Analysis of the marketed surplus of paddy in the Philippines
2008
Mataia, A.B. | Francisco, S. R., Philippine Rice Research Inst., Maligaya, Science City of Munoz, 3119 Nueva Ecija (Philippines). Socioeconomic Div.
Rice yield increased significantly during the last ten years as a result of the government's engagement in various rice production programs. This was expected to have translated to an increase in farmers' welfare through the level of marketed surplus of paddy as it was hypothesized that improvements in productivity raised the marketed surplus. This study evaluates the trend on the level of marketed surplus in the Philippines and examines the determinants that affect it. A double log or log-linear model was adopted using three cross sections data in 1996-97, 2001-02, and 2006 conducted by the Philippine Rice Research Institute in collaboration with the Bureau of Agricultural Statistics. The results show that rice farmers with marketed surplus increased from 77% in 1996 to 83% in 2006. Additionally, the volume of marketed surplus improved from 2.2 MT (42%) to 2.4 MT (46%) per cropping. The analysis from the double log or log-linear model reveals that the level of marketed surplus of paddy are positively influenced by the paddy price, yield, size of rice area and the use of high quality seeds but negatively influenced by the household size and the amount of rice consumed by the household. These results suggest that investment in rice technology development and promotion to improve rice productivity, and provision of big incentive to farmers through higher paddy prices might be an encouraging approach to improve the welfare of rice farmers. Similarly, a more rigorous promotion on the use of high quality seeds such as certified and hybrid seeds must further be encouraged as this has increased yield thus, may lead to an increase in the level of marketed surplus.
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