Global competitiveness of the rice-based farming systems: the case of rice-vegetables farming systems in the Philippines
2000
Alviola, P.A. IV | Cataquiz, G.C. | Hidalgo, F.C. | Francisco, S. (Philippine Rice Research Inst., 3119 Maligaya, Munoz, Nueva Ecija (Philippines). Socio-Economics Div.)
Preliminary results of the study show that except for corn, mungbean and peanut all the surveyed commodities had significantly higher profit levels than rice in both farm and wholesale levels. Two scenarios were assumed by the study; export promotion and import substitution. Findings under the export promotion regime indicate RCR values greater than 1 for rice, rice-corn, rice-garlic, rice-mungbean and rice-peanut. One of the major reasons for the non-competitiveness is the relatively high cost producing these commodities including rice. Looking at the DRC [domestic resource cost] of these commodities, all of them are relatively higher than the opportunity cost in the world market. However, for commodities such as onion, tomato, eggplant, cabbage and cauliflower, RCR values were less than 1 indicating competitiveness. The relatively high border price and yield of the commodities under study might explain the competitiveness. This has the effect of drastically reducing the DRC, hence an overall reduction of the RCR, all things being equal. On the other hand, most of the surveyed commodities were globally competitive under the import substitution scenario
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