 33
ISABELA

Table 8 shows the average Cost and Return Analysis for one hectare Upland Rice Production
in the province of Isabela. Among the planting methods practiced, farmer-respondents who
use the Drill Method had realized the highest net income amounting to PhP26,184.92 followed
by those who practiced the Hill to Hill Method and the Dibble Method amounting to
PhP14,062.04 and PhP8,741.75, respectively

In terms of yield, farmers who employed the Drill Method also produced the highest yield of
2,992.50 kg per hectare. This could be attributed to the greater amount of fertilizers used as
indicated by the high expense for inputs used. The Hill to Hill and Dibble Methods produced
an average yield per hectare of 2,137.50 kg and 1,282.50 kg, respectively.

Table 9.Average Cost & Return Analysis for 1 hectare Upland Rice Production in Isabela, 2013

Planting Methods
PARAMETERS
DIBBLE DRILL HILL TO HILL

AVERAGE YIELD/ha (kg) , dry 1,282.50 2,992.50 2,137.50

Price per kilo 17.50 17.50 17.50

SALES 22,443.75 52,368.75 37,406.25

Less: Cost of Production
Labor 9,047.50 17,290.00 15,460.00
Inputs 3,360.00 6,250.00 5,662.50
Depreciation (tools & equipment) 250.00 233.33 494.21
Market Expenses 275.00 615.00 445.00
Transport Cost 769.50 1,795.50 1,282.50
Total Cost of Production 13,702.00 26,183.83 23,344.21

NET INCOME 8,741.75 26,184.92 14,062.04

ROI 63.80% 100.00% 60.24%

BEP 10.68 8.75 10.92

Page 34
QUIRINO

Quirino has the highest return of investment among all provinces, be it dibble method or hill
to hill method of planting. It was noted that Quirino have the least average cost of production
for dibble method (PhP8, 871.32/ha) and hill to hill method (PhP17,312.62/ha). This was
contributed by the cheaper cost of labor and few numbers of hired laborers required in the
farming activities. Drill method of planting is not practiced in the province.

The table below (Table 9) shows that the average cost to produce a kilo of dry palay using the
dibble method is PhP9.34, while a farmer can incur an average cost of PhP8.10 per kilo using
the Hill to Hill Method. Still, labor and inputs are the major cost elements in upland rice
production in the province of Quirino.

Table 10.Average Cost & Return Analysis for 1 hectare Upland Rice Production in Quirino,
2013

Planting Methods
PARAMETERS
DIBBLE HILL TO HILL
AVERAGE YIELD PER HECTARE (kg) 950.00 2,137.50
Price per kilo 22.00 22.00

SALES 20,900.00 47,025.00

Less: Cost of Production
Labor 4,750.00 8,850.00
Inputs 3,020.00 6,300.00
Depreciation (tools & equipment) 326.32 435.12
Market Expenses 205.00 445.00
Transport Cost 570.00 1,282.50
Total Cost of Production 8,871.32 17,312.62

NET INCOME 12,028.68 29,712.38

ROI 135.59% 171.62%
BEP 9.34 8.10

Page 35
NUEVA VIZCAYA

In Nueva Vizcaya, the dibble method was the only planting method practiced by upland rice
farmers due to the topography of the farm they cultivate. The highest cost incurred was labor
due to the farm activities done manually which are basically labor intensive. Upland rice
farmers in the province are used to opening new areas for every cropping season, hence,
massive labor is needed in clearing the new production area. Formerly used areas are usually
left untilled for one to two years to let the soil rejuvenate and be ready for the next round of
farming operations.

The province of Nueva Vizcaya has the highest cost of production per kg of palay amounting
to Php13.36. This was due to the fact that they incurred the highest cost of labor as discussed
above. As production areas are mostly newly open, farmers do not usually apply fertilizers
making their average yield per hectare at only 1,235 kg. Consequently, net income is only
computed at Php8,194.45 per hectare. On the other hand, cost of producing palay is at
PhP13.36 per kilo.

Table 11.Average Cost & Return for 1 hectare Upland Rice production in Nueva Vizcaya, 2013

Method of Planting
PARAMETERS
DIBBLE
AVERAGE YIELD/ha (kg) , dry 1,235
Price per kilo 20.00

SALES 24,700.00

Less: Cost of Production

Labor 13,605.00
Inputs 1,500.00
Depreciation (tools & equipment) 394.55
Market Expenses 265.00
Transport Cost 741.00
Total Cost of Production 16,505.55

NET INCOME 8,194.45

ROI 49.65%
BEP 13.36

Page 36
Relative Financial Position of Players
Table 12 shows the relative financial position of various players along the upland rice value
chain. On the average, farmers incurred about PhP10.15 per kilo of palay accounting for
72.14% of the total added cost from farming to wholesaling/retailing. Traders and Millers
jointly account for 14.50% of the production and distribution costs. Wholesaling and Retailing
expenses account for the remaining 13.36%.

On the other hand, retailers got the biggest share of profit amounting to PhP23.56 per kilo or
a percentage share of 46.26% followed by wholesalers 18.77%. Farmers got a percentage
share of 18.36% while traders and millers got 4.52% and 12.10%, respectively.

It can be observed that the share of profit among the VC players is not proportionate to their
share on production cost, especially on the side of the farmers. Reducing the cost of labor
through the use of various production facilities could be employed to address this issue.

Table 12. Relative Financial Position of Value Chain (VC) Players

Costs Profit Margins
Player Product Total Added % Added Unit Unit Unit % to
% Profit
Unit Cost Unit Cost Unit Cost Price Profit Margin Price
Farming Dried Palay 10.15 10.15 72.14% 19.50 9.35 18.36% 19.50 30.00%
Trading Dried Palay 20.20 0.70 4.98% 22.50 2.30 4.52% 3.00 4.62%
Milling Milled Rice 23.84 1.34 9.52% 30.00 6.16 12.10% 7.50 11.54%
Wholesaling Milled Rice 30.44 0.44 3.13% 40.00 9.56 18.77% 10.00 15.38%
Retailing Milled Rice 41.44 1.44 10.23% 65.00 23.56 46.26% 25.00 38.46%
Total 12.63 100.00% 50.93 100.00% 40.00 100.00%

Assumptions:
- 50 kg of wet palay has 5% perceived loss due to drying
- 50 kg of dried palay has 60% milling recovery

Page 37
 Relative Financial Position of VC Players

Figure 16 shows the percentage added cost

incurred by the VC players on producing a kilo of
milled rice. Farming incurred the highest cost,
which is 72.14%. It followed by Retailing which
10.23%, Milling which 9.52%, then Trading 4.98%
and Wholesaling 3.13%.
Figure 16. % Added Cost

Figure 17 shows the profit per kilo of milled rice.

Farming being the highest cost incurred in
producing per kilo, only shares 18.36% of the
profit. Meanwhile taking a look for Retailing share
profit, it was noted to be the highest (46.26%).
Wholesaling, Milling and Trading have 18.77%,
12.10% and 4.52%, respectively.

It can be observed that the share of profit among

the VC players is not proportionate to their share
on production cost, especially on the side of the
farmers. Reducing the cost of labor through the
use of various production facilities could be Figure 17. % Profit
employed to address this issue.

Figure 18. % Price

Page 38
 SECTION 4: MARKETS AND MARKET OPPORTUNITIES

GLOBAL MARKET

As discussed earlier, there is no separate secondary data for upland rice as to production and
market. This was one of the hindrances on discussing the market side of the commodity.
However, there was news on the marketability of pigmented rice, due to the global promotion
of eating such kind of rice.

It was reported that in year 2013, the Philippines pigmented rice penetrated the international
market. This proves that our pigmented rice is competitive in the global market. Figure 19
shows the three major exporters of pigmented rice in 2013. The companies mentioned below
have product quality control, competitive packaging and labeling and had been supported by
the government institutions to address the market demands and preferences of importing
countries. However, access to detailed information like packaging requirements, volume and
value is limited. Neither of the companies below were interviewed by the VCA team, as such,
the only source of data was given by the National Food and Authority (NFA).

Brown Rice – 2,200 kgs

DON BOSCO MPC Red Rice (Unpolished) – 1,400 kgs Hong Kong
Black Rice (Unpolished) – 2,200 kgs

ALTER TRADE
Black and Red Rice – 300 kgs Netherlands
CORPORATION

Singapore
TARDO PILIPINAS Organic Colored Rice – 1,500 kgs
Black and Red Rice – 1,250 kgs Georgia

Figure 19. Pigmented Rice Export Destination, 2013

Source: National Food Authority

Page 39
DOMESTIC MARKET

Through farmers, we traced and identified their buyers, volume demanded, characteristics
required and buying prices (see Annex D.). We interviewed the traders who have a monthly
demand as high as 200MT of dry palay and cooperatives whose monthly demand can reach up
to 500MT of milled rice. These high demands of traders can’t be met or supplied by upland
rice farmers due to reasons that farmers can only plant upland rice or pigmented rice once a
year, plant only a small portion of their farm and have low production yield. There are also
retailers that demand 10 to 20 cavans of milled rice monthly, majority of their buyers were
from Manila and other cities. It was also noted that farmers can only deliver milled rice during
the month of October to December which is the peak harvesting season of upland rice.

Table 13. Supply and Demand Gap in Cagayan Valley

Form of Rice Supply/Year Demand/Month
Dry Palay 76,500.00 kg 800,000.00 kg
Milled Rice 21,982.50 kg 88,750.00 kg
Source: Primary Data, 2013

It was observed based on the primary data that most of buyers of traders/retailers were from
urban areas like Metro Manila, and based from their sharing of experience on
trading/retailing there are growing numbers of people who are buying pigmented rice.
Majority of them include health conscious consumers, diabetic or ill people and foreigners.
Pigmented rice are popular to rich people because they understand the importance of eating
such rice and are capable enough to buy even if it has high market price compared to
commercial rice.

