CIRCULATING COPY TO BE RETURNED TO REPORTS DESK FILE COPY DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIA"-'"1 Not For Public Use 39 Vol. 3 RETURN TO Report No. 39 a-PH AGRICULTURAL SECTOR SURVEY PHILIPPINES (in four volumes) VOLUME III ANNEXES 6 - 10 May 2, 1973 Regional Projects Department Asia Regional Office This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. I PHILIPPINES AGRICULTURAL SECTOR SURVEY VOLUME III ANNEXES 6 - 10 ANNEX 6. RICE PRODUCTION ANNEX 7. CORN AND FEED GRAIN PRODUCTION ANNEX 8. SUGAR AND TOBACCO PRODUCTION ANNEX 9. RICE: ESTIMATES OF SUPPLY AND DISAPPEARANCE ANNEX 10. CROPS MARKETING AGRICULTURAL SECTOR SURVEY PHILIPPINES ANNEX 6. RICE PRODUCTION ANNEX 6 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY RICE PRODUCTION TABLE OF CONTENTS Page,No. Introduction .......................................... 1 Past Trends: Area, Production and Yield .............. Four-Year Production Plan and Targets ................. 3 NFAC Rice Program ..................................... 4 Research and Extension ................................ 6 Supply of Major Inputs ................................ 10 Recommendations for Improvement ....................... 17 The Outlook for Future Production ..................... 21 Appendix 1: Government Organization: Annual Crops Production Programs Tables: 1. Rice Production Statistics, All Philippines 2. Official Statistics of Rice Harvested Area on Irrigated and Rainfed Paddy and Upland Rice 3. Area Changes of Major Upland Field Crops 4. Rice HYV, Area and Yield 5. Rice Balance Sheet for 1971/72 6. Rice Extension Target of the NFAC Program 7. Estimated Input and Credit Requirement of the NFAC Rice Program 8. Comparison of Improved Seed Board Recommended Rice Varieties 9. Fertilizer Recommendations for Lowland Rice 10. Number of Farms in Sample Barrios Reporting Using Tractor 11. Number of Farms in Sample Barrios Reported Using Power Threshers 12. Estimated Number of Tractors in Philippines 13. Rice Planting Calendar in Philippines 14. Variation of Rainfall Pattern & Typhoon Frequency 16A. Projected Change of Rice Land Composition 16B. Difference from 1972 17. Approximated Present Composition of Rice Land 18. Projected Rice Harvested Area, Yield & Paddy Production ANNEX 6 Page 2 Figures: 1: Variability in Optimum Level of Nitrogen and Palay Yield Level Due to Changes in the Fertilizer Price (WB 7226) 2: Sales of Farm Machinery (WB 7227) 3: Price Trends of Selected Factors in Farm Production (WB 7228) ANNEX 6 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY RICE PRODUCTION 1/ Introduction 1. The rice deficit has been a persistent problem for the Philippines. Only a third of the lowland rice harvested area is now under irrigation. And if the upland rice area is included, only about 29% of the harvested area is under irrigation. Beginning with the expansion of HYV's in 1966/67, rice production increased rapidly and steadily. In 1968/69 and 1969/70, the Philippines were thought to have achieved rice self-suffiLciency for the first time in recent history. However, deficits became apparent during the last two years and imports again become necessary. The impact of HYV's is levelling off, as most of irrigated land is now planted to HYV's. HYV's are spreading into rainfed paddy where the yield increment is much smaller. The average yield of HYV's in 1970/71 was only 2.9 MT/ha and, with 39% of total rice harvested area under HYV's, the national average yield was 1.7 MT. The Philippines has a good backlog of research information on rice, but has not been widely disseminated to farmers. Recent trials!on high input culture of HYV on rainfed lowland gave encouraging results. SeLf- sufficiency in rice requires further improvement in irrigation, drainage and extension. Small farmers require larger supplies of farm inputs and credit in order to take advantage of the potential high yields of HYV's. Past Trends: Area, Production and Yield 2. Area. The area harvested to rice was below 2.8 million ha until 1956/57, jumped to above 3 million ha in 1957/58, and has fluctuated in the 3-3.3 million ha range since then (Table 1). Since 1965/66 the irrigated area has increased rapidly and the first HYV, IR-8, was released to farmers in 1966/67. Until 1965/66, the reported "irrigated rice area" fluctuated around 1 million ha. Since then, it registered big gains each year, except in 1969/70 (Table 2): 1965/66 960,000 ha 1966/67 1,170,000 ha 1967/68 1,309,000 ha 1968/69 1,483,000 ha 1969/70 1,346,000 ha 1/ The government organization for rice and other annual crops programs is discussed in Appendix 1. ANNEX 6 Page 2 The upland rice area has declined slowly since the beginning of the sixties, but dropped sharply from 605,000 ha in 1965/66 to 445,000 ha in 1966/67 and, by 1969/70, it was down to 412,000 ha. 3. Competition of other crops with rice increased during the late 1960's and early 1970's. Total harvested corn area remained around 1.9 to 2.0 million ha from 1961/62 to 1964/65, but exceeded 2.1 million in 1965/66 and has expanded steadily since then; by 1969/70, it reached 2.4 million ha (Table 4). The sugarcane area has expanded steadily since the forties, and exceeded 300,000 ha for the first time in 1964/65; it was 350,000 ha in 1969/70 and 422,000 ha in 1970/71 (Table 3). 4. Data suggests that, until 1965/66, farmers normally would plant more than 3.3 million ha of rice each year but drought, flood, typhoon and pests would destroy as much as 300,000 ha of the planted area. When the average yield was 1-1.2 MT paddy/ha, the wide fluctuation in the harvested (damaged) area was probably the single most imDortant factor that kept Philippines' rice production uncertain. 5. Since 1965/66, the expansion in corn and sugarcane area has caused a rapid reduction in upland rice area. The loss of upland rice area has been partly compensated by an expansion in the irrigated area planted to rice during the dry season. The rate of expansion in the irrigated area, however, has been overestimated (Annex 3). The mission estimates that less than 900,000 ha of the rice harvested area are now under irrigation. 6. Yield and Production. There has been an unbroken upward trend in yields per hectare since 1957/58 and of production since 1954/55. As indicated, three factors are involved: greater use of improved varieties (old Seedboard varieties before 1965/66 and HYV's after), reduction of the lower yielding upland rice area, and the expansion of irrigated cultivation. Contributions from the use of manufactured inputs have not been significant. 7. Despite the typhoons of 1970 and the tongro disease epidemic in the fall of 1971, the average yield in 1970/71 (39 cavans) was 13% higher than in 1968/69 (30.3 cavans). Over the two-year period, there was a loss in harvested area of about 6.5%. 8. The rapid increase in yields since 1966/67 was caused primarily by the introduction and expansion of HYV's. National Food and Agricultural Council (NFAC) reported that the total HYV area increased from 83,000 ha in 1966/67 to 1.2 million ha in 1970/71. Over the same period, however, the reported average yield/ha of HYV rice decreased from 100 cavans to 66 cavans (Table 4). NFAC attributed the decline in yield to the following causes: decreasing use of inputs due to rising cost; tight credit; replacement of IR-8 by varieties with better taste qualities but lower yield: IR-5, IR-20, IR-22, and C-4; severe rat damage, with an average loss of 3 cavans per ha; insufficient supervision by extension workers due to latter's lack of transportation facility; inadequate post-harvest facilities; peace and order; and three major typhoons in 1970/71 and 19 minor ones. ANNEX 6 Page 3 9. As a general rule, the average yield of new varieties for any crop will decline as the area expands. In the Philippines, HYV planting began initially in irrigated areas. The HYV area in NFAC's programmed area (1970/71) was equal to about 90% of the total irrigated area reported by BAEcon, 1/ and was considerably greater than the mission's estimate of less than 900,000 ha irrigated. NFAC reports suggest that HYV's spilled onto some 300,000 ha of rainfed paddy in 1970/71, and is making rapid inroads onto this category of rice land. While the expansion of HYV area has been the main contribution to the rapid production increase since 1966, continued expansion can no longer be expected to increase the national average rice yield at the same rate, even though the national average paddy yield is a mere 1.7 MT/ha. Field trials of high input rainfed HYV culture conducted in 1971/72 gave encouraging results and hope that substantial paddy production increase may be possible from the rainfed paddy if bottlenecks in extension and credit could be overcome. 10. To keep rice production in line with demand, the Philippines' rice program requires four courses of action: - More substantial expansion of lowland irrigated area, expansion of the HYV area on rainfed paddy in areas with relatively even distribution of rainfall, and improvement of drainage of the paddies. - Improving yields on existing irrigated land by an expanded irrigation rehabilitation program, and by inducing the use of more inputs by farmers through reduction of risks. - Extension of still better HYV's with higher disease resistance. - Controlled reduction of the area planted to upland rice on slopes that are too steep and- diversion of some rainfed lowland paddy to other crops. Four-Year Production Plan and Targets 11. The current Four-Year Plan sets the following targets for rice production: 1/ BAEcon reported 1,565,390 ha for the whole country. It is suspected that this included areas of all old and new Seedboard varieties. ANNEX 6 Page 4 Year 1,000 MT Paddy Base year 1969/70 5,233 ( 1970/71 5,343/1 ( 1971/72 5,853- Estimated ( 1972/73 6,301 Targets ( 1973/74 6,633 ( 1974/75 6,982 Annual Average Growth Rate: 6.1% /1 BAEcon's February, 1972 estimate: 5,142. 12. The Plan proposes the saturation of existing irrigated rice land with HYV's and expansion of irrigated crop area by 220,000 ha during the plan period. There would be greater use of certified seed and other inputs; expansion of applied research; more supervised credit; an increase in the supply of processing technicians; etc. Agricultural diversification of marginal rice land would be pursued as rice production increases over the plan period. Agricultural mechanization would be realized principally by a continuation of Agricultural Guarantee Loan Fund and IBRD financing through rural banks and DBP. Additional long-term loans would be sought for improving processing and marketing. There would be a price support program and exports of high quality rice would be allowed when domestic supply is assured. 13. As a national economic plan, it includes no detailed projection for planted or harvested area, nor for yield per hectare, nor regional breakdown of production targets. It gives no specific plans of implementa- tion for the improvement measures outlined above. In DANR's own "Four-Year Rice Production Program", which forms the basis of rice targets of the national Four-Year Plan, it does give projections of area yield and production of HYV's for the four years and estimates of requirements of seeds, fertilizers, and pesticides for the first year of the plan period. It prepares detailed targets each year thereafter. Thus, the Philippines' rice program under the Four-Year Plan is based mainly on production increases to be derived from HYV's and leaves the rest of the rice production to taking its own course under the routine extension program. NFAC Rice Program 14. The planning process of the DANR-NFAC rice program can be illustrated by the 1971/72 program. NFAC first estimated that the country needed to produce 5.7 million MT of paddy, 360,000 MT more than 1970/71 production (Table 5). To produce that amount, it programmed 1 million ha of HYV's in 43 provinces in nine regions to receive intensive program support. The target compared with a planted area of 1.2 million ha in 64 provinces in 1970/71. The programmed area was expected to achieve an average yield of 75 cavans paddy (3,300 kg) per hectare and to produce ANNEX 6 Page 5 a total of 3.3 million MT. The remaining 2.4 million MT are to be produced from the 2.1 million ha of unprogrammed paddy and upland rice at about 26 cavans per hectare. The average yield on the unprogrammed area reported by NFAC varied from 24 cavans to 28 cavans from 1967/68 to 1969/70. 15. The 1 million ha were then distributed among different regions and provinces (Table 6). Based on area and seasonal distribution, NFAC esti- mated requirements for seeds, fertilizers, pesticides and credit, by seasons, by province and by regions (Table 7). Cost of inputs was put at Y 363.4 million, composed of r 210.8 worth of fertilizer (9.6 million bags), P 151.6 million worth of pesticides, and Y 1 million worth of certified seed (1.2 million cavan). Credit for the July-December 1971 crop was put at t 371.1 million; and for the January-June 1972 crop, P 116.8 million. 16. NFAC expects the various inputs to contribute to the production increase as follows: use of certified seeds, 10%; use of fertilizers, 5-10%; use of pesticides, 5-10%; proper weeding, 10-15%; and proper irrigation, 30-50%. 17. Except in Ilocos, Cagayan Valley and Central Luzon regions, the regional area targets exceed the listed irrigated area, indicating inclusion of some rainfed paddies. Beginning 1973, NFAC rice program will reguLarly include rainfed lowland paddies. For implementing the Program, NFAC Lists a set of work items following the general guidelines of the Four-Year Plan. NFAC has lined up technical staff of various agencies, particularly those of Bureau of Plant Industry (BPI) and Agricultural Productivity CouncL1 (APC), at the national, regional, provincial and municipal levels, to be responsible for the program in tandem with their regular job -- it is said that some 1,850 persons participate in the Program's work at various levels. NFAC provided incentive allowances (travel allowances) to field staff at Y 50-250 per month. 18. The most prominent work component is the so-called "United Rice Applied Research, Training and Information Project". The plan includes five categories of field trials conducted in farmers' field. A kit approach to input distribution was started in 1966. Each "minikit" contains seeds of six recommended varieties, each sufficient for planting 50 sq m, or a total of 0.3 ha, and inputs in proportion to the recommended amounts, plus directions on cultural practices. Several thousand of such kits are distributed each year through municipality-based APC Farm Management Technicians (extension officers). Beginning in 1972, a smaller so-called "microkit" was added, each containing one or two varieties and inputs for a 1/200 ha area. The microkits are aimed at permitting more rapid spreading of new HYV's to replace the old ones. 19. The other three categories are: (1) Farmers' Evaluation of New Rice Selections Applied Research Trials - to be conducted in various provinces by BPI, local colleges of Agriculture and APC; (2) Trials of New Selections in combination with the use of insecticides, and of herbicides, ANNEX 6 Page 6 also to be conducted by BPI, and local colleges of Agriculture in various Provinces and APC; and (3) Trials on response to nitrogen of new selections to be conducted by Bureau of Soils (BS) in various representative soil types in different Regions. Reports of the trials are submitted through mother agencies to NFAC. Once a year, a workshop lasting four or five days is held in Manila or Los Banos to review findings and formulate new recommendations to be incorporated into extension. The training program includes a six-month training of national, regional and provincial level rice specialists of APC, BPI and BS. The trainers are BPI senior specialists, UPCA professors and IRRI experts. Those trained in turn conduct two-week training courses for APC and BPI provincial and Municipal level Farm Manage- ment technicians. Finally there are several one-day regional programs--seminars, training in applied research, and the minikit project. 20. The information program includes: (a) annual edition of "The Philippines Recommends for Rice by NFAC", which contains the latest official recommendations on various aspects of rice culture, and is intended for extension workers, agribusiness and farm leaders; (b) monthly issues of a semitechnical "Philippine Rice Letters" by the United Rice Applied Research, Training and Information Project, intended for keeping national, regional and provincial specialists informed of the current decisions reached by NFAC and noteworthy research findings on rice; and (c) bulletins and leaflets for distribution to farmers printed in major dialects, and in English. Research and Extension 21. Rice research has the longest history and the largest program among all crops in the Philippines. The main Government agencies responsible for the program are BPI and UPCA. Joined by International Rice Research Insti- tute (IRRI) 10 years ago, rice research in the Philippines is probably as encompassing and productive as any country in the world. 22. Varietal Improvement. Before IRRI began its work in 1963, BPI and UPCA had developed a number of improved varieties and extended them to farmers. IRRI's release of its first variety, IR-8, started in 1965/66 and it released other varieties since then. Since then, the BPI and UPCA's newer varieties have also incorporated shorter and upright plant type and higher yielding ability which characterize IRRI varieties. The 1971 Seed- board Varieties of the Philippines (Table 8) are composed of varieties from these three institutions. The strong point of HYV's so far has been a plant type conducive to fertilizer responsiveness, but there is much room for improvement in disease resistance and eating quality. The tungro outbreak in the fall of 1972 prompted DANR to remove the susceptible IR-8, IR-5 and IR-22 from the list of Seedboard Varieties, beginning with the spring of 1972. Those remaining are IR-20, C4-63, C4-63G, C4-137 and BPI-76 (NS). A significant shift in the composition of HYV's in farmers' field is in the making, although it will take several years to complete. ANNEX 6 Page 7 23. IRRI's rice breeding program has for some years identified sources of resistance to all major rice diseases (i.e. rice blast, bacterial leaf blight, bacterial leaf streak, tungro and grassy stunt) and to major rice insects (i.e. stemborers, gall midge, brown plant hopper, which transmits grassy stunt, and green leaf hopper, which transmits tungro). The new approach in rice breeding at IRRI is a deviation from the traditional objective of breeding for high resistance to individual diseases (so-called vertical resistance). It now aims at embodying fairly high resistance to the full range of major diseases and insects in varieties (so-called horizontal resistance), in addition to high yields and good taste qualities. Selections showing various combinations are already available. IRRI is working to put them all together. The new IRRI selections, once released, promise to be a second breakthrough in the history of rice breeding. The date of release of the new phase HYV's, however, is difficult to ascertain at this point. The mission's impression is that, until 1975, the Philippines' rice program will be dependent on the existing line of HYV's. After 1975, say, five to seven years from now, new and higher yielding HYV's may be available. 24. Beginning 1971, IRRI/NFAC initiated a 3 year field trial project of cultivating HYV's on rainfed paddies in 4 municipalities in Central Luzon. The first year result showed that high yield could be obtained: (a) by planting rice early in the first week of July so that grain would ripen before onset of the dry period beginning late September, and (b) if the full package of recommendations on application of fertilizers, pesticides and weedicides are strictly followed. If these findings are sustained by further trials and successfully extended to farmers, significant production increases could be obtained from the huge rainfed paddy area in the Philippines. 25. Pest Control. BPI and UPCA have experimented and recommended chemical foliage spray, dusting, and seed treatment for rice pest control for some years. IRRI carried on chemical pest control studies, also, but once again it broke away from tradition and recommended the use of systemic granules, i.e. gamma-BHC, diazinon or sevidol which is by now well known to most countries. With two to three direct broadcastings in rice fields, the latter two chemicals control stemborers, green leaf hoppers and brown paddy hoppers. The former controls stemborers. The use of granules eliminate the use of sprayers which many small farmers cannot afford, but the cost of granules are still too high for most Philippine farmers. New chemicals for rice pest control are continuously being tested by the three agencies and field recommendations are included in extension material. (Soon after the tungro disease outbreak, recommended use of Furadin, Sevin or Mipcin seed treatment and seedling dipping was put out quickly, together with the use of resistant Seedboard Varieties.) 26. Research findings and recommendations are available, but the cost of chemical control is usually prohibitive. BPI computed that three applications of Gamma-BHC for control of stemborer and Sevin or Mipcin for tungro, and two applications of Plasticidin or Kusumin for rice blast would cost f 151, f 265 and g 160 per hectare, respectively, at 1972 prices. The real hope of minimizing crop losses from pests, therefore, lies in the use of HYV's which are resistant to a wide range of pests. ANNEX 6 Page 8 27. Rat Control. During 1970, a sample survey of 98 barrios in 16 major rice producing provinces showed an average damage of 4.5% of the crop. Two of the largest plains of the Philippines, Central Luzon and Cotabato Valley, have heavy rat infestation. 28. Research on rat control is being carried out mainly by the Rodent Research Center of the UPCA. Cooperating agencies include NEC and BPI, and assisting agencies include USAID and the Denver Wildlife Research Center. Work so far has included field surveys on rat damage and species of rats, studies of rat population sampling techniques, comparative studies of rat population in rainfed and irrigated paddies, and studies of poisons, baits, method of bait setting, and the effect of rat damage done at different stages of rice growth. Findings are well documented. Basic facts about rat damage are now available and much better quantified than before. Recommendations for rat control methods are included in extension material but well organized campaigns are yet to be launched. 29. Weed Control. As in most tropical countries, there are three main types of paddy weeds in the Philippines: the grass weeds (mainly barn- yard weed), the sedges, and broadleaf weeds. Weed problems are aggravated by the extension of short-stemmed HYV's which are less able to overshadow weeds than long-stemmed lower yielding varieties. Experiments on weed control, conducted mainly by IRRI and UPCA, are limited to the use of herbicides. Effective herbicides for different weeds, rate, timing and methods of appli- cation have been worked out and included in extension material and minikits. New herbicides are being tested. But use of herbicides is limited to large producers. A complete application of Eptam M or Treflan R costs f 70 per ha (1970 price), which few small farmers can afford. One good development, the early application of 2-4 D Isopropyl ester, is emerging from IRRI experiments. 2-4D is an old herbicide. 2-4 D is used to some extent for second rice crop in Taiwan, in Thailand and in the Philippines by large farmers, but when applied at the usual time of two or three weeks after transplanting, it fails to control grass weeds. IRRI's recent experiment shows that if applied four days after transplanting, before emergence of any weeds, 0.8 kg active ingredient per hectare will control all weeds in one application. The cost at 1972 price is about $5/ha for granules and only $2.50/ha if liquid is used, but the latter has to be applied with a sprayer. If the January/February temperature happens to be cool after transplanting, it may stun the seedlings for a short period but they will revive in a couple of weeks with no apparent effect on final yield. IRRI is optimistic about the possibility. If proven effective under field conditions for small farmers at the estimated cost, it will be another breakthrough in tropical rice culture. 30. Application Rates of Fertilizers. Research on soil fertility and fertilizer application rates on rice is carried out mainly by the Bureau of Soils. The current official fertilizer recommendations for rice are based mainly on the findings of a Bureau of Soils/UNDP Soil Fertility Survey and Research Project conducted from March 1964 to March 1969. The current official recommendations range from 60-100 (mostly 80-100) kg of N per hectare, 30-50 kg of P205 and 0-50 kg of K20 (Table 9). ANNEX 6 Page 9 31. The recommended rates are much higher than the rates farmers are actually using. Examination of the published experiments 1/ show that in almost in all trials, the paddy yield was near 45 cavans (2,000 kg) per ha or more on control plots with zero application of fertilizers. An IRRI curve (Fig. 1) shows HYV paddy yield response to N application, where paddy yield also began with 2,000 kg per ha at zero kg of N. 2/ Apparently, all rice fertilizer experiments done in the Philippines were conducted on well irrigated lowland paddy and the management of the plots was such that all adversaries were kept under control so that the response of the crop to fertilizers could be compared. This is in fact the only way experiments can be conducted. 32. When translated into extension level, however, it means: (a) these recommendations are applicable only to irrigated lowland rice, not to rainfed lowland rice; (b) farmers' crops are getting a much lower response even if they use the recommended rates, because all other conditions, i.e., adequacy of irrigation and drainage, pest, weed, and rat control, are not under as good control as in trial plots; and (c) the fertilizer recommendations are at present almost irrelevant to farmers' actual practice. 33. Experiments on fertilizer response of upland rice was started by IRRI in 1969. Work on rainfed lowland rice was also started by IRRI/UPCA/BPI in 1971 (see para 24). 34. Farm Mechanization. Emphasis of IRRI rice farm machinery research is placed on design and development of equipment of immediate interest to local manufacturers, utilizing, to a maximum extent, locally available manu- facturing methods, materials, labor, and other resources of the Asian region. It aims at meeting the requirements of the 2 to 10 ha farms. So far IRRI has designed and developed: (a) a 4-6 HP power tiller being marketed by two manufacturers in the Philippines at about US$600, less than half the price of comparable imported tillers; (b) single and multi-hopper paddy seeders (sow 1 ha in 5 manhours) costing about US$40 to 45; (c) rotary power weeders 1/ Soil Fertility Survey and Research, the Philippines' Field Experiments, Plant Nutrition and Soil Classification. UNDP/FAO. LA:SF/PHI 1p Technical Report 1, Rome, 1969. 2/ Barker, Meyers and Cordova. The Impact of Devaluation on Fertilizer Use and.Profitability in Philippine Rice Production, IRRI (mimeol- graphed), May 21, 1970. ANNEX 6 Page 10 using a 1 hp engine (weed 1 ha in 197 man-hours), (d) a light table thresher that can be moved to fields with no access roads and can thresh high moisture paddy (4 to 5 men can thresh 350 kg paddy per hour); (e) a power grain cleaner (cleans up to 3 tons per hour); (f) a foot-operated low-lift bellows pump that delivers about 50 gal/min at 1 m head, costing about $40. Under development are axial-flow thresher that may thresh 650 kg paddy per hour, a tractor PTO thresher for custom rice threshing, a four-row stripper har- vester, a rice hull oil-fired batch drier and a heated sand conduction drier-parboiler. None of these are in sizeable production, but they represent the first line of products designed to be adaptable to the socio-economic requirements of small paddy growers and technological capability of machine manufacturers in Asian region. 35. Water Management. IRRI has recently initiated research on the economics of water management for rice. One experiment seeks to determine the effect on yield of drought conditions at different stages of crop growth. Other research, beginning in 1971, studies the economics of operating an irrigation system, with special emphasis on farm-level water management. Preliminary findings emphasize that to improve efficiency of the existing irrigation systems, achieving equitable distribution of water along the length of the canals should take precedent over the improvement of the terminal distribution facilities. Supply of Major Inputs 36. Improved Seeds. The spectacular expansion of HYV's in the Philippines since 1966 is attributable to three measures: successful introduction of IR-8 in 1966/67 by contract farming of about 1,000 ha, where use of well irrigated land and prescribed inputs were required; the wide distribution of minikits and the continuous rapid farmer-to-farmer dissemination on the advan- tages of the new varieties. 37. BPI's seed multiplication program has not been able to distribute a significant quantity of certified seeds. BPI purchased roughly 44,000 cavans (44 kg) of certified seeds in 1966/67 but distributed only about 2,500 canvans. Apparently, even with the attraction of an average yield of 100 cavan/ha at that time, farmers did not take full advantage of the BPI certified seed stock indicating their unwillingness to pay premium prices. Since then, BPI purchases and distribution were reduced to the order of about 3,500 cavans in 1967/68 and 1968/69, and to under 700 cavans in 1969/70. In 1970/71, it purchased and distributed about 9,800 cavans of certified seeds of both lowland HYV's and upland rice varieties. This equals to 3% of the seed requirement for a rice harvest of 3.1 million ha. 38. GOP signed a loan agreement in May, 1972, with Japan (Y 17 million to be provided by GOP, Y 7.63 million and $1.20 million loan from Japan) to finance an "Expanded Seed Production and Distribution Program". The project calls for producing 224,460 cavans of certified rice seeds by 1973 (1st year), and increasing to 1.41 million cavans by 1977 (5th year). The latter amount should be sufficient for planting 1.41 million ha, or ANNEX 6 Page 11 44% of the present harvested area. Corn seed will be the other major crop to be multiplied under.the project. In view of BPI's inability to dis- pose of its certified seed stock, even with strong demand in 1966/67, disposal of the huge amount of certified seeds to be produced under the loan project is questionable. 39. Like most countries, Philippines' seed program has four main steps: (a) Breeder seeds are multiplied by stations of origin, i.e. BPI, UPCA and IRRI. (b) Foundation seeds are produced mostly by BPI and some by UPCA and IRRI. (c) Registered seeds are produced by 14 BPI experiment stations, nine for lowland HYV's and five for upland rice varieties. (d) Certified seeds are produced by selected "farmer cooperators". There are 1,225 accredited rice seed producers with 7,757 ha of irrigated paddy registered for seed production. Most of these are large farmers who use a part of their land for producing seeds. They have a seed grower's association. 40. In addition to the usual four seed categories, the Philippines adopted a 5th category - the "good seeds" which means seeds inspected in the field to be true to the variety but not certified by laboratory testing and the producing field does not have to be planted with registered seeds. When farmers demanded seeds of tungro resistant HYV's in the spring of 1972, BPI rushed field identification of "good seeds" of IR-20 and other resistant varieties. Actual movement of seeds was done partly by BPI but mainly through private channels. 41. All categories of seeds multiplied by stations of BPI and other agencies are tested by the BPI Seed Laboratories in Manila. Those produced by private seed growers are tested by BPI's seven Regional Seed Laboratories. Certified seeds purchased by BPI are sold, distributed or stored in BPI's Central Seed Warehouse in Manila and 6 others in different regions. Regis- tered seeds produced by the various BPI stations are handled in the same manner. Germination and overall quality deteriorate during handling and transit. 42. BPI is aware of the ineffectiveness of its present seed program and is anxious to improve it. A three-month study was made from January through March 1971 by a Mississippi State University team under contract with USAID. Although the emphasis of the team's report is on feed grain seeds, its comments on overall seed program and those relating to rice seed are relevant: - Too many BPI stations and farms (27 for all seeds) are involved; organization is cumbersome and hard to coordinate; ANNEX 6 Page 12 resource and trained personnel are too diluted; staff working on seed at different stations are not sufficiently trained. - Private certified seed growers are too dependent upon the Government for seed marketing. Extension officers are not coordinated closely enough with BPI and seed growers in providing seed supply and demand information. Private seed growers should be encouraged to do their own marketing. - BPI stations and farms are applying farmer-level technology to relatively large scale seed operations. -- The seed program is under-invested and the cost of operation is insufficiently funded. - The Central Seed Laboratory are overloaded resulting in delays of testing and certification; while the regional laboratories do not have enough work. - Field inspectors are too few in number, insufficiently trained and lack transportation, resulting in delays in certification work. - Seed marketing and distribution systems are not sufficiently identified or developed. Transportation is difficult at all times. Back-and-forth shipping of certified seeds between producing region and Manila warehouse should be stopped. 43. In spite of these shortcomings, the MSU Team observed that the rice seed program in the Philippines is in much better shape than that for other crops because paddy is more resistant to abuses in handling and storage; the country's technicians and farmers are more experienced in handling paddy seeds; and the program has had the stimulus of rice HYV's, which is unique in the Philippines. 44. The mission's interpretation is that rice HYV's have expanded in spite of an inadequate seed multiplication program. When HYV's double the yield of traditional varieties, farmers obtain seeds whether they are certified or not. A seed lot containing say 5% impurities or with say only 85% germination would surely be disqualified for certification, but the remaining 80% would still give farmers an 80% yield increase and farmers would use it anyhow. This disregard of certification will probably continue for rainfed paddy, if the yield margin over traditional varieties is sufficiently large. But a sound certified seed program has now become relevant on irrigated lowland which is already nearly saturated by HYV's. Future yield gains from seed on such land will come from high germination rates, high purity, vigor of seedlings and freedom from seed born diseases. ANNEX 6 Page 13 45. The USAID supported construction of the Seed Drying and Processing Complex at the Malagaya Rice Research and Training Center and the implementation of the Japanese seed loan are therefore timely steps. When the latter is completed, Philippines seed program will be greatly strengthened in physical facilities: roads, irrigation and drainage facilities, farm machineries, drying, processing and storage facilities of the BPI seed producing stations, four regional seed processing plants in addition to Maligaya, vehicles for inspectors, etc. The financing of the operation of the program and the purchase of certified seeds will also be greatly improved, if the proposals are carried out. The program is aimed at supplying 1,410,000 cavans (62,040 MT) of certified rice seeds and 303,750 cavans (13,365 MT) of certified corn seeds in a year, sufficient for planting 1,410,000 ha of rice and 1,215,000 ha of corn. The program will be the best equipped one in Southeast Asia. 46. The mission's concern remains whether that many farmers (some 750,000 at 2 ha per farm) would buy certified rice seeds each year, in view of their current reluctance to pay f 10 more per cavan. 1/ Although BPI has yet to determine the future price to be charged for rice seeds, estimated quantity and value of seeds to be produced under the Japanese loan project places the projected price at # 44 per cavan. The dependence of the private seed growers on Government for marketing and the inability of BPI to dispose larger amounts of seeds so far are basically caused by the price factor. The private seed growers have capacity to produce more seeds. Exporting certified IRRI variety seeds has become a steady business of larger seed growers in Central Luzon. 47. Use of Fertilizers. Data on fertilizer consumption by crop is not available from Government sources or from the Fertilizer Institute of the Philippines (FIP). One indication of the extremely low fertilizer consumption on rice comes from Fertilizer Commission estimates of total fertilizer consumption in the Philippines. 1/ The BPI policy has been to keep the price of certified seeds ? 10 per cavan higher than the common paddy price. ANNEX 6 Page 14 FERTILIZER COMMITTEE ESTIMATES, 1966-69 Year N P205 K20 MT MT MT 1966 26,030 10,303 7,781 1967 65,804 13,159 11,505 1968 110,908 28,093 21,364 1969 76,706 25,608 22,556 4 year average, all crops /1 68,264 19,291 26,052 Sugarcane 4-year average /2 41,275 20,638 22,357 /1 Local production plus import, carry over stock unknown and excluded. /2 PHILSUGIN data, actual consumption by sugar industry. Source: Report of Subcommittee No. 1, the Technical Working Committee, Presidential Fertilizer Commission, NEC, April 26, 1971. 48. The data show that 60% of N, practically all P205 and 86% of K20 were consumed by sugarcane alone, leaving about 20,000 MT of N and less than 2,000 MT of K20 for all other crops including rice. 49. The Tokyo Office of the International Potash Institute and Potash Institute of North America, based on a study made by its Director, Dr. H. R. von Uexhull in February, 1972, estimated the fertilizer consumption in Philippines in 1971 and 1972. For rice, in 1972, consumption was 50,000 MT of N, 10,000 MT of P205, and 6,000 MT of K20: ESTIMATES OF FERTILIZER CONSUMPTION, 1971 and 1972 Year Crops N P205 K20 MT MT MT 1971 All Crops 118,000 39,000 39,700 Sugarcane 48,700 22,350 23,000 Bananas 3,600 - 6,500 Others, Including Rice 65,600 16,700 10,200 1972 All Crops 130,000 43,000 46,000 Sugarcane 52,000 25,000 25,000 Bananas 5,000 - 9,000 Rice 50,000 10,000 6,000 Others 23,000 8,000 6,000 Source: International Potash Institute, Tokyo Office, unpublished. ANNEX 6 Page 15 When averaged over the lowland paddy harvested area of about 2.7 million ha, it amounted to 18.5 kg of N, 3.7 kg of P205 and 2.2 kg of K20 by 1972 estimates, and no fertilizer application at all for the 400,000 ha of upland rice. If only 33% of the lowland paddy (TVA estimate for 1971) have applied fertilizer the per ha application rate on land that do use fertilizer would be tripled to 55.5 kg, 11.1 kg and 6.6 kg of N, P205 and K20 respectively. 50. The NEC data shows a slump in fertilizer consumption in 1969, which is not attributable to the rise of fertilizer price after February 1976 peso devaluation. The Potash Institute estimates show rather that, after the initial shock of peso devaluation, total N consumption in Philippines has returned to the 1968 level, and total P205 and K20 consumption set new records in 1971 and 1972. 1/ 51. The TVA projectio- for fertilizer consumption by rice is summarized in the tabulation: TVA ESTIMATE, FERTILIZER USE ON RICE Total % Use Area Use Consumption Year Area Fertilizer Fertilizer N P205 K20 ('000 ha) (%) ('000 ha) (MT) (MT) (MT) 1970 3,113 33 1,022 1971 3,181 37 1,187 71,226 20,243 7,469 1972 3,179 41 1,300 77,977 22,068 8,177 1973 3,178 44 1,412 84,349 23,899 8,881 1974 3,176 48 1,525 91,485 25,730 9,588 1975 3,175 51 1,637 98,257 27,567 10,294 These projections are based on constant application rate of 60 kg of N, 17 kg of P205 and 6 kg of K20 per hectare. Compared with the Potash Institute es- timate made for 1971 and 1972, the TVA projections were optimistic for all three nutrient elements. Both the area that will use fertilizers and the N and P205 application rates are over-estimated. The mission feels that TVA projection for 1972 may by reached by 1975. 52. It appears that most farmers growing HYV's on irrigated paddy are using some fertilizers, particularly N, while few farmers would use P205 and K20 except the amount included in the compound fertilizers. On rainfed lowland paddy and upland rice, farmers have been using only a small amount of fertilizers or not at all. With expansion of HYV's onto the rainfed paddy, some farmers in areas with good rainfall distribution have begun to use some, but at an extremely low level. 53. Farm Machinery. Statistics on total number of tractors serving agriculture in the Philippines today are not available. Available data are limited to BAEcon surveys conducted in 1963 and in 1967, and sales data from dealers. No licensing is required for owning and using tractors. No Govern- ment agency is responsible for registration of tractors in use. Statistics are therefore hard to come by. 1/ The Fertilizer Industry in the Philippines, TVA, 1971. ANNEX 6 Page 16 54. A survey on farm machinery conducted by BAEcon in 1963 reported the existence of around.5,300 agricultural tractors in the country. A 1967 sample survey showed that of around 97,000 farm household covered by 1,930 barrios, 5,250 or 5.4% use tractors. Of this number, 1,195 sets were below 15 hp, 547 sets were of unknown horsepower range, the balance ranges from 15 to 100 hp; 2,305 sets are from 40 to 80 hp range. Central Luzon and Southern Tagalog have the largest number of tractors, but a larger share of tractors in the latter region are hand tractors. The 1967 survey also shows there were roughly 13,000 power threshers in the sample barrios with 11,000 sets in Central Luzon. Details are given in Tables 10 and 11. Since the 1967 sampled families form only 4% of the total household of the country, a straight extrapolation would give the Philippines 130,000 tractors and some 275,000 threshers. This however would be a gross overestimation. 