Source: Business World

13/12/2015 – Philippine rice production can improve in several areas including irrigation, credit, insurance and labor costs, Agriculture Secretary Proceso J. Alcala said.

Mr. Alcala was citing a comparative study on the local rice sector and other rice producing countries in Asia that was conducted by the International Rice Research Institute (IRRI) and the department’s Philippine Rice Research Institute.

The study provided inputs that allow the analysis of factors critical to understanding competitiveness, namely: production costs and practices, levels of subsidy, farming systems and marketing practices in the rice industry of other countries.

“These numbers are important but need to be contextualized as to production subsidies as well as short-term market conditions,” the department said in a statement.

Prior to the study, an analysis of competitiveness was limited to comparing published statistics like the free-on-board rice prices of exporting countries.

The study also compared the level of mechanization across countries and found that mechanization could address the increasing cost of farm labor in the local rice sector.

Mr. Alcala said that in the context of the ASEAN Economic Community and in anticipation of the free flow of goods among member countries, enhancing competitiveness “should not be mere lip service.”

“Instead, it must be translated into targeted interventions that lead to the capacity of farmers to compete and to expand their engagement in agribusiness opportunities,” he said.

He made the statement during the third research seminar last week at the Shangri-La Hotel in Makati City.

“We will never look at Philippine rice farming the same way again because now, we know better,” he said. — Victor V. Saulon