Page 40
Table 14. Comparison of Wholesale/Retail Price of Commercial Rice and Upland Rice
Rice Classification Wholesale/Retail per kg
Commercial Well Milled Rice 32.56 - 35.48
Commercial Regular Milled Rice 29.96 – 31.97
Upland Milled Rice 40.00 – 65.00
Source: Primary Data, 2013(Price, Farmer to Trader/Retailer for Upland Milled Rice, 2013)
Philippine Statistics Authority (Price, Wholesaler/Retailer for Commercial Rice, 2013)

Regionwide awareness on the benefits of consuming upland or pigmented rice is being done
by various government agencies. It can be observed from the primary data that consumers in
the region are usually government employees and professionals. Of course, farmers also
consume big portion of their produce because according to them, they know how the rice was
produce, and more importantly, lesser amount of inorganic fertilizers and chemicals were
used.

Page 41
 SECTION 5: SUPPORT SERVICES

A. FINANCIAL SERVICES

Based on the survey conducted, it was observed that most of the farmers rely on their own
capital in financing their farming activities. In some instances, other farmers borrow money
from informal lenders such as relatives, neighbors and co-farmers or traders which they use
not in upland rice production but mostly for their household expenses or to defray expenses
for other crops they cultivate.

Farmers opt to borrow money from informal lenders due to the following:
1. Need immediate cash to support their daily needs,
2. Collateral free and don’t need much paper works; and
3. Loans from lenders like relatives or co-farmers, has no interest or has low interest rate
ranging from 1-2% usually paid after harvest.

On the other hand, majority of traders use their own capital in financing their trading
activities. They do not just usually concentrate in buying pigmented rice, big portion of their
transactions were made in procuring corn and lowland rice. Retailers also use their own
capital in running their business, and since pigmented rice is only available during harvest
season which fall from October to January, they usually sell commercial rice, feeds, and other
agricultural supplies for the rest of the year.

Page 42
Table 15 shows the various types of loans from the Land Bank of the Philippines.
List of services provided by various Financing Institutions
Organization Services
Land Bank of the Philippines - Agricultural Credit Support Project (ACSP)
Provides credit and non-credit to small farmers and
fisherfolk groups, Cooperatives, SMEs, Large
Agribusiness Enterprises, participating financial
institutions in support to agriculture and agri-related
projects that may need additional capital to increase
production or expand operations.

- DA- Sikat Saka Program (DA-SSP)

Program for Individual Small Farmers & Fisheries &
Agrarian Reform Beneficiaries.
Terms: Bullet Repayment on principal interest
Interest Rates: Special Rate

B. NON-FINANCIAL SERVICES

There are several initiatives on non-financial services both from national and local
governments identified in support to the upland rice industry in the provinces covered. These
services include input provision, technical assistance through trainings and seminars,
provision of postharvest facilities, and marketing support and promotion.

Page 43
Table 16. List of Non-Financial Services Provided by the Government and Non-Government
Agencies

Organization Services
Department of Agriculture
(DA) Agencies and Offices

 DA-Rice Program Production Support

- Seed production of varieties for climate change

adaptation/mitigation; including varieties that are
submerge-tolerant, drought-tolerant/early maturing,
saline-tolerant, & cool-elevated

- Upland rice production development

- Establishment of Community Seed Banks; including
rehabilitation & establishment, distribution of simple seed
processing equipment; & locally adopted starter seeds

Other Infrastructure & Postharvest Development Services

- Distribution of postharvest equipment & machinery, such
as net/laminated sacks, construction & rehabilitation of
flatbed dryers, mechanical dryers, bag closers/baggers,
threshers, combine harvesters, rice cutter/harvesters,
shedders, moisture meters

- Construction & rehabilitation of palay sheds &

warehouses, & multi-purpose drying pavements

- Validation of farm-to-market roads (FMRs)

Extension Support, Education & Training Services

- Technology commercialization for rationed rice, upland,
submergence, & saline rice varieties

Page 44
 - Technology updating & re-tooling of Agricultural
Extension Workers (AEWs) & farmer technicians by
conducting specialized trainings

 DA & International Rice - Raising productivity & enriching the legacy of heirloom
Research Institute rice through empowered communities in unfavorable rice-
(IRRI) based ecosystems

- Offered high yielding varieties suited to upland production

- Have harmonized w/ PhilRice training materials to
upgrade the Pinoy Rice Knowledge Bank (PRKB), a rich
source of online information for farmers & farmer-
intermediaries to improve their crop management
practices

 Agribusiness & - Market development support through conduct of trade

Marketing Assistance fairs & exhibits in local & international markets to
Service and
Agribusiness & promote the pigmented rice.
Marketing Assistance
Division (AMAS-AMAD) - Conduct of market matching

Department of Trade & - Product development through packaging & labeling, shelf-
Industry (DTI) life improvement & nutritional analysis

- Market promotion & market matching through trade fairs

& exhibits both in local & national markets

- Brand development

Philippine Center for Post- - Support programs for postharvest research &
Harvest & Mechanization development
(PhilMech)
- Conduct postharvest training

Agricultural Training - Conduct training on upland rice technologies

Institute (ATI)

Page 45
PLGU-Isabela - Upland Rice cum Community Based Seed Banking
A “Seed Exchange Scheme” project whereby modern &
preferred traditional varieties are distributed to ensure
availability of upland rice seeds

MLGUs - In partnership with DA and ATI they select and trained

farmers who have the capacity and capability to be a
Farmer Led Extensionist (FLE)/Local Farmer Technician
(LFT). The trained FLE/LFT will be partnered to the
Agricultural Technicians of the Municipal Local
Government Units.

- Disseminate production technology through trainings and

seminars.

- In Jones, Isabela, there is an existing Municipal Ordinance

for the yearly celebration of “Pinilisa Festival” every 17th
day of March.

Page 46
 SECTION 6: BUSINESS ENABLING ENVIRONMENT

A. FORMAL RULES, REGULATIONS AND POLICIES

The process of agricultural policy making involves assistance of the government through
government budgets for research and development. The following policies were culled out
from the Food Security versus Rice Self-Sufficiency: Policy Lessons from the Philippines that
are most relevant in this study (Source: http://www.dlsu.edu.ph/).

Seed Policy. Total removal of seed subsidy on seeds. Seed subsidies will be through
Community Seed Banks.

Fertilizer Policy. Improvement of organic fertilizer production and implementation of fertilizer

support and production program.

Credit Policy. Provision and intervention of government on agricultural credit loans and crop
insurance.

Trade Policy. Further reduction of tariffs on sugar and other agricultural inputs and further
regulation on rice and fertilizer trade

These policies and implementing guidelines are in place but implementation has been
constrained by:

 Upland farmers are less likely to have money to purchase and apply the fertilizers and
chemicals.

 Community Seed Banking System were being practiced, however, there is still lack of
providers of high quality seed and available upland rice seed growers.

 Upland rice farmers’ limited awareness on the benefits of applying organic fertilizers.

 There are provision and intervention of government on agricultural credit loans, but
the inability of upland rice farmers to meet the required documentary requirements is
still one of the main hindrances why farmers can’t access such government assistance.

Page 47
  Lack of milling facilities intended for upland rice, hence, stakeholders have the limited
capability to comply with market requirements in terms of quality standards, quantity,
and food safety.

B. INFORMAL RULES AND SOCIO-CULTURAL NORMS

Informal rules greatly affect, either positively or negatively, the effectiveness of formal rules.
Here are some of the informal rules / socio-cultural norms observed:

1. Most of the capital requirements of upland rice are either financed personally,
borrowed from their relatives, neighbors or co-farmers. Thus, social relationship built
can be mutual trust and strong ties which promotes cooperation and coordination for
mutual benefit.

2. Upland rice farmers believe on the nutritional value of their upland rice produce and
maintain such by applying less chemicals and inorganic fertilizers to their crop. The
government campaign on the practice of organic agriculture can thus be easily
promoted and be readily accepted by the farmers.

Page 48
SECTION 7: CONSTRAINTS AND OPPORTUNITIES

-Inadequate post-
-Labor intensive (land -Low price
preparation, weeding, harvest facilities -Low
-Low quality of seeds -Absence supplier acceptance
CONSTRAINTS

threshing, etc.) (storage, MPDP, Palay

shed, thresher, & buyer agreement of
-Unavailability of -Occurrence of pest & consumers
seeds (absence of diseases mechanical dryer, -Price dictated by (region 02)
seed systems) pinawa rice mill) Buyers
- Limited access to capital
- Inadequate Technical -Inadequate farm to -Unorganized
know how market road Farmers
FUNCTIONS

INPUT PROVISION PRIMARY TRANSFORMATION DISTRIBUTION/ FINAL SALE

PRODUCTION MARKETING

-Service provision on
-Available market/ -Growing
OPPORTUNITIES

-Seed growing (seed -Source provision on Post-Harvest

demand outside the numbers of
growers for upland Mechanization & region health
-Available
rice) Technology transfer conscious
Government
-Government consumers in
-Available credit window assistance for support program on manila &
from Formal Lenders establishment of post- market promotion other cities.
harvest facilities

Figure 20. Constraints and Opportunities

Page 49
Along each segments of the chain, there are different constraints experienced by the upland
rice farmers. The constraints mentioned above were identified by the farmer-respondents
and were validated by the industry stakeholders during a focus group discussion.

Table 17. Constraints and Opportunities

Constraints and Opportunities

Opportunities Constraints Province
Input Provision
-Seed growing (seed growers -Low quality of seeds -Cagayan, Isabela, Quirino,
for upland rice) Nueva Vizcaya
-Unavailability of seeds
(absence of seed systems)
Farmers’ practice to preserve their planting materials from generation to generation has
resulted to degradation on the quality of their seeds due to the absence of seeds purification
technology. There are also upland rice farmers who exchange their seeds/planting materials
to other farmers to test each others variety and to check if other varieties are suitable in their
production areas.