55. Using 1967 data, IRRI 1/ estimated that there were 278,900 mechanical horsepower available in the Philippines, 266,340 from large tractors and 12,560 from hand tractors. The horsepower per agricultural worker was estimated to be 0.048, compared to 0.059 in Thailand, 0.070 in Taiwan, and 1.05 in Japan for the same period. 56. The large proportion of rainfed lowland makes the use of tractors technically relevant, because land preparation needs to be done at the right moisture content. Unfortunately, rainfed farmers generally have lower farm income and can least afford to buy tractors. Expansion of HYV's has been said to have stimulated the sales of tractors. The 1970 peso devaluation is blamed for price increases and reduced sales. Sales record of tractors shows a declining trend since the peak was reached in 1967, long before the peso devaluation; meanwhile, HYV's area expansion continued. 57. Twenty-three firms are listed as members of the Agricultural Machinery Distributors of the Philippines (AMDP). Sales record of AMDP members are given in Figure 2. In 1967, about 1,500 sets of large tractors and some 3,000 sets of hand tractors were sold. Since that year, the sales of both types of tractors have fallen, but with the hand tractors declining much more sharply. Sales have followed closely the loans released for tractor purchase by the IBRD-CB rural credit project. Obviously, the buyers of the large tractors are less dependent on this source than are those of hand tractors. In 1971, AMDP reported a total sale of 1,083 large tractors (39 to 172 hp range), 484 in Luzon, 331 in Visayas, and 268 in Mindanao. This is a further drop from the 1970 sales. Number of hand tractors sold in 1971 is not available. 58. Local tractor prices began to rise long before the 1970 devaluation. The real climb occurred during the period from 1958 to 1963 (Figure 3). Using 1956 as a base year, the tractor price index remained around 100 until 1958, 1/ Annual Research Review, Agricultural Economics, February 21-15, 1972, IRRI. ANNEX 6 Page 17 reached 160 in 1961, 240 in 1962, over 274 in 1963, and over 280 by 1968. Over much the same period, until 1964, farm wages increased only a few index points. A change in minimum wage law in 1965 boosted farm wages, and since then the wage index has been around 140. 59. Actual prices bear out the relatively high cost of tractors. Jan- uary, 1972 price, fob Manila for a 116 hp six-cylinder wheel tractor is quoted at about f 130,000, a 75 h. p., four-cylinder wheel tractor, about g 99,500, and a 39 h.p. three-cylinder diesel tractor, about V 38,000.' At a January, 1972 exchange rate of about ? 6.5 to a dollar, the prices would be around $20,000, $15,300 and $5,800, respectively, which are considerably higher than prevailing international prices. The tractor price in relation to farm wage has obviously become increasingly a disincentive over the last decade for farmers to invest in tractors. 60. Using BAEcon 1963 survey as a basis, and adding to it tractors sold since then (1966-1971, AMDP sales record, 1964-1965, estimated), and allowing retirement of old tractors, Philippines should have about 8,000 to 9,000 hand tractors and 11,000 to 13,000 large tractors in service at present (Table 12). Circumstances mentioned above do not promise rapid mechanization. The large tractors are used mainly by plantation owners and custom service operators. Increase of hand tractors depends heavily on availability of credit. Thresher custom services may expand as rice double cropping increases. Recommendations for Improvement 61. Reducing Weather Risks. First of all, the Philippines need to make a greater effort to stabilize its rice production environment. This can be accomplished by: (a) expansion of new irrigated areas; (b) improvement of farm level irrigation efficiency and reliability of existing systems through an expanded and better planned rehabilitation program; (c) incorporating drainage improvement in new and rehabilitation projects; (d) corresponding reduction of rainfed paddy area; and (e) controlled retirement of upland rice on steep slopes. 62. Another way of reducing crop risks, in the Philippines' context, is to adjust the crop calendar to avoid maximum damages. Current extension material gives the rice planting calendar in different regions (Table 13), but which reflects current practices rather than recommended planting time for obtaining highest yield. It, however, makes reference to experiments conducted by IRRI in Los Banos and Malagayan which showed that solar radia- tion during the last 45 days before harvest is positively correlated wLth grain yield, and recommended that planting times be adjusted so that the crop ripens in months with the highest solar radiation. It recommended that in climatic type of Central Luzon (old climatic Type I), a 130-day variety is best seeded in January so that it can be harvested at the end of April or early May when the solar radiation is the highest, and in the wet season, in mid-July, so that flowering will not fall during August and September when the typhoon trequency is high. inese are good examples ot extension intorma- tion that can help to increase rice yields substantially without additional ANNEX 6 Page 18 production costs. Based on applied research data again from Central Luzon, extension directives for 1973 wet season rainfed paddy emphasized that planting should be done in the first week of July so that flowering and ripening will not be exposed to dry period beginning late September. 63. Such experiments and recommendations, however, are not available for regions other than Central Luzon and the part of Southern Tagalog Region on the Luzon Island. In fact, other regions, where there are more months with high rainfall, rainy days and frequency of typhoon, need such informa- tion more urgently. It is recommended that a research program be organized to produce a rice crop calendar for different regions. A desk study of the climatic data may first be made to determine the crop growth stages in relation to the rainfall and solar radiation distribution patterns according to farmers' current planting schedule. Monthly rainfall and rainy day data for 48 stations are available at the Philippine Weather Bureau, with standard deviations already computed (1951-70). Detailed typhoon data are available at the Typhoon Committee Secretariat, Weather Bureau. Planting date field experiments should be carried out in different regions for several years to determine effects of weather on the growth of rice plants at different stages and the final yield. Table 14 shows the wide variation of monthly rainfall distribution and typhoon frequency of different regions, and why a fitting of crop calendar to the climatic regimes is needed. This is especially important for extension of HYV's on the vast rainfed paddy area to replace the tradi- tional varieties with a longer grower season. Farmers over the years have probably found out the best calendar for traditional varieties, which are mostly photosensitive. With HYV's, a study of the adjustment of calendar for achieving highest yield is deemed necessary. It may also help to expand double-cropping on rainfed paddy. 64. Reducing Losses Due to Cropping Hazards. As mentioned before, the real hope of reducing rice crop losses from pests and weeds is research which is investigating HYV's with resistance to a wide range of insects and diseases, and leading to reduced costs of herbicide application (to $2.5 to $5.0 per hectare). Over the next five to seven years, or however long it takes to release the new phase HYV's, some effective means must be found in the mean- time. Basic measures would likely be applicable even after the new phase HYV's become available. 65. In view of the small farmer's reluctance to use chemicals -- a reluctance that stems mainly from cost -- the most efficient measure is likely to be elimination of the causes which tend to keep insect, disease and weed populations at high levels at the beginning of the crop seasons. This has to do with the practice of off-season planting by some farmers. A traveller observes rice that is in nursery, that is being transplanted, flowering, ripening, and being harvested at the same time. This has become more prevalent since the extension of the nonphotosensitive HYV's. There is a narrower period within which most farmers plant and harvest, but sufficient off-season planting is being made to make it increasingly noticeable. The off-season planting is reportedly done by big and small farmers who want to avoid depressed price during the peak harvest season, and by large farmers who want to even out seasonal work distribution of hired laborers. ANNEX 6 Page 19 66. The spread of the planting and harvesting time favors continuous breeding of insects and diseases by the ever presence of rice plants at: a stage of growth that is ideal for pest infestation; thus pest population are maintained at high levels the year round, making the overall pest control more expensive and difficult. The practice favors rat population increases by providing food and hideouts the year round. And it makes the operation of irrigation systems less economical by having to supply scattered paiches during the off-season, and by making it difficult-for NIA to keep a clear-cut schedule of closing canals for annual maintenance. 67. The pros and cons need to be weighed. Off-season planting offers certain advantages for the more knowledgeable farmer. Better price is 'the main one. Also, producers sometimes make deliberate efforts to stretch out the growing season so that processing can be made more economical -- the Philippines' own sugar industry is an example. But in the context of the Philippines' current effort to increase rice production, it is questionable whether the economic gain to a few farmers, mostly large operators should be made at the expense of the national pest and rat control program, and good maintenance of the national irrigation system. On the other hand, removal of the off-season planting would further peak the harvesting season, thus putting more pressure on the price of paddy at that time. The magnitude of possible effects on farm incomes should be assessed, and weighed in the balance. Possible improvements in the rice marketing system should also be considered. 68. Since it is difficult to dictate planting and harvesting seasons to farmers, the possibility of getting quasivoluntary compliance should be explored. A plausible approach might be to formulate a project whereby extension workers would explain to the off-season planters the implications of their practices, which they probably do not realize and, secondly, to insist that they do thorough pest control and rat baiting in off-season fields. This will protect their own crop and other farmers as well. Since the off-season planters are mostly large farmers, they should be able to afford the inputs. This will help to lower the pest and rat population when the majority of farmers start their next crop. The experience at a 1,600 ha NIA system (Padada system, Davao del'Sur) is relevant. When the rat infestation was extremely heavy, the APC officer got the NIA engineer to enforce strict water delivery and closing schedules, got the off-season planters to follow the schedule, and all farmers to carry out a rat baiting campaign in 1969/70. The paddy yield more than doubled in the next year. In the long run, planting and harvesting season on irrigated paddies should be narrowed at least to the extent that NIA can enforce strict water release and maintenance schedules. NIA may consider extra high water charges for irrigation after a certain date. 69. Direct attacks on the weed population must also be made. The early application of 2-4 D should be put into wide field trials as soon as IRRI feels it is ready. Suppliers could be asked to contribute to the cost of such trials. Since weeds are usually the worst on irrigated land which has suffered a dry spell, trials on the higher lands in a system should bring ANNEX 6 Page 20 more impressive results. On rainfed paddy, where weeds are always bad, the lay of the land is less important. But land preparation is a factor. If the rainfed farmers do not want to buy 2-4 D, they should be advised to do a more thorough land preparation so as to reduce the initial weed population which compete with the young rice plants. Straight line transplanting should be further extended to facilitate farmers walking into the field for herbicide application or to do weeding by hand tools. In extremely weedy areas, hand weeding campaigns should be carried out to check further building up of weed population and spreading to neighboring areas. 70. Use of Fertilizers On Irrigated Land. The reasons often cited to explain why farmers do not use more fertilizers on fertilizer-responsive HYV's are the increased fertilizer prices which followed the peso devaluation and the lack of credit. Analysis shows the price relationship is not the sole deterent. The IRRI (Barker et al) estimated that when the price of paddy is at f 0.36/kg, and price of N is assumed at three levels (f 1.40, V 1.75 and f 2.10 per kg), the economic application rate of N on irrigated HYV's are respectively 80 kg, 70 kg, and 60 kg (Figure 1). The current price of paddy is about Y 0.68 per kg and N is about f 1.50/kg. Even assuming a paddy price of J 0.36/kg, it is economical to use 60 kg of N at f 1.50/kg. This range 60-80 kg N per ha is what DANR is recommending for lowland paddy. 71. NFAC is launching a campaign for using the recommended rate of N fertilizer application on 100,000 ha in 1973. Because of risks, intensive campaigns aimed at usage rates of 60-100 kg should be pushed only on land where risk is smallest, i.e. where irrigation and drainage are best. Exten- sion officers do not usually know where such land exists; but the local NIA and ISU project engineers would know. These lands can be demarcated to become project areas for campaign to encourage full application of fertilizers, pesticides, and herbicides at recommended levels. Moreover, since current fertilizer recommendations are made for different soil series, the extension workers can be more effective by consulting the local soil surveyers of the Bureau of Soils. They will also need to coordinate the supply of inputs. Such intensive campaigns need to begin in small areas but expand over a period of a few years. This would be a positive step beyond dispensing minikits and demonstrations. When these nuclei of high input-high output are established, farmers in surrounding areas will follow suit at perhaps lower input levels, but at levels higher than at present. 72. Such campaign programs fit well into NFAC's working pattern, and each extension officer should be given a substantive large area where farmers actually adopt farm inputs according to full recommendations. 73. To Stabilize Upland Rice Culture. For upland rice, adopting soil conservation practices on gently sloped land is recommended. Control measures should be adopted to stop further cultivation of upland rice on land steeper than 180 slope, which is the limit of "alienable land". ANNEX 6 Page 21 74. Seed Program. It is recommended that the goal for certified rice seed production under the Japanese loan project be reduced considerably so that the Government or the private seed growers will not be left with huge undisposable seed stock due to resistance from farmers to pay premium prices. The Outlook for Future Production 75. If the irrigation and drainage improvement progresses as projected (summarized in Table 15), the use of slope land is placed under tighter control and soil conservation program, and cultural improvements as recommended above are initiated, the rice production in the Philippines may be expected to change as follows: 1972 1975 1980 Index Index Index Total land used (ha) 2,314,000 100 2,223,000 96 2,020,000 87 Total rice harvested (ha) 3,113,000 100 3,051,000 98 2,901,000 83 Average yield (kg/ha) 1,652 100 2,074 126 2,501 151 Total production (MT) 5,141,000 100 6,329,000 123 7,256,000 141 Details are given in Tables 16, 17 and 18. 76. The projection varies from Philippines' Four-Year Plan targets as follows: Four-Year Plan Mission 1,000 MT 1,000 MT 1972 5,343 5,141 /1 1975 6,982 6,329 1980 - 7,256 /1 See Table 18. 77. The mission estimate is based on the following assumptions: Area Change: 1. Rice harvested area on irrigated land will exceed 1972 by about 282,000 ha in 1975 1/ and about 644,000 ha by 1980. 2. Rice harvested area on rainfed lowland will decrease from 1972 by corresponding area. 1/ Delay in completing the Upper Pampanga Project would reduce this estimate and thus make self-sufficiency in rice by 1975 unlikely. ANNEX 6 Page 22 3. There will be a reduction of lowland used for rice culture, about 29,000 by 1975 and about 82,000 ha by 1980. The total lowland harvested area remains unchanged in spite of the reduction of land area used because of expansion of double- cropping on irrigated lowland. The lowland so released can be diverted to other crops. These should be land with light textured soils. 4. The upland rice area will decrease by about 62,000 by 1975 and about 210,000 ha by 1980, as a result of land use control and soil conservation program. The released land should not be replaced by other annual crops, but should be used for reforestation, pasture, or perennial crops with soil conserva- tion practices. Yield Change: 1. Average yield of HYV's on irrigated lowland paddy will in- crease from the present level of 2,875 kg/ha (about 66 cavans) to 3,036 kg/ha (69 cavans) by 1975 and 3,159 kg/ha (72 cavans) by 1980. The moderate increase by 1975 is based on the expectation of some increased use of fertilizers and herbicides, reduction of areas planted to tungro susceptible varieties, small increase in area of better controlled irrigated land following the completion of the Upper Pampanga and Cotabato projects, and rehabilitation of Angat and Magat project areas being processed by ADB. The further HYV yield increase projected for 1980 is based on wider application of fertilizers and chemicals, the possible availability of the "new phase HYV's" mentioned above and further improvement of irrigation. 2. Average yield of HYV's on rainfed lowland paddy will increase from the present level of 1,760 kg/ha (about 40 cavans) to 1,848 kg (42 cavans) by 1975 and 1,980 kg/ha (45 cavans) by 1980. The projected increase is based on the expectation of adoption of high-input cultural practices by increasing number of farmers. No increase in average yield is projected for traditional varieties on lowland paddy or on upland. 3. The more significant increase in the nation's average yield is expected to come largely from expansion of irrigated area, reduction of rainfed area and upland rice, and continuous increase in yield of HYV on both irrigated and rainfed lowland. 78. When the new phase HYV's are made available, the average yield on irrigated land can actually go higher than hereby projected. It is kept low to accommodate possible continuous lags in improvement of irrigation, exten- sion service credit and other agricultural services. ANNEX 6 Appendix 1 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Government Organization: Annual Crops Production Programs 1. The Department of Agriculture and Natural Resources (DANR) is responsible for the Nation's crop production programs, but it does not possess full authority over all components needed for their successful im- plementation. DANR has fairly good cooperation from outside agencies on research on rice, corn and feed grains. It exercises nominal supervision over sugar research. Until late 1972, extension, the most important link, was not under DANR. DANR used coordinating councils for promoting its key annual crop programs. The field operation lacked clear line of command. Extension was divided, understaffed and weak. Excepting HYV's seeds, imuch available research findings have not reached average farmers in general. Only recently the Agricultural Productivity Commission returned to DANR to become once more the Bureau of Agricultural Extension. This should enable DANR to streamline the extension service throughout the Island. Research 2. DANR's agencies conducting crop research included the Bureau of Plant Industry (BPI) and the Bureau of Soils (BS). The former was in charge of works on varietal improvement, seed multiplication, plant protection, agricultural engineering, and laboratory services on crops. The latter was in charge of soil survey, fertilizer experiments and demonstrations, soil researches and laboratory services on soils. By the end of 1972, the Bureau of Soils was absorbed to become a part of the Bureau of Plant Industry. DANR exercises only administrative supervision over the Philippine Sugar Institute (PHILSUGIN) whose research branch is in charge of sugarcane and sugar research, and Philippines Tobacco Administration (PTA) and Philippines Virginia Tobacco Administration (PVTA) which are intended to conduct some research on tobacco in cooperation with BPI. 3. Outside of DANR, there are public and private agencies conducting research on annual crops. A. Under the National Institute of Science and Technology (MIST), there are two agencies whose work include crop research: The Food and Nutrition Research Council (FNRC) and the Agricultural Research Center (ARC). B. Eighteen universities and agricultural colleges are doing some aspects of agricultural research as well. Most prominent is the University of the Philippines College of Agriculture (UPCA), which actively conducts ANNEX 6 Appendix 1 Page 2 a wide range of crop research. The Mindanao Institute of Technology (MIT) has developed a downy mildew resistant synthetic corn variety. Other colleges of agriculture carry limited research activities. C. A number of private firms have their own crop research programs. Examples are: (a) Victorias Milling Corporation, Negros Occidental - sugarcane and sugar. (b) Canlubang Sugar Estate, Laguna, Luzon - sugarcane. (c) San Miguel Corporation, Quezon City - feed grains. (d) Shell Chemicals, Manila - fertilizers and pesticides. (e) Planters Products, Manila - fertilizers and pesticides. D. Last but not least, the International Rice Research Institute (IRRI) at Los Banos. 4. DANR, however, has good cooperation from the main research agen- cies in pooling of research information, cooperation in conducting regional trial, and use of manpower. UPCA professors play active and important roles in DANR's food crop production programs. DANR however, leaves the sugar research almost entirely to PHILSUGIN, as it derives its budget from levies in sugar industry and has its own board of directors controlled by the sugar industry. PTA and PVTA actually do very little tobacco research. DANR's own tobacco research is also limited at present. 5. Under Presidential Administrative Order No. 267, a National Agricultural Research System Survey Technical Panel was created to recom- mend an overall program of agricultural research in the Philippines. Adopt- ing the recommendation of the Panel, the Government created a Philippine Council for Agricultural Research to link with NSDB, DANR and universities and colleges and to serve as the main arm of the Government in planning, coordinating and implementing a national agricultural research program. Extension 6. Until recently, authority of extension service officially was with the Agricultural Productivity Commission (APC). APC was formerly Bureau of Agricultural Extension of DANR. It assumed the name of APC and was placed under the Presidential Office on August 8, 1963. The separation was unfortunate. Many short-comings in the crop extension programs as manifested today could be traced to the lack of clear-cut line command at the field level. Para 7 through 20 summarize problems faced by the extension service which led to the recent reorganization as mentioned in para 1. ANNEX 6 Appendix 1 Page 3 7. BPI has five technical divisions at the headquarters: Research Laboratory Service, Agricultural Engineering, Seed Production and Plant Propagation, and Plant Protection. It has 10 regional offices, 65 provin- cial offices, and 27 experiment stations and seed farms scattered across the country. The experiment stations have research workers. The regional and provincial offices have extension specialists of different fields. Under each Province, there are on average some 20 municipalities; under each municipality, an average of some 20 barrios. At present, BPI field staff stops practically at the provincial level. 8. APC has 10 divisions at its headquarters, three of which are related in part to crop production: Agricultural Program Division, Specia- lists Service Division, and Information Division. The Specialists Service Division is responsible for: (1) Conducting demonstrations and applied research; (2) Analyzing farm and home survey; (3) Providing technical advices on subject matters; (4) Proposing field studies for research to be conducted by research agencies. (5) Representing the Commission in different technical committees and meetings relative to subject matters. 9. But APC covers all fields in addition to crops, i.e. agriculture, livestock, fishery, forestry, home management, 4-H clubs, forestry crops and others. It had as of May 1972 24 specialists. Of the 24, there was only one specialist for each of the following broad fields, field crops, horticulture, soils/fertilizers, agricultural engineering. APC however reaches down further in the field than BPI. It has 9 regional offices, and 65 provincial offices. It has one farm management technical (mostly college graduates) in each of the 1,400 municipalities. In addition to crop technical extension, their work covers livestock, fisheries, organization of co-operatives, helping farmers to prepare farm plans for loan application, etc. 10. If the BPI and APC are in perfect coordination, the two could form an effective network through which information on crop production could be passed to farmers. Unfortunately, this is not the case. Having to cover all fields of extension, APC has spread its available man-power too thin. There are some 2.5 million farm families in the Philippines. Each of APC farm management technician have to supervize an average of 1,500 farm families. With the widely diversified work, they actually1cannot serve any one job thoroughly. ANNEX 6 Appendix 1 Page 4 11. Thus, the Department of Agrarian Reform (DAR) contends that APC cannot serve the urgent need of tenants turning new lease holders or land owners in the agrarian reform areas. It created a Farm Management Bureau, hires Farm Management Technicians of its own to work at the municipal level, and has plans to further expand. BPI also hopes to expand staff so that it too may have one officer in each municipality. Philippines does need more municipal and barrio level extension workers, even more than those contemplated by DAR and BPI. But to have extension officers under 3 differ- ent lines of command working in the same municipality does not serve well. They will confuse farmers. They may duplicate efforts or even compete in some fields, but leave services void in others, resulting in uneconomic use of the limited man-power available. DANR's Remedy - NFAC 12. Facing the reality that it does not have full authority over every aspect of crop production, DANR created a Rice and Corn Production Coordina- tion Council (RCPCC) to coordinate the activities of various agencies on rice and corn production. RCPCC was reorganized into the National Food and Agricultural Council (NFAC) with expanded functions. The Secretary of DANR serves as chairman, with all relevant agencies represented on the Council, including interalia, irrigation agencies (NIA, ISU), agencies with extension staff (APC, DAR) financing agency (ACA, PNB, DBP) marketing agency (RCA), food and nutrition agency (FURC), and the DANR's own BPI, BS, BAEcon, Bureau of Animal Husbandry, Bureau of Fisheries. 13. NFAC now sponsors 7 major national programs: (a) Rice; (b) White Corn; (c) Feed Programs; (1) yellow corn (2) sorghum (3) soybean (d) Vegetables and beans; (e) Fish; (f) Animal protein foods; (g) Nutrition. 14. The NFAC programs are implemented only in "priority provinces." Each program has its own priority provinces. Extra man-power and monetary input are chanelled into the NFAC program areas; the latter as appropriations to NFAC over and above the regular budgets of the participating agencies. ANNEX 6 Appendix 1 Page 5 15. To carry out its tasks, NFAC has a sizeable technical staff at its headquarters which is housed in the DANR building at Quezon City. The day to day operations are handled by an Executive Director and two Deputy Executive Directors. The two deputy directors serves concurrently as National Coordinator for rice program (a former BPI senior officer) and for white corn and feed grain program (a UPCA professor). Each of them is assisted by an action officer. The vegetable and beans program is headed by an action officer. They are assisted by 4 divisions: Administration, Program management, Manpower and Special operations. 16. At the regional level, each program has a regional director,. All the regional directors of NFAC programs are either existing BPI or APC regional directors. In order to seek balance between the two agencies, NFAC appoints a BPI man as rice program regional director and an APC man as corn and feed grain program regional director, or vice versa. 17. At the provincial level, each NFAC program has a provincial program officer. In 32 provinces, the provincial government appoint their own agri- cultural officer to that title, in other provinces where NFAC programs are launched, BPI or APC men are appointed program officers. 18. At the municipal level, the APC farm management technician serve the NFAC program. 19. Such program organization pattern is a compromise adjusting to the reality. There are obvious problems. If the regional officer fo!r the NFAC program in a given region is the Director of the BPI regional office, he can command directly his own staff, but he must go through the APC regional director to mobilize the APC staff, and vice versa. This also applies to NFAC provincial program officers. Then, at the municipal level, there is only the APC farm management technician who has to attend to all NFAC program works and other APC works as well. 20. Officers of all agencies lack vehicles. NFAC provides "incentive allowance" to enable them to travel a bit more and provides loans for them to buy their own motorcycles. Recommendations for Improvement 21. The return of APC to DANR was effected only recently. DANR has yet to realign the working relationship between the new Bureau of Agricultural Extension (BAE), the expanded BPI and NFAC, to solve the problem of under- staffing and immobility of the extension force at the municipal and barrio levels and to strengthen training activities all across the board. 22. The staff of the BAE should be expanded in quantity, quality and mobility. The crop production extension function of the Farm Management Bureau of the Department of Agrarian Reform should be absorbed by the BAE. Numbers of Farm Management Technicians at the Municipal level should be ANNEX 6 Appendix 1 Page 6 increased to the extent that each will supervise on average no more than three barrios, or 1,000 ha of farm land. This would average six technicians to a municipality, allowing some specialization among them. Field officers at all levels should be provided with adequate transportation facilities. 23. The publication of extension information is now scattered among different agencies. The BAE at present does not have enough extension specialists to prepare all the needed material. Under the present set-up, the publication intended for farmers should best be coordinated by NFAC, prepared by BPI and UPCA, edited, serialized and issued by BAE. Technical bulletins and field manuals intended for extension officers should be pre- pared by BPI/UPCA or other colleges as seen fit by NFAC. 24. Consideration should be given to gradually turning the functions of implementing the different field programs presently assumed by NFAC over to BPI/BAE/BAEcon, as these agencies are systematically strengthened. In other words, NFAC should gradually work itself out of routine jobs. In the end, NFAC may well be transformed into a smaller but highly competent group of specialists, to become a brain-trust body of DANR for planning, coordina- tion and development of new programs and approaches as discussed in this report and its various annexes. Its scope of functions need not be limited to crop production, but may cover other agricultural sub-sectors as well. ANNEX 6 Table 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 1. Rice Production Statistics, All Philippines, 1954-1972 1/ Crop Harvest Yield Production Year Area (Paddy) (Paddy) '000 ha Cavan/ha Kg/ha m tons 1954/55 2,656 27.4 1,206 3,202 195/6 2,743 27.1 1,191 3,273 1956/57 2,768 27.5 1,210 3,346 1957/58 3,154 23.1 1,016 3,203 1958/59 3,329 25.2 1,101 3,68L 1959/60 3,306 25.7 1,131 3,739 1960/61 3,198 26.3 1,157 3,704 1961/62 3,179 28.0 1,232 3,910 1962/63 3,161 28.5 1,254 3,967 1963/64 3,088 28.3 1,245 3,842 1964/65 3,200 28.4 1,248 3,992 1965/66 3,109 29.8 1,310 4,073 1966/67 3,096 30.1 1,322 4,09b 1967/68 3,304 31.4 1,380 4,561 1968/69 3,332 30.3 1,334 4,445 1969/70 3,113 28.3 1,681 5,233 1970/71 3,113 39.0 1,716 5,343 1971/72 2/ 3,184 36.7 1,615 5,142 1/ Source: BAEcon 2/ BAEcon forecast ANNEX 6 Table 2 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 2. Official Statistics of Rice Harvested Area on Irrigated and Rainfed Paddy and Upland Rice (A) (B) (C) (D) (E) (F) a/c/ /c/ a/c/ a/ b/ a/c/ Irrigated Rainfed Total Total Crop Year Lowland Lowland Upland Total Lowland Rainfed (A) + (B) (B) + (C) -----------------------------------(1,000 ha)------------------------------------- 1961/62 987 1,510 682 3,179 2,497 2,192 1962/63 1,014 1,450 697 3,161 2,464 2,147 1963/64 930 1,531 627 3,088 2,461 2,158 1964/65 1,053 1,514 623 3,200 2,567 2,147 1965/66 960 1,544 605 3,109 2,504 2,149 1966/67 1,171 1,080 4b5 3,096 2,651 1,925 1967/68 1,309 1,514 481 3,304 2,823 1,995 1968/69 1,483 1,406 443 3,332 2,889 1,849 1969/70 1,346 1,355 412 3,113 2,701 1,767 Sources: a/ BAEcon data b/ Computed from ABEcon data c/ Mission believes that there are actually only about 900,000 ha of rice under irrigation in 1970/71 (Annex 3), and irrigated lowland area (A) is overestimated throughout the above sequence, the area of rainfed lowland (B), upland (C), and total rainfed (F) are probably underestimated. ANNEX 6 Table 3 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 3. Area Changes of Major Upland Field Crops Upland Upland Total of Rice Corn Rice & Corn Sugarcane 3 Crops --------------------------1,000 ha------------------------------- 1961/62 682 2,016 2,698 224 2,922 1962/63 697 1,950 2,647 244 2,891 1963/64 627 1,898 2,525 292 2,817 1964/65 623 1,923 2,546 327 2,873 1965/66 605 2,106 2,711 310 3,021 1966/67 Ub5 2,158 2,603 286 2,889 1967/68 481 2,248 2,729 294 3,026 1968/69 443 2,256 2,699 313 3,012 1969/70 412 2,420 2,832 350 3,182 1970/71 2,392 422 Source: BAEcon ANNEX 6 Table 4 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 4. Rice HYV, Area and Yield Number of Provinces under NFAC Average Crop Year Extension Programs Area Yield '000 ha Cavan/ha 1966/67 10 1 100 1967/68 12 390 75 1968/69 15 606 72 1969/70 - 928 69 1970/71 64 1,200 66 Source: Rice Production Program, 1971/72, NFAC. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 5. Rice Balance Sheet for 1971/72 In Terms of Rice In Terms of Paddy Item Millions of sacks '000 MT '000 Cavans '000 MT 56 kg/sack 44 kg/cavan 1. Requirement 74.0 4,144 139,623 6,143 a. Food allowance 62.8 a/ 3,517 118,490 5,213 b. Feeds 4.1 b/ 229 7,736 340 c. Wastage 2.0 c/ 112 3,774 166 d. Seeds 1.5 d/ 84 2,830 125 e. Buffer 3.6 e/ 202 6,792 299 2. Supply 74.0 4,144 139,623 6,143 a. Import expected August 1971 1.7 95 3,208 141 b. Import to be negotiated 3.6 202 6,792 299 c. Production, 1970/71 level 64.h 3,606 121,430 5,343 d. Increment needed 4.3 241 8,193 360 a/ 38,930,000 population, at 1.613 sacks/caput (roughly 90 kg) b/ At 6% of requirement c/ At 3% of production d/ At 0.9 sacks of hh kg paddy per ha - 3.12 million ha e/ Requirement for food allowance for 21 days supply C So e Source: Rice Production Program, 1971/72, NFAC. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 6. Rice Extension Target of the NFAC Program, 1971-1972 No. of Provinces Irrigatedb/ July-Dec.- Jan.-June Total Yield Region Under Program Area 1971 1972 Area per ha Production ha ha ha ha cavan '000 ha '000 cavans Ilocos 3 64,493 37,900 19,100 57,000 84 4,788 210.7 Cagayan Valley 3 117,837 6O,OO 30,000 90,000 76 6,84o 301.0 Central Luzon 7 399,021 223,300 117,700 335,000 69 23,115 1,017.1 S. Tagalog 7 77,069 74,700 37,300 112,000 73 8,176 359.7 Bicap 3 44,905 36,600 18,400 55,000 68 3,740 164.6 W. Visayas 6 76,054 76,60c 38,400 115,000 73 8,370 368.3 E. Visayas 3 36,004 45,o40o/ 22,600 68,000 78 5,281 232.4 N. & E. Mindanao 5 26,637 31,900 16,100 48,000 86 4,128 181.6 W. & W. Mindanao 6 84,019 79,900 40,100 120,000 88 10,560 464.6 Total 43 926,039 666,300 333,700 1,000,000 75 74,998 3,300.0 Source: Rice Production Program, 1971/72, NFAC a/ The grouping of provinces of NFAC's original tables differ somewhat from the standard regional grouping. Above tables give figures after readjustment to conform with standard regions have been made. b/ BAEcon statistics give the total irrigated area of Philippines as 1,345,730 ha, of which the NFAC Program covers only a part. But the 926,039 ha of irrigated area is close to mission's estimate of about 900,000 ha. c/ Where the July-December crop area exceeds the irrigated area, it means some HYV's will be grown on rainfed paddy, where rainfall distribution is even. ANNEX 6 Table 7 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 7. Estimated Input and Credit Requirement of the NFAC Rice Program, 1971/72 Input Unit Quantity Value er ha Toa Unit cost Total '000 init 11 million Seeds Cavan 1.2 1,200 40 48.o Fertilizers Animosul Bag - 45 kg 5,807 18 104.5 (20-0-0) Varies Aminophos Bag - 45 kg 1,950 25 49.2 (16-20-0) with Complete Bag - 45 kg 1,903 30 57.1 (12-24-12) Region Subtotal Bag - 45 kg 9,660 210.8 Pesticides Gamma BHC (6%) kg 83 55,302 1.6 88.5 Sevin 85 w kg 3 1,999 26.4 52.8 Methyl Parathion liter 1 666 15.5 10.3 Subtotal kg or liter 151.6 Total Input 363.4 Credit July-December Crop 8C% of area 9700 373.1 January-June Crop 50% of area 9700 116.8 Total 489.9 Source: Rice Production Program, 1971/72, NFAC. Original data have b reakdown by season, by province and by region. PHILIPPINES AGRICULTURE SECTOR SURVEY Table 8. Comparison of Improved Seed Board Recommended Rice Varieties (releasea since 1966, except FK before 1966), 1971 CHARACTER FPI-76 (NS) C4-630 C4-137 IR8 IR5 IR20 FK-178A IR22 IR24 BPI-121-407 C-12 Plant jetght (cm) 115 105 115 90 110 85 150 100 90 85 115 Maturity (day) 125-135 125-135 130-140 125-135 140-150 120-130 120-150 115-130 125-130 125-135 125-135 Reactio,, to Non- Non- Non- Non- Non- Weakly Sensitive Weakly Non- Non- Non- Photoperlod sensitive sensitive sensitive sensitive sensitive sensitive sensitive sensitive sensitive sensitive Position of leavs Slightly Erect Semi-erect Erect Erect Erect Drooping Erect Erect Erect Semi-erect at harveat drooping Tillering ability Medium Medium Medium High High High Medium low High High High Medium high high high high Seedling vigor Good Very good Very good Excellent Excellent Excellent Good Excellent Good Iodging Moderately Resistant Resistant Very Resistant Moderately Moderately Resistant Resistant Resistant Moderately resistant revistant resistant resistant resistant Blast Moderately Moderately Moderately Resistant Inter- Resistant Resistant Resistant Resistant Moderately Moderately resistant Tesistsnt resistant mediate resistant resistant Bacterial leaf Inter- Inter- Moderately Inter- Inter- Inter- Moderately Moderately Inter- Moderately Inter- blight mediate mediate susceptible mediate mediate mediate resistant resistant mediate resistant mediate Tungro Inter- Resistant Resistant Susceptible Inter- Resistant Inter- Susceptible - - Resistant mediate mediate mediate Grain Axylose content Tnter- Inter. Moderately High High High High LoW - Inter- mediate mediate high mediate Gelatinization Inter- Inter- - LOW Inter. Inter- Low - * High temperature mediate mediate mediate mediate Head rice Inter- High High LOW High High High High High High High recovery mediate Grain size and Medium Long Long Long Medium Medium Medium Long Long - Me.ium group Special Special Special Ordinary Ordinary Special Special Special Special Special Grain Dormaxcy (weeks) 3 to 4 3 to 4 3 to 4 3 to 4 3 to 4 3 to4 - 3 - - - Eating Quality Excellent Excellent Excellent Fair Fair Good Very good Good Good Good Excellent Source of Data: "The Philippines Recomends for Rice" 1970, NFAC Annex 6 PHILIPPINES Table 9 AGRICULTURE SECTOR SURVEY Table 9. Fertilizer Recommendations for Lowland Rice 1/ Bureau of Soils, The International Rice Research Institute and College of Agriculture University of the Philippines KILOGRAMS NUTRIENTS PER HECTARE: N +.0 + K,0 PROVINCE IR 22 C4-63G, C463, IR 20, IR 5 Local Varkt and (Arranged by Priority Category and by thre IR 8 C4-137, BPI-76 INS) Varioti. FK-178A fertility groupingr within each S E A SO N Priority). Wetfrred Wat fry Dry ________________________________ wet___ IriaeWtirrigated Irrigated I. FIRST PRIORITY PROVINCES (16) S,il Series with Research Results Cagayan Quingua, Uminga, Toran 8( 50+0 100+50+0 60+50+0 80+50+0 40+50(')+0 Carmarines Sur Pili 80+30+0 100+30+C 60+30+0 80+30+0 40+30+0 Laguna Guadalupe 80+30+0 100+30+0 60+30+0 80+30+0 40t30+0 20 + 0 + 0 M1aahas 80+0-0 100+0+0 60+0+0 80+0+0 40#0+0 Nueva Vizcava Quingua, San Manuel. Bantog, Maligaya 80+30+0 100+30+0 60+30+0 80+30+0 40t30+0 Pampanga Quingua. LaPaz,Angeles, San Fernando, Arayat SO+30+0 100+30+0 60+30+0 80+30+0 40+30+0 Albay 80+30+0 to 30 100+30-0 to 30 60+30+0 to 30 80+30+0 to 30 4a+30+0 to 30 Bulacan Quingua 80+30+0 to 30 100+30+0 to 30 60+30+U to 30 SO+30+0 to 30 40+30+0 to 30 Bigaj, Buenavista Prensa 80+50+0 to 30 100+50+0 to 30 60+50+0 to 30 80+50+0 to 30 40*50+0 to 30 Sibul 80+50+30 100+50+30 60+30+0 80+30+0 463 0+0 Isabela Sta. Rita 80+30+0 10030+0 4,0+30+0 80+30+0 40+30+0 Bago, Cauayan 80+50+30 100+50+30 60+50+30 80+50+30 40+50+30 20 + 0 + 0 Nueva Ecija Quingua,Umingan,Maligaya, Bantog 80+30+0 100+30+0 (0+30+0 80+30+0 40+30+0 Annan, Prensa 80-t50+30 100+50+30 60+50+30 80+50+30 4 ,50+30 Pangasinan San.Manuel.Umingan,Annan. San Fabian 80+30+0 100+30+0 60+30+0 80+30+0 4 f30+0 Alaminos 80+50+30 100+50*30 60+50+30 80+50+30 40+50+30 Tarlac San Manucl.La Paz, Luisita, Angeles, 80+30+30 100+30430 (,0+30+30 80+30+30 40+30+30 20 +0 + 0 Tarlac 80+50+30 100+50+30 0o50+30 80+50+30 46+30+30 Bataan, Cotabato and South Cotabato. Mindoro Oriental 80+30+0 100+30+0 60+30+0 80+30+0 40+30+0 20 +0 + 0 Iloilo, Leyte and Southern Leyte 80*30+30 100+30 30 60+30+30 SO+30+30 40+30+30 20 + 0 + 0 II.