PROCUREMENT, DRYING, MILLING and STORAGE, Sample Exercise

1. A Cooperative from Nueva Ecija has invested in contract palay reaping aside from their usual
palay buying business. The coop board assumed all 80 farmer members to be their potential
clients with a total of 170 hectares ricefield. Average yield per cropping is 120 cav (at 50 kg
per cav) per hectare with Ave. Moisture Content of 26% during the time of harvest. The
farmers retained 10% of their harvest while 90% were directly sold to the cooperative with
the buying price of Php13.50 per kg.

How many bags of palay will be hauled by the Cooperative including reaping fee of 9%?

2. The reaping income and procured palay were dried up to 14% MC the following day using
mechanical dryers but 20% of the hauled palay were dried in the multi-purpose pavement.
The Cooperative has two options on how to dispose the palay: Option 1 is to deliver all the
palay to NFA after drying while Options 2 is to store the palay for six months then mill and
sell them in the form of rice at 35.00 kg kilogram.

The following information were gathered if the palay is to be sold at NFA: MC = 14%; D & D =
3%; and Purity = 98.5% for palay dried in mechanical dryer while the palay dried in the
pavement: Moisture Content = 14%; D&D = 7% and Purity = 91.5%. How many kilograms of
palay per variety were accepted by the NFA? See Attached NFA Equivalent Net Weight
Factor (ENWF)

a) What is the % MC that would be lost when the palay grains are dried to 14%?
b) What is the weight of palay after drying?
c) How much would NFA pay the Cooperative if its buying price is PhP17.00 per kg
including drying incentive?
(The NFA gives a drying incentive of Php0.20 for every kilogram of dried palay delivered
with Moisture Content of not higher than 14% (MC ≤ 14%).)

3. If Option 2 is to mill the palay after six months period of storage, using a multi-pass ricemill
with 65.5% Milling Recovery for mechanically dried while 63.5% for solar or sun dried with
milling degree of Regular Milled Rice (RMR). As per NFA survey on Private Warehouses, the
dried palay will occupy an area of 77 sqm. The prevailing warehouse rental is P75.00 per
sqm per month. The Cooperative has also consider the following factors on Storage Losses
basing on the study conducted by National Postharvest Research and Extension (NAPHIRE)
now Phil. Center for Postharvest Development and Mechanization (or PhilMech), the daily
average birds and rodent consumption is 3.246 kg and insect consumption was at an average
of:

% Y = 0.0029811 X

Where Y is insect consumption by weight and X is storage period. How much palay would
have been consumed by the insects, birds and rodent at the end of the year. How much
palay would have been left for milling with final Moisture Content of 12.5%? Assuming that
cost of by-products will be used as payment for milling fee. What Option will give more
benefit(s) to the Cooperative?
 EQUIVALENT NET WEIGHT FACTOR FOR PALAY
Code: ENWF-P-2012
Effective: April 20, 2012

Classifi- Purity D&D % Moisture Content

cation % % 14.0 14.1- 15.1- 16.1- 17.1- 18.1- 19.1- 20.1- 21.1- 22.1- 23.1- 24.1- 25.1- 26.1- 27.1- 28.1- 29.1-
15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 27.0 28.0 29.0 30.0
PD1/PW1 95-100 0-7 1.000 0.985 0.972 0.959 0.946 0.934 0.921 0.908 0.895 0.882 0.869 0.857 0.844 0.831 0.818 0.805 0.793
90-94.9 0-7 0.948 0.934 0.921 0.909 0.897 0.885 0.873 0.860 0.848 0.836 0.824 0.811 0.799 0.787 0.775 0.763 0.750
PD3/PW3 95-100 7.1-13 0.935 0.921 0.909 0.897 0.885 0.873 0.861 0.849 0.837 0.825 0.813 0.801 0.789 0.777 0.765 0.753 0.741
90-94.9 7.1-13 0.887 0.873 0.862 0.851 0.839 0.828 0.816 0.805 0.793 0.782 0.771 0.759 0.748 0.736 0.725 0.713 0.702

INSTRUCTIONS ON THE USE OF THE TABLE:

1. Determine the Gross Weight (GW) of the palay.
2. Determine the Net Weight (NW) of the palay by subtracting the weight of the container from the Gross Weight (GW).
3. Determine the % Moisture Content (MC), % Purity, % Discolored and Damaged (D&D) Grains of palay.
4. Based on the % MC, % Purity, and % Discolored& Damaged Grains, determine the ENWF from the table.
5. Multiply the NW with the ENWF to get the Equivalent Net Weight (ENW): ENW = NW x ENWF
6. Procurement Cost = ENW x Buying Price

NOTE:
1. This ENWF table is intended for palay procurement only and not for any other purpose.
2. Reference quality standards for palay: 14% MC, 95% Purity, 7% Discolored and Damaged kernels
3. PD = Palay Dry; PW = Palay Wet

APPROVED:

sgd
ANGELITO T. BANAYO
Administrator