To date, the Department of Agriculture had introduced the Community Based Seed Banking
System wherein a free starting seeds (improved varieties) were distributed to selected upland
rice farmers. After harvesting, 5-10 kilograms additional seeds on top of the original seeds
received will be given back to DA-LGU as payment.

Though additional farmers have already availed the program, there are still huge number of
farmers who were not accommodated due to the insufficiency of seeds. This scenario provides
an opportunity to business minded farmers to engage in the production of seeds of improved
varieties for distribution/sale to other farmers.

Page 50
 Constraints and Opportunities
Opportunities Constraints Province
Primary Production
-Source provision on -Labor intensive (land -Cagayan, Isabela, Quirino,
Mechanization & Technology preparation, weeding, Nueva Vizcaya
transfer threshing, etc.)
-Occurrence of pest &
-Available credit window diseases
from Formal Lenders
- Limited access to capital
- Inadequate Technical know
how
As observed earlier, labor is one of the major cost items in upland rice production. This is due
to the fact that majority of upland rice areas are either hilly or sloping terrains, hence, land
preparation activities are perform manually which makes it not only laborious but time
consuming.

As a challenge, PhilMech is now designing and introducing collapsible equipment that farmers
can use even in interior upland rice areas. Though the government had an existing Package of
Technology (POT) trainings for upland rice production, majority of the farmers have not yet
undergone such or still prefer to practice their traditional methods. Promotion on the practice
of good agricultural practices will definitely result to reduce cost of production and increase
in yield.

On the other hand, access to credit is also one of the constraints in upland rice production.
Though the government has an existing credit windows for this type of activity, farmers still
prefer to barrow from the informal lenders due to the voluminous documents required by the
GFIs. Proper linkaging activities and creation of understanding on the benefits or advantages
in accessing loans from the government facilities is therefore necessary.
Transformation
-Service provision on Post- -Inadequate post-harvest -Cagayan, Isabela, Quirino,
Harvest facilities (storage, MPDP, Nueva Vizcaya
Palay shed, thresher,
-Available Government
mechanical dryer, pinawa rice
assistance for establishment
mill)
of post-harvest facilities

Page 51
 -Inadequate farm to market
road

Lack or limited post-harvest facilities and post-harvest handling practices result to increased
post-harvest losses. This situation is aggravated by the fact that harvesting season for upland
rice (September-November) is similar to that of lowland rice and corn during wet season
resulting to a heavy completion on the use of threshers, palay shed, dryers and storage
facilities.

The absence of an appropriate milling facility (Pinawa Rice Mill) is also one of the hindrances
to command a better price for upland rice. Pinawa rice mills retain the pigmented appearance
of most of the upland rice varieties. Only one Pinawa Rice Mill was identified during the
survey and is located in Santiago City. Therefore, only those who can afford to transport their
palay, like farmers from the selected municipalities of Isabela and Quirino can meet their
buyer’s preferences.

On the other hand, poor farm to market roads was also one of the common problems of
farmers especially during rainy season. They cannot easily transport their harvest due to
roads becoming slippery, or worst, roads were not passable anymore.
Distribution/Marketing
-Available market/demand -Low price -Cagayan, Isabela, Quirino,
outside the region
-Absence supplier Nueva Vizcaya
-Government support & buyer agreement
program on market -Price dictated by
promotion Buyers
-Unorganized Farmers
In the distribution/marketing of upland rice, one of the identified constraints was the low
buying price for their produce. The common reason for this is the unmet preferences of
buyers in terms of color, shape and aroma, thus, buyers set the price on their own terms. This
can be attributed to the use of regular rice mills that can’t preserve the pigmented
characteristics of upland rice. However, there are some upland rice farmers who can dictate

Page 52
and demand for the price they want due to the reason that they deliver and meet the
preferences of their buyers. These are the farmers that transport their palay and avail the
services of the Pinawa Rice Mill in Santiago City.

Another constraint is the absence of an agreement between the farmers and buyers. Due to
unstable supply coming from the upland rice farmers and the pricing terms of the buyers,
both of them tend to shy away in building the supplier-buyer relationship. Although there are
cases of some upland rice farmers and buyers who have established and maintained good
rapport with each other, it was observed that the absorption capacity of their buyers was just
small portion of their production averaging from half to one cavan of milled rice per buyer.

Further, farmers’ lack of formal organization hinders them to consolidate the volume that big
traders require.

Page 53
 SECTION 8: COMPETITIVENESS DIRECTIONS

A. COMPETITIVENESS DIRECTIONS

Table 16. Competitiveness Directions

OUTCOME/IMPACT
INDUSTRY CHANGE REQUIRED
FARMERS INDUSTRY
- Increased access to
registered/certified seeds of
pigmented rice

High productivity/ Increase and stable

-Improved access and utilization of lower production supply base of
organic fertilizer and other inputs costs registered seed

-Access to government Sustainable upland Sustainable upland

credit/lending assistance rice farming rice supply

Value addition Competitive price

-Upgrade farmers knowledge on the

latest upland rice farming
technologies

Increased income/ Growth in domestic

-Encourage LGUs to support the local
profitability markets and
upland rice industry through crafting
sustained export
policies that could provide a fair
market
playing field to all stakeholders

-Improve access to appropriate post-

harvest and processing
facilities/equipment

-Improved horizontal and vertical

relationship of industry players

Page 54
With the aim of sustaining or increasing the export market for pigmented rice as well as
achieving growth in domestic market, the following interventions, as identified by the
industry stakeholders, should be properly in placed:

1. Increased access to registered/certified seeds of pigmented rice

2. Improved access and utilization of Organic fertilizers and other inputs.

3. Access to government credit/lending services.

4. Upgrade farmers’ knowledge on the latest upland rice farming technologies.

5. Encourage LGUs to support the local upland rice industry through crafting of policies
that could provide a fair playing field to all stakeholders.

6. Improved access to appropriate post harvest and processing facilities/equipment.

7. Improved horizontal and vertical relationship of industry players.

B. PRIORITY CONSTRAINTS/OPPORTUNITIES AND INTERVENTIONS

Input Provision

1. Access to registered seed of pigmented rice

The Community Seed Banking (CSB) program of the Department of Agriculture gave a chance
to upland rice farmers to avail high quality seeds. However, only few were accommodated due
to insufficient volume of seeds. It is therefore necessary to scale up the CSB program of
various DA stations. This production of seed can be linked to Municipal Offices for distribution
and marketing. To create an effective demand, a plant now pay later scheme can be adopted.
The DA stations will also assist/train prospective seed growers within the region for massive
production of high quality seeds.

Page 55
2. Improved access and utilization of organic fertilizers and other inputs

One of the factors that define the volume of production of every crop is the amount of
nutrients provided. As observed during the survey, majority of the farmers’ production areas
have been depleted with the necessary nutrients needed by their crop. Minimal use of
inorganic fertilizers to sustained the crop was observed due to financial constraints.

As an alternative to the use of inorganic fertilizers which are costly and degrade the condition
of soil, the use of organic fertilizer should be properly promoted.

a. Capacitation of upland rice farmers in the production of their own organic fertilizer

Through the collaborative effort of DA, ATI and LGUs, farmers could be trained with
the latest organic fertilizer production technologies such as vermiculture and the like.

b. Establishment of community-based organic inputs plants and/or scaling up of existing

enterprises.

This intervention could lead to the production of organic inputs using waste materials
and indigenous resources. This could also provide job opportunities to local residents.

3. Access to government credit/lending services

As most of the upland rice farmers are not yet organized into
cooperatives/associations, nor do they belong to any group, the government’s
provision/intervention for agricultural credit and crop insurance are not yet generally
appreciated.

Linking them to established cooperatives or organizing them into cooperative will

definitely facilitate their availment of current government programs, be it in
production, processing, marketing or credit aspect of their farming operation.

Page 56
Primary Production

4. Upgrading of farmers’ knowledge on upland rice farming

The yields of upland rice are generally lower than those of flooded rice, because of many
factors. One of the factors is that cultural practices for upland rice have been studied far less
than have cultural practices for lowland rice. As such, upland rice farmers only depend on
their personal knowledge and experience in farming.

The following are the proposed interventions:

a. Conduct of series of trainings for additional FLE/LFT

This training will involve interested farmer organizations or groups with the
supervision of technical personnel of the Department of Agriculture. Different learning
methods will be utilize like participatory method, techno demo and hands on training
for effective learning.

b. Provision of incentives to winners of techno demo farm contest

Model techno demo farm winner will be chosen among the techno demo farm of the
farmer organizations or groups. This will motivate trainees to adopt and be innovative
on the recommended technologies. Incentives to be given may be in the form of inputs
or facilities to be provided by DA or LGUs.

c. Continuous monitoring

This will evaluate the effect and recommend the needed improvement of extension
services. Capacity and capability building trainings, if needed, should be conducted to
improve and upgrade the farmers’ knowledge towards upland rice farming.

Page 57
Transformation

5. Improvement or establishment of postharvest and milling facilities/equipment

The propose intervention is intended to address the high percentage losses during
postharvest operations and to maintain the good quality of grains after harvest. To build the
capability of the target proponent groups on the operation of postharvest and processing
facilities, and to enhance their capacity to good postharvest practices and food safety
compliance, series of trainings should be conducted.

Marketing

6. Improvement of farm to market roads

Rehabilitation or construction of farm to market roads will help farmers to access markets
and other vital services. This will reduce transportation cost and will somehow increase the
profit margins of the upland rice farmers.

On the other hand, in order to compete on the market, product packing and labeling should
also be considered. Branding and labeling are also ways of value-adding in order to attract
target consumers.