- SECOND PRIORITY PROVINCES (23) Batangas. Bukidnon. Cavite, Davao del Sur. Ilocos Norte. Ilocos Sur. La Union. Queron. Sub-Province Aurora. Rizal. 80+30+0 100+30+0 60+30+0 80+30+0 40+30+0 20 + 0 + 0 Sor-,ogon. Zainbales. Zanboanea del Norte. Zamboanga del Sur Camarines Norte. Lanao del Norte, Lanao del Sur 80+30+0 to 30 100+30+0 to 30 100+300 to 30 80+30+0 to 30 40+30+0 to 30 20 + 0 + 0 Akan. Antique. Leyte det Sur. Mii%amis Occidental 80H 30+30 100+30+30 60+30130 S0+30+30 40+30+30 20 + 0+0 Negros Occidental III. THIRD PRIORITY PROVINCES (24) Abra. Agusan. Bontoc, Davao del Norte, Daao Oriental. Ifupio. Kalinga-Apiyao. Mlarindqiic. Mindoro Occidental. Samar Eastern. Sainar Northern. 80*30+0 100+30+0 60+30+0 80+30+0 40+30+0 20 + 0 + 0 Samar Western, Sulu, Surigano del Norte. Surigao del Sur. Bohol. Capiz, Catanduanes. Cebu. Mlashale. isanis Oriental. Negros Oriental. Palawian 80+30+30 100+30+30 00+30+30 80+30+30 40+30+30 20 f 0 + 0 P.omblon. V The new recommend high%vielJg vanrriic ar more responsive to nitrwsen fertilization than Aoal surietia. Ge,7lly.riere,,iids rk-re to urirgenfertili:orim during thie dry tun in the %et s0solt AU or half of the trogen needed. all f the phoj,sjlute and a!l potesh shoutj be applii before tnspLring ond hamn . Tkm7he rliniani nitro,"-n is applied at unii!cle iniliation. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 10. Number of Farms in Sample Barrios Reported Using Tractors, by Horsepower and by Region, 1967 R E G I 0 N Horse Northern iSouthern & o o\ Power Iloces Cagayan Central Southern Bicol Eastern Western eastern Western Orou Phil. Reiion Valley Luzon Tagalog Region Visayas Visyas Mindanae Mindanae All HP. Group 5,252 11 363 2,122 1,100 311 7 517 5 815 1 12 12 - - 2 31 11 - 3 44 41 3 4 136 5 123 6 2 5 63 46 14 3 - 6 404 10 3 271 96 19 5 7 226 1 23 25 10 167 8 105 6 13 22 54 9 34 11 7 16 10-14 160 7 13 89 14 37 15-19 61 32 24 5 20-39 307 20 181 36 35 30 5 40-59 1,349 148 234 115 79 7 80 186 60-79 1,046 33 902 35 - 6 70 80-99 717 707 - I - 40 Unknown 5147 1 108 5 28 38 106 5 Source: BAEcon, sample survey of 1,930 barrios, 97,000 farm household. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 11. Number of Farms in Sample Barrios Reported Using Power Threshers, by Size of Farm and Region R E G I 0 N Northern & Southern & IlQcos Cagayan Central Southern Bicol Eastern Western Eastern Western Size of Farm Region Valley Luzon _Tagalg Region Visayas Visyas Mindanao Mindanao All size group 926 11,102 522 42 258 228 Below 0.6 ha. 21 h79 39 9 3 21 0.6 - 0.9 ha. 125 10 7 11 18 1.0 - 1.4 185 1,441 92 5 47 72 1.5 - 1.9 4 99 1,453 55 3 26 42 2.0 - 2.9 269 3,614 144 4 60 2 3.0 - 3.9 179 2,012 69 - 48 S0 4.0 - 4.9 79 1,077 35 1 29 1 5.0 - 9.9 75 832 72 1 19 1 10.0- 14.9 8 47 4 - 12 15.0 -19.9 3 19 1 1 2 20.0 -over 8 3 1 1 2 Source: BAEcon, sanple survey of 1,930 barrios, 97,000 farm household. ANNEX 6 Table 12 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 12. Estimated Number of Tractors in Philippines Year Hand Tractors Large Tractors (below 15 HP) 1963 (BAEcon Survey) - 5,300 1964 (Estimated) 100 700 1965 (Estimated) 500 700 (AMDP Sales Record Rounded from Figure 2) 1966 1,900 700 1967 2,900 1,500 1968 1,800 1,500 1969 1,000 1,400 1970 500 1,200 1971 500 (estimate) 1,100 (record) Total 9,200 14,100 Estimated number retired 600 1,400 Estimated number in service 8,600 12,700 Source: BAEcon and Agricultural Machinery Distributors Association of the Philippines. PHILIPPINES ANNIEX 6 AGRICULTURE SECTOR SURVEY Table 13 Table 13. Rice Planting Calendar in Philippines, by Regions and Provinces PALAGAD CROP PALAGAD CROP RMION II REGULAR CROP (Secondary Crop) RMION VI REGULAR CROP (Secondary Crop) 1. Abra June . August January - March 1. Albay May - July December - January 2. Ilocos Norte May - September November - February 2. Catanduanes October - December May - July 3. Ilocos Sur May September November - January 3. Camnarines Norte October - January May - July 4. La Union June - August October - February 4. Camarines Sur July - October November - January 5. Mountain Province June - July April -June 6. Benguet June - July 5. Masbate May - July October - December 7. Ifugoo June.- July 6. Sorsogon November - January June - July *8. Pangasinan June - September January - Feliruary RMION III RMl011 VII 1. Batanes None May - June 1. Aklan April - September October - February 2. Cagayan 2. Antique May - August November - January a. Northwestern June - September January - February 3. Capiz April - July October - January b. Northeastern July - October December - January 4. Iloilo Juae- September December - January c. Southern July - September May - August 5. Negros Occidental May - August September - October 3. Isabela August - October Mary - April 4. Nueva Vizcaya July - September February - March 5. Kalinga - Apayao July - December February - June RMION VIII REION IV .1. Bohol May - June December - January 1. Bataan June - August January - February August - September 2. Bulacan June - July January - February 2. Cebu June - August November - December November - December 3. Leyte del Norte 3. Nueva Ecija June - September January - February a. Eastern portion June - July November - December 4. Pampania May - August November - February b. Western portion November - December June - July 4.opema r - buary 4. Leyte del Sur November -December June - July 5. Tariae May - August January - February 5. Negros Oriental May - September November - January October - November 6. Samr, Northern November - December June - July' 6. Zambales June - September January - March 7. Samar, Western June - July November - December 7. Aurora Sub-province August - October March - April 8. Samar, Eastern November - December June - July REION V 1. Batangas May - August December - February RMION IX 2. Cavite July - Auivust February - April 1. Lanao del Norte May - July January - March 3. Laguna January - February January - May September - October July - September September - December 2. Lanao del Sur May - July January - March 4. Ma3rinduqoe May - July December - January September - October 5. Mindero Ori-ntal June - August December - January 3. Misamis Occidental May - June November - December 6. Mindoro Occidental June - August December - January 4. Misvmniis Oriental June - August December - January 7. Palawin June - August N o no S. Bukidnon June - September N o n e 8. Ouezon September - December Febru,ry - July 6. Sulu April 9. Rizal July - September February - April July - August February - March 7. Zamboanga del Norte June - August December - January 10. Romblon June - July November - Decernber 8. Zamboanga del Sur June - August December - January R1 ION X 1. Agusan October - December April - May July - August 2. North Colabiato June - July September - October 3. South Cot;:J ito June - July Septemiher - October 4. Sumiar intdel Norte Novcmbr - Decembor Jume - July 5. Swrij.D 0A :'Vur Novcmibcr - Decemtmer Junn - July G.. oeew Orrltal Ju; - AngiA Decewter - Januay 7. Davao dei rfi te Jumn - Auynt December - January 8. O;vao del ,mr June - Au.just Detember - Jz!onry Source: "The Philippines Recommends for Rice" 1970, NFAC PILIPPINES AGRICULTURAL SECTR SURVEY Table 14. Variation of Rainfall Pattern & Typhoon Frequency jammary Mebruary march April L July Auasgt Beptar October a r December Total H CENTRAL LCZON Rainfall (m) Cabanatuan 5.8 11.4 17.2 44.7 148.0 267.6 272.4 394.2 317.9 149.5 130.6 46.4 1,805.7 Rainy day, Cabanatuan 2 2 3 4 12 17 20 24 22 12 10 6 134 Typhoon Center 0 0 0 0 2 3 1 4 2 3 5 1 21 CAGAYA4 VALLEY Rainfall (m), Aparri 148.3 88.8 39.7 41.0 86.3 183.3 201.8 259.3 306.9 331.6 409.0 224.0 2,320.0 Rainy day, Aparri 15 11 7 5 8 13 12 15 16 18 20 19 159 Typhoon Center. Batanes 0 0 0 0 3 5 12 14 17 2 4 2 59 BICOL Rainfall (m). Legaspi 301.6 176.2 207.6 172.7 182.2 205.4 229.9 282.9 247.3 307.3 478.3 466.3 3,257.7 Rainy day, Legaspi 22 17 17 17 14 15 19 20 20 20 21 23 225 Typhoon Center 1 1 0 0 3 3 2 2 4 7 12 6 39 W. VISAYAS Rainfall (m) 111l City 42.0 21.0 33.7 38.6 137.7 258.7 280.1 332.9 242.6 212.9 184.0 95.4 1,879.6 Rainy day, Iloilo City 8 6 6 5 12 18 19 20 19 17 15 12 157 Typhoon Center 2 0 3 2 5 4 2 1 0 5 16 9 49 E. VISAYAS Rainfall (m) Cebu City 100.3 70.3 53.9 58.3 114.8 178.2 208.7 189.5 178.1 191.1 161.9 133.3 1,638.4 Rainy day, Cebu City 13 11 11 8 12 16 18 17 16 20 15 15 172 Typhoon Center 2 0 3 2 5 4 2 1 0 5 16 9 49 S,W. MINDANAO Rainfall (m) Davao 124.7 109.9 86.0 139.6 226.0 162.2 195.5 153.0 171.5 171.3 149.9 114.7 1,804.3 Rainy day, Davao 13 12 11 12 18 17 17 15 15 15 14 14 173 Typhoon Center 0 0 0 0 0 0 0 0 0 1 0 1 2 Source of Data: Extracted from Tables 4 and 8 of Annex 1. Rainfall and Rainy day data are normala, 1951-70 average. Typhoon Center frequency is total of 23 years, 1948-70. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 15. Projected Irrigated Area, 1975 & 1980 As of January, 1972 Projection, 1975 Projection, 1980 Region Potential Crop Area Actually Irrigated Potential Crop Area Irrigated Potential Crop Area Irrigated Irrigable Regular Palagad Irrigable Regular Palagad irrigable Regular Palagad Area Crop Crop Total Area Crop Crop Total Area Crop Crop Total I. City of Manilla - - - - - . 11. Ilocos 82,866 52,828 18,415 71,243 94,814 62,503 26,307 88,810 112,062 76,153 36,035 112,188 (63.8%) (22.2%) (65.9%) (27.7%) (68.0%) (32.2) III. Cagayang Valley 128,721 85,437 43,012 128,449 138,570 94,233 47,457 141,690 152,019 105,729 57,630 163,359 (66.4%) (33.4%) (68.0%) (34.2%) (69.5%) (37.9%) IV. Central Luzon 387,685 253,670 97,168 350,838 428,700 285,517 140,560 426,077 467,315 315,564 188,880 504,444 (65.4%) (25.1%) (66.6%) (32.8%) (67.5%) (40.4%) V. S. Tagalog 102,003 64,801 26,195 90,996 115,278 76,747 32,171 108,918 129,453 89,368 44,579 133,947 (63.5%) (25.7%) (66.6%) (27.9%) (69.0%) (34.4%) VI. Bicol 45,937 27,434 12,867 40,301 53.291 35,136 15,960 51,096 64,785 45,943 21,040 66,983 (59.7%) (28.0%) (65.9%) (29.9%) (70.9%) (32.5%) VII. W. Visayas 93,469 66,143 20,845 86,988 111,227 82,576 28,745 111,321 125,185 96,159 40,821 136,980 (70.8%) (22.3%) (74.2%) (25.8%) (76.8%) (32.6%) VII.E. Visayas 25,409 17,638 7,436 25,074 42,449 34,023 14,894 48,917 58,289 49,508 21,776 71,284 (69.4%) (29.3%) (80.2%) (35.1%) (84.9%) (36.3%) IX. N.E. Mindanao 42,586 26,943 12,293 39,236 55,500 39,972 17,822 57,794 89,914 69,126 33,671 102,797 (63.3%) (28.9%) (72.0%) (32.1%) (76.9%) (37.4%) X. S.W. Mindanao 49,831 34,934 15,692 50,626 78,163 61,338 28,249 89,587 120,705 98,450 55,627 154,077 (70.1%) (31.5%) (78.5%) (36.1%) (81.6%) (46.1%) PHILIPPINES 958,507 629,828 253,923 883,751 1,117,992 772,045 352,165 1,124,210 1,319,727 946,000 500,059 1,446,059 (65.7%) (26.5%) (69.1%) (31.5%) (71.7%) (37.9%) (Du Source: Annex 3, Table 6 PHILIPPINES CO] AGRICULTURAL SECTOR SURVEY o a" Table 16A: Projected Change of Rice Land Composition 19721J 175 1980 Land Type Zegular Palagad Total Regular Palagad Total Regular Palagad Total Crop rop Crop Crop Crop Orop Ha Ha Ha Ha Ha Ha Ha Ha Ha Lowland Irrigated 630,000 254,000 884,000 799,000 367,000 1,166,000 999,000 29,000 1,528,000 Rainfed 2/ 1,272,000 545,000 1,817,000 1,074,000 461,000 1,535,000 821,000 352,000 1,173,000 Subtotal (1,902,000) (799,000) (2,70?,000 (1,873,000) (828,000) (2,701,000)(1,820,000) (881,000) (2,701,000) Up1and 412,000 - 412,000 350,000 - 350,000 200,000 - 200,000 Total 2,314,000 799,000 3,113,000 2,223,000 828,000 3,051,000 2,020,000 881,000 2,901,000 Table 16B: Ddfference from 1972 Lowland Irrigated +169,000 +113,000 +282,000 369,000 275,000 644,000 Rainfed -198,000 - 84,000 -282,000 -;:51,000 -193,000 -6)4,000 Subtotal - 29,000 + 29,000 ( - ) - 82,000, + 82,000 ( - ) Upland - 62,000 - - 62,000 -299,000 + 82,000 -212,000 Total - 91,000 + 29,000 - 62,000 -299,000 + 82,000 -212,000 Based an Table 17 and 18. Assumed 30% rainfed lowland rice harvested area are from the Palagad crop, mostly in Regions with even rainfall distribution. 3/ Area used by the regular crop represent the land area for rice culture. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 1?. Approximated Present Composition of Rice Land Total rice Lowland Rice Area harvested Area Upland Rice Area Total Area Irrigated Rainfed Ha. Ha. % of (1) Ha. % of (1) Ha. % of (4) Ha. % of (4) (1) (2) (3) (4) (5) (6) (7) (8) (9) V. Ilocos 144,820 5,080 3.5 139,740 96.5 71,543 51.0 68,497 49.0 IV. Cagayan Valley 314,040 8,050 2.6 305,990 97.4 128,443 42.0 177,541 58.0 IV. Central Luzon 634,750 11,080 1.8 623,670 98.2 350,838 62.4 272,832 37.6 V. S. Tagalog 345,370 88,180 25.5 257,190 74.5 90,996 35.4 166,194 64.6 VI. Bicol 357,960 84,550 23.6 273,410 76.4 40,301 14.7 233,109 85.3 VII. W. Visayas 397,810 36,850 9.3 360,960 90.7 86,987 24.1 273,972 75.9 VIII. E. Visayas 256,580 19,420 5.4 237,160 94.6 25,074 10.6 212,086 89.4 IX. NE Mindanao 194,330 52,920 27.2 141,410 72.8 39,236 27.7 102,204 72.3 X. SW Mindanao 467,780 105,950 22.6 361,830 77.4 50,626 14.0 311,204 86.0 PHILIPPINES 3,113,440 412,080 13.2 2,701,360 86.8 884,044 32.7 1,817,609 67.3 Source: (1) (2) (h) BAEcon data for 1970 (6) To the sums of regular crop and palagad crop area under first column of Annex 3 Table 6. O 0 PHILIPPINES D,z AGRICULTURAL SECTOR SURVEY oX Table 18. Projected Rice Harvested Area, Yield & Paddy Production, 1975 & 1980 1972 1975 1980 -, Area- Yield/Ha Production Area Yield/Ha- Production Area Yield/Ha-" Production Variety Ha Cavan Kg 1,000 MT Ha Cavan Kg 1,000 MT Ha Cavan Kg 1,000 MT Lowland 2/ 1 Irrigated HYV 884,000 662 2,875 2,541 1,166,0001/ 69 3,036 3,540 1,528,000-/ 72 3,159 4,827 3/ 2/ 2/ Rainfed HYV 317,000 40- 1,760 558 1,074,0002 42 1,848 1,985 1,100,000.7 45 1,980 2,187 Traditional 1,500,000 26- 1,144 1,716 461,000- 26 1,144 527 73,000- 26 1,144 84 Upland Traditional 412,000 184 792 326 350,000 18 792 277 200,0003/ 18 792 158 TOTAL 3,113,000 38 1,652 5,1415/ 3,051,000 47 2,074 6,329 2,901,000 57 2,501 7,256 Source of Data 1972 1975 1980 1/ Table 16A. Total rainfed lowland 1/ Annex 3, Table 5. 1/ Annex 3, Table 5. area is 1,817,609 ha. NFAC re- ported total HYV area of 1971 is 2/ Assume total rainfed lowland rice 2/ Assume total rainfed lowland rice 1,200,000 ha. Assuming irrigated area is reduced by 282,000 ha, area is reduced further by 362,000 area is all HYV, leaving 317,609 equal to expansion of irrigated ha, equal to expansion of irrigated ha on rainfed lowland, area. HYV's on rainfed lowland area. HYV's expanded further to 2/ NFAC Annual Report, 1970/71. expanded to 70% of area by 1975. 94% of rainfed lowland. 3/ Computed from 1/, 2/, 4/ and 5/. 3/ Yield on irrigated land increases 3/ Upland rice is reduced to 200,000 4/ RCPCC (Predecessor of NFAC) data by 3 cavans remain and HYV on ha. average 1961/62 through 1965/66 rainfed lowland increases by 2 4/ HYV yield on irrigated lowland in- is 17.9 cavan. No improvement cavans over 1972. Yield of tra- creased to 72 cavans per ha and on is assumed. ditional varieties remain un- rainfed lowland to 45 cavans per ha. 5/ BAEC on February, 1972 forecast, changed. PHILIPPINES AGRICULTURAL SECTOR SURVEY 4000 3500 - ; 3000 - Price of N/kg A P1.40 B 1.75 c C 2.10 2500 - I I I I 2000 I I - -I I 00 T 0 30 60 90 120 150 Elemental nitrogen (kg/ha) Figure 1: VARIABILITY IN OPTIMUM LEVEL OF NITROGEN AND PALAY YIELD LEVEL DUE TO CHANGES IN THE FERTILIZER PRICE. (PRICE OF PALAY = P0.36/KG) Source: "The Impact of Devaluation on Fertilizer Use and Profitability in Philippine Rice Production", a paper presented for a seminar on May 21, 1970, by Barker, et al., IRRI. World Bank - 7226 PHILIPPINES AGRICULTURAL SECTOR SURVEY 4800 4400 - Total 4W tractors & power tillers sold 4000 - 3600 - 3200 - Total power tillers sold 2800 * 0 . / + (floating exchange E rate - Feb. 1970) 2400 / 2000 (1st CB, IBRD credit 06% Total 4W tractors line - Apr. 1966) sold 1600 1200 - 800 (n O* I(2nd CB: IBRD credit 400 No loans released for tractors line - Sep, 1969) & power tillers (CB IBRD 0 I I1 1966 '67 '68 '69 '70 Year Figure 2: SALES OF FARM MACHINERY, 1966-70 Source: Sales data from Agricultural Machinery Dealers Association, Manila; CB:IBRD data from Department of Rural Banks, Central Bank of the Philippines. World Bank - 7227 PHILIPPINES AGRICULTURAL SECTOR SURVEY 280 I 280 -Floating 00000exchange rate - Tractors F eb. 1970 240 - Durable equipment WVork animals end of progressive 0d revaluation 200 1959 - Farm labor t.* 160 * 100, 120changes in . - -- - d minimum wage law 80- 1956 'S7 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 '68 *69 70 Figure 3: PRICE TRENDS OF SELECTED FACTORS IN FARM PRODUCTION, 1956-70 Source: Adopted from Annual Research Review Agricultural Economics, Februery 21-25, 19?2, fRR(, Based on data from Cristina M. Crisastomo, "Sources of Output Growth in Philippine Agriculture, 1948-1968", M.A. Thesis, University of the Philippines, 1972. World Bank - 7228 z о Н н � � � А � г� а � и z НдΡ О и а Н W С7 U 7 W Н д и rs. w а w ,дΡ� Н Г�+ w н А Н а � � � Н О а' U д г� ЬС W Zz б ANNEX 7 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY CORN AND FEED GRAIN PRODUCTION TABLE OF CONTENTS Page No. Corn Production ......................................... Past Trends A. Area ........................................ ... B. Yield ................................................... 2 C. Production .........................................**** 3 D. Consumption .........................................*** 4 Four-Year Production Plan and Target .......................... 4 NFAC Corn Program A. Program Targets ......................................... 4 B. Performance of hYV's Extension .......................... 6 C. Work Items of NFAC Corn Program Related to Production ... 7 Supply of 'Major Inputs Improve Seeds ............................................... 12 Fertilizers .............................i****ize************ 14 Pesticides, Herbicides and Farm Machinery.................... 15 Recommendations for Improvement................................ 15 Outlook of Future Production................................... 19 Sorghum Production .............................................. 21 Introduction .................................................. 21 Present Productionand NFAC Production Targets ................ 21 Research .................................................... . 22 Extension and Training ........................................ 25 Supply of Major Inputs ........................................ 26 Recommendations for Improvement ............................... 26 Soybean Production ........................................ 7 Introduction .................................................. 27 Past Trends of Production and Demand .......................... 28 Four-Year Plan Targets ........................................ 29 NFAC Soybean Program ...................................... 29 Research ...........................................****rch.*.* 1 Extension, Training and Information ........................... 32 Recommendations for Improvement ............................... 33 Production outlook ............................................ 35 ANNEX 7 Page 2 Tables: 1. Corn Production Statistics, All Philippines 2. Corn Area Harvested by Region 3. Corn Yields by Region 4. Corn Production by Region 5. Corn (Shelled) Production by Variety and by Region 6. Characteristics of Seedboard Varieties of Yellow and White Corn 7. Maize Responses to Nitrogen at the 45 kg/ha Level 8. Maize Yield Response to Nitrogen 9. Corn-Seed Production Targets 10. Corn-Planting Calendar 11. Corn . Projections of Area, Production and Yield 12. Corn and Sorghum Estimated Consumption 13. Sorghum - Area, Production, Yield by Regions 14. Soybeans - Area by Region 15. Soybeans Production by Region 16. Average Yield per hectare by Region 17. Raw Soybean Imports 18. Soybean - Characteristics of Extension Varieties 19. Soybean - Estimated Requirement ANNEX 7 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY CORN AND FEED GRAIN PRODUCTION Corn Production 1. The Philippines currently produces about 2 million MT of corn a year on 2.4 million harvested hectares. The average yield is only about 0.8 MT/ha. About 90% of the production is white corn, used mainly for food, and 10% is yellow corn, used mainly for feed. Recent rapid expansion of large modern poultry and pig industries caused a strong demand for yellow corn. About 250,000 MT of yellow corn is being imported to meet the deficit in CY 1972. 2. The Government corn program concentrates on extension of HYV's in selected provinces. Two HYV's for white corn, which are resistant to downy mildew disease, have recently become available. Similar varieties for yellow corn are expected in 1972/73. About 13% of the total corn area is now planted to HYV's. Few small farmers are applying fertilizer, insecticide, or herbicide. Corn culture is almost entirely rainfed and by traditional practices. Excessive moisture during harvesting and planting contributes to low yield and depresses farm prices. 3. Few farmers could afford to buy and use fertilizers and other chemicals at the present low yield conditions. It is proposed that the Government will need to develop measures that will raise basic yields with- out added cost, before farmers will be able to invest money in inputs. Such measures include (a) development of disease-resistant HYV's for yellow corn; (b) providing certified seeds with good quality at planting time; (c) con- ducting experiments on new HYV's with the short growing period; and (d) adjust- ing planting and harvesting periods to avoid harvest in heavy rain months whenever feasible. These measures (a and b have already begun) should help raise farmers' basic yields to over 2 MT/ha. When this threshold is reached, farmers probably will start using fertilizers and insecticides. Further yield increases, resulting from these innovations, will stimulate farmers to use more chemicals and attain even higher yields. The mission projects esti- mates Philippines' corn production at about 2.6 million MT by 1974/75. This will still be short of requirements by about 200,000 MT of yellow corn. By 1979/80, corn production could reach nearly 4 million MT, harvested from a reduced area and at a national average yield of about 2 MT/ha. This quantity will be sufficient to meet all requirements. Past Trend of Area, Yield and Production A. Area 4. The Philippines grows both white and yellow corn. The harvested area stayed below 2.1 million ha until 1964/65. Since 1965/66 it has risen ANNEX 7 Page 2 steadily and reached 2.4 million ha by 1969/70 (Table 1). The expansion is especially rapid in 5 regions: four grow mainly white corn - the Cagayan Valley, Western Visayas, SW and NE Mindanao; one grows mainly yellow corn - S. Tagalog. 5. There has been a shifting of land used for growing corn to poor areas in some regions in the last decade. Corn has been and still is mainly grown on the plain, on flat lowlands with light textured soils, in the drier season after rice. On gently undulating upland, it is grown in both seasons or even in 3 crops. Corn is also grown on rolling land, hill and mountain sides. Sugarcane has expanded by some 200,000 ha during the last decade, replacing corn and upland rice from some undulating and rolling land. On the other hand, corn has expanded onto steeper slopes of hills and mountains after logging and "Kaingin" 1/. The area of Kaingin crops shifts after a few years of planting, leaving the land behind to cogon grass or secondary bush. Moreover, an undetermined but extensive area of corn is being grown under coconut trees, especially in SW Mindanao. 6. Region-wise, SW Mindanao now has nearly 40% of the nation's corn area. The Mindanao Island has 50%. The Visayas had 47% in 1956/57. In 1970/71, its share dropped to 26%. In Eastern Visayas, the center of the corn eating population of the Philippines, corn area has actually dropped due to soil erosion after continuously planting on slope land over many years. The region now imports corn from other regions, especially Mindanao. The Cagayan Valley is the main white corn and S. Tagalog the main yellow corn producing area on the Island of Luzon (Table 2). Season- wise, some corn is planted in each month in all regions, but information on monthly distribution of area planted is not available. B. Yield 7. The national average yield of corn in the Philippines was only about 0.5 MT per ha in the fifties. It was above 0.6 MT in the early sixties, reached 0.7 MT in the late sixties and has exceeded 0.8 MT per ha since the start of seventies (Table 3). The present yield, however, is still extremely low. Thailand, for instance, is producing 2 MT/ha. 8. The low yield of corn in the Philippines is attributable to the following: (a) corn growing is entirely rainfed; (b) practically no fertilizer (except on large plantations) nor pesticides are applied and losses from insects and diseases are heavy; 1/ Kaingin means cut and burn clearing of land. ANNEX 7 Page 3 (c) heavy and frequent rains during the harvesting season of the first crop and the planting season of the second crop (between August and November) occur in most regions; (d) high frequency of typhoon and low solar radiation; (e) corn grown on slopeland and under coconut trees has low yields; (f) as of 1971/72, the current Seedboard extension varieties occupy only about 12% of the total white corn area, and 20% of the yellow corn area as shown below. The earlier extension varieties were open pollinated or hybrids. The hybrids degenerated after the seed supply program stopped (see para 26). The current extension HYV's are all synthetic varieties. Until recently, all seedboard varieties were susceptible to downy mildew. Total Area HYV's Area % 1,000 ha 1,000 ha White corn 2,100 246 12 Yellow corn 240 49 20 Total 2,340 295 13 (g) loss after harvest is high, especially that of the first crop, due to frequent rains and lack of drying facilities. Farmers are forced to sell corn as soon as it is harvested to middlemen in order to avoid even more severe losses. C. Production 9. Production increased from around 900,000 MT in 1955/56 to about 2 million MT in recent years (Table 4), as a result of expansion in area and a little yield improvement. Region-wise, white corn production dominates in the Cagayan Valley, the Visayas and Mindanao. Yellow corn predominates S. Tagalog. In Ilocos, Central Luzon and Bicol, more white corn is produced, but yellow corn has a respectable share (Table 5). 10. The share of yellow corn production has dropped from 26% of total corn production before 1967/68 to 10% in recent years. This trend is ex- pected to continue in the immediate future. Because of the earlier release of downy mildew resistant white corn varieties, its average yield is expected to improve more rapidly than that of yellow corn for the next few years. 11. The rapid expansion of modern large scale poultry and pig farming in the Philippines in recent years has greatly increased the demand for yellow corn. With the release of downy mildew resistant varieties, the yellow corn crop can be expected to increase. The Philippines has the capacity to meet all domestic requirement for corn. ANNEX 7 Page 4 D. Consumption 12. White corn is mainly consumed as food. About 20% of Philippines' population use corn as a staple food in form of grits. In Eastern Visayas and parts of Mindanao, corn is eaten more than rice by rich and poor. In other white corn producing regions, corn grits are consumed by the poor as a supplement to rice. Both white and yellow corn-on-the-cob are eaten in all regions. About 6-8% of the current white corn production is consumed by the starch, glucose and other industries (Annex 10). 13. Corn is the chief feed grain of the Philippines. It comes in 3 forms: (a) by-product feed from milling of white corn for grits, equal to about 30% of the grain weight; (b) surplus white corn; and (c) the entire crop of yellow corn, minus corn-on-the-cob consumption. Estimates of different categories of consumption are given in Table 12. Four-Year Production Plan and Target 14. The current four-year plan sets the following targets for corn production: Year 1,000 MT 1971/72 2,292 1972/73 2,434 1973/74 2,582 1974/75 2,736 Annual average growth rate = 7.2% 15. The proposed main strategies of the plan include extending HYV's and complementary packages of inputs, enlarging the share of yellow corn in total production, and establishing adequate storage and processing facili- ties. 16. The 4-year plan provides no goals for area and yield nor regional breakdowns. This information is provided in the NFAC Feed Grains and White Corn Program, which includes white corn, yellow corn and sorghum. NFAC Corn Program A. Program Targets 17. The NFAC Corn Program, like its Rice Program, centers on the extension of HYV's. The physical targets for 1971/72 to 1973/74 are summarized below. Those for later years are being added annually by NFAC, but are not yet available. ANNEX 7 Page 5 1971/72 1972/73 1973/74 Area Prod. Yield Area Prod. Yield Area Prod. Yield Crop/ Provinces 1,000 ha 1,000 MT Kg/ha 1,000 ha 1,000 MT Kg/ha 1,000 ha 1,000 MT Kg/ha White Corn Programmed 596 940 1,578 596 1,063 1,784 596 1,185 1,989 Unprogrammed 1,600 1,095 684 1,600 1,095 684 1,600 1,095 684 Total 2,196 2,035 929 2,196 2,158 980 2,196 2,280 1,037 Yellow Corn Programmed 101 161 1,607 101 183 1,824 101 220 2,195 Unprogrammed 140 96 684 140 96 684 140 96 684 Total 241 257 1,068 241 279 1,163 241 316 1,317 All Corn Programmed 697 1,101 1,578 697 1,246 1,787 697 1,439 2,064 Unprogrammed 1,740 1,191 684 1,740 1,191 684 1,740 1,191 684 Total 2,437 2,292 941 2,437 2,427 996 2,437 2,586 1,060 18. The targets include a constant corn area at 2,437,000 ha, the current level. Furthermore, target areas for white and yellow corn are also held at current levels. In other words, NFAC's targeted areas are pegged at their current levels, but these targets do not separate the HYV's from the tradi- tional varieties. 19. In "programmed" provinces, NFAC plans extra support in terms of personnel and budget, program coordination and data grathering for the ex- tension of HYV's. For instance, the "programmed" area of white corn is kept at 596,000 ha throughout the four years, but an increasing share of it will be in HYV's. Initially, the program does not set targets for HYV extension for the four years. Annual targets are worked out each year before planting. 20. In "unprogrammed" provinces, NFAC makes no additional inputs avail- able and programmes a low yield of 12 cavans (684 Kg) per ha. In fact, there are two kinds of "unprogrammed" provinces. In some, HYV's are being extended by the routine provincial extension program of BPI and APC. NFAC follows the area, production and yield of HYV's and traditional varieties and reports them in its annual report. In these "unprogrammed" provinces, therefo re, HYV's can also be expected to expand though at a slower rate than the "programmed" provinces. In other "unprogrammed" provinces where no HYV's are grown, NFAC makes no report. These provinces will maintain the low yield of 12 cavans/ha. ANNEX 7 Page 6 B. Performance of HYV's Extension 21. Performance of HYV extension in 1970/71 and 1971/72 under the NFAC program is summarized below: 1970/71a 1971/72a Area Production Yield Area Production Yield 1,000 ha 1,000 MT Kg/ha 1,000 ha. 1,000 MT Kg/ha White Corn Programmed Provinces 102.6 137.2 1,311 220.0 350.4 1,596 Unprogrammed Provinces 43.0 66.2 1,539 26.0 45.2 1,710 Total 145.6 203.4 1,368 246.0 395.6 1,596 Yellow Corn Programmed Provinces 25.6 37.1 1,454 36.3 47.0 1,294 Unprogrammed Provinces 21.3 31.6 1,482 12.7 11.1 872 Total 46.9 68.7 1,465 49.0 58.1 1,086 /a Unpublished tables, NFAC. 22. The white corn HYV's had expanded by about 100,000 ha in 1971/72; their average yield also attained the NFAC target for that year. The yellow corn HYV area expanded by 10,000 ha in "programmed" provinces, but lost 8,000 ha in "unprogrammed" provinces. Its yield in "unprogrammed" provinces also suffered a serious setback in 1971/72. At the above rate, white corn HYV's may reach 596,000 ha, the entire NFC "programmed" area, but it will come from both the "programmed" and "unprogrammed" provinces. The expansion of yellow corn HYV's is lagging and must be stepped up. 23. The corn program faces a seed supply problem which will be dis- cussed later. Being widely planted, farmer-to-farmer HYV seed dissemination enables white corn HYV to expand more rapidly than yellow corn. Yellow corn was further handicapped by the lack of downy-mildew resistant varieties until late 1972. ANNEX 7 Page 7 C. Work Items of NFAC Corn Program Related to Production 24. The NFAC program includes research, applied research, demonstration, extension, training, improvement of marketing and credit supply. Those related to production are discussed in this chapter. 25. Research. Early corn research in the Philippines was done mainly at the UPCA campus and the Economic Garden of BPI, both at Los Banos, Luzon Island. More recently, three BPI stations (the Ilagan Experiment Station at Isabela, Cagayan Valley, the La Granija Experiment Station on Negros Island, Western Visayas, and the Aroman Experiment Station at Cotabato, S.W. Mindanao), and two Universities (Central Mindanao University, Musuan, Bukidnon, N.W. Mindanao and Mindanao Institute of Technology, Cotabato, S.W. Mindanao) have joined corn research under the UPCA Upland Crops Program. Field trials are carried out in more stations and farmers' fields across the country. Experi- ments on fertilizer response are conducted mainly by the Bureau of Soils, but UPCA conducts a series of experiments on other aspects of fertilizer used on corn. Each year, the corn researchers meet in Los Banos and report on their findings. Like rice, improved corn varieties have produced some impact on farmers' production. Most corn growers in the Philippines have adopted very few other innovations. Research findings relevant to extension are summarized below. 26. The Philippines started its hybrid corn program in the 1950's and some hybrid corn varieties developed by UPCA have been released for extension. The earlier extension list also included selected open pollinated varieties. In early sixties, due to problems with hybrid corn seed multiplication and the high price of hybrid seeds, it was decided to change to developing syn- thetics, derived from inbred lines extracted from local and foreign material. Since then, a number of synthetics of white and yellow corn have been developed and approved by the Philippine Seed Board for extension. These synthetics are the current Seed Board corn varieties in the Philippines. 27. Until 1971, all of the Seed Board varieties were found fairly resistant to major corn diseases except downy mildew, the most persistent corn disease in the Philippines. When downy mildew infection is not serious, the HYV's yield 80-100 cavans shelled grain (57 Kg per cavan) per ha, compared with 50 to 60 cavans of traditional varieties under fertilized experimental conditions. At the farm level, the average yield of unfertilized corn has been 25 to 30 cavans per ha for HYV's compared with 10 to 20 cavans per ha for the traditional varieties. 28. The spreading of HYV's has been slow for two reasons: first, they were susceptible to downy mildew, second, they mature in 105 to 115 days while some native varieties mature in 90 days. In 1971, two downy mildew resistant white corn synthetic varieties were added to the Seed Board varieties, MIT-2 and DMR-2. The MIT series, first identified by the Mindanao Institute of Technology in 1968, is now being used as a source of resistance in the on-going corn breeding program. Resistant yellow corn varieties have ANNEX 7 Page 8 also been tested, and downy mildew resistant varieties have only been selected in fall 1972 (Philippines DMR series). The characteristics of 8 corn Seed Board varieties, 5 white and 3 yellow, are summarized in Table 6. 29. Aside from resistance to downy mildew, the new HYV's have shorter growing periods. MIT-2 matures in 85-95 days (equalling early maturing native varieties), compared with 105-115 days for the older HYV's. Although the experimental yield of MIT-2 is somewhat lower, it is expected to yield more under field conditions. 30. With the recent selection of downy mildew resistant yellow corn variety, the existing HYV's are adequate for NFAC to launch an extension program and justify the modest NFAC projections made so far. When resistant yellow corn seeds are available through multiplication, expected in a couple of years, the yellow corn yield projections can be raised to a higher level. 31. The Philippines' corn breeding program and the Seedboard variety list also include glutinous, sweet and pop corns. Since the area planted to them is relatively small, they will not be treated in this report. 32. Under the Bureau of Soils/UNDP Soil Fertility Survey and Research Project, March 1964 to March 1969, 1,340 field experiments on corn response to fertilizer were carried out. These experiments were conducted under rainfed conditions. Missing plants and other irregularities in experimental plots were numerous and data from many plots had to be discarded. Final analysis was made from data on about 850 experiments. 33. The BS/UNDP project findings show that the major nutrient need of the maize crop in the Philippines is nitrogen. At 45 Kg N/ha, the response varies from a minimum of 8 Kg of shelled grain per Kg of added N to a maximum of 30 Kg (Table 7). At levels of 45 Kg and 90 Kg N/ha, returns from 100 pesos invested in nitrogen fertilizers varies from a minimum of Y 115 to f 427 per ha (Table 8). The response of corn to phosphate was generally much lower but high response was found on the acidic soils of Bukidnon and the NE Mindanao Region and also on some limestone soils of Cebu and Catanduanes. The response to potash is generally negligible, except in some lime soils and some old alluvial soils in Isabela (Cagayan Valley) where soils are deficient in this element. Current recommendations for fertilizer are for application of 60 Kg of N per ha for HYV's and 45 Kg for traditional varieties and no application of P205 and K20, except on soils series where crop responses have been significant in experiments. 34. UPCA experiments produced the following useful information. Up to 45 Kg N/ha can be applied at all planting time. If higher rates are desired, split application is recommended. Superphosphate (20% P205) is more effective than rock phosphate (30% P205). Higher response was obtained when superphosphate was applied in plant furrows than when it was broadcast. With rock phosphate, the manner in which it was applied made no difference. Ammonium sulfate may be mixed with soil, applied on soil surface or in ANNEX 7 Page 9 furrow, with little difference in corn yield. Moreover, fertilizer response and corn yield increase as plant population is increased from the conven- tional 20,000 plants per ha to 40,000 plants and 60,000 plants per ha. 35. Continuous cropping experiments with corn from 1954 to 1968 show that (1) soil pH went down from 5.72 in 1957 to 5.33 in 1965 in plots receiv- ing 90 Kg N/ha every season; (2) calcium, magnesium, phosphorous and potassium contents of the soil decreased with continuous application of high rates of nitrogen. The practical implication is that corn growers can, in most cases, use nitrogen alone at the beginning, but the need for phosphorous and potas- sium will develop later. 36. Insects attack corn in the Philippines from the beginning to the end of the season. The important insects are: Preplant: white grubs Very young plants: corn seedling maggots and thrips Young to old plants: army worms, cutworms, locust and grasshoppers Before and after picking: corn borer After ear formation: corn earworm and corn borer larvae Chemical control experiments have been made by UPCA and BPI. Pesticides, dosage and time of application have been worked out and included in extension material, but very few farmers spray their corn. Losses due to corn borer and earworm infestation is especially serious in the Philippines, and contribute heavily to the low average yield of corn. Generally, the loss is heavier on the wet season crop than on the dry season crop. 37. As mentioned before, downy mildew is the most serious corn disease in the Philippines. It is estimated that at the present yield level, this disease together with corn borer and earworms reduce corn production in the country by about 50%. In other words, other things being equal, Philippines' corn production could have been doubled had it not been for these 3 pests. Other common corn diseases in the Philippines are leaf rust, Rhizoctonia and Helminthosporium leaf spot. Minor diseases include bacterial leaf stripe, leaf blight, corn mosaic, smut, pythium stalk and root rot. Two diseases affect the grain; i.e. kernel blast which cause discolored and cracked grains and Diplodia ear rot which causes brittle grains with dense white mold between grains on rotting cobs. 38. Experiments with'chemical treatments for various diseases have been tried and recommended, but are seldom used by farmers. Fortunately, the existing HYV's are fairly resistant to rust, helminthosporium and rizoctonia diseases, and the new white corn HYV's are resistant to downy mildew as well. ANNEX 7 Page 10 39. UPCA experiments with resistant nonseedboard white corn varieties show that resistance to downy mildew improves as plants grow older. It also shows that the percentage of infected plants increases as planting is delayed from May 24 to July 5. At all dates of planting, most of the infection occurs during the first 3 weeks after germination. Hope for reducing losses from diseases lies principally with the breeding of resistant varieties. Early planting would reduce the incidence of downy mildew infection. 