Philippine marketing system: implications for grain quality improvement
1988
Umali, D.L. | Duff, B. (Stanford Univ., Stanford (USA). Food Research Inst.)
Results showed that government stabilization activities kept actual retail price at par with rice ceiling prices since 1972, but farm prices remained below paddy support prices for the past 12 years. This deviation may be attributed to an inadequate procurement budget of the National Food Authority (NFA), delayed timing of NFA purchases and a very narrow margin that is inadequate to cover for marketing costs. The number of operations and unit of wholesalers, retailers and grain transporters increased from 1974 to 1986. The milling sector increased its milling capacity, but a decrease in number of operators was noted. This can be attributed to economies of scale and high capital requirements. A test for spatial price efficiency indicates low levels of short-term market integration at the farm-miller/wholesale level. Deflated yearly marketing margins generally remained the same or have increased from 1970 to 1986 and it is the miller/wholesaler level that is absorbing a greater proportion of these increases. The results of a survey of 127 farmers, 46 paddy traders, 38 millers, and 74 wholesalers/retailers in Nueva Ecija, Manila and Iloilo [Philippines] indicated that millers have greatest possible profitability. Farmers are constrained from storing because farmer loans are due at harvest and very high interest rates compel immediate sale of produce and loan repayment. Overall, these results showed a shift in the balance of power in the rice marketing channel towards the milling sector and could serve as further hindrance to the government's efforts to increase farm prices.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by University of the Philippines at Los Baños