Page 58
 SECTION 9: CONCLUSION AND RECOMMENDATIONS

Pigmented or upland rice have displayed great potential in the export market. This was
shown by the data coming from the National Food Authority during the pilot marketing of
said commodity to the international market in 2013. Hand in hand with realizing the
government’s goal of self-sufficiency and sustaining the export market for pigmented rice, it is
therefore necessary to address the previously discussed issues and concerns with the
following recommendations which were validated during a scheduled forum attended by the
various upland rice stakeholders of the region:

INPUT SUPPLY
 Provision of registered/certified seeds of pigmented rice.
 Sustainable supply of low priced organic fertilizers and chemicals.
 Easy access to Government credit/lending programs.

PRIMARY PRODUCTION
 Continuous training on updated upland rice Package of Technologies (POTs)
 Development and provision of production and post production facilities to influence
mechanize upland rice farming(e.g. mechanical planters with complete accessories,
mechanical weeder, hand tractors, MPDPs, thresher, mechanical dryers, brush cutters
and palay shed)

TRANSFORMATION
 Provision of Pinawa Rice Mill to established cooperatives.
 Improvement of farm to market roads.
 Conduct of trainings on product packaging and labeling.
 Provision of storage facilities.

MARKETING
 Setting-up uniform quality standards for upland rice for more stable prices.
 Strengthen tie-ups with established markets/buyers.

Page 59
SECTION 10 : ANNEXES
Annex A. List of Farmer – Respondents in Cagayan
Names Address Names Address
Ferdinand Martinez Mabuno, Gattaran, Cagayan Maylin Nacis Upper Magapit, Lal-lo, Cagayan
Arlyn delos Santos Naddungan, Gattaran, Cagayan Eddie Aurelio Viga, Lasam, Cagayan
Ellizard Raza Mabuno, Gattaran, Cagayan Loreto Calimag Sicalao, Lasam, Cagayan
Nicanor Siagan Naddunganan, Gattaran, Cagayan Jorjie Lubbuan Sicalao, Lasam, Cagayan
Crispin M. Siagan Naddunganan, Gattaran, Cagayan Antonio Malsit Jr. Viga, Lasam, Cagayan
Jimmy Delos Santos Nabungan, Gattaran, Cagayan Rey Pagaduan Sicalao, Lasam, Cagayan
Rufino Orteza Tanglagan, Gattaran, Cagayan Ernesto Sanguir Cabatacan, Lasam, Cagayan
Emilio Jacinto Jr. Mabuno, Gattaran, Cagayan Johny Tibursio Sicalao, Lasam, Cagayan
Medita Agustin Mabuno, Gattaran, Cagayan Catalina Mateo Allanay, Lasam, Cagayan
Fredy Honesta Capissayan, Gattaran, Cagayan Romy Corpuz Peru, Lasam, Cagayan
Luzviminda Aguilar Bicud, Lal-lo, Cagayan Ysmael Acoba Peru, Lasam, Cagayan
Juanita Nacis Upper Magapit, Lal-lo, Cagayan Artemio Battan Sicalao, Lasam, Cagayan
Ginalyn Agtarap Bicud, Lal-lo, Cagayan Edison Tiburcio Sicalao, Lasam, Cagayan
Edwin Molina Allaguia, Lal-lo, Cagayan Jojolyn Piedad Alucao, Sta. Teresita, Cagayan
Trinidad Domingo Bicud, Lal-lo, Cagayan Artemio Callueng Luga, Sta. Teresita, Cagayan
Regi Bartolome Alagrice, Lal-lo, Cagayan Robert Arellano Luga, Sta. Teresita, Cagayan
Marilyn Ubarre Magapit, Lal-lo, Cagayan Jaime Damian Luga, Sta. Teresita, Cagayan
David Cabael Bicud, Lal-lo, Cagayan Reynante Dante Luga, Sta. Teresita, Cagayan
Alex Cabudol Bicud, Lal-lo, Cagayan Joedel Agbisit Luga, Sta. Teresita, Cagayan
Elvie Pulido Bicud, Lal-lo, Cagayan Aridawen, Sta. Teresita,
Gregorio Mape
Cagayan
Milicio Mintar Upper Magapit, Lal-lo, Cagayan Aridawen, Sta. Teresita,
Arnold Bilag
Conrado Molina Bicud, Lal-lo, Cagayan Cagayan
Mercedes Aguilar Bicud, Lal-lo, Cagayan Marilyn Parales Luga, Sta. Teresita, Cagayan
Agnes Ylarde Bicud, Lal-lo, Cagayan Lydio Callueng Luga, Sta. Teresita, Cagayan

Page 60
 Annex B. List of Farmer – Respondents in Isabela
Names Address Names Address
Julius Caluya Babaran, Echague, Isabela Carlina Balete Salindingan, Ilagan City, Isabela
Rogelio Regala Babaran, Echague, Isabela Roberto Littawa Salindingan, Ilagan City, Isabela
Revinita Alambay Babaran, Echague, Isabela Edilberto Bersamin Salindingan, Ilagan City, Isabela
Loudivina Francisco Babaran, Echague, Isabela Rogelio Manayan Salindingan, Ilagan City, Isabela
Froilan Roque San Juan, Echague, Isabela Jesus Cabaccan Salindingan, Ilagan City, Isabela
Roberto Ridgelon San Juan, Echague, Isabela Eddie Manayan Salindingan, Ilagan City, Isabela
San Manuel, Echague, Trinitario Siman Salindingan, Ilagan City, Isabela
Danny Lorenzo
Isabela
Neicy Umipig Sta Victoria, Ilagan City, Isabela
Revinita Alambay Babaran, Echague, Isabela
Celia Claro Sta Victoria, Ilagan City, Isabela
Loudivina Francisco Babaran, Echague, Isabela
Herman Mariano Sta Victoria, Ilagan City, Isabela
Jonel Najan Cadu, Ilagan City, Isabela
Nelson Magaway Sta Victoria, Ilagan City, Isabela
Jojo Carnate Cadu, Ilagan City, Isabela
Celestino Cabacungan Minuri, Jones, Isabela
Amado Cabang Cadu, Ilagan City, Isabela
Rodolfo Cortez Minuri, Jones, Isabela
Melegrina Peralta Cadu, Ilagan City, Isabela
Mark Harold C. Caliba Minuri, Jones, Isabela
Ignacio Ramos Jr. Cadu, Ilagan City, Isabela
Nelson Cabacungan Minuri, Jones, Isabela
Esperdion Carnate Cadu, Ilagan City, Isabela
Cajalne Hemenes Minuri, Jones, Isabela
Rogelio Cabrera Jr. Cadu, Ilagan City, Isabela
Rogelio Princesa Villa Bello, Jones, Isabela
Nelson Magudang Cadu, Ilagan City, Isabela
Benny A. Agorilla Minuri, Jones, Isabela
Barkly Magudang Cadu, Ilagan City, Isabela
Salvador Pasion Namnama, Jones, Isabela
Ernesto Sipagan Cadu, Ilagan City, Isabela
Federico Castornuevo Namnama, Jones, Isabela
Tomas Campos Cadu, Ilagan City, Isabela
Crispin Pacatcatin Namnama, Jones, Isabela
Rogelio M. Cabrera Sr. Cadu, Ilagan City, Isabela
Rogelio Rivera Namnama, Jones, Isabela
Nelson Magudang Cadu, Ilagan City, Isabela
Rogelio Princesa Villa Bello, Jones, Isabela
Barkly Magudang Cadu, Ilagan City, Isabela
Tiodorico Amistad Villa Bello, Jones, Isabela
Ernesto Sipagan Cadu, Ilagan City, Isabela
Hazel Pichay Villa Bello, Jones, Isabela
Tomas Campos Cadu, Ilagan City, Isabela
Lovita Asuncion Villa Bello, Jones, Isabela
Rogelio M. Cabrera Sr. Cadu, Ilagan City, Isabela
Jerry Amistad Villa Bello, Jones, Isabela

Page 61
Annex C. List of Farmer – Respondents in Nueva Vizcaya and Quirino
Names Address
Quinto Allawas Labang, Ambaguio, Nueva Vizcaya
Manual Bay-an Labang, Ambaguio, Nueva Vizcaya
Leocio Huldong Labang, Ambaguio, Nueva Vizcaya
Gario Baldino Labang, Ambaguio, Nueva Vizcaya
Jaime Pugu-on Labang, Ambaguio, Nueva Vizcaya
Jose Baldino Sitio Lay-Laya, Ambaguio, Nueva Vizcaya
Halawad Maddawat Poblacion, Ambaguio, Nueva Vizcaya
Menito Sinacay Poblacion, Ambaguio, Nueva Vizcaya
Napaleon Jose Poblacion, Ambaguio, Nueva Vizcaya
Romeo Cupas Poblacion, Ambaguio, Nueva Vizcaya
Marvin Gullunan Tiblac, Ambaguio, Nueva Vizcaya
Daniel Gaddingan Poblacion, Ambaguio, Nueva Vizcaya
Mazon Paclit Canabay, Dupax del Sur, Nueva Vizcaya
Landa Bosio Canabay, Dupax del Sur, Nueva Vizcaya
Emelia Estepa Canabay, Dupax del Sur, Nueva Vizcaya
Lolita castro Canabay, Dupax del Sur, Nueva Vizcaya
Porcela Rumbaua Canabay, Dupax del Sur, Nueva Vizcaya
Efren Rodofol Karulutan, Dupax del Sur, Nueva Vizcaya
Leonardo De Guzman Karulutan, Dupax del Sur, Nueva Vizcaya
Nelly Oriña Karulutan, Dupax del Sur, Nueva Vizcaya
Peter Gumpatan Amelong Labeng, Kayapa, Nueva Vizcaya
Marlon Omas Amelong Labeng, Kayapa, Nueva Vizcaya
Dario Bugtung Buyasyas, Kayapa, Nueva Vizcaya
Ariston Marcial Buyasyas, Kayapa, Nueva Vizcaya
Apolonio Marcial Buyasyas, Kayapa, Nueva Vizcaya
Seblin Bugtung Buyasyas, Kayapa, Nueva Vizcaya
Rodolfo Once Kabanglasan, Kayapa, Nueva Vizcaya
Uybaan Pasitang Kabanglasan, Kayapa, Nueva Vizcaya
Juan Basilio Kabanglasan, Kayapa, Nueva Vizcaya