40. The predominant weed species in the corn fields of the Philippines are sedges, grasses and broad leaf weeds. UPCA and BPI have conducted experiments and made recommendations on herbicide usage but few farmers use them. UPCA experiments show that satisfactory corn yield can be obtained if the field is kept clean for the first 7 weeks after planting. Weeds that emerge after this period will not appreciably affect corn yield. 41. The extension program for corn reportedly engages the following number of field staff from various agencies for the 1971/72 program. No. of Farm "Programmed" Specialist or Management Total Crop Provinces Supervisor Technicians Available APC BPI APC BPI White corn 13 35 11 237 73 356 Yellow corn- 22 16 8 96 45 165 /a Including other feed grains: sorghum, soybeans, other beans. In addition to the BPI and APC personnel listed above, UPCA assigns one of its crop specialists to each region to assist the Regional Program Coordinator in the applied research aspect of the program. NFAC has expressed the need for additional Farm Management Technicians (FMT) for implementing the program. 42. The applied research project for corn consists mainly of variety, fertilizer and production (methods) trials on farmers' fields. In 1971/72, 35 variety, 30 fertilizer and 500 production trials were conducted. In 1972/73 and 1973/74, 100 more production trials are to be added. The variety and production trials are conducted by selected, trained FIT's under the supervision of the Provincial Specialist and/or supervisor. 43. The variety trials include at least 5 varieties (seedboard varieties and promising lines in advanced tests) and at least one is conducted in each "programmed" province. ANNEX 7 Page 11 44. The production trial consists of distributing mini-kits once the acceptance of a variety is identified in the province. The mini-kits contain seeds for 1 variety, fertilizer and pesticides for application at recommended rates and detailed instruction sheets. They are distributed to farmer- leaders within the provinces through FMT's. The plots selected for planting the kits serve for demonstration and for an additional source of seeds. 45. The fertilizer trial is conducted by regional officers of the Bureau of Soils (BS). In provinces where the BS men are not available, trained FMT's conduct the trials under supervision of the regional BS officers or the UPCA regional crop specialists. These trials are mainly for demonstrating corn yield responses at the recommended rates of applica- tion. 46. Corn extension consists of conducting field method and result demonstrations in connection with the applied research plots mentioned above, and is conducted in form of farmers' training classes, seminars and meetings, individual farm visits. In some provinces, radio broadcasts are being used. In 1971/72, 210 selected farm leaders in 7 provinces (30 each from Central Luzon and Visayas, 60 from S. Tagalog and 90 from Mindanao) were given a 1-week training course in their respective provinces. 47. All provincial program supervisors in "programmed" provinces are given practical training for one crop season (usually 3.5 months) at UPCA or BPI regional experiment stations. After the training, the supervisors are qualified as specialists. All FMT's in "programmed" provinces are given 3-4 weeks of training in corn production, processing, marketing, credit and extension methods at UPCA, Central Mindanao University, and 2 BPI stations in Cagayan Valley and Visayas. 48. BPI Seed Inspectors in "programmed" provinces are given special training courses in Manila conducted by BPI and UPCA. In turn, they return to their regions to give a 3-day training course to FMT's on seed processing, handling and certification. 49. A total of 20 supervisors, 120 FMT's and 20 seed inspectors attended training courses in 1971/72. The training courses on corn also include training on other feed grains, sorghums and soybeans. 50. NFAC issues "Philippines Recommends for Corn 1970/71" which summarizes the available extension information for distribution to the field staff and farm leaders. It also is in the process of preparing brochures on HYV corn and certified seeds, and leaflets on HYV corn , production and on preventing molds and diseases in stored grains. Ppsters have been published on control of downy mildew. Since January 1971 UPCA has published a monthly issue of "Upland Crops Newsletter". Detailed cultivation directives are distributed with the mini-kits. ANNEX 7 Page 12 Supply of Major Inputs Improved Seeds 51. NFAC recognizes that its corn program is being hampered by an acute shortage of HYV seeds in the "programmed" provinces. Although UPCA and BPI were able to produce foundation and registered seeds to target amounts in their own stations and seed farms, the multiplication of certified seeds and good seeds fell seriously short of demand and targets. BPI had not been able to distribute the small amount of certified seeds it did purchase, as shown below: 1967/68 1968/69 1969/70 1970/71 --------------(cavan) --------------- BPI purchased 2,483 275 684 254 BPI sold 133 40 337 91 BPI loaned 19 138 51 - Total disposed 152 178 388 91 52. The price margin of r 30 to 40 per cavan for HYV certified seeds over the common grain causes reluctance by farmers in purchasing corn HYV's. The period of viability for corn seeds (also for other feed grain seeds) when in unrefrigerated storage are much shorter than paddy under warm and highly humid conditions of rural Philippines. There is a problem in keeping the quality of the certified seed high. Secondly, the corn growing area is more scattered and much of it is on rolling upland land, where transportation is difficult. NFAC stated that the physical environment of the Philippines makes it expensive and impractical to transfer corn seed stocks from region to region or even province to province. 53. The BPI corn seed multiplication system - breeder, foundation, registered, certified, and good seeds - and agencies responsible for their production are similar to those for rice (Annex 6). "Good seeds" are required to be first or second generation registered seeds, passed by seed inspectors in the field, having a minimum germination rate of 80%. 54. In addition to the general criticisms on seed programs, the Seed Mission from Mississippi State University pointed out the following short- comings of the seed program for corn and other feed grains: (a) a lack of most of the basic equipment needed for threshing, drying, processing and handling seeds by most stations participating in seed production. Many of the essential steps are done by hand or methods that contribute to deterioration rather than minimizing it; ANNEX 7 Page 13 (b) lack of drying facilities are critical, because the proper time for harvesting corn (first crop) as far as maturity of the grain is concerned occurs in the Philippines when the seed is at a relatively high moisture content of about 30%. Seed moisture must be reduced to safe levels 1/ soon after harvest but weather at that time is not favorable for sun or air drying. Artificial drying of large quantities of seeds cannot be done without mechanical drying facilities and good warehouses. Most stations do not have adequate drying facilities at all and have warehouses inadequate for seed storage. These observations raise many questions concerning the quality of the regis- tered seeds produced by BPI's stations and concerning certified seeds produced by private seed producers. 55. NFAC has adopted the reasoning of the MSU report and made plans to renovate the corn seed program. Salient points at the certified seed level include the following: (a) In order to provide local supplies of certified and/or good seed and to minimize inter-regional or inter-provincial shipping of corn seeds, seed co-operators are to be recruited in municipalities in the "programmed" provinces, to supply corn growers within the same municipalities. The seed co- operator will sign a memo of agreement with the BPI Province Director that he should follow the recommended practices pertaining to culture, harvesting, handling and drying. The possession of minimal facilities to properly handle the seeds and agreement to attend training courses are made requirements for his selection. (b) Contrary to the target for expandion of corn HYV area, the certified seed production target for corn has actually been scaled down by NFAC from the original BPI plan to ensure proper supervision and quality control, and to achieve better balance between supply and voluntary demand from the farmers (Table 9). (c) As soon as the seeds are certified by BPI, the co-operators are encouraged to sell the seeds directly to farmers. (d) Where FaCoMa's are active, members are urged to be seed co-operators to produce HYV seeds for distribution to other members or other farmers. 1/ 13% for grain, 8-10% for seeds. ANNEX 7 Page 14 (e) Seed co-operators are encouraged to deposit their certified seeds in FaCoMa warehouses. 56. These measures were implemented for the first time in 1971/72; performance is not yet known. 57. A seed processing plant was completed in February 1972 at the BPI Maligaya Rice Research and Training Center (142 Km north of Manila) with assistance from UNDP/USAID. UNDP supplied one expert for the center and provided 3 six-month fellowships and 1 twelve-month fellowship for training abroad. USAID provided design and machinery for the plant. The plant is equipped with modern facilities for drying, cleaning, grading, testing, bagging and storage of seeds, with capacity for processing 50 cavans of seeds per hour. It will serve as a pilot plant for training seed technicians and for actually processing seeds produced by BPI, other agencies, and private seed producers in the nearby area. This plant is established mainly with upgrading of corn and feed grain seeds in mind. 58. Under the Japanese seed program loan, as mentioned in Annex 6, irrigation improvement will be made on 20 BPI stations, 11 of which will be corn stations and road improvement, on 17 BPI stations, 8 of which will be corn stations. Farm machinery will be supplied to all BPI participating stations and four more seed processing plants will be built on 4 BPI stations, one each in Cagayan Valley, Bicol, Visayas and Mindanao to process rice, corn and other seeds. By the 5th year (1976 if work begins in 1972), the project aims to produce about 303,000 cavans per year of certified seeds, sufficient for planting about 1.2 million ha of corn or about one-half of the current corn harvested area in the Philippines (Table 1). 59. The scarcity of high quality HYV seeds is hampering the expansion of corn area planted to HYV's and the improvement measures adopted by NFAC and BPI. Processing all seeds in the Maligaya Seed Processing Plant and the 4 more plants to be built with the Japanese loans, however, seems to run counter to NFAC's assertion that "Philippine weather conditions would render it expensive and impractical to transfer seed stocks from region to region or province to province". The key problem is whether the selected seed cooperators in the municipalities will be able to dry, clean and store the certified seeds properly; if it is not feasible for their seeds to be processed in the above-mentioned 5 plants. Fertilizers 60. TVA 1/ estimated that in 1968/69, about 9% of the harvested corn area (203,049 ha out of 2,256,100 ha) used fertilizer. Based on official 1/ The Fertilizer Industry in the Philippines, TVA, 1971. Corn harvested area was based on BAEcon data. Area fertilized based on provincial and ACA reports, and fertilizers used based on official recommended rates. ANNEX 7 Page 15 recommended application rates, TVA estimated that about 12,000 MT of N, 6,000 MT of P205 and 3,000 MT of K20 were applied on corn in that year. These estimates are very much on the high side because farmers who do use fertilizers use much less than the recommended rates. Philippine corn specialists and extension officers concede that the 1970 peso devaluation has further discouraged farmers from using fertilizer. 61. TVA further estimated that area of corn applying fertilizer will increase from 27% of total corn area in 1969/70 to 45% in 1974/75, and that total plant nutrients required at 56 Kg N, 20 Kg P205 and 12 Kg K20 per ha, would increase as follows: Plant Nutrients Required Total % Use Area Use N P205 K20 Year Corn Area Fertilizer Fertilizer 1,000 ha % 1,000 ha 1,000 MT 1,000 MT 1,000 MT 1969/70 2,420 27 633 - - - 1970/71 2,353 31 728 41 15 9 1971/72 2,399 34 825 46 17 10 1972/73 2,444 38 925 52 19 11 1973/74 2,490 41 1,030 58 21 13 1974/75 2,536 45 1,138 64 23 14 The quantity actually used will probably be much lower. A BAEcon survey shows that, in 1969/70, corn farmers in Mindanao spent about V 9 per ha on fertilizer, or applied about 6 Kg of N at Y 1.5 per Kg. This reflects the use of fertilizer by large growers; small farmers, like farmers in all other regions, perhaps used no fertilizer at all. Pesticides and Farm Machinery 62. The same BAEcon survey showed Mindanao corn growers used V 3.6 worth of pesticides per ha that year. Pesticides apparently were not used in other regions. 63. Large livestock farms own their own tractors, silage harvesters, corn picker/harvesters or picker-shellers, and corn driers. Custom service of tractors is available to small corn growers. Some middlemen bring picker- husker or picker-shellers to farmers' field, harvest and husk corn at t.he farm and truck ears or grains away to buyers' driers. Other farmers hitnd pick, husk and shell their corn before selling to middlemen. Generally, corn is sold on the cob by weight in Mindanao and shelled by weight iniother regions. Few farmers store their corn for the lack of storage and drying facilities. The number of machines used in corn production is not knon. Recommendations for Improvement 64. Emphasis should be placed on overcoming or minimizing constraints on corn production so that farmers' basic yields may be raised without ANNEX 7 Page 16 incurring additional outlay. After these constraints are minimized, farmers can be expected to buy and use inputs such as fertilizers and insecticides. Proposed improvement are shown below. 65. Bottlenecks in supplying corn HYV seed are (a) questionable quality of certified seeds; (b) premium prices which farmers are reluctant to pay; and (c) for yellow corn, the susceptibility of existing HYV's to downy mildew and (d) in sufficient number of seed growers. 66. The USAID and Japanese loan projects will help to improve the quality of registered seeds produced by the BPI stations. The private seed co-operators who produce certified seeds will indirectly benefit from these projects; i.e., by receiving better quality registered seeds for planting and theoretically by receiving closer supervision by better trained BPI seed inspectors. The equipment which they employ to dry, process and store the certified seeds will not be improved by the USAID and Japanese loan projects. The prospects for improving the quality of certified seed, which farmers use for planting, remains in doubt. 67. In the Japanese seed loan project plan, BPI estimated the value of the corn certified seeds at f 56 per cavan from year 1 through year 5. 1/ This is much too high compared to the current farm price of corn at f 26 per cavan and not in accord with BPI's principle that prices of certified seeds should be f 10 more than those of the common grain. If the g 56 per cavan reflects the estimated cost of production of seeds by BPI, and if the seeds are to be sold at a lower price, the program will have to be subsidized. It appears unlikely that the Government appropriation can finance the repay- ment of loan and subsidize the program at the same time. 68. The BPI proposed production target for corn certified seeds under the Japanese loan project is overly ambitious (para 56 and Table 9). It assumes that by the 5th year of the project, 50% of the total corn area will use certified seeds for planting each year. There is no assurance that BPI or the seed co-operators will be able to dispose of this huge amount of seeds, particularly when the quality of the certified seeds remains question- able and the estimated price is high. 69. An alternative would be for BPI to consider (a) reducing the production target of the certified seeds, of both rice and corn and reduce the targets for registered, foundation and breeders seeds; (b) reducing proportionally investment on BPI's own stations; and (c) divert the funds saved from the Japanese loan fund to providing necessary equipment to private seed co-operators. The latter would repay their share of the loan. If the loan fund is not sufficient, credit should be sought from domestic sources to ensure that the certified seed producers are adequately equipped to process, dry and store certified seeds. 1/ Expanded Seed Production and Distribution Program, BPI, May 1972. A project proposal for Japanese loan, page 61. ANNEX 7 Page 17 70. NFAC may also consider surveying and determining the price level of certified seeds which would be acceptable to farmers and would be fair to seed producers. Technical supervision of the seed producers should be intensified not only to ensure seed quality, but also to achieve high yield per ha by the seed farms so that production cost per cavan of seeds may be lowered. 1/ 71. As the seed production target is reduced, the extension program should include advice to farmers on how to keep their own seeds. It is believed that for synthetic varieties, if a farmer is taught to properly select and keep seeds harvested from his fields, he can safely plant his own seeds for two or more crop seasons between renewal for certified seeds without serious yield decline. 72. Development of downy mildew resistant varieties for yellow corn must be expedited. While more resistant varieties have recently become available, effort to develop highly resistant HYV's must continue. DANR may wish to revert to hybrid corn breeding, as resistant hybrids have already been developed in other countries. 73. At the present yield level of the traditional varieties, 10-20 cavans per ha, farmers are not likely to use any pesticides. Even if the average yield is raised to 35 cavans (about 2 MT) per ha with a gross value of about 0 900 per ha (at ? 26 per cavan), farmers probably would not spray. One spraying of 6 Kg of Sevin per ha costs about r 88 for the chemical alone. For controlling corn borer and earworm, NFAC recommends a minimum of two sprayings. 74. Hopes for reducing losses from insects and diseases lie in the breeding of resistant varieties. Now that the Philippines has produced its own downy mildew resistant white and yellow corn synthetic varieties and has identified sources of resistance to borer, weevil and downy mildew, DANR should secure the services of a senior corn breeder from international research institutes to review its entire on-going corn breeding program and map out future strategy and procedures for breeding of insect and disease resistant varieties beyond the synthetics. In the meantime, more intensive extensive insect control should be conducted in areas when average yields attain consistently higher levels; i.e., some areas of SW Mindanao and Cagayan Valley. With improved seed program, extension of downy mildew resistant HYV's should be accelerated so that the incidence of this disease could be drastically reduced. 75. Corn is planted (Table 10) and harvested in practically all months in many provinces of the Philippines. The year round harvest is partly due to the demand for green corn and partly to the need for spreading the shelling operation. Quite often the peak harvesting months fall in periods 1/ BPI projected 28 cavans per ha in the first year, with increment of 2 cavans per year. ANNEX 7 Page 18 of high rainfall. In Ilocos, Cagayan Valley and W. Visayas, the peak harvest season is August; in Central Luzon it is June through August; in S. Tagalog, it is October; in Bicol, it is August and September; and in NE Mindanao, it is December. These are all months of high rainfall and high relative humidity (see Annex 1, Tables 4 and 6). The peak harvest comes in February in SW Mindanao the largest corn growing region, when the weather is relatively dry. 76. In all regions except SW Mindanao the avoidance of harvesting in wet months would mean advancing sowing into drier months and running the risk of poor germination. Fortunately, the two new downy mildew resistant varieties have significantly shorter growing seasons; 85-90 days for MIT's 2 and 95-105 days for DMR 2, compared with 105-115 days for most of the earlier HYV's. With the exception of Ilocos and Central Luzon, other regions have areas with short and severe dry seasons (Annex 1 and Map 3). There may be a possibility for adjusting planting and harvesting seasons to good advantage. 77. The possibility of such adjustment in regions where dry months are not too long nor too severe should be studied. If successful, the average yield of corn could be raised without additional cost to farmers. Yield would increase not only because of less direct damage of flowering and fruiting, but also because of less severe insect and disease infestation and higher solar radiation. 78. Most farmers cultivate between rows, weeding and hilling up at the same time. When properly done, the field has neat furrows and ridges, with corn on ridges. Field observations show that sometimes the ridges are crooked with segments of corn rows sitting in furrows; these will later suffer water-logging, which may contribute to the ragged appearances of many fields. Since the Extension Service is now advising farmers to increase the plant population along with fertilizer, UPCA/BPI should also recommend the optimum row and plant distances for animal cultivation for weeding and hilling up. Weed infestation increases the population of white grubs and other soil insects. Good land preparation and good subse- quent cultivation would improve the crop stand and uniformity of growth. 79. In view of the recent IRRI experiment showing effective weed control in paddy fields at very low cost by early application of 2-4D experiments along the same line should be conducted in corn fields. Weed control experiments being conducted by UPCA should be expanded so that low cost control methods could also be made available to corn growers. 80. Data of the Bureau of Soils/UNDP Soil Fertility Project showed that at levels of 45 Kg and 90 Kg N per ha, investment of ' 100 of nitrogen fertilizers brings f 115 to r 427 of return per ha of corn in different regions (Table 7). However, farmers are not using fertilizers on corn because their crops get much lower response than experiments because of poor seeds, insects, diseases, weeds, drought and excessive wetness. ANNEX 7 Page 19 81. Government should develop measures which will improve farmers' basic yields without added cost. This includes providing high quality certified seeds and disease resistant varieties and adjusting the planting and harvesting season to reduce losses due to excessive wetness and number of plants per hectare. It is estimated that farmers will begin to use a small amount of N fertilizer when the yield reaches 40 cavans and the gross value of production reaches r 1,000 per ha. Further increases in yield due to other innovations will stimulate farmers to use more fertilizers and insecticides to bring the yield up to even higher levels. 82. The following model illustrates measures that may be employed to increase corn yield in the Philippines: Estimated Estimated Expected Gross N Improvement Yield Estimated Yield Value Farmers Measures Increment per ha per ha May Use cavan cavan Kg r(at 26 per Kg/ha cavan) Basic Yield Traditional Variety - 15 855 390 0 Use older HYV 10 25 1,425 650 0 Use new Downy Mildew Resistant HYV 10 35 1,995 910 0 Improve Quality of Certified Seeds 5 40 2,280 1,040 10 Adjustment of harvesting season 5 45 2,565 1,170 20 Use Fertilizers up to 45 Kg of N 10 55 3,135 1,430 45 Insect and Weed Control 10 65 3,705 1,690 90 83. When corn production on flat and gently undulating lowlands and upland is increased by above measures, it would be possible to reduce corn planting on steep hill and mountain sides and under coconut trees without upsetting the balance between supply and demand. Outlook of Future Production 84. The NFAC and Bank mission's projections are compared below (see Table 11 for details). ANNEX 7 Page 20 N FCA Mission Year Area Production Yield Area Production Yield 1,000 ha 1,000 MT Kg/ha 1,000 ha 1,000 MT Kg/ha 1971/72 White corn 2,196 2,035 929 2,100 1,950 929 Yellow corn 241 257 1,068 240 214 892 Total 2,437 2,292 941 2,340 2,164 925 1973/74 (NFAC) 1974/75 (Mission) White corn 2,196 2,280 1,037 2,100 2,338 1,113 Yellow corn 241 397 1,314 240 263 1,095 Total 2,437 2,677 1,098 2,340 2,601 1,111 1979/80 White corn - - - 1,500 2,708 1,805 Yellow corn - - - 500 1,249 2,500 Total 2,845 3,500 1,230 2,000 3,957 1,979 85. The mission estimated that the total demand for corn will be close to 4.0 million MT by 1979/80 in order to meet the population increase and rapidly expanding feed requirement. It also feels that the Philippines can no longer afford to expand the corn area, but should instead contract the area by reducing the area planted by corn on steep hills and mountainsides. The alternative projection therefore calls for reducing total harvested area to 2 million ha, increasing average yield to about 2 MT per ha and increasing production to nearly 4 million MT. 86. Such a production target would require: (a) selection of downy mildew yellow corn varieties; (b) extension of high quality certified seeds in sufficient amount so that 1.0 million ha of white corn and 0.47 million ha of yellow corn will be planted to downy mildew resistant varieties. Assuming farmers will renew their seeds on every third crop, certified seeds will be needed to supply about 0.5 million ha each year; (c) at the projected yield levels, it is estimated that the white corn growers will use only about 10 Kg N per ha and the yellow corn growers about 20 Kg per ha. The total requirement will be only about 19,400 MT of N. The remaining 0.53 million ha will still not be using fertilizers; (d) for yellow corn producing regions, planting and harvesting time, will have to be adjusted to avoid loss, due to excessive wetness; ANNEX 7 Page 21 (e) enforcement of soil conservation practices for retire- ment of corn planting on steep slopes; and (f) general improvement in extension service. 87. These are modest requirements that can be achieved within the next 8 or 9 years. As estimated, the 1974/75 production will still fall short of the feed requirement by about 200,000 MT and imports will still be necessary. By 1979/80, the projected production will meet the total corn requirement of the Philippines (Table 12). Sorghum Production Introduction 88. Sorghum is a new crop in the Philippines. Its promotion was prompted in recent years by the strong demand for feed grains from the expanding live- stock and feed industries. Plant breeding began only in 1965, but 3 extension varieties are now available. About 8,000 ha were planted to these varieties in 1971/72, producing 13,760 MT of grain sorghum. NFAC projected that 44,500 ha will be planted in 1974/75 to produce 90,000 MT, and 96,500 ha in 1979/80 to produce a quarter million MT. 89. Accomplishment of these targets depends on the satisfactory solution of a number of production problems. The most obvious one is the difficulty in maintaining seed viability and purity. Secondly, farmers' lack experience in growing sorghum and feed mills are reluctant to buy. This can be overcome in time. Thirdly, information on a number of production aspects are under experimentation but recommendations are not yet firmly established; i.e. best planting and harvesting season, rates of fertilizer application, plant population in relation to fertilizer application. Fourthly, more detailed planning is needed to determine the extension area so that sorghum will compliment but not compete in land use with corn. If solution of these problems comes slowly, the production will reach 90,000 MT not in 1974/75, but perhaps by 1979/80. If the roadblocks are quickly removed, NFAC's pro- duction targets could very well be reached. Present Production and NFAC Production Targets 90. NFAC reported the following for sorghum in 1970/71 and 1971/72 (see also Table 13). Year Area Production Yield ha Cavan MT Cavan/ha Kg/ha 1970/71 7,043 303,105 15,155 43 2,150 1971/72 8,013 - - - - ANNEX 7 Page 22 Of the total harvested area, 64% in 1970/71 and 53% in 1971/72 were in Mindanao (Cotobato and South Cotobato). Of the total production, 94% was from Cotobato in 1970/71. The sorghum area gained in 1971/72 in all other regions, but lost in SW Mindanao. 91. The NFAC sorghum program is a part of its "Feed Grains and White Corn Program", sorghum being a junior partner to yellow corn as feed grains. The NFAC production targets for sorghum are as follows: Year Area Production Yield ha Cavan MT Cavan/ha Kg/ha 1971/72 21,380 721,960 36,098 33.8 1,690 1972/73 27,475 1,036,050 51,803 37.7 1,885 1973/74 36,000 1,420,000 71 ,000 39.4 1,970 92. The actual area planted in 1971/72 was only about 38% of the target; the production and yield data were still incomplete at the time of the mis- sion. The reasons given for the shortfall by NFAC are: (a) farmers are generally unfamiliar with sorghum and hesitant to try it; (b) the local feed mills had not used sorghum and are hesitant to buy it; and (c) the uncertainty of a viable market further discouraged farmers from expanding sorghum plant- ing. In areas where feed mills did buy, the extension was successful. 93. In a longer range projection, included in correspondence with FAO, DANR made the following projection: Year Area Production Yield ha Cavan MT Cavan/ha Kg/ha 1974/75 44,500 1,800,000 90,000 41.2 2,060 1979/80 96,500 5,000,000 250,000 50.0 2,500 The crop is so new that its future prospect is still unclear. If the initial resistance of farmers and smaller feed mills to a new crop is broken, and cultural practices can be quickly established, its output may expand rapidly, as sorghum is more tolerant than corn to either drought or excessive wetness, the two difficulties besetting corn in many regions. Research 94. The relatively new research program for sorghum is coordinated by a committee composed of researchers from UPCA, BPI and BS of various dis- ciplines. The program's current main objectives include the following: (a) continuous selection of better varieties; ANNEX 7 Page 23 (b) proper use of fertilizers; (c) insect and disease control; and (d) solution for the problem of low seed germination. Variety Improvement 95. The sorghum breeding program in the Philippines began in 1965 with the introduction from India of 2,000 varieties from an International Sorghum Variety Collection. Since then, a total of over 5,000 lines have been brought in from various sources. Selections were made for high yield, high protein and plant types that are short, early maturing and having heads intermediate between compact and spreading types. Going through short single row observation, preliminary yield trial, regional trial, and mini- kit plots, promising lines were selected for extension. Three varieties have so far been approved as the seedboard varieties: COSOR 1 (Baraca selection), COSOR 2 and DARSO. In experimental plots, these varieties yield around 5 MT per ha; in farmers' field, from 1.5 to 2.0 MT per ha. Fourteen more are being tested in a regional trial at Isabela (Cagayan Valley), Los Banos (S. Tagalog), Negros Oriental (W. Visayas), Bukidnon, (NE Mindanao) and Cotobato (SW Mindanao). 96. The breeding program so far has been based on pureline selection, but 20 promising lines have recently been selected as parents and hybridiza- tion work has begun. Hybrid sorghum varieties may appear in the Philippines in 4 or 5 years. Fertilizer Application 97. The Bureau of Soils started to conduct experiments only in recent years. In 1970/71, 24 field trials on sorghum were carried out, mostly on the islands of Luzon and Mindanao. Preliminary results show that sorghum yield respond significantly to nitrogen application of up to 90 Kg N per ha; less significantly to phosphorous and not at all to potash. Time has not been sufficient to determine whether response to potash or a sharper response to phosphorous would develop after continuously planting of sorghum for a number of years using only nitrogen fertilizers. An official fertili- zer recommendation for sorghum has not yet been made, but is expected in the near future. Interaction between fertilizers and plant population has not yet been conclusively established. Insects and Diseases 98. A survey'of sorghum insects by UPCA and BPI shows that a number of common corn insects, i.e. corn earworm, army worm, cutworm, seedling naggot, thrips and loopers also attack sorghum. In addition, sorghum is attached by aphids, grain beetle and an unidentified "head worm". Among them, the more severe ones are the headworm, earworm and grain beetle which attack the growing and maturing heads, and aphids which attack heads, leaves and stalks. ANNEX 7 Page 24 Among the most common sorghum diseases are the rust, rhizoctonia, helmin- thosporium leaf spot which are also common on corn, and authracnose which is not an important corn disease. 99. The insect and disease control experiments being conducted by UPCA and BPI are limited to trials on using different chemicals. Although official recommendations have not yet been made, those made for corn are applicable to pests common to both crops. On the other hand, since few small corn growers are using the recommended pesticides, it is likely that most sorghum growers will not use them either for the time being. Again, final solution will depend on breeding for resistant varieties. Seed Germination 100. Sorghum seed production both by the BPI stations and by private seed cooperators has been beset with the problem of low germination. Factors involved in sorghum seed germination are more complex than those for corn, including seed moisture content, degree of seed maturity at harvest, and seed dormancy. BPI experiments revealed the following relevant results: (a) seeds harvested in dry season have higher germination than those harvested in wet season; (b) in both dry and wet seasons, seed germination rate increased with seed maturity up to a point (91% when seeds were har- vested 31 days after flowering began), then decreased again. At this stage of maturity, the moisture content of the dry season seeds was 26%, while that of the wet season seeds was 44%. When harvested at 20 days after flowering, the dry season freshly harvested seeds gave 70% germination as against 34% of the wet season seeds; (c) when immature seeds were germinated soon after harvest, artificial drying increased germination. When the seeds are fully matured, fresh seeds germinate as well as the dried seeds. 101. UPCA experiments conducted in wet season with COSOR 2 variety gave the following results: (a) seeds attain maximum dry weight in about 22 days after pollen shEdding. At this point, the seed moisture content was 47%; (b) seeds immediately after harvest are about 50% germinable, 25% dormant and 25% dormant ungerminable. COSOR 2 seed dormancy lasts for about 2 months. Drying to 8% moisture reduced dormancy to about 5% of the seed sample; and (c) under ordinary farm level storage, COSOR 2 seeds loses viability rapidly after 2 months to 50%. Drying to 8-10% moisture and storing in air-tight containers prolonged viability to 5 months or longer. ANNEX 7 Page 25 102. In practical terms, it means that sorghum seeds should be harvested about a month after flowering begins, and should be artificially dried and stored in air-tight containers. Tentatively, UPCA is recommending that farmers store sorghum seeds in air-tight containers with a layer of crushed charcoal at the bottom. Using this method, COSOR 1 seed is said to give 80-85% germination after 6 months storage, and COSOR 2, 60%. 103. Sorghum seed quality is affected by two more factors. One is bird damage, which can be reduced only when the planted area has expanded. The other is 5-6% natural cross pollination in the field. After 3 or 4 crops, farmers' seeds become quite ununiform and must be renewed with certified seeds. Threshing 104. Threshing of this new crop poses a problem to farmers. There is not yet a standard practice adopted by farmers. Larger farmers use paddy threshers or run tractors over harvested sorghum heads on ground. Small farmers thresh by hand or simply sell heads to middlemen. Obviously, a solution must be found to make threshing easier. UPCA has recently started research on sorghum thresher and also tried implements developed by IRRI for rice. It found that the IRRI thresher (about f 2,000 each) threshes 6 cavans of sorghum per hour. Few farmers, including rice farmers, have bought them. Extension and Training 105. Sorghum was extended in 1971/72 in 20 NFAC priority provinces in 7 regions, i.e., Ilocos, Cagayan Valley, Central Luzon, S. Tagalog, Bicol, W. Visayas and SW Mindanao. Only one "non-programmed" province, Bataan of Central Luzon, planted 305 ha of sorghum under the routine BPI/APC extension. Sorghum production under the NFAC program represents almost the total produc- tion in the whole country, and the crops are practically all planted to seed- board varieties. The future development of sorghum production in the Phil- ippines, therefore, hinges heavily on the progress of the NFAC program. 106. The field organization for sorghum extension is a part of the yellow corn program. This includes allocation of personnel, training, the conduction of "applied research plots" in farmers fields and other extension activities. For sorghum, 20 variety trials, 21 fertilizer trials and 300 production (method) trials were conducted in 1971/72 and same number is planned for the next two years. 107. Published extension material on sorghum is much less than that for rice and corn. It is limited to a few leaflets, the directive accompanying the mini-kits and relatively few articles in UPCA Upland Crops Newsletters. "The Philippines Recommends", which forms compilation of basic extension material for rice and corn, is not yet published for sorghum. ANNEX 7 Page 26 Supply of Major Inputs 108. Seed multiplication system for sorghum, administered by BPI, is the same as that for rice and corn. For 1971/72, NFAC estimated that 69 cavans of registered seeds and about 7,000 cavans of certified seeds was needed for the target extension area in "programmed" provinces (one cavan of sorghum seeds plant 3 ha). Actual amount of certified seeds distributed must have been much smaller, since the actual harvested area was only 36% of the target. BPI has the capacity to supply registered seeds even up to the 1980 area target. With the implementation of the Japanese loan projects, the quality of registered seeds will improve. The main problem BPI and other agencies must solve in supplying sorghum seeds to an expanding acreage is the technical difficulties of maintaining high seed germination of the certified seeds and farmers' own seeds. 109. Application of pesticides and herbicides on sorghum is extremely limited, except by larger farmers. NFAC reported that fairly large percentage of sorghum growers are using some fertilizers, but information on amount actually used is not available. Recommendations for Improvement Defining the Extension Area 110. The extension areas of rice and corn programs are more or less predetermined. The essence is to replace old by new wherever these crops are being grown. The sorghum extension area, however, has not been identified. It is therefore necessary to define the best areas for promoting sorghum. Selection of "priority" provinces is not enough. 111. Sorghum grows well where corn grows well, but is more tolerant to either drought or water-logging than corn. Within limits, it may give a crop where corn fails. For producing maximum feed grains in the country, these two crops should compliment instead of compete with each other for the use of land. At the present stage, it appears logical to consider leaving areas to corn where corn grows well, but trying out sorghum where corn yield dwindles. Such marginal areas may be ones where land has become too droughty, too wet or too heavy for satisfactory corn production. In short, they may not be areas where sorghum gives the highest absolute yield, but where it gives the highest incremental yield and income over corn. 112. These criteria may be used by the regional and/or provincial pro- grams to determine the sorghum and corn extension areas within the "priority" provinces. This, of course, does not preclude future adjustment as a result of changes in prices or relative technological advantage between the two crops, as may flow from future research. Seed Supply 113. The following proposals which have been made in the previous chapter on corn also apply to sorghum: ANNEX 7 Page 27 (a) Financing the improvement of processing, drying and storage equipment of the private seed cooperators who produce the certified seeds. This is even more important for sorghum because of the complex technicalities involved in maintain- ing seed viability of sorghum; (b) Involving the private livestock and feed industry in the distribution of certified seeds. In fact, it is already being practiced in Mindanao, where some buyers buy sorghum heads from farmers and supply seeds in return for planting. The seeds they supply are not certified seeds, but seeds from the heads previously bought. With a link to the sources of certified seeds, this channel could be utilized to good advantage. If hybrid sorghum varieties are developed, it would also be advantageous to involve the large livestock farms in seed multiplication work. It should be to their advantage to supply hybrid seeds at reasonable prices accept- able to small growers; and (c) Teaching farmers how to keep their own seeds. This is also more important for sorghum than corn, because of the diffi- culty in keeping seed quality, the 5-6% natural cross polli- nation, and the necessity to renew seeds every few years. Determining the Best Planting Season 114. Since sorghum is new, the planting seasons have not yet set into a firm pattern. Under the NFAC program, far more sorghum was planted in the spring seaso.n than in the summer/fall season in 1970/71, but in setting the targets set for 1972/73, the two seasons were made about even. It seems highly desirable to conduct field experiments under both dry and wet season conditions in different provinces to determine the best planting and harvesting seasons. The sensitivity of the current and future seedboard varieties to photo-periodism should also be determined. Yield Response to Fertilizers 115. When extension area and planting seasons are better defined, it may be necessary to re-examine the yield response to fertilizers, as the soil types and growing seasons may differ from those of today. The inter- action of plant population and fertilizer application is being tested. The findings from such tests will be important. Soybean Production Introduction 116. Soybean has been a very minor crop in the Philippines, used mainly in subsidiary foods. The current production is only around 2,000 MT per ANNEX 7 Page 28 year. Recent rapid expansion of large-scale modern poultry and swine indus- tries, however, has created a strong demand for soybean meal many times greater than local production could supply. In 1971, 49,000 MT of meal were imported and requirements may top 100,000 MT by 1975. Import of beans, on the other hand, is prohibitive because of a 60% tariff. The feed mills are not buying the local beans because soybean cannot be fed directly to poultry and swine without either de-fat or heating process and the local production is too small and scattered to be a dependable source of raw material. The oil mills are not buying local soybeans because they are busy with extracting the coconut oil. 117. In view of the growing demand, the Government has included soybean in its feed grain program. Three extension varieties have been released, but most of the basic agronomical practices have not yet been established, and maintaining of seed viability is a serious problem. The on-going exten- sion program is moving very slowly. Until the local feed mills or oil mills can be made to process the local beans, scope for production expansion will be limited. Extension should be focused on concentrated areas close to the mills. A marketing system must be established to move beans from farms to mills in quantity. The feed mills must be equipped to either extract the oil or perform the heating process, or the local oil mills should be mobilized to extract oil and produce meal. The seed processing and storage must be improved, and soybean cultural practices established. Under these formidable constraints, it is therefore estimated that the soybean production will con- tinue to increase slowly before 1974/75. If the above mentioned problems are resolved by 1975, expansion may then accelerate. Even if bean production is stepped up to 80,000 MT by 1980, Philippines will still need to import some 120,000 MT of soybean meal by 1980. Past Trends of Production and Demand 118. Soybean has been grown as a minor crop in all regions of the Phil- ippines for many years. The highest total harvested area, 2,200 ha, and production, 2,067 MT were registered in 1961/62 (Tables 14 and 15). Since then, they have declined and soybean imports increased to 17,000 MT in 1966. The decline of local production was attributed to the lower price of the imports. In 1967, the Government imposed a 60% tariff on imported soybean. 1/ Since then the import of beans dropped sharply (Table 17) but local soybean production has not increased. 119. Until recently, soybean imports were primarily in form of raw beans for human consumption, plus a small amount of prepared items such as sauce, paste, and other supplementary foods. Also the local soybean industry catered mainly to the food market. The rapid development of the large-scale poultry and swine industry in recent years changed the demand picture. In 1971, some 49,000 MT of soybean meal (10% tariff) were imported for use in mixed feeds, 1/ Ostensibly, the tariff was not to protect the local soybean production, but rather to protect the coconut oil industry. ANNEX 7 Page 29 especially poultry feed. NFAC estimated that even with some expansion in production, some 100,000 MT soybean equivalent (about 80,000 MT meal) will need to be imported annually, 1971/72 through 1973/74. This has prompted DANR to include soybean in NFAC's feed grain program even though it has been a very minor subsidiary food crop in the past. 120. The yield per ha of soybean in the Philippines so far has generally been less than 1 MT per ha. Only in W. Visayas has the average yield remained consistantly close to or above 1 MT per ha (Table 16). 121. W. Visayas is the major producing area. In the last decade, it produced from 66% to 76% of the nation's total. In recent years, only S. Tagalog and E. Visayas showed small gains in production. In all other regions, soybean production either continued the downward trend, or failed to increase. Four-Year Plan Targets 122. The national Four-Year Plan has set ambitious targets for increas- ing soybean production as follows: Year Soybean Production Target 1,000 MT 1970/71 (base year) 2,000 1971/72 11,000 1972/73 22,000 1973/74 43,000 1974/75 86,000 Average annual increase: 100% NFAC Soybean Program 123. The NFAC soybean program is concentrated in selected "programmed provinces" and in extension of improved varieties with complementary use of inputs and technology. The performance of the program in 1970/71 and 1971/72 is as follows: Area Planted to Year Extension Varieties Production Yield/ha ha cavan MT cavan Kg 1970/71 471 6,212 354 13 741 1971/72 1,192 21,423 1,228 18 1,026 124. BAEcon statistics shows that in 1970/71, the total production of soybean in the country was about 1,400 MT. Thus HYV production formed 25% of that amount. It was not known what proportion of the 1971/72 crops was ANNEX 7 Page 30 contributed by HYV's as the BAEcon national statistics were not yet avail- able. But the impact of the 1971/72 NFAC program may be compared against the 1967/68 record of production in the same regions: 1967/68 BAEcon 1971/72 NFAC Regions Included in Data Report 1971/72 NFAC Program Area Prod. Yield Area Prod. Yield ha MT Kg/ha ha MT Kg/ha Ilocos 10 1.6 150 1,046 1,111 1,063 Cagayan Valley 50 20.6 412 12 9 833 Central Luzon 90 77.4 860 78 75 974 S. Tagalog 280 150.4 537 56 33 607 Total 430 250.0 581 1,192 1,228 1,026 Apparently, NFAC has been able to make a breakthrough in Ilocos (highest record was 30 ha and 36 MT in 1959). In other regions, the HYV's have not yet entirely replaced the traditional varieties, although they achieved better average yields in every region. Assuming the production in regions excluded from NFAC program remained at the 1967/68 level, the national soy- bean production should be around 2,400 MT in 1971/72. 125. The NFAC program so far covered only the islands of Luzon and Min- doro (belonging to S. Tagalog region). It will include SW Mindanao and East and West Visayas in its 1972/73 program and may expand into NE Mindanao and Bicol at a later stage. This selectiveness reflects the close orientation of the NFAC program to the requirements of the feed mills which are largely centered around the Manila area on the Luzon Island. 126. The NFAC Soybean Program targets, as summarized below, amount to approximately one-half of the national production targets in the 3 programmed years. NFAC Production Target (HYV's) Item 1971/72 1972/73 1973/74 Area (ha) 4,200 8,500 17,000 Yield (Cavan/ha) 23.6 24.0 24.6 (Kg/ha) 1,345 1,368 1,402 Production (Cavan) 99,300 204,000 416,000 (MT) 5,660 11,628 23,712 Importation Required (MT) 102,500 107,000 107,000 Total Requirement (MT) 108,000 119,000 130,000 Even NFAC's targets are difficult to attain. The actual area planted to extension varieties in the "programmed" provinces in 1971/72 was only 28% of the target, the production, 22% and yield per ha, 76%. 127. The prospect of meeting the NFAC targets is not promising for the immediate future, for the following reasons: ANNEX 7 Page 31 (a) Soybean cannot be fed directly to poultry and swine without: either removing the oil or cooking. The small local feed mills do not have equipment to do either; some of the larger ones have oil extraction equipment, but use them mainly for copra. A marketing system that can move beans in quantity to feed mills is not in existence. For these reasons, the local feed industry physically cannot use local soybeans, but use imported meals instead. Until the local soybeans can enter the feed mills, the incremental production can only be absorbed by the food market which has been in short: supply because of the 60% import tariff. This demand is, however, limited; (b) many of the technical aspects of producing soybean in the Philippines are still under study. Pertinent information is not yet ready to go to farmers; some have not even reached the extension workers; (c) Soybean seed, which contains oil and is hygroscopic, deter- iorates even more rapidly than corn and sorghum seeds under Philippines' natural conditions. Extremely low germination is a common complaint of farmers, seed producers and even experiment station workers. Even seeds for the soybean mini-kits are generally low in viability before seeding; and (d) the current SeedBoard varieties are yet imperfect in disease resistance, uniform ripening (disuniformity results in high percentage of immature and low quality grains) and shattering. Research 128. Soybean research in the Philippines were started only a few years ago. Four varieties, developed through hybridization of imported varieties, have so far been approved by the Seed Board for extension: Nowoly Milox 399, Biyeloxi 256, L 114 and CES 434. The varietal characteristics of the first three varieties are given in Table 18. In general, the yields of these varieties are higher in the wet season (2 to 3 MT in regional trials) than in the dry season (1.3 MT); the growing period varies from 115-120 days in the wet season to 95-110 days in the dry season. The beans vary in seed oil content from 19-22; in protein content, 36-40%; in size of beans, 18-22 gm per 100 beans. Regional test of new promising lines is being continued. The breeding objectives include resistance to diseases, lodging and shatter- ing, high oil and protein content, low sensitivity to photo period, and high yielding. 129. Surveys reveal that the common insects attacking soybeans are corn earworm, cutworm, army worm, leaf folder caterpillar, green stink bug, grey mealybug and long-horned grasshopper. Chemical control experiments are being conducted. Use of malathion is recommended in mini-kit directives. The most serious foliar diseases in the wet season are the bacterial postules ANNEX 7 Page 32 and bacterial blight and in the dry season, the soybean rust. Damping-off and seed decay is prevalent in wet season, especially on poorly drained soil. 130. Research on date of planting and spacing is being conducted by UPCA but no conclusive results have yet been obtained. Preliminary indica- tions are that the desirable plant population is around from 300,000 plants per ha. 131. Fertilizer experiments conducted by the BS/UNDP project were limited to green house tests on local and imported nodule bacteria (Rhizobium japonicum) inoculant, and field experiment at one locality, Rizal, on soy- bean yield response to P205 with or without inoculation. The UNDP project recommended that (a) soybean seeds should be inoculated for initial plant- ing; a Brazilian strain SFS 114 was found most effective; (b) on most soils, nitrogen fertilizers are not necessary if seed inoculation is effective; (c) a phosphate application of 60 Kg P205 should be given at planting; and (d) neutral soil is best for soybean; liming is necessary for acid soils. BPI isolated 5 local strains of nodule bacteria and found them more effective for inoculating soybean than imported strains. In any event, commercial inoculant is not yet made available to farmers in general, although it is included in the soybean mini-kits. 132. The Bureau of Soils started fertilizer experiments including 11 treatments at Pangasinan, Central Luzon in the dry season of 1970/71. The experiments are being continued and need to be expanded to other areas. Official recommendations for fertilizer application on soybean have not yet been made. 133. Weeds common in soybean fields are similar to those in corn and sorghum fields, including grass, sedge and broadleave species. Herbicide experiments have been started by UPCA, but recommendations have not yet been established. 134. A research project on retention of viability in soybean seeds was recommended 1/ by Professor T. Jackson Smith of Virginia Polytechnic Insti- tute, US/AID consultant,.to be conducted by the Seed Testing Laboratory of BPI. The objectives were to (a) determine germination, moisture content and free fatty acids of soybean when stored at different moisture levels using different packaging materials; and (b) determine the optimum storage tempera- ture and moisture levels for maintaining viability of soybean seeds with acceptable levels of germination for at least 10 to 12 months. The research is being started in 1972. Extension, Training and Information 135. The soybean extension and training program is a part of the NFAC feed grain program. For the soybean program, the "Applied Research" included 1/ Review of Soybean Potential in the Philippines, by T. Jackson Smith, Soybean Consultant, US/AID, Philippines, September, 1971. ANNEX 7 Page 33 18 variety trials, 27 fertilizer trials and 200 production trials in 1971/72. For the next two years, the number of production trials will be increased successively to 250 and 300. Information on soybean, as mentioned before, is yet quite incomplete. "The Philippine Recommends" for soybean is not yet published. 1/ Recommendations for Improvement 136. Professor Smith made a comprehensive set of recommendations which should be considered by DANR/NFAC in pursuing the soybean program. They are summarized as follows with mission's comments: Enable Feed Mills to Use the Local Soybeans 137. "The large processing plants could be permitted to import soybeans at a price that would produce soybean meal competitive with imported meal with the stipulation that all Philippine production would be purchased at a price competitive with foreign imports. Ultimately the local production should supply demand for whole soybeans and imports could be eliminated." 138. "A second alternative which I feel deserves careful study and consideration involves the use of full-fat heat-cooked soybeans. Full-fat (unextracted) soybeans cannot be utilized in mixed rations for animal feed without cooking. Research has well established that full-fat heat-treated soybeans can be utilized as part of the ration in mixed feeds. Such soy- beans contain both meal and oil, providing a high-protein, high-energy feed. Specific formulas have been developed that show advantages of using cooked soybeans in rations. Three types of cookers, infra-red, extrusion and autoclaving are being used extensively in the United States to produce full- fat heat-treated soybean meal for use in mixed feeds. These units can be purchased in most any size at a reasonable cost and are being used by farmers, private poultry and swine producers and by both large and small feed mills. This method of using soybeans should be carefully studied and cooperation solicited from feed millers in specific target areas. Information available should be adequate to interest feed millers by showing a price advantage for using full-fat heat-treated soybeans in the mixed feeds due to direct pur- chasing from farmers." 139. "A third alternative that deserves careful consideration is use of small oil processing plants. Some very small units are now being used in the Philippines and elsewhere to process fresh coconut oil and corn germ oil. I have not seen these units and have no data on use with soybeans nor the efficiency of operation. But here again we have a procedure where the small feed miller could produce a protein concentrate from soybeans without excessive capital outlay." 1/ A pamphlet, "Growing Soybeans in the Philippines," was published by NFAC in January, 1973. ANNEX 7 Page 34 140. The mission is of the opinion that the second and third alterna- tives could be pursued at the same time. When methodology and cost factors are established, a financing project will be necessary to enable the feed or oil mills to install the necessary equipment. The first alternative is less desirable, because the Philippines has surplus coconut oil; any pro- posal for easing import of beans would likely be unwelcome. Instead, the import of soybean meal should be regulated according to demand of the feed industry and the availability of local soybeans. Better Define Extension Areas 141. "Production target goals should be concentrated in compact areas where rapid increase has the best chance of success and where a local market might be developed. Limited production in a large number of scattered areas cannot hope to achieve production goals." "Feed manufacturers cannot afford to purchase small quantities at scattered locations over a large area." The mission supports this observation fully. Improve Seed Supply 142. "The new seed processing plant and cold storage at the Maligaya Rice Research and Training Center should be utilized to process and store breeder, foundation and registered seeds multiplied by BPI and UPCA for Luzon area with addition of equipment specific to soybean seed handling. Similar but smaller plants should be built to handle seeds in other major extension areas." (Mis- sion comment: Additional seed processing plants will be built under the Japanese loan for seed program.) 143. "The problem of producing, packaging and disseminating ... certified seed is even more critical ....' "The private sector will have to produce this seed which goes directly to the farmer." Alternatives proposed include: (a) "Proper packaging that will permit retention of seed viability for 8-10 months ... ." (This is related to the research project suggested by Professor Smith.) (b) "To distribute seed directly to farmers in small quantities and let farmers increase and maintain their own seed supply by growing two crops each year ... However, this ... should be discouraged if quality seed can be supplied by seed producers at a reasonable price." (c) "Production of seed during the dry season in areas that might have a wet and dry season different from the extension area where seed is needed." This, however, will require transporta- tion of seed supplies. 144. The mission feels that basic solution depends on successful research (a) above, but the completing of research will require some time. In the meantime, (b) and (c) should be tried out in a few provinces as soon as pos- ANNEX 7 Page 35 sible. Even when research is concluded, recommendation (c) above is still applicable in combination with proper seed packaging. Production Outlook 145. In view of the current low production level, and the numerous con- straints pending solution, the 4-year plan target of producing 86,000 MT in 1974/75 or even the NFAC target of producing 17,000 MT by 1973/74 appears untenable. 146. No substantial expansion in production can be expected before the technical and marketing restriction now hindering the feed mills from using local soybeans are removed. If the Government and the industry start-to take necessary steps toward solving these problems now, the channel may hopefully be opened by 1974/75. That year should also be a reasonable target for es- tablishment of all basic cultural practices and a sound seed program. 147. Up to 1974/75, therefore, the production target can only be projected on the basis of proven rate of area expansion (about 700-1,000 ha a year), yield levels of the extension varieties achieved in farmers' field, and the replacement of traditional varieties by extension varieties. The increased production will still be absorbed by the food market without much difficulty. After 1974/1975, assuming feed mills are in a position to use local beans, and agronomical practices, including seed supply, are firmly established, definitive promotion could then begin aiming at meeting the feed and food requirement as much as possible. 148. The total feed requirement for poultry and swine industries is estimated to be about 2.65 million MT in 1974/75 and 3.89 million MT in 1979/ 80 (Annex 4, Table 17). Bulk of the feed will be composed of corn, sorghum, rice bran and copra meal, while the high protein component will be composed of mainly soybean meal and fish meal. It is estimated that about 118,430 MT of soybean meal will be required in 1974/75 and 181,725 MT, in 1979/80 (Table 19), equivalent to about 148,000 MT and 227,000 MT of beans respectively. 149. Including food market requirements, the total soybean requirement would be 150,000 MT in 1974/75 and 240,000 MT in 1979/80. 150. The mission projects local soybean production as follows: Year Area Production Yield/ha ha Cavan MT Cavan Kg 1970/71 estimate 1,480 24,500 1,400 16.6 945 1971/72 estimate 2,400 42,000 2,400 17.5 1,000 1974/75 projection 5,000 100,000 5,700 20.0 1,140 1979/80 projection 40,000 1,360,000 80,000 35.0 2,000 Even if the above projection is realized, Philippines will still need to import about 120,000 MT of soybean meal equivalent to about 150,000 MT of beans in both 1975 and 1980 (Table 19). April 6, 1973 ANNEX 7 Table 1, PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 1: CORN PRODUCTION STATISTICS, ALL PHILIPPINES, 1956-1971 1 cavan shelled grain = 57 kg Crop Year Harvest Area Yield per Ha Production 1,000 ha Cavan kg 1,000 MT 1955/56 1,675 9.5 51,1 907 1956/57 1,787 8.8 501 895 1957/58 1,381 10.8 617 852 1958/59 2,107 8.5 482 1,016 1959/60 1,846 11.1 633 1,165 1960/61 2,045 10.4 593 1,209 1961/62 2,016 11.0 627 1,323 1962/63 1,950 11.5 656 1,274 1963/64 1,898 12.0 684 1,293 1964/65 1,922 12.0 684 1,313 1965/66 2,106 11.0 656 1,379 1966/67 2,158 12.1 690 1,490 1967/68 2,248 12.6 718 1,620 1968/69 2,256 13.5 770 1,733 1969/70 2,420 14.6 830 2,008 1970/71 2,392 14.7 838 2,005 Source of Data: BAEcon PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 2: CORN AREA HARVESTED, BY REGION, 1956-1971i/ Cagay3n Central Southern Western Eastern S & W N & E Year Ilocos Valley Luzon Tagalog Bicol Visayas Visays M=aao 14Minao Philippines - II III IV v VI VII VIII II I -- ('000 heetares) 1956 20.9 109.2 98.5 90.3 64.5 303.9 442.3 371.2 173.8 1,674.6 1957 18.7 110.3 95.6 114.6 60.5 357.9 486.1 370.6 174.4 1,786.7 1958 18.2 128.8 41.5 63.4 121.5 161.9 243.0 364.1 238.1 1,380.5 1959 24.9 172.1 59.7 84.8 171.2 310.3 50-4.9 553.9 225.2 2,107.0 1260 21.2 128.6 71.5 80.5 76.3 302.7 446.2 449.3 269.3 1,845.5 1961 24.0 151.1 77.4 107.7 86.8 337.8 345.0 586.9 328.6 2,045.4 1962 20.6 133.7 71.5 105.2 77.5 272.2 421.7 630.3 283.5 2,016.4 1963 19.3 126.3 63.7 96.9 72.4 257.4 393.6 685.1 2314.9 1,969.6 1965 16.5 118.1 57.1 94.9 68.9 272.2 366.6 687.5 215.6 1,897.6 1965 16.5 121.8 58.6 93.3 70.2 275.2 367.6 709.1 210.6 1,922.7 1966 16.1 102.6 55.0 118.6 87.1 251.0 19.7 832.2 223.7 2,106.1 1967 16.2 90.4 58.7 119.8 90.9 196.0 423.6 897.5 265.0 2,158.0 1968 15.1 133.5 58.5 117.8 96.0 271.5 402.6 899.6 253.3 2,247.9 1969 17.3 157.1 81.2 127.4 97.2 293.8 309.0 909.0 264.0 2,256.1 1970 20.9 201 .1 79.3 161.4 101.5 3014.0 333.2 957.5 260.7 2,419.6 1971L3. 21.6 238.5 82.3 166.5 99.4 324.6 301.7 896.9 269.7 2,392.2 Crop yearsending June 30. /2 Preliminary. Source: BAEcon. DANR. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 3: 0ORN YIELDS, BY REGION, 1956-1970 Cagayan Central Southern Western Eastern S & W N & E Ilocos Valley Luzon Tagalog Bicol Visayas Visavas M=Tao fiao Phlippines 11 111 l__ v vi VII vii ix i... -(-----.-------------- (Kg/Ha) 1956 564 895 519 548 458 463 391 709 521 541 1957 558 858 538 439 498 384 348 712 509 501 1958 694 722 485 350 557 364 346 916 670 617 1959 539 657 529 576 479 395 301 567 614 482 1960 513 678 678 673 627 496 524 770 695 633 1961 473 912 490 405 473 536 513 638 616 593 1962 308 758 445 667 479 570 456 775 650 627 1963 336 946 496 741 581 542 422 798 650 656 1964 410 952 530 809 610 542 422 827 713 684 1965 399 929 573 849 627 570 410 821 701 684 1966 519 638 547 547 678 485 456 821 701 656 1967 542 621 559 570 678 553 473 851 684 690 1968 570 878 621 616 747 576 507 861 701 718 1969 502 764 479 747 673 610 542 975 650 770 1970 478 1,000 529 929 670 632 546 1,038 648 830 Note: Assumption: 1 cavan = 57 kilos Source: PA.Econ, DANR PHILIPPINES AGRICULTURAL SECTOR SURVEY Table h: CORN PRODUCTION BY REGION. 1955-19711 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 -----------------------------------------------------------(1000 m tons)-------------------------------------------------------- Ilocos 9 12 10 13 13 11 11 6 7 7 7 8 9 9 9 10 11 Cagayan Valley 96 98 95 93 113 87 138 101 119 112 116 65 56 117 120 201 224 Central Luzon 28 51 52 20 32 48 38 32 32 30 30 30 33 36 39 42 49 Southern Tagalog 47 49 50 22 49 54 44 70 73 77 79 65 68 72 95 150 162 Bicol 37 30 30 68 82 48 41 37 42 42 44 59 62 72 65 68 71 Eastern Visayas 194 173 168 84 152 233 178 192 165 155 150 191 199 204 167 182 179 Western Visayas 114 141 137 59 122 151 182 212 141 147 158 122 108 156 179 192 210 N & E Mindanao 148 263 264 334 314 187 201 184 152 154 147 157 181 178 172 169 160 S & W Mindanao 97L2 - -90L2 89L2' 159L 139L2 346 376 489 543 569 582 682 774 776 887 994L2 940 PHILIPPINES -770 907 895 852 1,016 1,165 1,209 1,266 1,273 1,293 1,313 1,380 1,490 1,619 1,733 2,008 2,005 /1 Crop years ending June.30. /2 Obtained by subtraction from total. Source: BAEcon, DANR ANNEX 7 Table 5 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table js OORN (SHELLED) PRODUCTION, BY VARIETY AND BY REGION, 1970 (Sack of 57 Kilograma) Region Vhite Yellow OthersL Total Philippines 31,121,300 3,251,500 859,000 35,231,800 Ilocos 70,400 77,600 30,500 178,500 Cagayan Valley 2,995,400 96,300 433,500 3,525,200 Central Luzon 539,100 163,600 33,600 736,300 Southern Tagalog 734,200 1,711,300 179,700 2,625,200 Bicol 781,700 387,300 16,400 1,185,400 Eastern Visayas 3,170,400 18,100 900 3,139,400 Western Visayas 2,713,600 551,700 96,400 3,361,700 N & E Mindanao 2,966,900 1,000 25,200 2,993,100 S & W.Mindanao 17,149,600 244,600 42,800 17,437,000 /1 Sweet Corn, Glutinous Corn, Pop Corn. Source: BAEcon, DANR PHILIPPINE.- AGRICULTURAL SECTOR SURVEY Table 6: Characteristics of Seedboard Varieties of Yellow and White Corn Yellow Corn White Corn UPCA UPCA BPI UPCA UPCA BPI MIT PHILIPPINE Plant Var. 1 Var. 3 Var. 1 Var. 2 Var. 4 Var. 2 S-2 DMR-2 Maturity (days) 105-115 105-115 95-105 105-115 120-125 100-110 85-95 95-105 Rust relatively relatively relatively relatively relatively - - - resistant resistant resistant resistant resistant Helaimthosporium relatively relatively relatively - - relatively - - resistant resistant resistant resistant Rhizoctonia relatively relatively relatively relatively relatively relatively - resistant resistant resistant resistant resistant resistant Downy Mildew susceptible susceptible suscep.tible susceptible susceptible susceptible highly relatively resistant resistant Grain Type semi-flint flint flint flint flint flint flint flint Average experimental Yield Level 82 cavans 80 cavans 69 cavans 74 cavans 80 cavans 77 cavans 57-72 67 cavans cavans Year Released 1966 1968 1969 1966 1967 1969 1971 1971 Derived from Caribbean Cuban & Early Mexican Inter, white Late white Mexican Mt. Rox College white yellow flint Caribbean lines synthetic ILI synthetic lines Tiniguib x Tuxpeno Mimis Cebu white Breeding agency UPCA UPCA BPI UPCA UPCA BPI Magnindanao Red Mindanao Inst. UPCA of Technology Source: Conpiled from "Philippines Recommends for Corn; 1970-71"1,NFAC ANNEX PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 7: MAIZE RESPONSES TO NITROGEN AT THE 15 KG/HA LEVEL Agroclimatic No. of Yield Response Reion Province txpts. per Kg N (kg) Cagayan Valley Cagayan 35 20 Isabela 20 11 N. Vizcaya 4 13 Batanes 15 16 Central Plain of Luzon Pangasinan 35 19 Tarlac 3 16 Bicol Region C. Sur, C. Norte and Albay Masbate 8 7 Catanduanes 14 15 Panay Iloilo 64 17 Aklan 18 11-30 Leyte Leyte 12 8 Negros N. Oriental 14 7 Cebu Ceou 212 10-16 North East Mindanao Surigao and Agusan 24 22-25 North Central Mindanao Bukidnon and M. Oriental 103 8-14 South East Mindanao Davao 153 17-35 South Central Mindanao Cotabato 34 13 West Mindanao Z. del Sur .12 17 Source of Data: Soil Fertility Survey & Research - The Philippines. Field Eperiments, Plant Nutrition and Soil Classi- fication LA:SF/PH1 10 U,DP/FAO. Rome. '196. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 8: MAIZE YIELD RESPONSE TO NITROGEN Yield of Yield Increase Value of Cost of Gross Return per 100 Region Treatment Grain Over Control Yield Increase Fertilizer Profit Pesos Invested N P205 K20 Kg/ha Kg/ha Pesos/ha Pesos/ha Pesos/ha Pesos Central Luzon, Tarlac 0 0 0 2,071 - - - - - 45 0 0 2,908 837 251.1 63.0 188.10 399 90 0 0 3,203 1,132 339.6 126.0 213.60 270 Cagayan Valley, Cagayan 0 0 0 1,334 - - - - - 45 0 0 2,182 848 254.4 63.0 191.4 405 90 0 0 2,393 1,059 30.7 126.0 191.7 257 sabel4 0 0 0 1,002 - - - - - 45 0 0 1,418 416 124.0 63.0 61.8 198 90 0 0 1,642 640 192.0 126.0 66.0 15? Aico 0 0 0 2,118 - - - - - 45 0 0 2,541 423 97.3 63.0 34.7 115 90 0 0 3,264 1,146 263.6 126.0 138.5 11 E. Visayas, Cebu 0 0 0 695 - - - - 45 0 0 1,230 535 160.5 63.0 97.5 255 90 0 0 1,555 860 258.0 126.0 132.0 205 W. Visayas, Iloilo 0 0 0 1,952 - - - - - 45 0 0 2,572 620 142.6 62.6 80.1 228 90 0 0 3,329 1,377 316.7 125.1 191 6 253 N E Mindanao, Bukidnon 0 0 0 2,885 - - - - - and Misamis Oriental 45 0 0 3,659 774 232.2 63.0 169.2 369 90 0 0 3,431 546 163.8 126.0 137.8 130 S W Mindanao, Davao 0 0 0 2,810 - - - - - 45 0 0 3,707 897 269.1 63.0 206.1 427 90 0 0 4,253 1,443 432.9 126.0 306.9 344 Catabato 0 0 0 1,558 - - - - - 45 0 0 2,044 486 111.8 63.0 49.2 178.7 90 0 0 2,206 648 149.0 126.0 23.9 119.1 Source of Data: Soil Fertility Survey and Research, Philippines, Field Experiments, Plant Nutrition and Soil Classification, LA: SF/PH1 10 Tech. Report 1. ANNEX 7 Table 9 PHILIPPINES Agricultural Sector Survey Table 9: CORN - SEED PRODUCTION TARGETS Seed Classes Plan and Breeder Foundation Rekistered Certified Year Ha Cavan Ha Cavan Ha Cavan Ha Cavan BPI for 1971/72 0.4 12 5.0 109 75.0 2,910 - NFAC/2 1971/72 - - 0.15 - 19.1 450 2,089 62,627 1972/73 - - 0.18 - 21.9 - 2,633 - 1973/74 - - 0.23 - 26.8 - 3,208 - /3 BPI JapaneseL Loan, signed May, 1971 Year 1 0.4 6 2.0 30 53.0 795 3,180 h7,700 Year 2 1.0 5 5.0 75 150.0 2,250 9,000 135,000 Year 3 1.5 22 6.0 90 150.0 2,625 10,500 183,750 Year 4 2.0 30 7.0 105 150.0 3,000 12,000 2h0,o00 Year 5 2.5 37 8.0 120 150.0 3,532 13,500 303,750 Source of Data: /1 Rice and Corn Seed Production Program, Project 103D, Fiscal Year 1971/72, BPI. /2 The Feed Grains and White Corn Program, 1971/72 to 1973/74, NFAC. /3 Expanded Seed Production and Distribution Program, BPI, May, 1972 - A Project Proposal for Japanese Loan. AN X TWe 10 PHILIPPINES Aricultural Sector Survey Table 10: C0RN PLANTING CALENDAR Region let Season 2nd Season 3rd Season Cagayan Valley Cagayan April November Central Luzon Bataan May to August September to December January to April S. Tagalog Cavite April to July October to January Bicol Camarine Norte December to March March to June Camarine Sur May to October December to April Albay April to June November to January Catanduanes January to April May to August September to December Masbate April to June August to October December to January Soreogon January to March June to August W. Visayas Negrop Oriental April to June September to November December to February E. Visayas Samar December to March April to July August to November Bohol May to August September to December January to April Cebu May to September September to January January to April Leyte July to October November to February March to June N E Mindanao Misamis Occidental May to August September to December January to April Misamis Oriental July to August August to September December to January Agusan del Sur February to April July to August Surigao del Sur June to October January to May S W Mindanao Davao Oriental March to May July to September November to January Davao City July to October November to February March to June Davao Norte January to February May to June September to October Davao Sur April to July August to November December to March Cotabato July to October November to February March to June Cotabato South July to October November to February March to June Sources NFAC PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 11: CORN: PROJECTIONS OF AREA, PRODUCTION AND YIELD Old HYV's New HYV's Traditional Varieties Total Year Crop Area Production Yield Area Production Yield Area Production Yield Area Production Yield 1,000 ha 1,000 MT Kg/ha 1,000 ha .1,000 MT Kg/ha 1,000 ha 1,000 MT Kg/ha 1,000 ha 1,000 MT Kg/ha BAECon 1970/71 estimate 2,392 2,005 838 NFAC 1971/72 target White corn 2,196 2,035 929 Yellow Corn 241 257 1,068 Total 2,437 2,292 941 NFAC 1972/73 target White corn 2,196 2,157 980 Yellow corn 241 338 1,163 Total 2,437 2,495 1,024 NFAC 1973/74 target White corn 2,196 2,280 1,037 Yellow corn 241 397 1,314 Total 2,437 2,677 1,098 Mission Projections 1971/72 (Base year) White corn 2,100 1,950 929 Yellow corn 240 214 892 Total 2,340 2,164 925 1974/75 White corn 240 342 1,425 356 710 1,995 1,504 1,286 855 2,180 2,338 1,113 Yellow corn 100 143 1,425 - - - 140 120 855 240 263 1,095 Total 340 485 1,425 356 710 1,995 1,644 1,406 855 2,340 2,601 1,111 1979/80 White corn - - - 1,000 2,280 2,280 500 428 855 1,500 2,708 1,805 Yellow corn 30 43 1,425 470 1,206 2,565 - - - 500 1,249 2,500 Total 30 43 1,425 1,470 3,486 2,250 500 428 855 2,000 3,957 1,979 Explanatory Notes for Table 31 1. 1971/72 figures adopted by the Mission are a compromise between BAECon 1970/71 estimate and NFAC 1971/72 target. Yield of yellow corn was kept lower than NFAC projection because in NFAC 1971/72 HYV extension program, it was only 93% of the white corn yield. 2. Mission assumes a reduction of corn area by 340,000 ha by 1977/78; through retirement from hill and mountain sides, and replacement by sorghum and other feed grains. Total production, however, will increase significantly by increase in yield per ha, 3. New HrYV means downy mildew resistant varieties and for yellow corn, also hybrid corn varieties if they are developed. New yellow corn HYV's are not available at present, but are expected to be available before 1974/75. ANNF.X 7 ритlтРРlггеs T3b].� 12 ACRICUC71'RAL SECTOR SUP.VEY TaЫe 12 %��+ � sОвсним еsтеите0 cOxs•мРгlан 1971/72 1974/75 1979/80 ксет 1,ооо са�.п 1,ооо ггТ 1,ооо с.ио 1,ооо нТ I,ooo с.т.п 1,ооо нт УЫ[s Сом (5he11ed Сга1п) Food Ст1св 2Э,2В0 1,З27 2Э,929 1,Эб4 27,ЗЗ9 1,558 Gtten Сом (graln equlvвlen[) 1,019 58 1,116 6Э 1,275 72 5carch б Сlисовг Ind. 2,7Эб ц5 2,7ЗЬ 156 2,776 156 Уавсаке 6 Осhетя 2,ОЗS 166 2,656 140 2,842 162 5eeds 396 l4 549 31 ЗЬВ 21 Feeds By-Producte of Сгlсе (6,984) (Э98) (7,179) (609) (8,201) (4Ы) 5crвlgh[ (аvа11вб1е) 614 З5 6,244 З57 В,ц3 473 Carry Over З,В77 221 ],988 227 4,556 259 TOTAL: 36,ц7 1,9:0 41,018 2,Э38 47,ЭЬ8 2,708 Te11ov Согп Food, Сгееп Сот 1,019 58 1,116 6Э 1,275 72 уавсаяе 22В 12.8 281 16 1,З16 75 5eeds 57.5 3.0 5Э.3 З 123 7 Fеедв (ava11e61e) 2,45р 160 Э,160 181 19,213 I,0% Сатту Over - - TOTAL: 7,754 214 ♦,611 26З� 21,929 1,249 SorRhum Чавсаgе 17 0.8 40.З 2 108 5.4 Seede 2,7 0.1 5.7 0.Э 12 0.6 Feede (вvа11аЬ1е) ц3 ц.8 626.4 71.Э 1,ЬВ0 В4.0 Сетгу Over - - - - - - 5UB-TOTAL: 275 17.7 872 ЗЗ.б 1,800 90.0 Реед VA1te Сам апд Bv-product, Ye11ov Сотп апд 5откhит 10,Э07 S86 17,209 478 • Э7,З49 2,120 Iдпетедсаl Over 1971172 6,920 ]92 27,042 1,3Э4 8ти11 дlвсгериtlев вге дие [о zoupoing. lsylanatory 8о[ев for Та61е Э2 УЬ1[е Сом 1. Сотп сопвитед вв food 1n Еогт оЕ grlte [ook ир 1,Э17,000 М 1¢ 1971/72. (Амек , 2а61е 3.5 ееСlтв[ед 1,288,600 !П tor 1970J71; assuaed 3Z рориlе[1оп lпггееее [о R1ve the above втоип[ for 1971/72.) Зi рориlвсlот lоспвьс 1в ив,твд vp со 1974/73 впд 2.7; /octtase�L• вввитед for [hereefter. 2, Слев еом 1n grsln equivaleo[ - NFAC авсlтв[в (Faed Сгв1о вод 1П,1[а Corn Pcogram) !от I971/72 1в ивед. Аввитед вате твtав о! papulв[ton lпскаве ав вЬоvе. J. 8[вгсh вдд Сlисок Iпдив[ry, е[с. - NFAC ев[lsвев foc 1971/72 lв икд ид Ra1d capstaat. 4, Yu[age адд oUere: Авsиое 6I (NFAC евtlтв[ед ЗZ). !. 8еедв - one слеп о! квдв Еог 4 hв, i.��� Реедв: (а) 8у-products - авnтед 70I of grelo кlghe for m1111ng gг1Св. (Ь) Yh1[e сом ивед естаl8Ьс fот Ееед - Ьаlапса De[veen сосаl вт,тг ла11аб1е (pтvdue[1en) пад а11 оШег окв Ьис a:elading Ьу-ргодие[ Егот grlts. Аввате 1001 of [h1a евюип[ 1в тед for feed. 7. Свггуоvет -[vo enpthe еиррlу toc атоип[ деедед for me4ing gt1[s. Ге1lw Сом В. Роод Ео Еотт of green тгn - вее 2 aбova. NFAC ввеитед еогдюд-[Ье-еоб сдортlив of 501 uch ot vцСа вnд увllиr еотд, 9. Yuage - вее б sbove. 10. 9еедв - вее 5 a6wa. 11. ieeds - cotal produetlop slдив в11 ochet икв, 12. Свгтуоvвг - вввите до иттуоиг. 6°тд�т U. Уавсвgе - вее 4 вЬоvа. Ч. lавдв - ом слп of введв for D й. ц. ►ввдв - кв 11 вЬоvе. 16, Свгтуопг - ивиое оо свтг7оиг. PHILTPPIN8Z AGRICULTURAL SECTOR SURVEY Table 13: SOMHUM - AP.Ek, PRODUCTION, YIELD, BY REGI()!JS 1970/71 Actual 1971/72 Preliminary Area Production Yield/ha Area Production- Yield/haL Region ha MT Cavan Kg ha MT Cavan Kcr Ilocos 68 101 29.8 1,490 1,221 Cagayan Valley 88 150 34.2 1,710 395 Central Luzon 301 333 29.8 1,49o 1,407 Southern Tagalog 165 274 33.2 1,660 476 Bicol 39 39 20.0 1,000 155 W. Visayas 32 18 10.9 545 77 E. Visayas - - - - - S W Mindanao 6,350 14j,240 44.9 2,245 4,282 N E Mindanao - - - - - Philippines 7,o43 15,155 43.0 2,150 8.9013 Source of Data: NFAC /1 Data not available. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 1 : OYBEANS - AREA BY RBGON 1959-1968 R E G I 0 N 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 ectares -- lhilippines 1,690 1,370 2,090 2,200 1,720 1,630 1,660 1,470 1,430 1,1h80 Ilocos 30 30 30 30 10 /3 10 /2 10 10 Cagayan Valley 100 40 20 20 20 20 20 20 20 50 Central Luzon /2 - 60 70 70 80 80 190 160 90 Southern Tagalog 110 100 1,160 160 200 200 200 200 200 280 Bicol /2 /2 /2 20 10 13 10 10 10 /1 Eastern Visayas 20 30 20 410 10 20 30 30 60 70 Western Visayas 380 380 1,070 1,110 1,120 1,110 1,110 810 820 820 Northern and Eastern Mindanao 180 630 630 650 100 30 40 50 5o 50 Southern and Western Mindanao 870 160 100 100 180 170 160 160 120 110 /1 Preliminary estimates /2 Less than 10 hectares /3 Crcp year ending June 30, 1964 SOURCE: BAEcon Ca PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 15: SO=ENS FRODUCTION. BY REGION, 1960-1970 Cagayan Central Southern Western Eastern 6 & W N & E Ilocos Valley Luzon Tagalog Bicol Visayas Visayas Mindanao Mindanao Philippines II III IV V VI VII VIII Ix X -- ---------------------mEri(tons---- ----------------- 1960 31.5 126.0 - 32.2 1.2 257.3 7.4 88.7 437.o 981.3 1961 24.2 11.3 46.5 48.5 1.2 1,316.0 7.8 65.3 378.5 1,899.3 1962 15.5 10.3 50.5 52.7 5.8 1,363.8 26.5 85.2 456.6 2,066.9 1963 8.3 8.5 52.8 64.9 5.1 1,323.2 7.5 153.0 139.2 1,762.5 1964 18.6 12.1 58.4 90.2 0.6 1,087.9 30.7 119.6 92.0 1,490.1 1965 10.5 10.6 57.2 94.6 2.8 1,071.4 15.7 116.4 25.6 1,404.8 1966 1.0 12.5 72.2 94.4 2.8 789.2 13.9 116.8 28.7 1,131.5 1967 1.6 12.5 71.0 96.9 2.8 779.0 16.4 93.8 28.7 1,102.7 1968 1.5 20.6 77.4 150.4 0.7 861.0 25.2 8-.7 28.7 1,251.2 1969 1.3 2.9 2.2 127.6 0.8 861.0 25.3 15.6 158.1 1,19L.8 1970 3.9 2.9 3.0 127.6 0.5 861.0 29.9 84.8 81.7 1,195.3 Source: BAEcon, DANR. PHILIPPINES AGRICULTITRAL SECTOR SURVEY Table 16: AVERAGE IIELD PER HECTAREL BY REGI1ON. 1959-1968 (K/HECTARES) R E G I 0 N 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 Philippines 338 716 909 940 1,025 914 846 770 771 845 Ilocos 1,193 1,050 807 517 830 - 1,050 - 16o 150 Cagayan Valley 380 3,150 565 515 1425 605 530 625 625 412 Central Luzon - - 775 721 754 730 715 380 44 860 Southern Tagalog 442 322 303 329 325 451 473 472 485 537 Bicol - - - 290 510 - 280 280 280 - Eastern Visayas 195 247 390 663 750 535 523 463 410 360 Iestern Visayas 464 677 1,230 1,229 1,181 980 965 974 950 1,050 Northern and Eastern Mindanao 86 694 601 702 1,392 3,067 640 574 574 574 Southern and Western Mindanao 289 554 653 852 850 704 728 730 782 779 SOURCE: BAEcon 0S ANNEX 7 PHILIPPINES Table 17 AGRICULTURAL SECTOR SURVEY Table 17: RAW SOYBEAN IMPORTS, 1949-1969 Year Quantity Value Price per (kilos) (pesos) Kilo 1949 2,946,692 697.694 .21 1950 3,180,554 787,810 .25 1951 3,825,792 1,162,188 .30 1952 4,077,160 1,287,851 .32 1953 4,879,705 1,461,224 .30 1954 2,961,766 1,203,950 .h1 1955 1,911,431 656,886 .34 1956 498,341 142,686 .29 1957 2,977,983 990,676 .33 1958 2,542,656 806,738 .32 1959 1,642,446 531,162 .32 1960 652,809 402,437 .62 1961 1,599,283 1,026,835 .64 1962 129,594 73,558 .57 1963 11,461,320 4,906.266 .43 1964 4,397,058 2,012,462 .46 1965 11,666,963 5,134,451 .44 1966 17,19,641 9,146,4U0 .53 1967 6,200,484 6,643,2211 1.07 1968 1,521,288 1,540,290 1.01 1969/1 594,100 854,058 1,44 /1 First to the third quarter of the year. Source of basic data: 1949-1953, Bureau of Cen-sus and Statistics 19M4-1969, Central Bank of the Philippines PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 18: SOYBEAN - CMARACTERISTICS OF EXTENSION VARIETIES Items Biyeloxi 256 Miloxi 399 L 114 Bilomi 3 x Yellow Bilox 96 Mis 28 EB x Yellow Bilcxi 37 C-364 x Sankuo Origin Growing Period (days) Wet Season 115 120 115 Dry Season 95 - 110 110 93 Average Yield (MT) Wet Season 2.00 - 3.00 Dry Season 1.32 1.29 - 1.33 - Oil Content (%) 21 - 22 19 18.68 Protein Content (%) 37 40 36.43 Size of dry bean (gm/100 seeds) 20 - 22 18 - 20 - Color of Bean Glossy-yellow (olive green Straw color when harvested prematurely) Lodging Resistant Grow prostrate in early wet Resistant season Photoperiodism Less sensitive Less sensitive Shattering Resistant Susceptibility to diseases Moderate susceptible to rust Tolerant to root and bacterial postule and leave disease resistant to rust Source of Information: BPI Newly Developed Varieties of Field Legumes, by F.B. Ballon, et al. Intensitied Corn Production Program, Proceedings 1971. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 19: SOYBEAN - ESTIMATED REQUIREMEN'2, 1975 and 1980 (A) Livestock Feed Requirement 1974/75 1979/80 Item Poultry Swine Total Poultry Swine Total t MT MT MT MT MT 1. 1971 - Sovbean meal imnort for feea base-/ 49,000 49,000 2. Estimated incremental requirement of hi h protein meals for incremental-livestock production- 77,100 123,500 200,600 120,000 290,900 410,900 meal /3 3. Assumed share of soybean n/ 2 (other share is fishmeal)- 50% 25% 50% 25% 4. Estimated incremental requirement of soybean meal in 2 38,550 30,880 69,430 6C,000 72,725 132,725 5. Total soybean meal requirement for feed (1 + 4) 118,430 181,725 6. Total soybean meal requirement in bean equivalent (at 20% oil content) 148,000 227,000 (B) Total Soybean Demand and Supply 1. Feed 168,000 227,000 2. Food market 5,700 12,000 3. Total Demand 153,700 239,000 4. Projected Production 5,700 80,000 5. Import requirement in bean equivalent 148,700 159,000 6. Import requirement in soybean meal 118,400 127,200 /1 Quoted from Review. of Soybean Potential in the Philippines, T.J. Smith, USAID, September 1971. /2 Mission report Annex , Table /3 Estimate by Missiof livestock consultant. /4 Para 256 of this Annex. AGRICULTURAL SECTOR SURVEY PHILIPPINES ANNEX 9. RICE: ESTIMATES OF SUPPLY AND DISAPPEARANCE ANNEX 9 PHILIPPINES AGRICULTURAL SECTOR SURVEY RICE: ESTIMATES OF SUPPLY AND DISAPPEARANCE TABLE OF CONTENTS Page No. Supply .................................................... 1 Requirements .............................................. 2 TABLE Rice Production and Disappearance ANNEX 9 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY RICE: ESTIMATES OF SUPPLY AND DISAPPEARANCE Supply 1. GOP computes the available supply of rice by summing the data listed below: (a) the palay crop converted to milled rice equivalent; (b) commercial stocks (including government-owned stocks) as of July 1, of palay and rice (in milled rice equivalent); (c) 51% of farm household stocks 1/ of palay in milled rice equiva- lent on July 1; and (d) rice imports. 2. The data on palay supply were converted to rice equivalent by multiplying them by 67.4% from 1970/71 on; by 66.2% for earlier years back to 1968/69 and by 64.9% back to 1959/60. These take account of the three types of milling in the Philippines, explained below: 2/ (a) Cono (including imported mills) mills are commercial mills with milling yields of about 70%, depending on the condition of the palay. The average milling yield may be about 65%. (b) Kiskisan mills are simple mills run by one or two men. The milling process is a one-step operation with palay passing between a stone inner cylinder and a rough metal outer cylinder. The average milling yields may be about 60%. (c) Hand pounding consists of pounding palay with a mortar and pestle. The milling yield may average about 50%. 3. The proportion of milled palay which is processed by each method, as determined by periodic surveys of the Bureau of Agricultural Economics (BAEcon), is shown below: 1/ Data on farm household stocks of palay are not available prior to July 1, 1969. Since a historical series of more than three seasons is needed for analytical purposes, data on farm stocks are not included in the supply estimates used in this annex. 2/ BAEcon Digest, Volume VI, No. 39, September 27, 1972. ANNEX 9 Page 2 Percentage of Processed Palay Hand Year /a Cono Kiskisan Pounded 1955 47.4 30.4 22.2 1961 57.5 29.7 12.8 1968 63.9 31.4 4.7 /a The year designates the 12 months ending June 30. 4. Some of the crop is not milled, consisting of allowances for seed and wastage (including rice which is fed to livestock). The Mission estimates that these allowances represented about 10% of the palay crop in recent years. 5. The estimates of rice supply and consumption are shown in Table 1. Requirements 6. GOP computes the historical requirements for rice by the following procedure: (a) Deduct the ending carry over from the supply. (b) The remainder is the total rice consumption of the Philippines. (c) Consumption per capita is obtained by dividing step (b) by population. 7. During the past decade, per capita consumption, as computed in the Philippines, averaged about 88 kg. GOP estimates requirements based on 91 kg per capita. This is slightly higher than the peak rate of 90.5 kg attained in 1969/70. 8. Income elasticity of rice is apparently very low, based on avail- able statistical evidence (Statistical Annex Table 6.3). To provide the consumption of 91 kg per capita, and marginal self-sufficiency, by 1974/75 would require an increase of about 24% in output from 1971/72. With the likelihood of little increase and perhaps a further shortfall in production in 1972/73 as a result of the floods, very large increases would be necessary in the next two years. For 1975-80, population increases now projected at 2.7% a year would require commensurate increases in output. 9. The requirements for palay output accordingly would be: '000 tons 1971/72 actual 5.10 1974/75 projected 6.32 1979/80 projected 7.22 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table: RICE PRODUCTION AND DISAPPEARANCE1 Fiscal Paa Not Rice Net 5 Change Dis- Popula Consumpr Yea Produc- Mild31Mle Output-/ Imports2./: in aprnc tion per Year : tion / : lled%r MOutput Stocks. appearance t Caita M. . %T M.T. M.T. (.00 kg 1959 3,684,503 11.1 88.9 2,126,142 192,573 170,304 2,148,591 26,190 82.04 1960 3,739,507 11.1 88.9 2,157,882 4,004 32,232 2,129,654 26,986 78.92 1961 3,704,756 11.1 88.9 2,137,829 (1,627) -263,584 2,399,786 27,800 86.32 1962 3,910,056 11.1 88.9 2,256,298 186,380 188,735 2,253,943 28,637 78.71 1963 3,966,983 11.3 88.7 2,283,997 15,701 -105,729 2,405,427 29,500 81.54 1964 2,842,859 11.1 88.9 2,217,522 301,602 3,245 2,515,879 30,388 82.79 1965 3,992,463 10.9 89.1 2,309,034 481,687 54,161 2,736,560 31,304 87.42 1966 4,072,636 10.9 89.1 2,355,402 326,698 -17,394 2,699,494 32,246 83.72 1967 4,094,020 10.9 89.1 2,367,769 214,541 -74,607 2,656,917 33,218 79.98 1968 4,560,697 11.0 89.0 2,686,259 118,517 236,114 2,568,662 34,218 75.07 1969 4,1444,656 10.1 89.9 2,644,385 (27,113) -86,874 2,704,146 35,249 76.72 1970 5,233,408 10.1 89.9 3,173,411 ( 1) -114,639 3,288,049 36,310 90.55 1971 5,342,916 10.1 89.9 3,239,813 16,800 -93,566 3,350,179 37,404 89.57 1972 5,100,084 10.1 89.9 3,090,274 635,000 336,840 3,388,434 38,537 87.93 1/ Revised. 2/ BAEcon. 3/ Mission estimate. i4/ Conversion rate rice/palay: 64.9%, 1959-67; 66.2%, 1968-69; and 67.4%, 1970-71 as 9 applied by OSCAS, National Economic Council. Q / As presented in original table with revisions for 1971 and inclusion of 1972 figures. u AGRICULTURAL SECTOR SURVEY PHILIPPINES ANNEX 8. SUGAR AND TOBACCO PRODUCTION ANNEX 8 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY SUGAR AND TOBACCO PRODUCTION TABLE OF CONTENTS Page No. Sugar Introduction ..................................... 1 Recent Developments .............................. 2 Organization ................................. 5 Research ................................ar. 7 Extension Service ............................... 9 Supply of Inputs ................................. 10 Recommendations for Improvement .................. 11 The Outlook for Supply and Demand .......... 14 Tobacco Trends of Production and Export .................. 16 Organization ................ .................... 16 Research and Extension .......................... 16 ANNEX 8 Page 2 Tables 1. Sugar - Area, Production, Yield, All Philippines, 1946-1971 2. Sugarcane - Area, Production, Yield, by Regions 3. Sugarcane - Cane Yield and Sugar Content 4A. Percentage Distribution of Sugarcane Farms by Regions 4B. Sugarcane Area, No. of Farms & Average Farm Size 5. Sugarcane - Agronomic Characteristics of Commercial Varieties 6. Sugarcane Yield Response to Fertilizers-Tarlac Mill District, 1969-70 7. Sugarcane Yield Response to Fertilizers-Tarlac Mill District, 1970-71 8. Tobacco: Area, Production, Yield of Virginia and Native Tobaccos 9. Tobacco: A List of Extension Varieties Figures: 1: Sugarcane Area & Sugar Yield, Philippine Total (WB 7235) 2: Sugarcane Area & Sugar Yield, Central Luzon (WB 7236) ANNEX 8 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY SUGAR AND TOBACCO PRODUCTION I. SUGAR PRODUCTION Introduction 1. The Philippines has been exporting sugar to the U.S. for nearly a century. From 1935 to 1960 (excepting the second World War years), it enjoyed a duty free quota of 980,000 tons. The U.S. stopped importing sugar from Cuba in 1961, and the Laurel-Langley Agreement of 1965 increased the potential U.S. sugar quota for the Philippines to 1.3 - 1.5 million tons annually. Stimulated by these actions, the sugarcane area more than doubled during the last decade, to a record 420,000 ha in 1970/71, and the sugar mills increased from 26 to 36. 2. The rapid expansion, however, created serious difficulties. Sugar- cane was pushed into marginal land, breakdowns occured in the once well synchronized harvesting and delivery schedules between planters aand mills and, above all, there was a steady decline of sugar yield from 7.7 tons/ha in 1958/59 to only 5.4 tons in 1970/71. From 1966 to 1970, the Philippines consistently failed to fulfill the U.S. quota. By 1974, when the Laurel- Langley Agreement expires, Philippine sugar entering the U.S. will have to pay full duty of about 0.5 cents per pound. Otherwise, the Philippines has only a small residual quota of 60,000 MT in the International Sugar Conference -- which applies only when there is a deficit in other countries' quota; and it has not supplied any to these outlets since 1961. 3. Future emphasis should be placed on increasing the sugar yield per hectare. The decline of yield in the last decade was due mainly to three things: the expansion of sugarcane onto rolling land and hillsides without soil conservation practices; prolongation of the period between harvesting and milling; and the prevalance of diseases and insects, especially the ratoon-stunting disease. To overcome these constraints, the following measures are recommended: - Reimposition of a strict schedule of harvesting and delivery of cane to mills, - Investment in installing irrigation facilities in mill dis- tricts with distinct dry seasons, - Strengthening of the PHILSUGIN cane breeding program for developing more varieties with early and late maturity, and a wide range of disease resistance, ANNEX 8 Page 2 - A vigorous campaign against ratoon-stunting disease, - Imposition of soil conservation practices on cane fields on slope land. 4. If the above measures are implemented, the sugar yield could prob- ably be revived to 7.7 tons/ha, and 2.7 million ST of sugar might be produced in 1980 from only 355,000 ha of planted area. The plantations on steep slopes should be retired. Recent Developments 5. Following World War II, only 25 of the 47 prewar sugar mills were reopened with some mergers. Sugar export to the U.S. revived to the 980,000 ST quota level by 1953/54 and continued at that level until 1960. In 1961, Cuba's huge U.S. sugar quota (3,438,000 ST in 1958) was broken up and dis- tributed to new suppliers which included some 30 countries. The Philippines was not given an increase of its basic quota, but rather the privilege of nonquota purchase arrangements. Exports from 1961 to 1964 went up to 1,155,000-1,355,000 ST annually. This was reflected in a rapid expansion of 100,000 ha of cane area between the 1962/63 and 1964/65 crop years. Three new mills were established and a few mergers took place, leaving 26 operat- ing. Until this time, contract between planters and mills, scheduling of harvest and allocation of vehicles for hauling cane to mills followed the long established patterns and procedures fairly smoothly. 6. In November 1, 1965, the U.S. Sugar Act was amended and subse- quently, under the Laurel-Langley Agreement, provided the Philippines with the following: a. a basic sugar quota of 1,050,000 ST; b. right to supply to the extent of 47.22% of export deficits of other supplying countries and the U.S. domestic producers; c. Philippines sugar to enter U.S. with percentage of duty according to the following schedule: Until December 31, 1970 40% Beginning January 1, 1971 80% Beginning January 1, 1974 100% The Laurel-Langley Agreement brightened the Philippines sugar export outlook quota-wise. 7. The increased quota ushered in a wave of new mills. Between 1966 and 1971, 10 new mills were built (four in Negros, three in Panay and one each in Batangas, Cebu and SW Mindanao). As of 1971, 26 "old" mills were also in operation. Total capacity of the 36 mills is about 126,000 MT of ANNEX 8 Page 3 cane per day. Seventeen of the mills are crowded on the Negros Island and six in the Central Plain of Panay; these 23 mills in W. Visayas have a total capacity of 92,000 MT of cane per day. A second wave of cane area expansion took place, reaching a record 422,631 ha by 1970/71. This brought reper- cussions, as cane fields were pushed onto rolling land, hills and paddy fields; the contractual arrangements between mills and planters became lax; field operations began to show confusion; and the average sugar yield declined. 8. As a result, sugar production increased at a slower rate than ex- pected. With domestic demand also on the rise (from 392,000 ST in 1961/62 to 613,000 ST in 1965/66), 1/ actual exports to the U.S. from 1966 through 1970 did not meet expectations of 1.3 to 1.5 million tons. Calendar Year Export to U.S. ('000 ST) 1966 1,186 1967 1,123 1968 1,124 1969 1,124 1970 1,298 1971 1,594 Although the basic quota of 1,050,000 ST was fulfilled, exports did not meet the shortfalls in the U.S. market proration (actual quantities are not made public, but were made known to the Philippines on a quarterly basis). With exports to the premium U.S. market remaining under the ceiling, there has been no incentive to fill the small residual quota available under the Inter- national Sugar Agreement. 9. As the expiration of the Laurel-Langley Agreement has drawn near, in an effort to make good its allocated quota, the Philippines resorted to "borrowing" sugar from the succeeding crop. As the crop year normally goes from mid-September to mid-September, it is possible to ship sugar produced from the middle of September up to November 21 (shipment would land in U.S. before December 31) to fill the export deficit for the current year. Thus, against the CY 1971 quota, the Philippines was able to ship 1,594,000 ST. This amount gives indication of how much the Philippines could have shipped from 1966 to 1970 had it had the sugar. 10. In October 1971, the U.S. Sugar Act was again amended. Under the amended Act, the Philippines will, effective CY 1973, get the following: a. A basic quota of 1,126,020 ST a year. This quota may be reduced if U.S. consumption is reduced, but in no event should it be less than 980,000 ST, 1/ Domestic withdrawals from mill warehouses. Sugar Quota Administration. ANNEX 8 Page 4 b. A right to supply 30.08% of the shortfall of U.S. domestic producers., c. In the event that the Cuban sugar should be allowed to reenter the U.S. market, (b) above may be cancelled, but the Philippines will maintain its basic quota of 1,126,020 ST. 11. For CY 1972, it is understood that the Philippines has an effec- tive quota of around 1.4 million ST. Although the flood of Central Luzon reduced output in that region, production elsewhere is up. Because of a history of lapses, the Philippines' basic supply position is a weak element in negotiating future quota arrangements with the U.S. 12. Declining Yields. Yields per hectare have declined basically be- cause the cane has been pushed onto marginal land, rolling land, hills and paddies. The sugarcane yield of the Philippines reached a peak of about 62 MT/ha in 1958/59, then declined to below 58 MT per ha in all years after 1963/64 except 1969/70 (Table 1). The decline was more striking in the average sugar content, which came down from more than 110 KG sugar per metric ton of cane in 1958/59 to around 90 KG (Table 3). This dual reduc- tion in both the cane yield per hectare and sugar content caused the sugar yield per hectare to decline from 7.7 ST sugar/ha in 1958/59 to 5.4 ST in 1970/71 (Tables 1 and 2). The negative relation between area expansion and yield decline is illustrated in Fig. 1. 13. A factor in declining sugar yields was the establishment of new mills, which interrupted the scheduling of harvest and delivery of cane to mills. Mills have to range widely to obtain cane and some new mills have only small daily delivery of cane during a part of the season, all resulting in prolonging the period between harvest and milling and the deterioration of sugar content. Also in areas with distinct dry seasons, harvesting is affected by the need to plant the next crop before residual soil moisture is depleted resulting in bunching of harvest. Another cause of declining yields is the practice of burning cane before harvest by planters to reduce trash -- burning cane together with the delayed milling aggravates deterioration of sugar content in cane. 14. Regional Distribution. The W. Visayas region, and particularly the Negros Islands, has dominated the sugar production economy throughout the recent expansion history. During the same period, Visayas was also the biggest loser in both cane and sugar yield per hectare. ANNEX 8 Page 5 W. VISAYAS AS % OF NATIONAL TOTAL SUGAR OUTPUT 1958/59 1970/71 Sugar Sugar Cane Area Production Cane Area Production W. Visayas Region 62 72 67 73 Negros Island Alone 56 66 55 62 REDUCTION OF YIELD (1970/71 FROM 1958/59) Region Cane/Ha Sugar/MT of Cane Sugar/Ha MT Picul Kg Picul ST Central Luzon -3.7 -0.58 -36.8 -28.1 -1.78 S. Tagalog 6.6 -0.29 -18.4 - 3.8 -0.24 W. Visayas - Negros -10.4 -0.38 -24.1 -42.3 -2.69 - Panay -17.9 -0.28 -17.8 -43.1 -2.74 E. Visayas -10.6 -0.40 -25.4 -40.3 -2.56 Philippines - 7.2 -0.38 -24.1 -33.9 -2.15 As the "kingpin" of the Philippines sugar industry, the Negros Island has suffered most from the repercussion of the recent wave of expansion. 15. Central Luzon, with nearly 70,000 ha of cane and six mills, has had the lowest yield of cane and sugar per hectare among all regions and throughout the last two decades. This is apparently due to (a) the pro- longed dry period (December through April) which hinders germination, ratoon- ing and growth of the young cane; (b) delays in milling; (c) preponderance of small cane growers (Table 4). It is the only region where the 1970/71 sugar production was actually less than that of 1958/59. A sharp decline of yield in this region accompanied rapid expansion in 1962/63-1964/65 and the cane area was reduced in the subsequent four years almost as much as it was increased earlier. The negative relationship between area and yield in Central Luzon is illustrated in Fig. 2. Organization of the Sugar Industry 16. There are two main Government agencies created by law and one committee created by an Executive Order involved in the sugar industry. The Philippine Sugar Institute (PHILSUGIN) is a government-sponsored corporation for undertaking research and development planning of the industry. The Sugar Quota Adminsitration (SQA) is a government board in charge of licensing and marketing controls in the industry. And the Sugar Stabilization Committee (SSC) implements the sugar price stabilization program following decisions made by SQA. 17. The National Federation of Sugarcane Planters (NFSP) deals with the government agencies and millers' association on all matters concerning benefit of the planters; it arbitiates arguments among planters, etc. sugar ANNEX 8 Page 6 millers are represented by the Philippine Sugar Association (PSA), Association of Integrated Mills and Araneta Affiliated with Sugar Centrals. The PSA is composed of 16 operating sugar mills. 18. On the marketing side, the Sugar Producers Marketing Cooperative Agency (SPCMA) and Philippine Producers Cooperative Marketing Agency (PHILPROCOM) provide marketing services to private organizations of sugar producers. SPCMA owns and operates the Planters' Products fertilizer com- pany, imports both raw material and fertilizer products, and distributes fertilizers to member sugarcane planters. 19. PHILSUGIN, which is under the supervision of DANR, has three sources of income: (a) about 85% of its income comes from a 2% tax levied on the sugar; (b) about 5% from a basic tax of 0.02 per picul collected from the total marketable sugar; and (c) about 10% from operational services rendered, such as soil/sugar analysis, subsoiling, lime delivery, irrigation fees, income from experimental farms, etc. In FY 1971, PHILSUGIN had a total revenue of about P 15 million, of which P 13.7 million were from taxes and P 1.3 million from service receipts. Out of the P 0.02 per picul tax, PHILSUGIN provides P 530,000 to SQA for administration and maintenance ex- penses. 20. PHILSUGIN has broad terms of reference which include practically every aspect of development and planning: research, extension, economics, by-products development, merchandising, improving living of sugar laborers, etc. The governing body is a five-man Board of Directors, two nominated by NFSP and two by PSA, all appointed by the President of the Philippines. The Chairman is elected from among the board members; and the board appoints the General Manager. Headquarters are in Quezon City; one regional office is located at Bacolod City, Negros, which takes care of operations in the Visayas and Mindanao. 21. The research office has two main research stations (one in Paguiruan, Pampanga Province of Central Luzon, and the other in La Granja, Negros Occidental Province, W. Visayas) and 32 substations for conducting agricultural studies. It conducts industrial research in the Central Labo- ratory at headquarters and the regional office at Bacolod City, Negros Occidental. 22. The Development Office's main activities include providing exten- sion service to and conducting soil testing from the planters. Its opera- tions are based in Paguiruan for the planters of the Luzon Island and in Bacolod City for those of the Visayas and Mindanao. In addition, it carries out some socio-economic, water and weather studies. 23. There are three other staff units. The Planning and Evaluation Office is responsible for statistics and control, economic research and training. The Economic and Marketing Unit makes special studies pertaining to economics and marketing of Philippine sugar. And the Information Unit prepares and publishes extension and public relation material for the Institute. ANNEX 8 Page 7 24. Some of the larger sugar companies have their own research and extension programs, i.e. Victoria in Negros and Canlubang in Luzon. The quality of research done by the Victoria Milling Company.is as high as, if not higher, than that of PHILSUGIN. Since almost all sugar specialists are concentrated either in PHILSUGIN or in the industry itself, DANR actually does not have the technical capacity to supervise the sugar research and extension. Research 25. Sugarcane is one crop in the Philippines for which most farmers are already employing not only improved varieties, but also fertilizers, pesticides, and mechanization. This is because the sugar planters have larger average holdings (1970: 17.8 ha) than paddy or corn growers, and the net income per hectare from cane is considerably higher than for the grain crops. PHILSUGIN carries out a wide range of sugarcane research on plant breeding, agronomy, pest control, fertilizer application, weed control, and sugarcane physiology. The progress and accomplishments of the basic items are summarized below. 26. Variety Improvement. The Philippines used mainly POJ varieties of Java in the forties and early fifties -- first POJ 2878 and later POJ 2883. From 1955 through 1968, these were gradually replaced by H37-1933, Hawaiian variety, and POJ-3016, a Java variety. Philippine varieties developed through hybridization made up 28% of the cane area in 1968/69, 44% in 1969/70, and 62% in 1970/71. 1/ Table 5 gives a list of the old foreign varieties and the new locally developed varieties planted in the Philippines, together with their agronomical characteristics. 27. Generally speaking, the locally bred varieties are more tolerant to drought, more resistant to diseases and lodging, have a lower fiber con- tent and a higher sucrose content than the older foreign varieties under Philippine conditions. Their ability to steadily replace the well-known foreign varieties is a credit to the Philippine cane breeders. Nationally, local varieties having the largest planted area at the present are Phil 53-33, CAC 57-11, Phil 56-226, CAC 57-60 and Phil 58-260, in that order. In some sugar districts, however, varieties other than these are more dominant. For instance, in Victoria Milling Company's cane district in north Negros, B-37- 172 had the largest area in 1969. 28. The current breeding objectives of PHILSUGIN are high yields, endurance to drought and waterlogging, and resistance to major insects and diseases. New varieties are released from year to year. 29. The Victoria conducts its own breeding program and is expecting to produce its own cane variety by 1973 for extension in its own mill district. In 1970/71 , the Victoria mill district had 35,000 ha, the largest in the Philippines. 1/ Statistics Series on Sugar, Volume 11, No. 1, pages 33-35, PHILSUGIN, January, 1972. ANNEX 8 Page 8 30. Research on Use of Fertilizers. PHILSUGIN conducts fertilizer experiments to establish general response of sugarcane yield to the three major elements and lime; conducts a soil testing service for making recom- mendations to individual planters; and makes complimentary leaf analysis and physiological studies to corroborate the nutrient requirements of the sugarcane plants. 31. Based on field experiments and soil analysis data, PHILSUGIN estab- lished optimum fertilizer application levels for various districts. For example, available data for eight mill districts show optimal N levels vary- ing from 64 kg N/ha in La Granja to 210 kg/ha in Ormoc. PHILSUGIN, however, has not been able to get consistantly good results from P205 and K20 experi- ments. 1/ Failing to obtain satisfactory indigenous data, it is now using approximated ratios of N, P205 and K20 needed for every ton of cane harvested, by reference to published foreign literature on P205 and K20 requirements. Thus, up to 1965, the adopted ratio was 1 N: 0.9 P205: 2.25 K20. Since 1965, it has been using ratios varying from 1:1:2.5 to 1:1:3, depending on K soil analysis. 32. According to the PHILSUGIN survey, Philippine planters on average used 90 kg, 20 kg and 25 kg of N, P205 and K20, respectively, in 1968/69. In crop year 1969/70, the averages were increased to 120 kg, 60 kg and 65 kg, respectively. The N application rate approaches the recommended levels, but rates for P205 and K20 are far below PHILSUGIN recommendations. 33. Although a great deal of work has been done, the failures in P205 and K20 experiments have delayed PHILSUGIN from building up its "Tables of Fertilizer Recommendation Based Upon Soil and Suitability" for each mill district. Tables 6 and 7 indicate sugarcane response to fertilizers based on experiments conducted by PHILSUGIN in Tarlac. 1/ Victoria Milling Company of Negros, based on experiments conducted in its mill district, reported that soils with 10 ppm available P205 and 40 ppm available K20 need 100 kg P205 and 300 kg K20 per ha for maximum profit, and soils with 5 ppm available P205, 200 kg P205 per ha. It recommended the following rates of application for different parts of its mill districts. N P205 K20 -----------------kg/ha---------------- 120 120 180 100 80 120 80 80 120 120 120 240 ANNEX 8 Page 9 34. PHILSUGIN also has conducted a great deal of liming experiments based principally on determining the quantity of lime needed to modify the pH to desired level, 6.5 to 7.0. A table compiled for extension workers gives MT of lime to be used for correcting soil pH from 4.0 through 6.5, with values given for three kinds of soil textures: loam, silt loam and clay loam (tabulation). Tons of Lime to Correct pH of Soil Soil Clauses Mill District Soil Loam Silt Loam Clay Loam Clay Loam pH (Biscon) (Haw-Phil) (Ma-ao) (Victoria) 4.0 3.7 4.2 3.5 6.3 4.5 3.4 3.9 3.2 5.8 5.0 3.0 3.5 2.9 5.2 5.5 2.5 2.9 2.4 4.4 6.0 1.9 2.2 1.8 3.3 6.5 1.1 1.3 1.0 1.9 7.0 0 0 0 0 35. Pest Control. For disease control, the research is centered on breeding for disease resistance to smut, mosaic, downy mildew, leaf sc:orch, red rot and nematode. Methods used include hybridization of varieties with known resistance and mutant initiation by irradiation. It is part of the continuing breeding program. 36. Insect control research included experiments on chemicals for con- trolling army worm, locust, sugarcane borer. Studies of rat activities in the cane fields and control methods are also being conducted. Cultural prac- tices for insect and rodent control have been recommended; and planters do seek the assistance of PHILSUGIN extension officers in controlling them. 37. Cultural Practices. Research includes studies on herbicides, ratoon culture, rate of planting, distance of furrows, and interaction be- tween rate of planting and fertilization. PRESCO 18-15 alone and 2-4D for preemergence treatment are commonly used. Other chemicals are being studied. 38. The traditional planting rate is 1 meter between furrows at 30,000 points/ha. Experiments are being conducted by PHILSUGIN to compare that with other combinations; furrow distances ranging from 0.75 meter to 1.5 meter and plant populations from 15,000 to 45,000 points/ha, and in some experiments to as much as 60,000 points/ha. The results of these experi- ments are not yet conclusive. Extension Service 39. The extension service of PHILSUGIN operates from the two regional offices in Pampanga and Bocolod City under the supervision of the Regional Directors. For each mill there is a Mill District Director (MDD); for small districts, one MDD may supervise two districts. The MDD's supervise the ANNEX 8 Page 10 Sugar Extension Workers (SEW). In 1970/71, there were 28 MDD's and 176 SEW's for all mill districts, each SEW supervised an average of 2,500 to 2,600 ha of sugar plantations. Each SEW is assigned to a given Extension Work Area (EWA). The SEW's work includes such activities as surveying and reporting on area planted or drought damage, harvest date of variety, rain- fall recording and weekly mill statements; conducting applied research plots, and providing advice and services to planters. 40. Fourteen soil laboratories of PHILSUGIN conduct soil testing for and prescribes fertilizer application to planters. In 1969/70, these labora- tories analyzed approximately 15,000 soil samples representing 31,300 ha; in 1970/71, testing fell to 5,000 samples, representing about 15,000 ha. Records show that for Luzon, since 1957/58, the average holding of planters requesting soil testing was never less than 49 ha. Since well over 90% of the planters in Luzon have less than 50 ha, only the largest planters have taken advantage of the PHILSUGIN soil testing service. 41. The extension service maintains nurseries of its own and contracts Cooperators to multiply seed points in different mill districts for distri- bution to planters. In 1969/70, some 12.6 million pieces of cane points of improved varieties, and in 1970/71 20.2 million points, were distributed. At the current rate of planting, 30,000 points/ha, the distribution could only plant 420 ha and 673 ha, respectively. However, most planters use their own cane for planting. They come to PHILSUGIN only when they need to change the variety, which they may also get from other planters. The supply of cane points has not been a constraint. 42. The PHILSUGIN extension service also trucks lime and fertilizers and renders subsoiling services to the planters on request, but the cover- age is very small. For example, reports in 1970/71 listed 633 tons of lime for 29 planters, 3,824 bags of fertilizers for 384 planters, and 217 ha of subsoiling for 18 planters. 43. In 1970/71, the service also conducted hydrological surveys in three mill districts, irrigation feasibility studies for nine planters, and recorded rainfall data from 219 rain gauges in 32 mill districts. It conducted 72 applied research field plots on new varieties (Phil 62 and 63 series) in 25 mill districts. 44. The service is preparing mill district maps (1:50,000 base map) which will include basic information on soil types, fertility levels, hydro- logical data, adaptability of varieties and locations of MDD, EWA, SEW soil laboratories, rain gauges, and supervised farms. This should be a useful computation when published. Supply of Inputs 45. Fertilizers. Although PHILSUGIN makes fertilizer recommendations on the basis of soil testing -- and the recommendations vary from plantation to plantation -- the national average recommended rates of fertilizer ap- plication are placed at 120 kg of N, 120 kg of P205 and 240 kg of K20 per ANNEX 8 Page 11 hectare. 1/ The actual rates of application by sugar planters were reported to be about 120 kg of N, 60 kg of P205 and 65 kg of K20 per hectare in 1969/70. More recently there has been some decline mostly reflecting the rise in fertilizer prices following the 1970 peso devaluation. 46. The Sugarcane Planters Cooperative Marketing Association (SPCMA) bought the Planters fertilizer plant from Esso in November 1970. The plant has a rated capacity of about 360,000 MT (of the national total of about .690,000 MT). In 1968, it produced about 140,000 MT of fertilizers, out of national total of about 240,000 MT. The SPCMA now moves more tonnage of fertilizer than any other firm or agency, primarily to its affiliated as- sociations and sugarcane planter members. It maintains warehouses where the stocks are stored and distributed. 47. Pesticides, Herbicides and Machinery. Sugarcane is known to be the largest user of pesticides, herbicides and farm machinery. Quantitative data, however, are not available. Recommendations for Improvement 48. The Philippine sugar industry must increase production to fill U.S. quotas and to reduce high costs of production. Twice in the past decade, it tried to increase production by expanding area and building new mills. Twice the increase in area was offset by a decline in sugar yield per hectare and an increase in production costs per pound of sugar. A better alternative for the future would be to increase production and reduce costs through increasing sugar yield per hectare. The major responsibility falls on the planters and mills themselves. 49. Loss of Sugar After Harvest. The first order of business is to get all the sugar out of the cane produced; that is, reduce the disappearance between harvesting and milling. Cane quality declines rapidly after 48 hours from harvest; burnt cane loses more sucrose and juice purity than unburnt cane when milling is delayed. Burning to remove trash is accept- able if the burnt cane is milled within 24-48 hours from harvest. The Philippine planters and mills know these well established facts. But with the expansion of cane area and number of mills, the once strict scheduling of harvest and delivery of cane to mills loosened. Increasingly, it is each planter for himself, each mill for itself. The unsyncronized harvesting resulted in a pile-up of cane during a part of the season and delays in milling. For some mills, the daily delivery is so small during part of the milling season that they have to accumulate enough cane to make one running. It is conservatively estimated that the Philippines loses at least 10% of sugar production through the combination of delayed milling and burning before harvest. This means a loss of 200,000 ST of sugar, or $26 million annually at $130 per ST. 2/ 1/ Report of Sub-Committee No. 1, Technical Working Committee, Presidential Fertilizer Commission, 1971. 2/ December 1972 Price - $9.07 per picul (63.5 kg), CIF/NY. ANNEX 8 Page 12 50. The solution to this problem is to reestablish a strict scheduling of harvesting and delivery of cane to mills by planters within each mill district. Unless the planters and mills are willing and determined to re- impose self-discipline, the Government and PHILSUGIN are impotent to help. Given cooperation, however, PHILSUGIN could work with them im mapping out an overall planting and harvesting plan for each mill district and for in- dividual planters, including: a. The proportion of early, medium and late maturing cane varieties to be planted in the district and by each planter. b. Nurseries to supply the cane points of different varieties. c. The staggering of planting time (including ratooning) within each category of varieties to further even out harvesting and milling. d. Schedules of harvest and delivery. PHILSUGIN could assist in implementing such a plan. But the actual con- tracting, adherence to schedule, and allocation of cane cars and trucks can only be enforced by planters and mills themselves. In order that effective synchronization of farm and factory operation can be instituted, the sugar planters will obviously need more tractors for implementing a strict schedule for land preparation. PHILSUGIN information indicates that only planters with farm size of 50 ha and up could afford to own tractors. Tractor pools for smaller planters have been suggested. More hauling trucks are also needed if smaller planters are to adhere to harvesting schedules. In Panay and Luzon where sugarcane cutting season coincides with rice harvest, mechanical harvesters need to be introduced. Since the Philippine sugar industry as a whole is not one that is really short of capital, it would serve the industry's own interest to invest in procuring the trucks and farm machinery. The mission recommends that a feasibility study be jointly made by PHILSUGIN and PNB to analyze financial and economical benefit of such investment to the mills, the planters, the sugar industry, and the national economy, and the industry's own resources be mobilized for the needed invest- ment. 51. In regions with a distinct dry season, i.e. Central Luzon, Batangas of S. Tagalog, Iloilo of Panay, Negros Occidental south of the Bacolod City, farmers must harvest cane before the onset of the real dry period, so as to plant or ratoon the next crop before the residual soil moisture depletes. During this period, some piling up of cane at the mill or field is unavoid- able at present. However, the loss of sugar can be kept to a minimum by planting a higher percentage of early maturing cane, by restricting the burning of cane during this critical period, by using self-trashing varie- ties so that the need for burning will be lessened, and by mills operating 24 hours a day during the peak. ANNEX 8 Page 13 52. Evening Out the Harvest Period. Although many of the locally bred varieties have a maturing period of from 10 to 13 months, they are mostly medium maturing varieties. There is need to develop more truly early maturing varieties -- with the sucrose content reaching say 2 piculs per metric ton of cane in less than 12 months under Philippine conditions; and late maturing varieties -- the sucrose content remaining at a high level for several months after the peak is reached. 53. In regions with a distinct dry season, there appears to be a good case for installing irrigation facilities. Only 7% of sugarcane is now ir- rigated. The profitability would of course have to be studied on a case by case basis. When the threat of drought is eliminated, the harvesting and planting schedules can be extended to even out the existing peak of harvest. The cane tonnage and sugar yield per hectare would also be increased. PHILSUGIN's Office of Development does not have enough irrigation engineers to effectively serve the planters in this need. The engineering staff should be strengthened. 54. Pest Control. The existing cane varieties are more resistant to diseases than the foreign varieties used earlier. But they are still sus- ceptible, or only moderately resistant, to one major disease or the other. Breeding for resistance to a wider range of diseases is necessary. PHILSUGIN's research staff for cane breeding and pathology needs to be further strengthened. 55. None of the current extension varieties have reached the dominance once achieved by the foreign varieties used in the fifties and sixties. One complaint is that cane varieties are deteriorating as fast as new varieties are coming out, caused perhaps mainly by the prevailence of ratoon-stunting disease. The ongoing pathology research, however, does not seem to emphasize this disease. Hot-water treatment of cane points is being recommended, but the extension program does not include a vigorous campaign to see that planters actually carry out the treatment. Among varieties, the once popular H37 - 1933 and POJ3016, and the leading locally bred Phil 53-33, are all suscepti- ble. A special effort seems necessary to reduce damage from this disease: measures should include investment in equipment for doing the hot-water treatment, a more vigorous campaign in treating cane points, and breeding for resistance to ratoon-stunting disease. 56. Soil Erosion on Slope Land. Farmers planting sugarcane on slope land are experiencing a gradual decrease of cane yield. Furthermore, stones and pebbles are beginning to appear in hill soils. As stated earlier, the spreading of sugarcane onto slope land without the adoption of soil conserva- tion practices is a major factor in the declining average cane and sugar yield over the last decade. 