List of Farmer – Respondents in Quirino

Names Address
Merlita Belmonte Villa Pagadduan,
Mario Tumitit San Dionisio II,
Jomar Batarao Pongo, Nagtipunan, Quirino
Sonny Pacunla Liwayway, Diffun, Quirino

Page 62
 Annex D. List of Buyer - Respondents
Name of Type of Volume Volume Demanded by
Address Requirement Buying Price Selling Price Costumer Product Availability
Buyer Buyer Demand Buyers
Employees of Nagtipunan Gov't employee 1-3 kls per
San Dionisio Dry or milled DP-P18-25/kl (LGU) & 1 from San week, San Mateo 3 cavans
Audrey 10-15 cavans
II, Nagtipunan, Retailer rice (colored MR-P35-50/kl MR-P60-70/kl October to January
Handaan per month Mateo (Personal per purchase (once lang,
Quirino rice)
Consumption) every harvest period)
Dry or milled DP-depends Bakasyonista from
Centro,
Jackylyn rice 10 cavans quality of rice, manila, baguio, balik
Nagtipunan, Retailer MR-P50-70/kl Half to 1 cavan per buyer October to December
Naval (red/black monthly bayans
Quirino MR-35-50/kl
rice)
Dry or milled
Nelgar Centro, DP-20-25/kl, DP-P25-30/kl
rice (red/ 20 cavans From Manila and Balik
Merchandi Maddela, Retailer 1 to 2 cavans per buyer November to December
black rice), monthly bayans
se Quirino MR-30-50/kl MR-P60-80/kl
Malagkit
Centro, Milled Rice
Marivic 10 cavans Bakasyonista from
Maddela, Retailer (red/black/ MR-P30-50/kl MR-P50-60/kl half to 1 cavan per buyer November to December
Natavio monthly manila, diabetic person
Quirino brown)
Balligi, Milled Rice
Leonie 20 cavans Balik bayans, mostly from
Maddela, Retailer (red/black/ MR-P45-50/kl MR-P60-70/kl 3-5 cavans per buyer October to December
Manuzon monthly rich family
Quirino brown)
Open volume Depend on the availability of
Caroline Tuguegarao Trader- Depends on From baguio, Adrinels, 38 cavans last january goes
Colored Rice (depend on MR-P50-60/kl product/unstable supply
Aquino City Miller quality walk-in clients to baguio
quality)
Depend on the availability of
3G Buying Dry Palay 200 MT Depends on P2-5.00 mark 200MT/month, Manila
Lasam Trader Manila buyers product/unstable supply. Usually
Station (Aringay) monthly quality up buyers
October to December
Depend on the availability of
Bambang Bambang, 100 MT Depends on No data 100MT/month, Manila product/unstable supply. Usually
Trader Colored Rice Manila buyers
Trader Nueva Vizcaya monthly quality provided buyers October to December
Depend on the availability of
Gemma Gattaran, Depends on P1-5.00 mark Mapalad Ricemill, product/unstable supply. Usually
Trader Colored Rice Open Volume 40 MT
Natividad Cagayan quality up Cabatuan, Isabela October to December
Depend on the availability of
Mapalad Cabatuan, Trader- Depends on No data
Colored Rice Open Volume No data provided No data provided product/unstable supply. Usually
Ricemill Isabela Miller quality provided
October to December
Depend on the availability of
Alex San Mateo, Trader- Depends on No data
Colored Rice Open Volume No data provided No data provided product/unstable supply. Usually
Carlos Isabela Miller quality provided
October to December
Villa Gonzaga, Depend on the availability of
Acorda Depends on No data
Santiago City, Miller Colored Rice Open Volume No data provided No data provided product/unstable supply. Usually
Ricemill quality provided
Isabela October to December
500 MT & Depend on the availability of
Tuguegarao Depends on Mr. Ong from Divisoria 500MT monthly
DA-MPC Cooperative Colored Rice 1,600bags product/unstable supply.
City, Cagayan quality
monthly SUNNY WOOD 1,600 bags monthly

Page 63
Annex E. Questionnaire for Farmer – Respondents

DEPARTMENT OF AGRICULTURE
AGRIBUSINESS AND MARKETING ASSISTANCE DIVISION
VALUE CHAIN ANALYSIS FOR UPLAND RICE
QUESTIONNAIRE FOR UPLAND RICE GROWERS

Questionnaire No.: ______________________ Province: ________________________

Interviewer: ___________________________ Municipality: _____________________
Date of Interview: ______________________ Barangay: _______________________

A. GENERAL INFORMATION

1. Name of Farmer: _______________________________________________________________

2. Age: ____________ 3. Sex: ( ) Male ( ) Female
4. Residential Address: ____________________________________________________________
5. Farm Location: _________________________________________________________________
6. Contact No: Tel. No. ____________ Mobile No. _______________
7. Civil Status: ( ) Single ( ) Married ( ) Widow/ Widower ( ) Separated
8. Household size: _______ 9. No. of Children: _______
10. Educational Attainment: ( ) Elementary Level ( ) Elementary Graduate
( ) High School Level ( ) High School Graduate
( ) College Level ( ) College Graduate
( ) Post Graduate
11. Main Source of Income: ( ) Farming ( ) Business ( ) Service
( ) Employee ( ) Pension ( ) Others__________
12. Monthly Income: Farm: P_________ Off-Farm: P___________ Non-Farm: P___________
13. Type of Farmer: ( ) Farmer ( ) Farmer-trader ( ) Farmer- Processor
( ) Others________________ ( ) Farmer-Seed Grower
14. No. of years in farming: _________ 15. Year started in upland rice production: __________
16. Tenurial Status:
( ) Landowner (LO)
( ) Tenant (specify arrangement with LO) _____________________________________
( ) Leaseholder (specify arrangement with LO) _________________________________
( ) Others ______________________________________________________________

17. Membership in any organization (related to upland rice production):

Name of Organization Year Joined Position Active or Benefits Derived
Inactive

64
 18. Trainings Attended/ Seminars/ Workshops attended (related to upland rice production):
Title Years Organizer Useful in Why or why not?
Attended upland rice
Production?

(Yes/ No?)

19. What other training/s do you need on upland rice production?

____________________________________________________________________________________________________________________
________________________________________

B. FARM PROFILE AND FARMING OPERATIONS

1. Farm Type: ( ) Backyard ( ) Commercial

2. Cropping System: ( ) Monoculture ( ) Intercropping ( ) Multiple Cropping

Reason/s: ______________________________________________________________________
Other crop planted (intercrop/multicrop): ___________________________________________

3. Topography: ( ) Sloping ( ) Hilly ( ) Plain ( ) Others_________________

4. Soil Type: ( ) Clay ( ) Sandy ( ) Loam ( ) Sandy loam ( ) Others________

5. Source of Water Supply: ( ) Rainfall ( ) Stream/river ( ) Deep well ( ) Others________

6. Total farm area (ha): ______________________

7. Planting Month: ________________________

8. Variety Planted: _______________________ Days of Maturity: ______________________

9. Total Area Planted for upland rice ( ha): ______________

10. Seeding Rate Requirement: ( ) 40 kgs/ha ( ) 60 kgs/ha ( ) 80 kgs/ha ( ) 100 kgs/ha

( ) Others, specify __________________________________

11. What type of method when planting?

( ) Dibbling (Inasad) : _____seeds per hole

_____distance (cm) per hole

( ) Drilling (Pataruytuy): _____seeds per linear meter

_____distance (cm) per furrow

65
 ( ) Hill to Hill : _____seeds per hill
_____distance (cm) per hill

( ) Broadcasting

12. Harvest (volume): Peak month: ________________ Yield ____________________

Lean month:________________ Yield ____________________

13. Harvesting Method: ( ) Manual (knives/sickles) ( ) Others, specify (i.e.Rakem)__________

14. Is there any maturity index being used to determine if the rice grain is ready for harvest?
( ) Yes, If YES, explain ___________________________________________________________
( ) No

15. Drying Method: ( ) Sun-dry ( ) Mechanical ( ) Others, specify____________________

Place of drying________________________ Perceived Losses (kg): _____________________

16. Sorting/ Grading: ( )Good Seeds (for the next cropping season) _________kgs
( ) Home Consumption ________kgs
( ) Given Away _________kgs

17. Seed Storage: ( ) Hanging ( ) Traditional Storage ( ) Tin Can ( ) Vinyl Sack
( ) Jute Sack ( ) Drum ( ) Cloth Bag ( ) Others, specify __________

18. Storage Duration : ( ) 4 months ( ) 6 months

19. Milling: ( ) Manual ( ) Mechanical ( Pinawa/Well-Milled Rice)

66
 20. Labor Requirement

LABOR SOURCE
HIRED FAMILY
OPERATIONS/ No. of No. of Rate/ Total No. of No. of Rate/ Total Food
ACTIVITIES Worker Days Day Cost Worker Days Day Cost Expense
LAND PREPARATION
Clearing
Plowing
1st Harrowing
2nd Harrowing
Furrow (in drill/hill
method only)
Planting
CROP CARE &
MAINTENANCE
Weeding
Fertilizer Application
-Basal
-Top Dress
Spraying
HARVESTING
Harvesting
Hauling
Winnowing
(agibuyog)
-Binnulnusan/
Ammuyo (payment in
kind)
POST-HARVEST
Drying
Hauling
Storage
Milling
TRANSPORT COST