57. The Victoria Milling Company estimated 1/ in 1968 that "no less than 85% of the 30,000 ha area in its mill district is subject to serious 1/ Victoria Experiment Station Bulletin Vol. 15 No. 5 and 6, Mat/June 1968. ANNEX 8 Page 14 soil erosion problems owing to its undulating to rolling topography". It further estimated that under the prevailing rainfall of the mill district (over 100 inches a year, and an intensity of as much as 2.0 inches per hour not being uncommon), the loss of soils per year is as follows: Land % of Slope MT of Soils Lost Annually Bottom Land Less than 5 1.50 Moderate Slope 5 - 25 25.00 Steep Slope Over 25% 50.00 Hill Top 35.00 Victoria is an old mill; and the land of its mill district is better than average. If Victoria feels the threat of soil erosion, the problem must be even more serious for most other mill districts. 58. While one cannot expect the small farmers growing corn or upland rice on slope land to practice contour farming at this stage, the authori- ties should be more insistent that the sugarcane planters practice it. With good contour farming, sugarcane has been grown quite satisfactorily in other tropical countries on land of up to 15% slope. In view of the much higher farm income per hectare from sugarcane, the larger farm holdings, the sophistication of the sugarcane planters, and the already wide practice of mechanized farming by the planters, the adoption of contour farming depends on the will of the planters. There is no serious technological gap. The planters will need assistance in surveying and staking out the contours and in designing land grading and drainage way treatment. PHILSUGIN may be understaffed to handle this job. The Bureau of Soils' soil conserva- tionists may be called upon to help. 59. In the Philippines, it would also be expedient to use the criterion for "alienable forest land" -- i.e. 18% slope -- as the first target for restricting the planting of sugarcane on steep slope land. Lands of more than 18% slope and the hill tops should be returned to woods or put under improved pasture. The Outlook for Supply and Demand 60. The mission projects demand requirements as follows: Domestic Export Market Year Demand Potential Carryover Total -------------------------000 ST----------------------- 1971/72 (base) 715 1,400 2,115 1974/75 775 1,500 - 2,275 1979/80 875 1,500 356 2,731 In making these projections, the mission accepted PHILSUGIN's estimates for domestic demand (increasing 20,000 ST per year) and an export potential of 1.5 million ST (excepting 1971/72, where actual exports were estimated ANNEX 8 Page 15 at 1.4 million ST). A carryover of 15% of the sum of domestic and export requirements is assumed for 1979/80. The carryover stock will start build- ing up as soon as there is surplus sugar, which may appear earlier than 1979/80. 61. In projecting future production, a realistic target is to revive average sugar yields to the previous high. The peak national average yield, 110 piculs of sugar per hectare, was achieved in 1958/59. Assuming the recommendations in the previous section are accepted and carried out, the average sugar yield could roughly increase as follows (from the present low base): Estimated % Estimated Yield Improvement Items Yield Increase picul/ha ST/ha Present level - 80 5.58 Reimpose discipline in harvest- ing and milling schedule 10 88 6.15 Irrigation 7 94 6.56 Further variety improvement and control of ratoon-stunting disease 10 103 7.19 Soil conservation 7 110 7.68 In these estimates, irrigation and erosion control would be applied to only part of the sugarcane area. 62. Future production is projected as follows: Year Area Yield Production '000 ha ST/ha '000 ST 1970/71 (Base) 423 5.40 2,269 1974/75 (A) 401 5.58 2,280 (B) 371 6.15 2,280 1979/80 355 7.68 2,726 If no improvement is made between now and 1974/75, the Philippines will need to maintain the sugarcane area at its present level of 400,000 ha. But if reimposition of discipline in harvesting and milling schedule could be es- tablished, the sugar yield may be expected to increase to 6.15 ST or 88 piculs/ha (1969/70 actual), and it will need only 371,000 ha of cane to produce 2.28 million ST of sugar for meeting the domestic and export re- quirements. If all the proposed improvement measures can take effect by 1979/80, and the average sugar yield can be increased to 7.68 ST, or 110 piculs/ha (1958/59 actual), the country would need only 355,000 ha of sugar- cane to produce 2.73 million ST of sugar to meet the domestic, export and carryover stock requirements. ANNEX 8 Page 16 II. TOBACCO PRODUCTION Trends of Production and Export 63. The Philippines grows five types of tobacco: Virginia tobacco for both the local cigarette industry and for export as leaves; Native tobacco used mainly as cigar filler; cigar wrapper; white burley; and Turkish tobacco for cigarette blending. The first two types are the main crops. 64. According to BAEcon data, the planted area of Virginia declined from over 50,000 ha in 1960 to about 25,000 ha by 1967 and since then in- creased to about 29,000 ha in 1971 (Table 8). Yields have increased in recent years, averaging 692 kg/ha in 1971 compared with 662 kg/ha in 1960. Production in 1971 was about 20,000 tons compared with 34,000 tons in 1960. Ilocos region is by far the main producing area of Virginia tobacco. Ilocos Sur province alone produces about 50% of the Nation's total (Table 9). 65. The 1971 planted area of 47,000 ha of Native tobacco was slightly higher than in 1960 but down substantially from 65,000 ha planted in 1968. Yields of 767 kg/ha in 1971 compared with 675 kg/ha in 1960 but have not exceeded the yield attained in 1962. Production of 36,000 tons in 1971 was substantially below the 47,000 tons produced in 1968. 66. Statistics on the production of the other types of tobacco is incomplete, but production is small. Wrapper tobacco is grown in Ilocos, Cagayan Valley, and S.W. Mindanao. 67. According to Central Bank data, the total FOB value of exports in 1971 was US$14.6, just about the average of the 5-year period 1967-71. This represents some decline from the US$16.7 recorded in 1969. The U.S., Spain, Indonesia, Hongkong and the Netherlands are major markets for Philippine leaf tobacco; while the U.S., Belgium, West Germany, the Netherlands and Hongkong are markets for its cigars. Organization 68. Virginia and Native tobacco industries are looked after by the Philippine Tobacco Administration, respectively. Functions of market stabilization formerly exercised by these authorities were recently turned over to the private sector. Research and Extension 69. BPI has developed, through introduction and hybridization, im- proved varieties for all types of tobacco being grown. The breeding objec- tives, besides high yield and quality, have been resistant to major dis- eases: bacterial wilt, mosaic and cercospora leaf spot. The BPI recom- mended varieties are being widely accepted by farmers. A list is given in Table 9. ANNEX 8 Page 17 70. Based on survey and field experiments, BPI's recommendations for soil adaptability and fertilizer application may be summarized as follows: Tobacco Types Adaptable Soils Fertilizer Rates Virginia Sandy loam and silty loam 5-10-16, 6-16-18 4-8-10 Native Rich alluvial and sandy loam 12-12-19, 12-24-12 12-12-12 Cigar Wrapper Clay loam and newly opened 12-12-19, 12-24-12 forest land 12-12-12 White Burley Fertile silty loam 12-12-19, 12-24-12 12-12-12 But, in fact, the majority of tobacco growers in the Philippines do not use any fertilizer at all. 71. BPI has also recommended cultural practices specific to different types of tobacco; such as planting spacing, depth of tillage, topping, sucker control, shading for wrapper tobacco, etc. These are followed by farmers to varying degrees. 72. The major tobacco insects in the Philippines include cutworms, stemborers, aphids, caterpillars and various leaf-eating insects. Nematodes are also prevalent. Control measures have been recommended. Those not requiring purchase of chemicals are being followed to a greater extent, such as crop rotation, sunlit nurseries, use of resistance varieties, eradication of diseased plants, etc. Use of pesticides and soil fumigants are limited. 73. Flue-curing recommendations include the best temperatures for dif- ferent curing phases, and use of oil fuel rather than firewood. But most farmers are still using firewood for curing. 74. Planting and harvesting seasons are recommended by BPI as follows: Cigar Wrapper Time of Virginia Native Other Operations Tobacco Tobacco Cotabato Places Seed bed Aug 15-Oct 31 Aug 15-Oct 31 Sept-Oct Aug-Oct Transplanting Oct 1-Dec 15 Nov 1-Dec 30 Nov Nov-Dec Harvesting Nov-Jan First harvest, Dec-March Jan-March Jan 25-Feb 1 followed by, 7-8 primings at 5-10 day interval. ANNEX 8 Table 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 1. SUGAR - AREA, PRODUCTION, YIELD, ALL PHILIPPINES, 1946-1971 CROP AREA CANE SUGAR YEAR PLANTED PRODUCTION PRODUCTION TC/ha PS/TC PS/ha (ha) (TC) (ST) 1946-47 84,575.28 1947-48 398,113.10 1948-49 116,790.00 728,580.39 89.48 1949-50 127,903.00 692,902.741 1950-51 154,986.00 7,327,528.54 945,852.19 42.28 1.85 87.53 1951-52 189,048.00 9,010,635.09 1,076,522.27 47.66 1.71 81.67 1952-53 209,264.59 9,474,053.69 1,134,102.73 45.27 1.72 77.71 1953-54 220,575.00 11,806,164.37 1,)434,342.05 53.52 1.74 93.27 1954-55 218,442.67 11,315,151.09 1,371,762.77 51.80 1.74 90.07 1955-56 189,794.99 9,862,050.30 1,218,530.81 51.96 1.77 92.09 1956-57 179,147.97 1,167,634.18 51.85 1.80 93.33 1957-58 183,697.98 10,128,902.98 1,377,847.01 55.14 1.95 107.58 1958-59 195,691.00 12,188,706.18 1,512,637.94 62.29 1.78 110.87 1959-60 204,122.00 12,602,416.09 1,528,834.38 61.74 1.74 107.43 1960-61 208,750.69 11,744,609.42 1,451,452.57 54.91 1.77 97.32 1961-62 224,398.72 13,097,589.02 1,618,395.64 58.37 1.77 103.4 1962-63 23,658.20 14,229,057.67 1,71-4,021.40 58.40 1.73 100.90 1963-64 292,206.30 16,442,485.92 1,855,889.96 56.27 1.66 91.10 1964-65 343,h06.59 16,100,004.07 1,716,926.87 46.88 1.45 71.71 1965-66 310,326.82 13,282,208.13 1,545,000.47 42.80 1.59 71.41 1966-67 286,352.00 15,277,286.00 1,719,600.57 53.35 1.55 86.13 1967-68 297,887.00 15,280,004.32 1,761,160.81 51.29 1.65 84.8o 1968-69 313,512.00 16,448,231.52 1,762,200.58 52.47 1.54 80.62 1969-70 345,255.00 21,428,969.92 2,123,688.70 62.07 1.42 88.22 1970-71 422,631.00 23,305,865.00 2,268,009.00 55.14 1.4o 77.00 Source: Statistical Series on Sugar, Vol. II, No. 1, January 1972. TC = Metric Ton of Cane ST = Short Ton Prepared by: PHILSUGIN PS = Piculs of Sugar Plans & Evaluation P1 picul sugar = 63.5 kg 1972 PHILIPPINES AGRICULTUIЫ SECTOR SURVEY ТаЫе 2: SUGARCANE - AREA, PROIцTCTION, YIEZD, Ву REGION 1пс о1 1Ч19/60 i'�м.1l61 1oG1161 79б2/G3 19бЭ/64 1964/65, 1"Ь;гбе 19!_б/67 1967 69 ]лбS/б9 1969/70 1Ч70'71 1Ч5А 59 1tii�,--- 19ty!5а 21а::сгд ,1�г.: (ha) Сепсгаl 7.иоп <5.5]3 с7.703 5'_,ЬG: 56.2?р 75�,5Ч9 Е7.П0) 7:.]93 65.4С9 62.nB. 60,555 62,3:0 6fi,};; 44,45s 24,16G 5. T.,�aIcS 22.in9 2?,79В 22.0/5 2G,24t, 26.24с и.бЭ. 27,225 2b,745 д,с:7 29.�.G2 36,3;� �,гчЛ 21.719 23,L'•9 У, Viaayea - t:rgrгe 115,4)0 11Э,179 127,0'sl 156,214 159,254 1�'а,9_�1 174.104 161,1.U 1Gч,77J 170,г•11 194,206 'а2,416 110,136 1:2,ТА0 -:+.':ц,' 12,]ЧЭ 3'_,D14 1Э,1}7 14,474 18,й54 20,981 20,17а 19,104 20,541 T7,J11 37.602 49,115 11,432 3/,4РЭ Е. Уfяиу,ь В,ц9 ц,607 9,412 10,576 12,654 15,46:, 11,726 17,774 14.7:2 Т9,779 19,4UU 27,360 8.226 19,154 P1;1LiPF'7:'ES 20+,122 213,9U] 224,]99 243,696 292,2U6 ]TI,207 310,727 206,152 2ЭЬ,597 Зi3.Ь4Т J4o,950 422,Ь31 195,691 226,940 слп. Ргодигиол П,ОО0 слд Сепгтаl Luzon 2,1д6 1,656 1,976 2,598 2,631 3,07Ь 2,19] 2,310 2,2Ь7 2,tJ0 - 2,483 1,775 70R 5. iь�аlпБ 1,241 99: 1,142 1,:i6 1,274 1,3:4 1,?59 1,705 1,:00 1,'N2 - 2,472 7,0]5 1,417 Ч. Vfsn)'аь - Nгgros 7,976 ),595 Ь,4С9 8,AJ8 10,668 9,Ь71 9,422 9,ВА4 9,76! 10,027 - 14,С42 7,990 6,452 - islqy 75В 7]5 б+2 !45 1,09о" 1,148 ЬЬБ 1,016 037 1,3'_? - 2,41) 767 1,bi0 Е. Vieayna 4Е2 554 6Gi G29 813 GЬЧ 5Э6 762 - В.О 1,496 - 1,560 556 1,OG+ Cil1L1PP1�T.i 12,64] 11,7Э8 l3,ОЧ8 14,2.9 16,443 16,100 :3,282 15,277 15,285 16,4.6 - 23,324 12,094 11,230 SиРэг РгоЛисгlип (1,ОЭ0 Р1си1е) Cenrral Luron 3.75L i,222 3,568 4,575 4,299 4.3ЭЬ 3,534 3,64I 3,404 3,504 Э,441 3,317 Э,434 �-77 б. Tagalog 2,1СЗ 1,750 2,097 2,190 2,105 2,167 2,G5] ,2А2 2,Э5Ь 2,l',5 2,930 7.615 1,618 1,657 У. У1<ауле - Ч_г�соа 14,048 1Э,766 35,1:.J 15,29J 17,17р 15,519 14,4д7 16,009 1Ь,Ь89 15,3'i7 15,4iJ 20,293 14,276 6,01Т - i:л .'/ 1,25Н 1,256 1,Э„) 1,5ti9 1,765 1,659 1,432 1,G11 1,6Ufi 1,H�h 2,р29 3,3:0 1,:ои 2,054 6. У1•;,у„ ?)7 82с 1,01s ЧТО 1,1Ч2 916 л0 1,120 1,2s5 t, vz 1,ьs1 1,500 во) чч0 PXII:PГ16Z5 (1,П00 Р1си1ь) 21.Y20 2J,616 23,2�3 2й.5°с 26.f,19 24,626 22.2W 24.6G5 25.311 25.2'r4 70,46П 32.5.4 2i,696 :0.8г,`l (1,CU0 5Т) 1,129 1,451 1,G;d 1,7:с 1,856 1,):7 1,545 7,120 1,761 1,7Г,? 2,124 2,16Ч ),513 75G (1',OJO М:) 1,3А7 1,316 1,4i9 1,55i 1,664 . 1,558 1,402 1,560 1,598 1,598 3,927 2,05В 1,]7Э ЬЬ5 г Yi=!д fYicul/h � Ccntral Luxon В2.4 67.5 61.7 81.4 56.9 50.2 40.8 55.7 54.3 57.9 55.2 4В.8 ТЬ•9 -28•1 5. Та�а'п8 96.6 76.7 95.0 87.4 8Э.'l 80.7 )4.2 В5.] 8l.) )9.6 БО.Ь 81.В 55.6 -3.8 Ч, l'lлауаь -':с5тоз t21.6 175.9 1:5.1 172.2 107.9 87.7 82.9 99.й 9В.7 50.2 9Ч.9 Н7.3 125.6 -42.3 - Рьч�,• 101.5 10�.4 ]С5.3 108.3 95.6 )9.1 71.0 84.3 78.2 72.9 71.1 б7.6 1iJ.7 -43.1 . Ytea�пs 64-1 65.4 1С5.7 97.0 94.2 59.2 48.9 б1.3 65.1 72.9 95.4 69.4 10v,7 -40.3 РН7L1rР]ьг5 (Р1си1/ha) 10).4 97.3 103.4 100.9 91.1 75.3 71.4 86.1 84.Ь 80.6 6s.2 )).0 110.9 -33.5 (5Т/hп) 7.5 6.8 Т.2 7.0 6.4 5.Э 5.0 6.1 5.9 5.6 6.2 5.4 ).7 -2.3 (пТ/haj 6.8 Ь.2 Ь.5 6.4 5.8 4.В 4.5 5.1 5.6 5.1 5.6 4.9 7.0 -1.1 Source: See ТаЫе 3. F, ыь � т �v «� РНIт IPPINES AGRIG`ULTURAI, SECTOR 5UR':ЕУ ТаЫе 3 s SUGARCANE - CANE YIELD AND SцГт�1R CONTENT lпглчsг of 1970/7l мог 195o,F0 19п0!61 19Ы/Ь' 1аи?Jn7 19Ri'64 19б:.165 I7GSlп6 19г6lб7 I967/(Р 1о(eJlo lnf '7П 1770J71 1о•��i39 1756/59 Сепг 1I._!Л_� _'h.� Сгпггаl си�оп GA.O 39.0 Э7.5 46.2 )4.8 75.4 J0.4 35.3 36.2 78.7 - 36.1 39.В 7.7 5. Таgп'.og 55.9 4�.7 32.6 4G.3 47.0 45.0 65 А 4д.8 48.5 43.5 - 53.9 47,3 Ь.Ь И'. Угь;.vяв - Аг�гпв 69.1 6].Ч 66.5 64,у 67.0 55:В 4В.) 61.7 57.3 58.7 62.] 72.5 - 10.4 - Рапгу (.1.1 61.1 67.7 45.6 39.5 54.7 47.0 57.2 50.5 50.1 - 49.1 67.1 - 17.9 Е. vi•лу.�s ' S6.5 44.0 72.7 59.) 64.) 4G.5 35.0 45.4 55.6 50.2 - 57.0 67.6 10.о FF111vP]:;e5 61.7 54.9 58.й 58.4 54.] 46.9 42.8 3).4 51.3 52.5 61.1 55.1 6.J - ),2 5и.,,г Г,�п;,•пг (?гг:�1 ef - - г Ге; :Т � Чп�'1 Сгnггпl Luzon 1.77 1.73 1.81 1.76 1.63 1.42 1.61 1,5А 1.50 1.51 - 1.35 1.97 - U.56 6. 7'ал,�1о� 1.7З 1.7L 1.8! 1,60 1.77 1.65 1.6] 1.75 1.6В 1.8Э - 3.52 1.61 0,19 ь. Уtь-,упв -�гсгск 1.76 1.91 1.79 i.)7 1.61 1.57 1.72 1.62 1.71 1.54 - 1.41 1.79 0.]б - Рапгу 1.6G l.%1 1.66 1.63 l.6 1,44 1.65 1.5б 1.55 1.45 - 1.J7 1.65 0.18 Е. Уtвауав '� 1.45 1.49 1.51 1.54 1.47 1.73 1.40 1.47 1.5] L 45 - 1.12 1.61 0,40 P81L1ЛPi�CS (Р5/МС) 1.74 1.77 1.77 l.7] 1.ЬЬ 1.45 1.59 1.55 1.63 1.34 1.42 1.40 1.7В - О.3В (Kge/К�С) 110.49 112.40 112.40 l09.д6 105.41 92.ОВ 100.97 96.43 104.78 97.79 90.17 88.90 1]].03 ' 24,1] Fоогпосгх� 1. бта11 дlrсге;апгlее ега дсе со rounding. 1. 1958/59 дасе ав рlесед ве che en1 о[ che вггiеs (ог еаьу cempari.un vlch 197G/73 длсе. 60l:КСЕ Ог' �АТА: 6uvnariz¢д frOm dat• for lnгilvldual sugnr т111в, Sсас:ьсlгаl 5erles ро Sugar, Уоlите 13, Ко. 1, ]епиагу 1972, Ph(1lpp3ne Suger Inacicuce, Dillnan, Qигкоп С(су. Н � Ф � N Ф Ф AMM 8 Table'7 P11TLIPPI11 = AG-RICTJLTURA.L SECTOR SUR-ITET 'Table LA: PERCENTAGE DISTRIBUTION OF SUGARCANE FARM, BY REGIONS, 1971 % Distribution of Farms by Size in Ha Region Less 5-30 27-3U-5b-100 100 up Total than 5 Luzon Island 61.02 15-09 14.47 5.81 2.29 1.30 100 W. Visayas Panay 44-70 25.26 18.64 6.75 2. "0 2 100 Negros 25-01 14-52 23-97 16.60 12.81 7.09 100 E. Visayas 35.22 20-38 24-33 9.54 5.54 4.94 100 PHILIPPINES 45.48 16-71 18.67 9.69 5-95 3-5o 100 Table B: SUGARCANE AREA, NMIBER OF FAMIS AND AVERAGE FARM SIZE, 1971 Number of Mill /1 Number of Average'Farm Region Districts Area7- Farms Size ha ha Luzon Island 9 112057 lo,830 10.4 W. Visayas Panay 6 49,117 3)642 13.5 Negros- 16 223)874 7.,652 29.3 E. Visayas 3 23,997 819 29.3 PHILIPPINES 34 411,505 22,973 17.8 Source: Statistics on Sugar,, 1971, Information Center, National Federation of Sugarcane Planters, Bacolod City. /1 1070/71 sugarcane area repox-ted b-v PHILSUGIN was Luzon, 113,'720 ha, Panay,, 49,115 ha, Negros 232,416 ha, E. Visayas 27)380 ha. All Philippines 422,631 ha. Discrepancy due za!: ibly to fa.-rns not under contract with any mills. PКLLIPPINE5 AGRICULr"URAL SECTOR SURVEY Tab1e 5: SUGARCAЛтEr - AGRONOMIC CHARAC'I'ERI5TICS OF COMMERCIAL VARIETIES AS MANIFESTED IN VIC't'ORIA. SUrAR CEN'PRAL DISTRICT, rTECP.OS, ?яF. ?rISAYAS пепгhч со t'arirc•: Раге:гга_г,е Rаге гЕ дгоигh Gггп(пос(оn Rлга�пiпе titlering Ftwering м,сигlсу 5cn1k Trashln8 Rеьlвгаппг со P,seases Тоlетапег сп Drouyht Адарlа!,111су 5исгоче гпnгеп[ F16er с.епс П) iд (з) (�) (s) (ь) (7) (в> (9) (1о> (1;) п7) л3i (1а�п Recrcг Сг-:-;гг1а: t'.irircir= 1. F;.t1 54-260 С47 а PW1016 .,, гагсiу Сго.: d1gL seub�le сиод Ргоfиье 10-12 5o1id 5�mi-cclf estscarc го пис. Noderacгly reststanc [о Lоы Lovland егеа• xlgh 11Z Lfл:c е.оггаl[су [гелhlпg 1еяС ьготсб епд yc:lov .,ог 2, Fh11 56-95 1'41:822 к�С0730 Fase Усгу gгод Gопд Very Соод Ргоfияе 11.13 4о11д Trashy Res[егапс te ятгс. Мпдггаггlу reslьtanc N4gh Ч1де H1gh 17.5; со leat scorch and yellov ьрос З. Рм(! 56-226 PCJ х Сг 76-105 51cv 1п елгlу ConJ Соод Hua�ry .rofuee 10-12 5е1(д Se1f-treahing Pr�sivtaг�c со угllом ьрос впд red roC. nюnthy Нодгге[е1у resiscanc со leaf sгегсп лпд ьтиС. H1gh 11де 111gh - 4. PhL1 54-60 CP50-11 х x4G-3098 'гьее Vrry упод - AveraBe УгоЕиее 11-13 5olid 5e1f-Treьhing ., и сеlу resiыanc со 1еа( ь ech апд vel7ov ьаогfа 5иsсгргlЫг со тед ь[гi7�. Pak4.a еогпg Тоlетвпс Avereee - 11.5i. апд деад hcarc lюгее. 5. i'hf1 5Э-33 ИСО-]30 х Aiunan Fasc Ра1т Average A�ieragc nrn 12-14 Big япд 4e1f-iraчhfnd Rc�lsгan[ гг smuc, yellov врас, lеяf всогеh Leaveь о£ youns Uple:to апа inte[- Lov 11.5н 5o1id апд Pokka Boeng рlяп[s s пьlСlvе тгJ:аге ирlапд сс аип Ьигп Ь„ В-Э7-172 POJ2878x 3-79-35 У.одггасгlу Соед Соод N1gh Уету 12, Ъис Гпiп 5e1f•1'raчhiпg Чодегасеlу гечtьгапс со 1гвЕ ecorch. Lovland апд lпсег- H1gh - faat 5рагьсlу _аи1Л е епд lодуг 5uscepcl6le со ып�:е. Felг л.еJ1п[е ирlапд [о 15 ь�lchout . lоояме у1г1а пасиее 7.. В-43-о2 В i7161 t PW2d78 Иодигя:еiу l'егу gпод Good Average 5расье со 11-13 LacEc, heavy Se1f- 5uscea[iбle со leaf ьtorch end уеllпv еро[, Lov Агевя vleh вдгGивге N1gh - .дsс Иеоогдсе ьо11д Trashing Ргсlегтед Ъу re,s. ооlяеите лиррlу В. САС 57-11 �СО-710 . САЗЧ 51ov Lood Сопй xeavy Ргоhгьи 12 1'h1n rл1-ьгlf Free Еrоп ьаи[. Very s.cepclble го 1еаЕ - - - - 7reлhln� ьсогсм. 5uscepclble соиуеllои ьро[ 9. W,r, 57-ЬО х77-19ЭЭ н сео-370 Ееее Соод епод 1�еа.�• Рт tuee � l2 - 5e1f-irnвl,inP, Чпдегаееlу теьlвсяпс со s. vecy ьиьггрп- Ntgh Lt66e апд .апду воll Lov - ь:г со 1гаЕ ,гогсм. sиьсгр и61г го увllоь. вР0[. 01Е Со�-ггсlсl t'ar4e[ies ]0. POJ3016 (Java) PJJ2A)8 х POJ?Ч40 Faec Соод Роот durln3 Aveea�e - 12 cof[, lагде - Suacep[161е [о уеllгы в�о[ ыпд гы[ дамgе. Lov V1дг1у рlеп;ед durlnP, - 11Z дгу n�onchs lодгс vhen � tl�tlгs а��д s.fd тагиге slztles 11. С0440 СОЗЬО se1(гд галс СопЛ Goed Сопд - 12-14 пгд[ип вг�е ilcavy .-rar:�, Rusleca^с со угllоv ьрос, 1еаЕ ь rch, - - - 13'н 1од8и � hazd го г Р;1[ аlлгаьг т,д ьпис. 5ьвсерпоlг го аагиггое mova fromc дс�пу mrldev. .coct 12. ИЭ7-3973 ИЭ2-В560 . 1i34-1874 i.яс Guod _ Fв1г - ц-14 Y,cdium ьlке • 5ивсере161е [о 1еаЕ ecorch - Ч1дг1у рlап[гд 1п lodgc vЬсп £11с(гь - 14А тлtигс 13. СР29-116 Р012723 х Cl'I165 ган[ Good v.. Gоол vhen - PcoPuse 12-14 ИеЕtип thln 5э1Е Ттаьhlпр, 4иасерс161с [о гоо[ г, уеllпv вроt япд Ек:ггтсiу � пslclve - - 137. ФOl6[VCe,16 пиlВtигг 1в 1oEge vИСП га[. Уегу ггвfе[¢п[ [О 1сеС fСОГСИ апд ei[her dГUUp,h[ иг гlгм[ т1Е1:с тасиге отис, veccr 1oFn1^� Source of Infprmation: S�urm�arized from Victorias Experiment Station Biil.letin, у� цоlо 17, Nos. 1 and 2, Jan.-June, 1970. о- �� со � Annex 8 Table 6 HIMPPINES AGRICULTURAL SECTOR SURVEY Table 6: SUGARCANE YIELD REPONSE TO FERTILIZERS A. TARLAC HILL DISTRICT, 1969-70 Rate of Nitrogen Application per ha. (kg) Criteria: 0 100 200 300 400 500 Nitrogen TC/Ha 56.21 82.88 98-97 93.68 90.20 85.68 PS/TC 1.65 1.64 1.75 1.59 1.52 1.48 PS/Ha 95-73 135.89 173-07 148.14 138.28 125-91 Rate of Phosphorous Application per ha (kg) CriteAa: 0 60 120 180 240 300 Phosphorous TC/Ha 94-32 91-73 1.75 1.67 1.56 1.75 PS/Tc 1.78 1.70 98-97 88.87 93.88 98-38 PS/Ha 167-55 159-66 173-07 146.69 15o.61 171-99 Rate of Potash Applicaticii per ha (kc, Criteria: 0 125 250 375 500 625 Potassium TC/Ha 92.02 96.91 98-97 87-53 loo-53 96-34 PS/TC 1.69 1.66 1.75 1.66 1.67 1.67 PSAIA 155.16 157-53 173-07 31a.41 165-10 158.ol Source of data: PHILSUGIN Annual Reports, 1969-70 and 1970-71. ANNEX 8 Table 7 PHI IPPINES AGRICULTURAL SECTOR MURVEY Table 7: SUGARCANE YIELD RESPONSE TO FERTILIZERS B. TAR-LAC MILL DISTRICT, 1970-71 Rate of Nitrogen Application per ha (kg) Criteria: 0 60 120 180 240 300 Nitrogen TC/Ha 41.32 63.71 75.32 81.24 79.93 80.72 PS/TC 1,69 1.80 1.80 1.75 1.77 1.78 PS/Ha 69.93 11468 135.49 142.00 142.00 1I3.L6 Rate of Phosphorous Application per ha (kg) Criteria: 0 60 120 180 240 300 Phosphorous TC/Ha 71.11 77.60 &1.24 72.50 72.32 72.86 PS/TC 1.7h 1.79 T.75 1.69 1.76 1.71 PS/Ha 124.00 136.47 142.18 123.68 127/7b 125.13 Criteria: 0 120 240 360 480 600 Potassium TC/Ha 77.20 78.38 77.89 81.24 76.93 77.92 PS/TC 1.82 1.66 1.81 1.75 1.77 1.77 PS/Ha 135,90 130.28 142.90 142.18 136.48 137.9L Source of data: PHILSUGIN Annual Reports, 1970-71. ANNEX 8 ableb PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 8: TOBACCO: AREA, PRODUCITON, YIELD OF VIRGINIA AND NATIVE TOBACCOS Year Area Planted Production Yield ha MT kg/ha a. Virginia Tobacco 1960 51,720 3b,233 661.9 1961 h5,200 28,306 626.2 1962 47,270 28,682 606 .8 1963 hl,310 25,387 614.5 1964 3h,500 20,908 606.0 1965 28,790 17,151 595.7 1966 25,370 lh,8b6 585.2 1967 2h,8o0 l,7b0 59h.b 1968 28,660 17,370 606.1 1969 n.a. n.a. n.a. 1970 33,370 21,983 658.8 1971 /1 28,950 20,037 692.1 b. Native Tobacco 1960 bb,110 29,765 67.8 1961 L5,930 31,682 689.8 1962 53,200 h0,989 770.5 1963 56,130 62,262 752.9 196 61,020 Ub,133 723.3 1965 h7,290 28,567 60h.1 1966 60,300 h3,276 717.7 1967 57,700 36,L13 631.1 1968 6h,890 h7,483, 731.7 1969 n.a. n.a. n.a. 1970 51,010 39,223 725.8 1971 /l h6,6h0 35,776 767.1 1/ Prel. Source: BAEcon ANNEX 8 Table 9 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 9: TOBACCO - A LIST OF EXTENSION VARIETIES 1. Virginia Type: Golden Roman, Golden Simox, Golden Oxford, Golden Special, Golden Boon, Simox Gold, Simgold and Dixie Bright x Oxviz 2. Wrapper Type: Reax No. 1, Reax No. 2, BC1 Resumreax, Javiz, Simax, Sim- reax, Simaxax, Vizsimax, Comsumax, Simflor, Simflor-flor, Margie, Colflor, Marflor and Colorgie 3. Cigar-filler Simam, Amsim, Bursim, Simbur, Jamar, Marja, Vizbur, Jarom, Type: Javiz, Oxsimsim, Vizoxviz, Colrom, Colviz, Vizox and Romcol 2. White Burley B Vizburky, White Vizbur, RGK, White Burmar, White Rombur, Type: and White Burflosum 5. Turkish Type: Harmon, Smyrom, Xanrom and Roxan Source: Bureau of Plant Industry ANNEX 8 Figure 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Sugarcane Area & Sugar Yield Philippine Total 130 450,000 I 120 _ 400,000 I I I I I Yield 110 . 350,000 Area ~~4f 100 /- 300,000 90 250,000 0 00 IC CL 80 . 200,000 70 _ 150,000 58 59 60 61 62 63 64 65 66 67 68 69 70 111111111111 I II 59 60 61 62 63 64 65 66 67 68 69 70 71 Year Source : Table 2 World Bank - 7235 ANNEX 8 Figure 2 PHILIPPINES AGRICULTURAL SECTOR SURVEY Sugarcane Area & Sugar Yield Central Luzon 90 90,000 * I' IS IS~ 80 Yield j a Area 80,000 to 70 -A70,000 I4f Co 60, 60,000 ' I 70 70,000 59 60 61 6 3 64 6 6 67 6 9 7 C,) '4 6 6 6 Im 60 41 0,000 60I 61 62 6 6 6 6 68 69 70 71 Year Source :Table 2 World Bank -7236 AGRICULTURAL SECTOR SURVEY PHILIPPINES ANNEX 10. CROPS MARKETING ANNEX 10 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY CROPS MARKETING TABLE OF CONTENTS Page No. INTRODUCTION .......................................... 1 A. ORGANIZATION AND MOVEMENT ............................. 1 Government Agencies .............................. 1 Marketing Organizations .......................... 3 Movement ......................................... 4 B. TUE COMMODITIES ....................................... 6 Palay ............................................ 6 Corn ............................................. 13 Sugar ............................................ 16 Coconut Products ................................. 19 Tobacco .......................................... 21 Vegetables ....................................... 23 TABLES 1: Roads in Philippines 2: Existing Highways by Region and by Surface Types 3: Comparison of the Costs of Different Methods of Transport 4: PSC Standard Freight Rates, 1972 5: RCA Rice Road Rates, 1970 and from July 1971 6: Interisland and Other Small Vessels 7: Interisland Shipments of Rice and Palay 8: Domestic Production: Marketed Surplus and Volume Controlled by Government and Private Traders 9: Disposition of Palay Sold by Farmers, Nueva Ecija 10: RCA Comparative Sales Volume and Number of Personnel 11: RCA Comparative Sales Volume and Local Administrative and Distribution Costs 12: Costs of RCA Rice and Corn Operations 13: Comparison of Floor, Ceiling and Actual Palay/Rice Prices 14: Palay: Relative Importance of Farm and Commercial Stocks 15: Warehouse Capacity by Regions ANNEX 10 Page 2 TABLES (cont.) 16: Utilization of Storage Capacity by Regions 17: Disposition of Palay Production in the Philippines by Method of Milling 18: Rice Milling Capacity 19: Milling Capacity Utilization 20: Estimated Cost of Marketing Palay Rice through Private Channels 21: Cost of Rice at Different Buying Prices up to Consumers 22: Palay/Rice Price Relationships 23: Production of White and Yellow Shelled Corn 24: Production of Shelled Corn by Variety 25: Farm and Commercial Stocks of Corn 26: Corn Milling Capacity 27: White Corn Consumption and Inter-Regional Movement Requirements 28: Marketing Margins 29: Visayas and Mindanao: 1969 Farm Corn Prices, Wholesale Grit Prices and Marketing Margins 30: RCA Grades for Yellow and White Corn 31: Sugarcane: Total Rated Milling Capacities 32: Sugar Prices Philippines and New York 33: Copra: Prices Received by Farmers and Marketing Margins 34: Coconut Oil and Copra Meal - Marketing Margins 35: Tobacco: Exports, Imports and Values 36: Area Production, Yield and Value of Native (Cigar) Tobacco 37: PTA Buying Expenses 38: Price Cycle of Cigar Leaf Tobacco 39: Area and Production Figures, Virginia (Flue-Cured) 40: Vegetable Price Structure: Padre Rada-Divisoria Area and Public Markets 41: Cassava: Area, Production and Value MAP Transport System (IBRD 10217) Rice Flow (IBRD 10218) ANNEX 10 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY CROPS MARKETING Introduction 1. Within this annex, marketing is considered to include assembly, processing, storage, transportation and distribution. Attention is given to the basic food and mmajor export crops, and particular importance is paid to the manner in which the needs of the small farmer may be met. 2. A vigorous spirit of free enterprise characterizes commercial activity in the Philippines. Produce changes ownership many times between farmgate and retail sale. The official marketing organizations are operated at considerable costs, but low levels of effectiveness. 3. The achievement of self-sufficiency in food and animal feeding stuffs can result from two directions: increased production and reduction of avoidable losses. Good marketing systems and methods provide a catalyst for the former and the physical means for the latter. In many cases these means already exist in the form of permanent drying and storage facilities, but their utilization is low; indeed there is evidence that use has decreased over the last few years. Lack of an adequate cash payment system and trans- portation difficulties probably account for this condition, in large part. For all smallholder crops, except bananas, and possibly rubber, the primary marketing methods (that is, up to and including the assembly stage) leave much to be desired and full potentials, particularly in terms of return to farmer for non-food crops, are far from being realized. Achievement of possible export earnings is also retarded. A. Organization and Movement Government Agencies 4. At present, the main emphasis of Government policy is on the attainment of self-sufficiency in basic food crops. Less attention is paid to the established export crops and development of crops which have good prospects for export or import substitution. ANNEX 10 Page 2 5. A number of agencies within Government are active in the marketing sector, but there is no authority with specific responsibility for marketing nor an overall coordination of production and marketing. The Government agencies whose activities have general impact on marketing are: (a) The National Food and Agriculture Council (NFAC) (b) The Agricultural Credit Administration (ACA) (c) The Bureau of Agricultural Extension (BAEX) (d) The National Grain Authority (NGA) (e) The Rice and Corn Board (RICOB) (f) The Bureau of Agricultural Economics (BAEcon). 6. In addition, specific crops are covered by designated administra- tions and institutes, such as, the Philippine Tobacco Administration (PTA), Philippine Coconut Administration (PHILCOA) and the Philippine Sugar Institute (PHILSUGIN). Their activities are covered in relevant sections below. The Development Bank of the Philippines (DBP) is indirectly involved in marketing through various production/processing financing programs, and directly involved as a result of its ownership of the Greater Manila Terminal Food Market (GMTFM). 7. NFAC is a production oriented organization with responsibility for fulfillment of the objective of self-sufficiency in food crops. Therefore, its policies and programs often create marketing problems. It also has the power and responsibility for coordinating the activities of all agencies which are concerned with rice and corn production. 8. The BAEX has major responsibility for translating NFAC policies into higher farm productivity. NFAC also has a series of "marketing action teams" designed to complement the effort of those engaged in encouraging production. The activities of these teams often conflict with those of other agencies involved in marketing. For example, vegetable growers in Central Luzon are being assisted and encouraged to sell directly to consumers, while the operations of the GMTFM, which is Government financed, are to date obviously uneconomic due to lack of throughput. 9. ACA assists farmers through the provision of production credits and marketing loans. This agency has the prime responsibility for coopera- tives (FaCoMas) and GRAMACOP (the Grain Marketing Cooperative of the Philippines). 10. The purpose of NGA is to provide stability for both farmers and consumers, through price support programs and import licensing and by maintain- ing sufficient flow of produce to keep consumer prices at or below official ceiling levels in times of shortage. ANNEX 10 Page 3 11. BAEcon is responsible for crop estimation and the provision of intelligence relevant to assessment of supply/demand situations. It is frequently assisted by other Government agencies and by the University of the Philippines College of Agriculture. 12. RICOB had initial responsibility for nationalizing I the rice and corn industry and continuing to encourage greater participation by Filipinos in this sector of the economy. A coordinated program with DBP eased the financial problems of nationalization and DBP has remained actively involved in appraising production, processing, and marketing schemes. 13. Resettlement schemes require an integrated approach to marketing and production but little, if any, consideration is presently given to marketing requirements. 14. The National Economic Council (NEC) and Presidential Economic Staff (PES) are involved in numerous programs for national economic develop- ment. They are vitally concerned with agricultural programs and progress in all its forms. The NEC also has the responsibility for assessing overall supply-demand for basic food crops and is the only body which may authorize imports of these commodities. Marketing Organizations 15. The FaCoMas, as presently constituted, are not true marketing cooperatives, since in practice marketing is almost a by-product of credit activities. Analysis of their credit operations and that of their parent body, ACA, is contained in Annex 11 on Credit. 16. ACA is also largely responsible for GRAMACOP (Grain Marketing Cooperative of the Philippines), an organization founded in 1967 with an authorized capital of 1 500,000 (Y 221,500 issued and paid up as at September 30, 1971). GRAMACOP has 85 members: 73 cooperatives and 12 individuals. Members supported it with rice shipments in 1970/71 and two accounted for over half the total volume. 17. GRAMACOP performs a wholesaling or trading function rather than one of coordination. It buys from members and subsequently sells to retail (or another wholesale) outlet. The goods are handled through the GRAMACOP warehouse but no value is added by packaging or similar operation. For this 'service' a charge of 1 0.70 per cavan was set by Board Resolution but has recently been arbitrarily increased to r 1.50. Profits are distributed at year end by usual patronage refunds. Turnover is small (143,000 cavans of rice in 1971) and deliveries are irregular. GRAMACOP does not provide members with services which are unobtainable elsewhere. It is neither providing leadership for developing improved marketing practices, nor more efficient distribution between producer cooperatives and consumers, nor is the attainment of wider selling opportunities for the farmers realized. 1/ Nationalizing means that non-Philippine nationals cannot participate in the industry. ANNEX 10 Page 4 18. The other major "apex" marketing organization is the Sugar Industry Producers Marketing Cooperative (SPCMA), an amalgam of 26 planters cooperatives, which, inter alia, owns Planters' Fertilizer Company. 19. SPCMA provides a comprehensive service to members from supply of inputs to CIF disposal of production. It was fathered by the Sugar Industry Foundation, funded by a levy on sales and dedicated to the organization of producer cooperatives, educational and vocational training, college and industry development, etc. Despite the many unresolved difficulties, SPCMA does show what can be achieved in the Philippines by a federation of cooperatives and, in many ways, provides a good example for others to follow. 20. GMTFM is a terminal food market intended to handle many commodities including fish, livestock and poultry. For crops, its biggest impact could be on vegetable marketing, and the organization will be reviewed in that context. Movement 21. Basic to all marketing activities is the movement of agricultural products. The availability and condition of interregional communication facilities are the major factors influencing the overall marketing structure and system in the Philippines. Clearer routes between producer and consumer would reduce the need for intermediary services. These should become better defined as the results of the Marketing Research Unit studies become available. 22. Agriculturally, the islands of Luzon, Mindanao and the Eastern and Western Visayas are the most important. They are not only separated by water, but production and collection centers within the islands are divided by formidable topographic barriers. 23. The Philippine road system consists primarily of truck routes connecting sizeable towns, with poor to inadequate feeder roads from produc- tion centers to main highways. Construction and maintenance of all roads is made more difficult by the climate, and frequently roads are "out" when they are most needed. Over 80% have earth or macadam surfaces (Tables 1 and 2). 24. A railway system (PNR) runs from San Fernando in Ilocos to Legaspi in Bicol, but freight services are presently inoperative on the northern section of this line. Panay boasts its own system (PRC) between Iloilo and Roxas (IBRD 10217). The service that PNR can provide for produce movement is inadequate. In 1971 it had 478 closed box cars of 500 cavan (22 m tons) capacity, and of these but 230 were operable. 25. Sea and air routes connect the islands. While the sea is "main- tenance-free" in a basic sense, investment in port facilities and vessels is inadequate. The poor conditions for movement to and from the seaboard probably discourage other investment. In contrast, air transport has expanded to the stage where comprehensive services are now operated between the main islands. Airplanes are of limited value in crop movement, being ANNEX 10 Page 5 suited only to high value produce, or for emergency distribution where cost is not the main consideration. 26. The effects of poor communications are twofold. First, they substantially increase costs of marketed production. Second, difficult transport acts as a disincentive for larger production. 27. Crop transport in the inadequately serviced rural areas is initially by animal or human power (Carabao drawn sleds, and head loads), then by wheeled cart, and finally by motor transport of some kind. Motorized transport ranges from trishaw, jeepney or other public service vehicle, to large (15 tons) trucks. The time, energy, and cost of moving produce to motor transport terminals is a major discouragement to production of commercially directed surpluses (Table 3). 28. The poor condition of the railway has resulted in a steady decline in its utilization. Rice and palay movement on PNR totalled 4.4 million ton-km in 1970 compared with 19 million ton-km in 1958. 29. Road transport has taken up the slack, though at increasing rates as heavier use of the roads has increased operating expenses. Rates are set by the Public Service Commission (Table 4), but in practice are not followed closely. Competition in more readily accessible areas, such as Central Luzon results in rates generally somewhat lower, but elsewhere they are frequently higher. Mears quotes f .80 per ton/km (equal to f4.75 per cavan of rice or Y 6.04 per cavan palay) for the 106 km journey from Tuguegarao to Aparri (Cagayan Valley) which requires 36 hours to complete. 1/ In Southern Mindanao, rates vary from V 0.28 to Y 0.75 per ton/km, depending on terrain and road surface. Within metropolitan areas, rates are the highest of all (Table 5). The very high rates for Greater Manila reflect considerable traffic congestion in this densely populated consumer area. 30. There is a large difference between the capacity figures quoted for interisland shipping by the Department of Commerce and the Philippine Coastguard (Table 6). Whatever the actual figure, the fleet is aging to old (some 40% of "Department of Commerce" vessels being over 24 years old), while a high proportion of the smaller ships are converted naval or military vessels not properly suited to the cargo that they carry. 31. There are 97 major ports and 392 municipal ports. But many of the smaller ports are not serviced by the larger interisland vessels and depend upon small craft, such as batels and bancas. 32. The Conference of Interisland Shipowners and Operators (CISO) is loosely knit and dominated by the larger owners. Ports of call are at owners option, although "round trip" voyage times are relatively constant. One shipowner quoted a typical round trip voyage from Davao to Manila as 14 days calling at 8 - 10 ports, while another estimated the same period for five 1/ Mears, Leon A. and Agabin, Meliza H., "Transport and Rice Marketing in the Philippines", unpiblished manuscript, page 8. ANNEX 10 Page 6 main ports. Berthing delays and slow handling on and off quay at the larger ports are the main reasons for slow turn rounds. 33. Barges are used extensively for raw and refined sugar movement, and sometimes on a "backload" basis for rice and other produce. Unfortunately, there is a scarcity of data on interisland traffic flows. Available data for rice is shown in Table 7 and graphic representation of flow for 1968 in Map IBRD 10218. Rice is but a part of the picture, however; reported ship- ments of corn in/out of Cebu were in excess of 175,000 tons in 1969. 34. The inadequate communication network makes efficient operation of a marketing system extremely difficult; it contributes to local glut/ shortage situations and acts as a deterrent to increased production. High- ways, ports and even feeder roads are expensive and slow to build, but transportation problems can be eased by relating planned production to accessibility. For example, food crops in Cagayan Valley could be limited to local requirements and emphasis placed on production of high-value low- volume commercial crops such as tobacco. B. The Commodities Palay 35. Because rice is such an important staple food and so widely grown numerous detailed descriptions of channels through which rice flows between producer and consumer abound. This discussion covers only those aspects which are directly applicable. 36. Essentially the flow of rice is three directional: (a) retained on farm for consumption by farm family; (b) paid as "wages" for assistance on farm (harvesting, threshing, etc.) or other services; and (c) sold to a merchant or miller. In all three cases, the palay has to be dried, milled, and usually stored before being finally consumed by human beings. Before it is milled, a portion is likely to be consumed in whole or in part by birds, rodents, and insects. 37. The time factor for the farmer who is double cropping palay is a further constraint on the marketing system. The average period from planting to harvest is about four and a half months; a total of about six weeks per crop is available for harvesting, threshing, drying, marketing and/or storing, procurement of new season inputs, and nursery bed preparation and planting. (Land prepration is assumed to take place during the three weeks between planting and transplanting.) If a shorter maturity second season crop, is chosen, such as corn, sorghum or mung beans, this constraint will ANNEX 10 Page 7 occur only once in the year. The marketing system has to be efficient enough to avoid delays that might affect planting times for the following year and, thus, adversely affect ultimate yields. The system may also have to provide various services, such as supply of physical inputs, and other functions. 