Others (specify):

21. Source of Capital: ( ) Own ( ) Borrowed (fill up table now)

Source Amount Terms of Payment a/ Interest Rate

a/ Terms of Payment: 1-7 days 2-15 days 3-30 days 4- others (specify)

67
 22. Inputs Used
Type of Input Qty Unit Cost/ Total Source (if purchased) (if credit) (if credit) Freq. of Stage of Method of Target
Used Unit Cost Mode of Terms of Interest Applic’n Applic’n Applic’n Pest/
Payment a/ Payment b/ Rate c/ d/ e/ Disease
Planting
Material
1.
2.
3.
4.
5.
Fertilizer (please
specify)
1.
2.
3.
4.
Pesticides
(please specify)
1.
2.
3.
Herbicides
(please specify)
1.
2.
Other Inputs
(specify)
1.
2.
a/ Mode of Payment: 1 – Cash 2 – Credit 3 – others (specify)
b/ Terms of Payment: 1 – 7 days 2 – 15 days 3 – 30 days 4 – Others (specify)
c/ Freq. of Applic’n: 1 – Weekly 2 – Monthly 3 – Others (specify)
d/ Stage of Applic’n: 1 – Vegetative phase 2 – Productive phase 3 – Ripening phase
e/ Method of Applic’n: 1 – Broadcast 2 – Spraying 3 – Others (specify)

68
 23. Marketing of upland rice

Volume Sold (kg)

Price/kg
(if credit)
Mode of Purchase
Name of Type of Mode of Terms of Transport
Location Delivery Arrangem
Buyer Buyer a/ Milled Payment b/ Payment Cost
Unmilled Unmilled d/ ent e/
c/
Milled
Fres
Fresh Dry Dry
h

a/ Type of Buyer b/ Mode of Payment c/ Terms of Payment d/ Mode of Delivery e/ Purchase Arrangement
1-Municipal Trader 1-Cash 1-1-7 days 1-Pick-up 1-Regular Client
2-Provincial Trader 2-Credit 2-15 days 2-Deliver 2-Spot Buying
3-Trader-Miller 3-Both 3-30 days 3-Both 3-Both

69
 24. Farm Investment

ITEM Quantity Year Acquisition Mode of Years to % Used for

Acquired Cost Acquisition last upland
a/ prod’n
Land:
Equipment:

Tools:

Others (specify)

a/ Mode of Acquisition: 1 – Bought (Cash/Credit) 2- Inherited 3- Given 4- Others (specify)

C. PROBLEMS ENCOUNTERED

1. What are the problems you encountered during production and selling operations?

Production

Problems/ Constraint Rank Solution/ Recommendation

70
 Postharvest

Problems/ Constraint Rank Solution/ Recommendation

Marketing

Problems/ Constraint Rank Solution/ Recommendation

Financing

Problems/ Constraint Rank Solution/ Recommendation

D. VALUE CHAINS AND MARKET STRUCTURE / COMPETITION

Market Structure
1. How many farmers in your barangays/ municipality produce upland rice? __________________
2. Among them, who are your strongest competitors?

Name Address/ Location

71
 3. Do these competitors have any influence in terms of the following

Don’t
Item Have Influence? Explain/ Specify
know
Yes No
Setting the price and in what form

Controlling the market/ getting

bigger market share
Setting product standards and
market trends
Obtaining more government
assistance

4. Do you have linkages with the following? Explain the nature/ form of linkage, benefits and
problem encountered, If any.

Private Public
Name Specify/ Describe Benefits Problem, If any
a/ a/
Market contract
Credit Assistance
Technical Assistance/
Information
Production
Technologies
Processing
Input supply b/

________________________

________________________

a/ Explain and specify institutions (DA, provincial/ municipal agriculture office, Land bank, Etc.), NGO, private
entities involved (coops, distributors, processors, supermarkets/ hypermarkets, fast food chains, hotels,
hospitals, school), government/ private project or business partnership marketing management agreement with
buyer in terms of volume, price, payment terms and frequency and time of delivery; year of linkage started; etc
b/ specify inputs (bio fertilizer, bio- pesticides, seeds, etc.) ________________________________

Competition

5. What business strategies do you employ to compete with other producers and/ or increase production,
sales or market share? _________________________________________________
________________________________________________________________________

72
 6. Are you well informed about your competitors’ product quality and markets?
( ) Yes ( ) No
Explain or specify ___________________________________________________________
_________________________________________________________________________

E. BUSINESS SUPPORT SERVICES

1. Do you practice farm record- keeping in order to account your:

( ) Expenses, explain: ________________________________________________
( ) Sales, explain: ___________________________________________________
( ) Other important aspects (specify) of your operation _______________________
Explain _____________________________________________________________

2. Do you observe product quality?

( ) Yes, how? ______________________________________________________________
( ) No, why not? _______________________________________________________________

3. Do you have any plans of expanding your production area? ( ) Yes ( ) No

Why? ____________________________________________________________________

4. Are you willing to do contract growing with reliable growers for specific upland rice varieties?
( ) Yes, specify variety and volume: ____________________________________________
Specify preferred terms: _____________________________________________________
( ) NO, why not? __________________________________________________________

5. Are you willing to do contract marketing with reliable traders for specific upland rice varieties?
( ) Yes, specify variety and volume: ____________________________________________
Specify preferred terms: _____________________________________________________
( ) NO, why not? __________________________________________________________

6. Are you aware and have availed of the following government support services?

Government a/
Accessible

Adequate

Service Specify/ Explain Reason if NO to any

Availed

(Source & reason for question

Aware

choice)

Input sourcing
(Seeds)
Production technologies

Postharvest Technologies

Credit

Market Information

Market Linkage

Logistics/ Transport

73
 Business advisories

Product standards/
specifications
Others (specify)

a/ Aware/ Accessible/ Adequate/ Availed: 1- Yes 2- No

7. Are you aware and have availed of the following private sector support services?
Private a/

Accessible

Adequate
Service Specify/ Explain Reason if NO to any

Availed
(Source & reason for question
Aware

choice)

Input sourcing
(Seeds)
Production technologies

Postharvest Technologies

Credit

Market Information

Market Linkage

Logistics/ Transport

Business advisories

Product standards/
specifications
Others (specify)

a/ Aware/ Accessible/ Adequate/ Availed: 1- Yes 2- No

F. GOVERNANCE AND UPGRADING IN VALUE CHAINS

1. What are the benefits/ assistance provided by your buyers?

Benefits/ Assistance Yes No Explain/ Specify

Assured market

Stable and relatively higher price compared to

lowland rice
Market Information
Quality Specification (i.e. variety, volume,
appearance, etc.)

74
Decision- Making

2. From what sources do you get information on pricing?

( ) Cooperative ( ) Trader ( ) Processor
( ) Internet ( ) Gov’t Offices( ) Others (specify) ______________________

3. Who sets the price? Explain why.

( ) Farmer, why? __________________________________________________________
( ) Buyer, why? ___________________________________________________________
( ) Both, why? _______________________________________________________________

4. What is the basis of pricing?

( ) Variety _____________________ ( ) Size _______________________
( ) Quality _____________________ ( ) Color ______________________
( ) Volume _____________________ ( ) Others _____________________

5. Who sets the product specifications? Explain why.

( ) Farmer, why? __________________________________________________________
( ) Buyer, why? ___________________________________________________________
( ) Both, why? _______________________________________________________________

6. Who sets the volume or quantity to be traded? Explain why.

( ) Farmer, why? __________________________________________________________
( ) Buyer, why? ___________________________________________________________
( ) Both, why? ______________________________________________________________

Upgrading/ Promotion for Competitiveness

7. What is the type/ category of upgrading that are adopting?

Upgrading Type/ Category Check Explain/ Specify Problem, if any Benefit a/

Process upgrading
Use of mechanized
Postharvest system
Training for improving skills of
workers

Product upgrading
Comply with quality standards

Follow recommended postharvest

handling practices

Functional upgrading
Engage in value- adding activities
(Use of seed storage i.e. low cost seed
storage, drums, GIs. Etc)

75
Use better packaging materials,
proper label and brand name

Intra- sectoral upgrading

Selling directly to traders
(municipal/provincial)
Selling directly to key provinces
Selling directly to consumers

Intersectoral upgrading
Produce and sell other upland rice by
products (rice delicacies, rice flour,
rice wine, etc)
a/ Whether this has resulted in improved sales, reduced cost, increased profit, expanded market, or brought any
additional benefit to the operation/ firm?
8. What is the type of governance in the value chain? Please check and Explain.

Governance Check Explain/ Specify

Market relationship
Many buyers and seller
Technical assistance is provided
Balanced relationship
Both buyer and seller have alternatives
(e.g. supplier has various buyers)
Extensive information flows in both
directions, with buyers often defining product
specs
Both sides have capabilities that are difficult
to substitute and both are committed to
solving problems through negotiations rather
than treat or exit.
Direct relationship
Main buyer takes large % of supplier’s output,
defines the product quality standards (i.e.
design and technical aspects), and monitors
the supplier’s performance
Buyer provides technical assistance and
knows more about the cost and capabilities of
the c\supplier than the supplier does the
buyer

-MARAMING SALAMAT PO!

76
Annex F. Questionnaire for Buyer – Respondents
DEPARTMENT OF AGRICULTURE
AGRIBUSINESS AND MARKETING ASSISTANCE DIVISION
VALUE CHAIN ANALYSIS FOR UPLAND RICE
QUESTIONNAIRE FOR UPLAND RICE TRADERS

Record Number: ______________________ Barangay/ Municipality: __________________

Interviewer: _________________________ Province/ Region: _______________________
Date of Interview: ____________________ Checked by/ date: _______________________

G. GENERAL INFORMATION
1. Name of Respondents: __________________________________________
2. Sex:( ) F ( ) M Age: _______
3. Name of Firm: __________________________________________
4. Position in the Firm: _____________________________________________
5. Company Address: ___________________________________
6. Name of Owner: ______________________________________
7. Contact No. (Tel. No.) ______________
8. Mobile No. ________________ Email: __________________
9. Type of Trader and product handled (check appropriate answer):

Product Handled
Type of Trader Unmilled Rice Milled Rice Both
( ) Assembler- Wholesaler
( ) Wholesaler
( ) Wholesaler- Retailer
7( ) Producer- Assembler
( ) Exporter
( ) Others (specify)

10. Year started in business: ____________ Year started in rice trading: ______________
11. Reason for engaging in rice trading: ____________________________________________________
12. Business Registration: ( ) DTI ( ) CDA ( ) SEC ( ) Others (specify) _________
13. Business classification: ( ) Single proprietorship ( ) Corporation ( ) Partnership
( ) Cooperative ( ) Others, specify _______________________
a. If cooperative, do you procure and trade only the produce of coop members? ( ) Yes ( ) No
b. Does the coop serve as a marketing arm or just an assembly point? ( ) Yes ( ) No
c. What is the arrangement/ Condition with the upland rice producers?______________________
______________________________________________________________________________
d. What are the activities performed?
77
 By the producers: _______________________________________________________________
By the cooperative: ______________________________________________________________
e. Is there a difference between the producer’s and the cooperative’s price? ( ) Yes ( ) No
If yes, by how much? __________________________________

14. Share of upland rice products in the whole trading business (%): _______________
15. What are the products traded other than upland rice? _______________________
16. List of upland rice products traded and place of distribution:
% Share to Total
Product Form Upland Rice Distribution Coverage (%)
Traded

Provincial: _______ Regional: _______ National: _______

Unmilled Rice
International: ____ Others (specify) _________________
Provincial: _______ Regional: _______ National: _______
Milled Rice
International: ____ Others (specify) _________________
Provincial: _______ Regional: _______ National: _______
Others (specify)
International: ____ Others (specify) _________________

17. Membership in any organization (related to upland rice trading)

Name of Organization Date of Position in the Active/ Benefits Derived
Membership Organization Inactive

18. What are the assistance / support you received for your upland rice business?
Type of Assistance / Description Name of Institution Year Benefits Derived
Support Received
Raw material supply
Trading/ Marketing
Transport/ Logistics
Financing
Others (specify)

19. What other assistance or technical support you think are necessary for your business?
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________

78
20. What are the trainings/ seminars/ workshop attended on upland rice trading?
Training/ Seminar/ Workshop Year Organizer Free or With Benefits
Attended Attended Fee Derived

21. What other training you think are necessary for your business (upland rice only)?________________
_____________________________________________________________________________________________________________________________
_______________________________________

II. MARKETING OPERATION

A. PROCUREMENT
1. Do you have any of the following (indicate number):
( ) Buying Station: _________ ( ) Warehouse: _________ ( ) Storage Area: ________
( ) Others (specify) _____________________
Address/ Location: __________________________________________________________________
Distance from the farm (km) ______________________

2. Who determines the buying price? ( ) Seller ( ) Buyer ( ) Both ( ) Others (specify) ______
Reason: ___________________________________________________________________________
Is it always the case? ( ) Yes ( ) No Reason: _______________________________________

3. What are your sources of price information? Specify

( ) Farmers __________________________ ( ) Cooperatives ________________________
( ) Co- traders ________________________ ( ) Government ________________________
( ) Buyers____________________________ ( ) Others, specify _______________________
( ) Processor _________________________

4. Which among the above sources of information do you follow for pricing: _____________________
Why? _____________________________________________________________________________

5. Mode of communication with the supplier: ( ) Text messaging ( ) Fax ( ) Direct communication
( ) Others (specify) _____________________________

6. Cost associated with gathering buying price information: Php _______________________________

7. Do you effectively use buying price information in haggling with your supplier? ( ) Yes ( ) No
Explain ___________________________________________________________________________

79
 8. Purchase of upland rice for trading
Procurement Purchase Mode of Terms of Transport
Location Type of Total Type of Price/ Unit Arrangement Payment Payment Mode of Vol. per Cost per Frequency
Product Name of
/ Mun & Supplier Volume Packaging (Php) c/ d/ e/ Delivery Deliver Delivery of
Form Supplier
Prov a/ Procured b/ Fresh Dry f/ y (Unit) (Php) Delivery/
Month

Unmilled
Rice
-Fresh
-Dry

Milled
Rice

Others
specify
a/ Type of Supplier: 1- Producer 2- Assembler-Wholesaler 3- Assembler Agent 4- Viajeros 5- Others (specify) ____________________
b/ Type of packaging: 1- Jute sack 2- Others
c/ Purchase Arrangement: 1- Suki 2- Spot buying 3- Contract 4- Others (specify) _______________
d/ Mode of Payment : 1- Cash 2- Credit 3- Cash Advance 4- Others (specify) _______________
e/ Terms of Payment : 1- Net 7 days 2- Net 15 days 3- Net 30 days 4- Others (specify) _______________
f/ Mode of Delivery: 1- Picked-up 2- Delivered

9. When are the peak/ lean months of procuring upland rice for trading? (Most recent peak/ lean months in 2013)
Product Peak # of Weeks Average Average Lean # of Weeks Average Average Month # of Weeks Average Average
Form/ Mos. per peak Volume per Price mos. per lean Volume per Price Normal per normal Volume per Price
Variety month week (kg) Fresh Dry month week (kg) Fresh Dry Operation month week (kg)
Unmilled Fresh Dry Fresh Dry Fresh Dry Fresh Dry
Rice
-Fresh
-Dry
Milled
Other,
specify
80
 10. Quality Specifications of upland rice for Trading
Specifications Description Is it complied by the supplier? (yes or no) Why or Why not
Fresh or Pre- processed
Volume
Maturity
Color
Packing
Schedule of delivery
Others (specify)

11. Storage
Duration (# Cost/ Total Storage Storage Shelf Life/ Reasons for
Product Type Place
of days) Unit/ day Cost temperature container Expiration storage
Unmilled Rice
Milled Rice
Others (specify)

12. Packaging Materials

TYPE OF PACAKGING Unmilled Rice Milled Rice Others (specify)
MATERIAL (specify) Capacity Cost per Cost Capacity Cost per Cost per Capacity Cost per Cost
(kilos) piece per kilo (kilos) piece kilo (kilos) piece per kilo

13. Transporting/ Hauling

Item Farm to Market Market to Buyers
Vehicle type/ description
Capacity
Frequency of Delivery / Hauling
Time of Delivery / Hauling
Own vehicle
-Gasoline expense/ trip (P)
-Driver (P)
-Food expense (P)
-Others (specify)
Total Cost (P)
Cost per kilo (P)
Rented
-Total cost (P)
-Cost per kilo (P)
Toll Fees (P)
Parking Fees (P)
Other Fees (P)
Damage/ Loss Acquired
-Quality
-Volume
% damage acquired
81
 B. SELLING OPERATION (2013)
1. Who are the major buyers / outlets of your products? (Most RECENT Transaction in 2013): How many outlets do you have? _______________
EXPORT Type for Price/ Terms Transport
Mode
Type of Total % share of Purchase of Frequency
product Name of Location / Country Packaging Unit of Mode of Vol. per Cost per
Buyer Volume Volume Sold Arrangem Payme of
(specify) Buyer Address b/ (Php) Payme Delivery Delivery Delivery
a/ Sold to Export ent c/ nt Delivery/
nt d/ f/ (Unit) (Php)
Market e/ Month
Unmilled Rice

Fresh (specify
variety)

Dry (specify
variety

Milled Rice

Variety

Both, specify

a/ Type of Supplier b/ Type of Packaging c/ Purchase Arrangement d/ Mode of Payment e/ Terms of Payment f/ Mode of Delivery
1-WS 1-Sack 1-Suki 1-Cash 1-net 7 days 1-picked-up
2-AWS 2-Polyethelene bags 2-Spot Buying 2-Credit 2-net 15 days 2-Delivered
3-Financier-WS 3-Box 3-Pre-arranged/ contract 3- Cash advances 3-net 30 days 3-Others (specify) _________
4-WS-Retailer 4-Others (specify) 4- Others (specify) 4-bank to bank 4-others, (specify) __________
5-Retailers 5- Others (specify) ________
6-Institutional buyers
7-Concessionaries
8-Processors
9-End consumers
10-Exporters
11-Consolidators

82
2. Monthly sales of upland rice (2013)
Product (specify) Volume of Sales: Lean and Peak Months (unit) Total Volume of Sales (unit)
Lean Months (specify) Peak Months (specify)
Unmilled Rice
Fresh (specify variety)

Dry (specify variety)

Milled Rice

Both, specify

3. Among your major buyers, what type of upland rice are most preferred and why?
Type of Buyer (specify name of Type of upland rice (specify) Rank (1-5, #1 being the highest- most preferred) Reasons for Preference
buyer) b/
a/
Local Buyers

Export Market-Buyers

a/ Type o Buyer (Wholesaler, Assembler-Wholesaler, Financier-Wholesaler, Wholesaler-Retailer, Retailer, Institutional Buyer, Concessionaire,
Processor, Exporter, End Consumer, Others (specify)
b/ Type of Upland Rice (Unmilled/milled processed (specify variety and form), Others (specify)

83
 4. What are your sources of price and market information (i.e supply, demand, competitor)? Specify
( ) Cooperative _____________________ ( ) Government _________________________
( ) Trader __________________________ ( ) Institutional buyer _____________________
( ) Buyer (local/ foreign) ______________ ( ) Internet _____________________________
( ) Others, specify ___________________ ( ) None

5. What are the marketing strategies being undertaken to promote the product? Specify
( ) Trade Fairs (indicate date & event of latest participation) ______________________________
( ) Advertisement ____________________ ( ) Product/ Food testing ___________________
( ) Others (specify) _______________________________________________________________

6. Who sets the product specification? ( ) seller ( ) buyer ( ) both ( ) others (specify) _______
Reason: ____________________________________________________________________________

7. Who sets the volume or quantity to be traded? ( ) seller ( ) buyer ( ) both ( ) others (specify) ____
Reason: _____________________________________________________________________________

8. Selling Agreement & Procurement System of Buyers:

Buyer (specify name Selling Procurement System Mode of Transportation Reasons for choice of
of buyer) Agreement a/ of Buyers b/ (specify) c/ Buyer d/
Local Buyers

Export Market Buyer

a/ Selling Agreement
1-Provide Cash Advances
2-Provide Logistics, specify
3-Provide Both
4-Others, specify
b/ Procurement System
1-By bulk (Pakyaw)
2-By kilogram basis (timbangan)
3-Others (pls specify_________)
c/ Mode of Transpo (specify)
1-Sea water____________
2-Air__________________
3-Land ________________
4-Others ______________
d/ Reasons for choice of Buyer
1-Regular source (“suki system”/No. of years_____
2-Proximity to the market
3-Marketing tie-up
4-High Price
5-Large Volume
6-Others, specify

9. Do you have contract (informal or written) with your buyer/ market outlet? ( ) Yes ( ) No If yes, what
kind of contract/ agreement?
Type of Others
Vol.
Buyer Price per kg Packaging Delivery Mode of Delivery agreement,
(kg)
Material (Specify
Time Frequency Picked Delivered
Fresh Dry
-up
Local Buyers

Export-Market Buyers

84
 II. MARKETING COST

A. COST FOR TRADING UNMILLED RICE

1. Operational Cost
Particular Cost/ Month % use for upland rice trading
Building
Warehouse
Stall
Human Resource
Utilities
Water
Electricity
Communication
Permits, License, etc.
Equipment Maintenance
Others, specify

2. Labor costs
Labor
% use for
Family Hired
upland Total
Operation/ Utilities Cost on Cost on
rice Man- Sub- Man- Sub- Cost
P/day Food P/day Food
trading days total days total
Expense Expense
Sorting/ grading
Storage/ temporary
storage
Packaging
Hauling
Origin to
intermediate
Intermediate to final
destination

3. Material Cost
Type of Packaging Quantity Unit Price Total Cost
Sacks
Polyethylene bag
Others, specify

85
 4. Capital investment for upland rice
Tools/ Materials and
% Used by Rent Quantity/ Year Acquisition Years more Present
Other Operating
Product (P/month) Area Acquired Cost to last Condition
Expenses
Stall
Storage facilities
(specify)
Vehicle/ Transport
Equipment (specify)
Weighing Scale
Air conditioner
Adding Machine
Others (specify)

V. PROBLEMS ENCOUNTERED

Problem Check Rank Explain RECOMMENDATION

Raw Material Sourcing
Poor quality of raw
material
Lack of supply
High cost of transportation
Drastic increase in price
Others (specify)

Marketing
Limited market outlet
High Transport Cost
Poor quality of packaging
materials
Financing
Limited capital
High cost/ interest
Difficulty in accessing
formal credit
Others (specify)

86
 VII. BUSINESS SUPPORT SERVICES

1. Are you aware and have availed of the following government support services? Please check.
Government Specify/
Reason if NO
Aware Accessible Adequate Availed explain (source
Service to any
& reason for
Yes No Yes No Yes No Yes No question
choice)
Input sourcing
(supply linkage)
Credit
Market Information

Cont. of Table 1
Government Specify/
Reason if NO
Aware Accessible Adequate Availed explain (source
Service to any
& reason for
Yes No Yes No Yes No Yes No question
choice)
Market linkage
Logistics/ Transport
Business advisories

Product standards/
specifications
Others (specify)

2. Are you aware and have availed of the following private sector support services/ Please check.
Government Specify/
Reason if NO
Aware Accessible Adequate Availed explain (source
Service to any
& reason for
Yes No Yes No Yes No Yes No question
choice)
Input sourcing
(supply linkage)
Credit
Market Information
Market linkage
Logistics/ Transport
Business advisories

Product standards/
specifications
Others (specify)

87
3. Do you practice record-keeping in order to account your expenses ________, sales _______, and other
important aspects (specify) of your operation? Explain ________________________________________

4. Do you have observe product quality ( ) Yes ( ) No ____ If yes, explain how ____________________
_____________________________________________________________________________________
If no, why not? _______________________________________________________________________
_____________________________________________________________________________________

5. Do you have any plans of expanding your business? ( ) Yes ( ) No

Why? ________________________________________________________________________________

6. Are you willing to do contract growing with reliable grower/ suppliers for specific upland rice varieties?
( ) Yes ( ) No
a. If yes, specify variety and volume: ____________________
b. If no, why? ______________________________________
c. Specify preferred terms: ___________________________

7. Are you willing to do contract marketing with reliable traders for specific upland rice varieties?
( ) Yes ( ) No
a. If yes, specify variety and volume: ________________________
b. If no, why? __________________________________________
c. Specify, preferred terms: _______________________________

8. What licensing and business requirements are set by the government?

National Local Problem Encountered

9. Are there any tax incentives/ privileges (specify)?

( ) Business taxes ___________________________ ( ) Others _________________________

VII. VALUE CHAINS AND MARKET STRUCTURE/ COMPETITION

1. Market Structure

a. How many traders in your barangays/ municipality are trading upland rice? ___________
b. If not your barangay/ municipality, do you know of other upland rice traders in other places?
( ) Yes ( ) No
If Yes, how many? ________________________
c. Among them, who are your strongest competitors? Please state names and addresses/ locations.
__________________________________________________________________________________
d. Do these competitors have any influence in terms of the following?
88
 Have
Item Influence? Explain/ Specify Don’t know
Yes No
Setting the price and in what
form

Controlling the market/ getting

bigger market share

Setting products standards and

market trends

Obtaining more government

assistance

e. Do you have linkages with following? Explain nature/ form of linkage, benefits and problem
encountered, if any.
Linkage Type Private a/ Public b/ Specify/Describe Benefits Problem, If any
Marketing contract

Credit Assistance
Technical Assistance/
Information
a/ Explain and specify institutions (DA, provincial/ municipal agriculture office, Landbank, ect.), NGO,
private entities involved (coops, distributors, processors, supermarkets/ hypermarkets, fast food
chains, hotels, hospital, schools), government/ private project or business partnership marketing
agreement with buyer in terms of volume, price, payment terms and frequency and time of delivery;
year the linkage started; etc

2. Competition

a. What business strategies do you employ to compete with other producers and/ or increase
production, sales or market share? ______________________________________________
_________________________________________________________________________

b. Are you well informed about your competitors’ product quality and markets? ( ) Yes ( ) No
Explain or specify. __________________________________________________________

89
VIII. GOVERNANCE AND UPGRADING IN VALUE CHAINS

a. What are the benefits/ assistance provided by your buyers? (tick Yes if provided, and No if not provided)
Benefit/ Assistance Yes No Explain/ Specify
Assured market
Stable and relatively higher price compared to other
buyers. (Pls. state name and add.)
Market Information
Quality and safe standards

b. Training needs to enhance products:

Benefit/ Assistance Yes No Explain/ Specify
Hazard Analysis & Critical Control Point (HACCP)
Good manufacturing Practices (GMP)
Proper packaging, labeling or brand name
PNS on upland rice (milled & unmilled)
Food safety and handling
Other by products (specify)

3. What is the type of governance in the value chain? Please check and Explain. (At this point interviewer
should assess whether specific items have already been answered but could still be clarified with the
respondents).
Governance Check Explain/ Specify
Market relationship
Many buyers and seller (Pls. specify)
Repeat transactions possible but little information is
exchanged between firms, interactions are limited
No technical assistance is provided on
Processing (Pls, specify)
Balanced relationship
Both buyer and seller have alternatives (e.g.
Supplier has various buyers)
Extensive information flows in both directions,
With buyers often defining products aspects
Both sides have capabilities that are difficult
to substitute and both are committed to solving
problems through negotiations rather that
retreat or exit
Direct relationship
Main buyer takes large % of supplier’s output,
Defines the product quality standards (i.e
Design and technical aspects), and monitors the
Supplier’s performance

90
 Buyer provides technical assistance and knows
More about the cost and capabilities of the
Supplier than the supplier does the buyer
Supplier is owned by the buyer or vice- versa,
With junior firm having limited autonomy to
Make decisions at the local level.

Upgrading/ Promotion for Competitiveness

4. What is the type/ category of upgrading that you are adopting? Please check and explain. At this point
interviewer should assess whether specific items have already been answered but could still be clarified
with the respondents).
Upgrading Type/ Category Check Explain/ Specify Problem, if any Benefit a/
Process upgrading
Use of improved/ new
Technologies to lower cost
(specify)
Training for improving skills
of workers (specify)
Mechanized equipment for
processing (specify)
Others (specify)
Product upgrading
Comply with quality standards
Product form (specify)
Follow recommended GMP
Others (specify)
Intra-sectoral upgrading
(specify quantity)
Selling directly to super/ hyper
markets
Selling directly to other traders
Selling directly to key
Provinces/ cities
Selling directly to coops or FA’s
Selling directly to other processor
Selling directly to institutional
Market
Selling directly to consumers
Others (specify)
a/ whether this has resulted in improved sales, reduced cost, increased profit, expended market, or brought any
additional benefit to the operation/ firm?

91