38. In general, the part played by government-sponsored channels and FaCoMas in rice marketing is remarkably small (Tables 8 and 9). The former Rice and Corn Administration (RCA) has little impact on most farmers and consumers. 39. The initial burden of the marketing operation, assembly, is essentially a "middleman" operation. While the middleman sometimes may take undue advantage of his position, he plays a vital role in moving crops from producer to consumer along definable if frequently complicated lines. Com- petition is the main means of ensuring that profit margins are contained within reasonable levels. 40. In an effort to strengthen farmer bargaining power, Government actively assisted in the formation and development of cooperatives (FaCoMas), now the responsibility of the Agricultural Credit Administration (ACA). The objectives of FaColas are to provide a suitable vehicle for the injection of substantial government credit funds as an incentive to greater production, and to afford farmers better marketing opportunities through participation in an integrated assembly, storage, processing and redistribution unit. 41. This intention has merit. In practice the FaCoMa program has not been successful. By attempting to achieve too much too quickly, a large number of ineffective units were created, overburdened with capital assets and debts, unable to promptly pay a fair price for produce, and managed with overly bureaucratic procedures. This led to FaCoMas becoming a one-way credit channel; credit was provided to members who frequently sold their crops elsewhere for cash. Many FaCoMas have been reduced to overburdened credit agencies, struggling to recover past and present debts. Some have largely overcome their difficulties and have shifted emphasis from credit to marketing and capital accumulation. These FaCoMas are beginning to attain a position that enables them to contribute effectively to the develop- ment of production and marketing. Nevertheless, indebtedness is large, and a considerable number of assets in the form of stores and mills lie idle and deteriorating. Worst of all, cooperative marketing as an idea has fallen into disrepute in the minds of many if not most of the people whom it could benefit. 42. National Grains Authority (NGA). Effective September 26, 1972, the responsibility for price stabilization of rice and corn was transferred to a National Grains Authority under the Secretary of Agriculture frbm an independent body, the Rice and Corn Administration (RCA). Operations under the latter were clearly unsatisfactory. Overhead costs were high in relation to the volume of procurement (Tables 10-12). Substantial losses were incurred by disappearance of rice inventories even though held under quedan (warehouse receipt). Furthermore, farmers in many parts of the country often received prices which were below the floor prices established by RCA (Table 1:3). ANNEX 10 Page 8 43. NGA has been instructed to establish a purchase price ? 5/cavan over costs of production. Financing of f 100 million has been authorized for procurement operations. Purchase at the support price is to be made by rice mills appointed as agents of NGA. Furthermore, imports of rice which were formerly handled directly by RCA are now licensed to the private sectors. However, the injunction that NGA cannot sell at a loss may well come into conflict with Government policies to hold down prices to consumers. 44. Drying, Storage and Milling. The direct physical objective of the overall marketing system is to minimize losses between point of harvest and point of sale to final consumer. Losses arise from: (a) drying practices and facilities; (b) storage and movement practices and facilities; and (c) milling practices and facilities. To a considerable degree (b) and (c) are influenced and affected by (a). 45. The palay crop is almost entirely solar dried, both on the farm before and after threshing and at the mill. A number of mechanical driers exist, principally as a result of RCA imports of drier storage units, but they are seldom used. The reasons for this large underutilization include poor siting, higher than anticipated operating costs, poor management and, above all, failure to adequately demonstrate to the farmer (and the miller) the true benefits that result from the proper drying of palay. Traditional solar drying has many disadvantages, some of which are magnified by the use of HYVs which mature before the end of the rains. 46. Palay needs to be evenly dried to a moisture content of 13-14%. Uneven drying increases tendencies towards grain cracking and breakage; in- adequate drying results in mold formation and overheating and deterioration in storage; overdrying results in increased brittleness. All contribute toward lower milling efficiency and recovery. Drying in the field prior to threshing subjects the grain to sudden changes of temperature and humidity, and consequent grain cracking; inadequate ventilation of stacks causes sweating and mold damage. Spreading of grain on mats or slabs can lead to over-drying and large losses through rodents and birds. Also, loss from insect infestation is high. 47. The farmer who offers inadequately dried grain for sale is in a weak bargaining position. The buyer will arbitrarily adjust the weight of a cavan upward but keep prices constant in order to cover drying costs and losses and increased risk. This upward adjustment was observed to be between 4-13% on a cavan of 44 kg. No moisture meters were being used by buyers; "biting" appeared to be a mutually accepted method of moisture determination. 48. Drying is one of the areas in which a well-managed cooperative could provide great assistance. If a farmer could deliver wet palay and know that it was going to be properly weighed, dried, stored and milled, ANNEX 10 Page 9 one cause of reduced financial return would be minimized. Extensive education and demonstration will be necessary to achieve this change. 49. Farm surveys suggest that a major portion of the storage process takes place on the farm. 1/ Unfortunately, the data only cover one point in the crop year -- July 1 -- which is two months after the peak of tthe second crop harvest and four months before the peak of the main crop harvest. The surveys need to be repeated at least quarterly if the result are to be usefully applied (Table 14). 50. It has been impossible to obtain worthwhile estimates of grain storage losses (other than for drying losses) and true storage costs are equally hard to determine. At farm level, while opportunity costs of labor and space may be low, facilities afford less than adequate protection against weather, fire, infestation and rodent risks. It would not be surprising if economic costs equalled or exceeded those of permanent modern warehouses for bagged produce. 51. The only available information on storage and movement losses comes from RCA 2/; stock movement losses (i.e., from point of purchase to point of sale, including storage) averaged 7.3% over 1968-70. It is not known how much of this loss was attributable to theft and pilferage. From observation of practices and conditions in the process from field to consump- tion, it seems likely that average national loss (to human food) up to point of milling is not less than 7.5% of official estimates of total production. Modern drying, movement and storage practices should contain these losses to within 1% of total production. 52. Palay and rice are almost exclusively stored in sacks, although some moves have been made towards bulk storage in bin and silo. Conversion of existing warehouses to bin storage would be cheap compared with the capital costs of new silos, and available storage could be increased by 25-35% as a result. However, bulk storage requires far stricter control of moisture and stocks than is practiced now; any move in this direction without substan- tial improvement in technique and management could lead to disastrous losses. Sack storage does minimize the effect of poor intake and quality control. 53. Unit storage costs depend largely on turnover, which is in itself a function of intake and disposal patterns. If keeping qualities permit, produce should be stored in the form which has lowest volume-weight ratio; equally, wherever possible, it should be transported in the same form. Rice in its milled form has a better storage factor than palay, with brown rice (pinawa) coming in between. In terms of keeping qualities, palay is best and pinawa worst (the oil in air-exposed bran hastens the onset of rancidity). Preliminary experiments by RCA 3/ indicate that pinawa can be stored for "at least six months", and this may be worthy of further investigation in con- junction with the range of drying and related storage problems. 1/ BAEcon and BCS Surveys. 2/ Source: "The RCA in the Last Eight Months" - J.D. Drilon, Jr. 3/ Source: BAEcon. ANNEX 10 Page 10 54. Reliable figures of serviceable storage capacities are also un- available. No two official sources agree, and some organizations even appear to have more than one set of figures. This state of affairs further under- lines the need for an early and accurate Regional appraisal of the true position. In addition to the questionable validity of data, there has been substantial deterioration of many storage facilities. Therefore, the lowest available figures on capacity were used in analyzing storage utilization (Table 15). The proportion of capacity utilization indicates that a very significant proportion of available supply held is on the farm (Table 16). 55. Milling. The conversion of palay to rice is done almost entirely by two types of mills, the cono and the kiskisan. Only about 4% is estimated to be hand pounded 1/ (Table 17). Both the cono and the kiskisan mills are manufactured entirely in the Philippines. 56. The kiskisan mill has small capacity and is relatively simple, carrying out husk and bran removal in one or, very occasionally, two passes. Recovery rates are relatively low compared with sophisticated machinery, and power requirements are rather high. Some machines are on a mobile base; these are operated on a form of "milling round" within a province. Rugged and simple, the kiskisan has milled an almost constant percentage of produc- tion over the last 20 years (26-28%). 57. The cono mill has much greater capacity and sophistication; it mills and polishes in separate machines and segregates two bran qualities and small grits from the polished rice. Almost exclusively situated in major transit or terminal points, the cono mills produce essentially for the commercial market, although some is custom based. The cono miller will often act as a buyer and dealer in both palay and rice as well as a wholesaler and occasionally a retailer. 58. There has been some pressure to encourage the greater use of imported mills, using rubber shellers in place of the disc types of the cono, because of higher percentage of head rice recovery attributed to the former. These moves are questionable. Rubber rollers, which are designed basically for short round varieties of rice, have a significantly reduced life expectancy when used on long-grained palay because of more abrasion 2/ and operating costs are thereby increased. Secondly, simple design and management improvements in locally produced mills can bring output close to that of rubber shellers both in terms of quantity and quality and such improvement involves only nominal additional investment. 3/ And, thirdly, valuable foreign exchange is being used in a manner detrimental to the local cono manufacturing industry. 1/ Source: BAEcon. 2/ Husk weight of Indica varieties form 4-5% more of total grain weight than in Japonica varieties. 3/ Studies by Harry van Ruiten, FAO grain milling expert. ANNEX 10 Page 11 59. Rice mills are almost exclusively in the hands of the private sector. Less than 1% of the total number and 4% of the capacity are financed or owned by RCA and FaCoMas. Still, there is considerable overinvestment in certain regions 1/ (Table 18). An early and complete appraisal of mills and milling requirements, by region and province, is necessary before further investments are made. 60. When considering milling capacity, it must be borne in mind that the different methods are indicative of both producer/consumer requirements and geographical limitations. The nearly static percentage of production milled by kiskisans reflects either collectively or individually the following considerations: (a) small milling requirement, through dispersal of production areas; (b) subsistence oriented rice production; (c) transport and communication limitations; and (d) taste preferences. 61. The kiskisan miller is essentially a small operator, at most a family unit. Throughput is mainly custom-based, with payment either in cash or kind. Charges depend on situation and vary from as little as f 0.60 per cavan of rice up to about f 1.50. An exceptional charge equivalent to f 2.75 was noted at one very busy kiskisan mill which was situated within a mile of a large cono mill (also busy and charging less). Although an isolated example, it may be an indication of the importance of taste in deciding milling requirements by type. 62. The large fixed cost of a fully commercial cono mill presents entirely different throughput requirements to those of the smaller family type operation. Assuming 300 twenty-two hour "milling" days a year, 6,600 hours is probably the maximum annual milling capability for a cono. This provides adequate time for breakdowns (mechanical and supply), maintenance, and normal holidays. In 1969, a study 2/ of nine cono mills in Nueva Ecija, Bulacan and Laguna found an average of 4,060 working hours a year. A 1970 study 3/ of 78 conos in Laguna revealed an average of 3,180 working hours a year. 1/ Milling capacity in Laguna province increased by 60% between 1965 and 1969, nearly double the rate of probable increase in marketed surplus. Despite the fact that palay was being hauled from as far as Isabela for some of the larger mills, fewer mill days were worked in 1970 than in 1965. (VsAlph Rarker and Geronimn Sorina, Jr., "Second Generatlon Problems in the Rice Industry in the Philippines"). 2/ Harry van Ruiten, research for RCA. 3/ L. Mears, derived from paper by Randolph Barker, Geronimo Sozina, Jr. ANNEX 10 Page 12 63. It seems likely that effective cono capacity will run between 3,000 and 5,000 milling hours during a year of adequate palay supply. When substantial rice imports occur, such as in 1971/72, utilization will drop below these levels. Unless transportation and other difficulties impose insuperable constraints, the import of brown rather than polished rice would help the industry. The effects of this upon unit milling costs, employment and the supply of animal feed (rice bran) need to be fully taken into account when import policies are considered. 64. Although the kiskisan mill seldom has storage facilities, operations usually are fairly regular since interseason country household stocks are held in the form of palay, with only ready requirements in milled form. In terms of milling time, the maximum average is probably between 1,500 and 2,500 hours per year, with the latter figure being approached only in regions of widely dispersed production and difficult transportation such as Ilocos. Table 19 shows the percentage utilization of milling capacity at assumed limits. In all four cases, only the Cagayan Valley and Western Visayas show a possible or actual deficit in milling capacity. Specific surveys are necessary to show the real situation in each province, but the fact that millers are able to buy palay in Isabela (Cagayan Valley) for milling in Central Luzon indicates that Isabela mills are already operating at or near practical capacity. It also demonstrates the compelling throughput demands of capital-intensive imported mills, as transportation costs must be very high in this type of transfer. 65. Milling Costs and Marketing Margins. The marketing margin is the difference between the price received by the farmer and that paid by the consumer. Some interesting calculations have been made for the more inte- grated producer-consumer complexes such as Nueva Ecija/Central Luzon (sup- plied by RCA and also used by Mears). Table 20 shows the postulated margin per cavan palay/cavan rice as 0 6.25 + 1.992x, where x is the cost of palay at farmgate. The most significant factor in this calculation is the recovery rate which, assuming the standard RCA cavan of 46 kilos gross (45.5 kilos net), is taken at 67.625% by weight. If the purchase price is taken at ? 25.00 per cavan, then the costs to retail come to 0 56.06 per cavan or ? 2.391 per ganta. This figure compares with the V 2.49 under another (more recent) table of costs provided by RCA (Tables 21), and Y 2.50 per ganta that results from application of a rule-of-thumb formula that the price per ganta of rice equals 10% of farm price per cavan of palay. 66. When the first formula is used to convert reported farm prices, a remarkable closeness to reported retail prices is obtained. The relationship is less satisfactory when the formula, suitably adjusted, is applied to whole- sale and retail prices in Cabanatuan City (Table 22). 67. There are some inconsistencies in the data. For example, Table 21 contains a significant difference from Table 20 because the latter omits the first assembly and collection function. In both examples, costs of money are unreasonably low, for present and probable future conditions, and losses in storage are probably understated. A study of 14 NARIC (RCA's ANNEX 10 Page 13 predecessor) warehouses in 1958 showed average losses from insects of 5% in three months. 1/ 68. Clearly, the price estimates do not contain adequate allowance for marketing margins 1/. Given very high transportation costs and allowing for minimal services such as grading and packing, the margins shown in these estimates are not large enough to provide incentives to marketers. 69. Market Intelligence. The nature of the country demands a very high standard of market intelligence, because produce takes a long time to move between surplus and deficit areas, and it takes even longer to obtain supplies from exporting countries. For example, NEC authorized imports of rice in April, 1971 but less than 50% of the quantity ordered had arrived five months later, and a severe bunching of subsequent arrivals caused considerable distribution problems. 70. Great strides are being made by BAEcon in the gathering of statis- tical data on crop conditions. Even so, there is still inadequate provision for forecasts to identify probable deficit areas to be spotlighted well ahead of time and to enable remedial action taken to prevent acute shortages and soaring prices. 71. Classification and Grading. In the Philippines, classification of rice is by type of grain, varietal group, and class of milling: - Type is determined by grain length (long, medium, short). - Group is determined by palatability and appearance. There are four groups: fancy, special, ordinary, and inferior, into which specific varieties fall. - Class of milling is determined by the degree to which husk, germ and bran layers have been removed. There are five grades of palay and rice within their respective classifica- tions. Palay grades are essentially dependent upon percentage purity and kernel state and rice grades upon percentage head rice and varietal purity. With the exception of Grade 5 palay, maximum moisture content is set at 14%. 72. Although strict grading procedures are laid down, there is no evidence that these are followed by other buyers. Grading is actually done on a variety appearance basis. The system is too complicated for general acceptance or enforcement and, if surpluses are forthcoming in future years, simpler basic requirements for both palay and rice, geared to common practice elsewhere, would probably prove advantageous. Corn 73. Corn is the second most important food crop. About 10% of the population consumer mainly corn and another 10% consume both rice and corn. 1/ Source: Mears (from report by R. M. tabadan and G. B. Viado). ANNEX 10 Page 14 Production has increased steadily over the years and is now slightly in excess of 2 million tons. 74. Average national consumption as human food is estimated at about 35 kg per head per annum (whole grain equivalent). The bulk of this is consumed in the form of grits. The remaining production goes mainly for animal and poultry feed, the greater proportion being fed directly by farmers. Approximate percentages of utilization are as follows: human food, 60%; animal and poultry feed on farms, 12-15%; manufactured animal and poultry feed, 10-12%; starch and glucose manufacture, 6-8%; waste, seed and other uses, 5-12%. 75. Production is concentrated in Mindanao, Visayas, Cagayan Valley and Southern Tagalog; Mindanao accounts for over half of the total production. White corn is the predominant variety and, up to 1969, accounted for about three-fourths of total production. Since then the proportion has increased to about 90% of the total (Tables 23 and 24). Only in Southern Tagalog is the production of yellow corn larger than that of white corn. This reflects the development of the poultry industry in the region. 76. The marketing system is similar to that for palay, with the private sector dominating trade. While the RCA operates a floor price system, in recent years net shortages have kept prices well above the floor. Govern- ment activities through RCA were confined to the purchase and distribution of imported corn, most of which is yellow corn destined for feed manufacturers. 77. On a national basis, the annual pattern of production lends itself to simple and efficient marketing. Supply is relatively constant over the year. Patterns of supply vary on a regional basis, but there is no indica- tion of pronounced lean periods. Single cropping is the exception rather than the rule; double cropping is common; and treble cropping is found in many provinces. In South and West Mindanao, corn was observed at all stages of development, from germination to harvesting. 78. Farm practice is to store ear corn and to shell it as required. Little, if any, drying of shelled corn is practiced in the farm; the moisture content of new crop deliveries to millers is usually 18-22%. Few mechanical driers exist or are used, and most mills have extensive concrete floors over which the grain is spread for solar drying. Lack of proper drying probably results in considerable losses through sweating and mold damage. Also, the high percentage of the crop held on farms in less than adequate storage facilities indicates that losses through insects, rats and heating are probably high. 79. The relationship between commercial stocks and net visible supply shows that, as for palay, most stocks are held on the farm (Table 25). The prime factors in corn marketing are the millers and wholesalers who move corn either as grain or grit between the surplus and deficit areas. Most of the companies involved in these businesses operate through buying stations, usually situated on lines of reasonable communication to a mill or port, and farmers or assembly agents are required to move their produce from the farm to these buying centers. The absence of adequate feeder roads results in ANNEX 10 Page 15 very high initial transportation costs, frequently equalling 50% of realized values. As with other crops, this lack of farm to market roads is a substan- tial hinderance to the development of marketing services, as well as a dis- incentive to larger commercial production. 80. Milling methods are similar to those for palay and it appears that nearly all commercially directed grits are processed through multi-pass cono mills--despite the fact that the reported capacity of single pass kiskisan type mills is higher. The number of kiskisans reflect the amount of corn which is custom milled for producer/consumer, but it is not clear to what extent the kiskisan is used as a hammer mill for the production of feed for farm poultry and livestock. For this reason, it is not possible to determine the percentage utilization of milling capacity, nor the extent to which mar- keting might be improved through the erection of new mills or the relocation of existing ones (Table 26). 81. Grits are sold by size. Those passing over 10 to 16 mesh screens are used for human consumption; the remaining small grits, flour, germ and bran goes to animal feed, although some mills separate the germ for sale to oil extractors. The generally accepted grit recovery rate is 72%, but tests run by the FAO's Harry van Ruiten on cono mills in Cebu showed an average of 68%, and figures obtained from millers elsewhere shaded somewhat below. The mission estimates the average recovery rate is 67%. This figure has been used in estimating national food requirements and consequent availability of by-products for animal food. 82. One of the most difficult aspects of corn marketing is the develop- ment of corn-dependent industries in regions far removed from production areas. This increases transport costs and reduces possible returns to corn farmers. Statistics for interregional movements of corn are not available, but Table 27 demonstrates a possible movement pattern to meet human food requirements in 1970/1971. 83. The low utilization of commercial storage facilities probably reflects, among other factors, poor siting of warehouse facilities relative to production and shipment areas and lack of infrastructure. 84. Very few mechanical shellers exist and of these most are small portable models owned by a "first buyer" or miller's agent. Operators travel between certain selected centers buying either ear corn directly from the farmer or buying on a shelled basis, making a charge for the shelling operation. There is a lack of adequate shelling and drying flacilities. The formation of farmers' associations or cooperatives owning shellersi, mechanical driers and sack, bin or silo storage facilities could improve this situation, especially in areas where the private sector is not active in providing such facilities. 85. Animal Feed and Starch Manufacture. There are 33 registered, animal feed manufacturers, and 80% of present production is centered in Luzon. Apart from their direct corn purchases, these manufacturers also consume the greater part of the by-products of the commercial corn milling ANNEX 10 Page 16 industry. The regional distribution of the poultry and livestock industry has tended to follow the concentration of mixed feed production rather than that of corn production, with the result of interisland movement of high volume, low value grain rather than low volume, high value meat and meat products. The location of feed mills in selected production areas (Mindanao and Cagayan Valley) would improve farmers' outlets for feed grains and reduce the cost of feed. 86. There are five cornstarch factories using the wet milling process, with a total rated capacity of approximately 775 tons per day. This is greatly in excess of the country's needs; investment in this industry was encouraged at a time when low corn prices made starch exports a potentially profitable proposition. With higher prices for corn, cornstarch or glucose, exports have not proved possible. 87. Prices and Marketing Margins. The average price of corn has climbed steadily since 1970, in sympathy with palay prices. Yellow corn prices have moved up at a slightly faster rate than prices for white corn, as a result of expansion of the animal feed industry. 88. Retail prices for whole grain are only available for the Greater Manila area, which has the smallest per capita consumption. These indicate marketing margins varying between 35% and 49% of retail price (Table 28). A similar exercise, carried out on a monthly basis for calendar 1971, reveals an average marketing margin of 40% with an actual variation from 31% to 48%. Some limited information on margins for milled corn is available for the Visayas and Mindanao for 1969, and these reveal a gross margin between the kilo whole corn and kilo milled corn ranging from 15% to 50% (Table 29). Margins are lowest in the Eastern Visayas where corn deficiency is greatest. 89. The animal feed and starch manufacturing industries make the largest unit purchases of corn and thus exercise a powerful influence on the market. The majority of their purchases are done through buying agents. There is a complete absence of price data for this important section of the market. Attention should also be given to collection of prices generally on a per kilo base rather than in varying volume measurements. 90. Grading. Official grades have been established (Table 30) but in practice are not observed. The grading process by buyers is quite arbitrary, and substantial adjustment of price or weight are made for poor quality or condition, high admixture, etc. In any event, the official grading standards are far too stringent for domestic trade and would probably only be desirable or capable of enforcement when the country becomes a net exporter. There- fore, the number of grades for domestic trade should be reduced to tthree, and export grades should be established which are directly comparable with those commonly accepted in international trade. Sugar 91. The sugar industry has been insulated from the effects of low world prices by the United States Sugar Act, which allots the Philippines the biggest single basic quota (1,126,020 short tons), plus a significant share ANNEX 10 Page 17 of total quota deficits of other countries. The current total quota is about 1,400,000 short tons. A further agreement expiring in 1974 allows Philippine sugar to enter the U.S. at a lower rate of duty than for quota countries (40 cents per 100 lb compared with 62.5 cents). 92. Production and marketing of sugar in the Philippines is controlled under the Sugar Limitation Law. Production of centrifugal sugar is subject to licensing and allocations. Output has steadily increased over the decade. Licenses are related to five categories based on market requirements, and quotas are allocated by the Sugar Quota Administration at the beginning of each crop season. The classes are: 'A' Sugar: Centrifugal raws for export to the United States under the Trade Agreement and U.S. Sugar Act. 'AA' Sugar: Refined sugar for export to the United States. This must be manufactured from 'A' sugar, is included in the total export quota, and limited to a maximum of 56,000 short tons. 'B' Sugar: Centrifugal sugar (raw or manufactured) for domestic consumption. The aggregate quota may be varied within crop years to meet requirements and to stabilize prices. 'C' Sugar: Centrifugal raws which may be produced to offset shortages in either 'A' or 'B' sugar supplies, or for marketing externally other than to the U.S. This sugar has no market until it has been converted to 'A', 'B' or 'D' sugar by means of a certificate of shortage issued by the Sugar Quota Administration (SQA). 'D' Sugar: Sugar that may be exported to any country other than the U.S. Exports of 'D' Sugar are limited by quota set by the International Sugar Organi- zation (presently 45,000 m tons). There have been no exports of 'D' sugar since 1961. 93. The regulatory system permits the switching of stocks of difEerent quota classes to enable savings to be made in marketing. The bulk of produc- tion is in the Visayas and consumption in Luzon, so it is common for 'B' Sugar to be exported from Visayas in exchange for a similar amount of 'A' Sugar produced and subsequently sold domestically in Luzon. Such changes between classes may only be effected through the SQA. 94. There are three active sugar refineries, of which two share the refined sugar export quota (Philippines Insular Refining Corporation and Victorias Milling Company). These obtain raws from their own mills as well as from other producers and mills, making use of quota-switching to achieve economies of supply. ANNEX 10 Page 18 95. Cane production is carried out on a plantation and a smallholder basis. But as mills ("centrals") are limited to acquiring or leasing land in excess of 1,024 ha, the greater part of production is in the hands of smallholders. About 45% of cultivated area is on plots of less than 5 ha. 96. Primary Marketing and Milling. Primary cane marketing is carried out under milling agreements which provide for a percentage of the sugar to remain the property of the central as a form of milling fee. Sharing ratios vary between 55:45 and 70:30, in favor of the planter. In the absence of milling agreements, the sharing ratio is specified by law, the planter's share increasing with the volume of sugar. The price for domestic sugar is fixed by the Price Control Commission; the price of export sugar varies and is dependent upon movements in the American market. 97. The sucrose content of cane begins to decline steadily after maturity (before cutting), at a rate depending on variety and climate. It declines rapidly a few days after cutting. As a consequence, earnings are dependent upon timely harvesting and on prompt milling thereafter. The task of organizing the market is substantial. In the southern and eastern parts of the main producing areas, harvesting/milling extends over a five to eight month period, and in the north over about 10 months, depending on climatic conditions. 98. To rationalize production and milling, a system of milling districts has been created within which planters deliver cane to a specified mill, most of which provide and allocate transport. Increased plantings and production (but not increased average yield) have resulted in new districts being created. Unfortunately, the system of district milling and marketing is beginning to break down. Firstly, throughput requirements of new mills are causing buyers to roam further afield in search of cane. Secondly, inadequate supplies force new mills to operate for relatively short periods, thus forcing planters to sell cane outside their district. Sugar yields are, therefore, reduced and marketing costs increased. Quality problems are also created at the mills through commingling of bulk supplies. 99. The number of mills and their capacities are shown in Table 31. Average utilization has been postulated on a 200 day milling year, but actual individual utilization will vary with situation and climate. The planned introduction of new varieties to give a greater spread of maturity dates should result in an extension of the milling year and an increase in effective capacity. 100. Some research has been done on reducing cutting, loading and delivery costs, particularly by the Victorias Milling Co. (within whose district advanced handling and movement methods are practiced). Improved practices cannot become widely established, nor industry costs reduced, if the discipline of the district system continues to erode. The entire industry should be surveyed and milling districts and mill requirements redefined. 101. Storage and Secondary Marketing. Store and warehouse receipts (quedans), endorsed according to the class of sugar they represent, are fully ANNEX 10 Page 19 negotiable documents. Because of the further processing involved and the control systems available to the SQA, the quedan system has been regarded as inviolable; indeed, it must be since it is the prime document in commer- cial trade. However, there are some indications that, under the influence of high price, the system is beginning to break down. In May, 1972, the SQA warned mills, banks and individuals from executing any transaction on export or domestic quedan permits "previously reported lost". 102. Export Marketing. There are two bulk loading sugar terminals, one on Guimaras Island across from Iloilo City and the other at Pulupandan in Negros Occidental. Two mills, also in Negros, have deep water berths. Export shipments usually amount to 10,000-20,000 tons per vessel. Few if any mills produce enough sugar to be able to economically accumulate enough stock for large single shipments. Exports are therefore usually on a composite basis, with two or more sellers uniting to provide the necessary cargo. Merchants and exporters have numerous subagents buying for them at all levels from planters upwards. This is a form of assembly through ownership; physically, much of the assembly has already been carried out as a result of the milling process. Expansion of producers cooperatives would reduce the total cost of this marketing function. SPCMA and two other marketing cooperatives sell members sugar on a CIF basis; thus saving at least a proportion of the assembly costs which accrue to other planters. 103. Bulk terminal and transport costs depend on geographical relation- ships. Typical costs quoted varied from f 1.00 to f 1.40 per picul (1 14.34 to f 20.00 per short ton). Sugar is moved by barge to Guimaras and by special trucks and rail cars to Pulupandan. 104. Most exporters have agents or brokers in the U.S. Good communica- tions make it possible to adjust buying prices according to movements in the New York futures market. Sales are made in the normal way to refiners, merchants or speculators, and are usually on a CIF or exship basis. Not enough information is available to make a valid analysis of the efficiency of the export marketing operation, nor to show whether the margins are reasonable. Table 32 sets out relevant annual average prices, but the gross margin includes freight which when expressed as a percentage of the margin may vary enormously. It does not include sellers benefits for polarization over 96o, which probably averages about 1.5% of sale price. It is signifi- cant that the prices of sugar in the Philippines run substantially above the prices established under the International Sugar Agreement. Coconut Products 105. The basic problems for coconut at the primary level are dispersion of production and lack of bargaining power on the part of the small producer. Inadequate enforcement of grading standards removes the incentive to produce a better quality product. 106. Apart from green coconut'sold for direct human consumption, all nuts are processed either into dessicated, or shredded coconut (used in the confectionary trade), or into copra. Copra is further processed, both locally and overseas, to produce coconut oil and copra meal. ANNEX 10 Page 20 107. Coconut sales by farmers fall into three main categories: on the tree, fresh husked, and copra. Under the "tree" system, the buyer is respon- sible for all harvesting and transportation costs. Since the farmer's role is confined to price negotiation, this is a popular system, particularly in areas where economic transportation is hard for the small grower to obtain. A number of specialized buyers are able to accumulate a reasonable quantity of cheap nuts for outward transportation, either in shell or after being made into copra; the profit potential is high for a skillful buyer. 108. If husked nuts are sold, they are usually hauled by the farmer to a roadside collection point. In this case, or in sales of ready processed copra, the small farmer will almost invariably sell to a barrio buyer or first assembler - who will in turn sell to a Poblacion or larger buyer, and so on up the line until finally the nuts (by now almost invariably in the form of copra) reach an exporter or processor. Only the larger or better situated farmer, or a cooperative, is able to break the chain and sell directly to either processor or export agent. 109. The basic grade for copra is Resecada; legally all copra has to be sold on this basis with deductions for excess moisture. While reported prices are for Resecada, in practice trade is conducted on a Buen Corriente basis. This grade may contain up to 7.5% more moisture than Resecada. Copra observed in warehouse Davao was of mixed grade and class; while that observed in Cebu was of similar grades but mixed class. Average moisture content range reported by one processor was 9-15%. The maximum allowed for Resecada is 7.5%. Until basic copra quality control is established, marketing prob- lems will endure, particularly in regard to free fatty acid (FFA) and aflatoxin. 110. Local buying prices reflect world price movements. The international market in Philippine copra has a reputation for being highly speculative, which is hardly surprising in view of quality variations. Consequently, price levels fluctuate frequently and occasionally violently. 111. Marketing Margins. Table 33 sets out marketing margins; the average of about 31% is high, particularly when the reported farmers' price is on the basis of a higher grade than that normally traded in local markets. The margin may to some extent be explained by the fact that about 30% of all exporters are situated in Cebu, as is the largest processor, whereas coconut production there is relatively small. High transportation and possibly shrinkage costs may be contained in these margins. Prices reported for copra delivered to warehouses in Cebu average somewhat higher than in the nation as a whole. Margins for coconut oil, and oil and meal combined, as shown in Table 35, further suggest that farmers get a relatively low share of the proceeds at the initial sale of copra. 112. The farmers' position could be improved through producer associa- tions or cooperatives using properly controlled drying methods. Such as- sociations should be formed initially in smaller producing areas and centered upon a single drying unit. Farmers would deliver husked nuts to this unit and receive provisional cash payment on the basis of delivered count. Drying should be under the control of a trained operator manager. Final payment ANNEX 10 Page 21 to growers would be made after copra sale has been concluded. By virtue of volume and quality control, the operator manager should be able to conclude business directly with a processor or major exporter. 113. The Coconut Investment Act is designed to encourage this type of development (amongst other things). But the program envisaged seems very complex and cumbersome. Levy collection and the procedures involved will be hard for the small growers to understand; and collection itself possibly even harder to enforce. 114. Quality and Grading. With all the pressures on highly saturated oils, improved quality standards are vital. Prices must be geared to exist- ing grade requirements, which must be enforced. Aflatoxin limitations are becoming increasingly stringent in importing countries, while high FFA content adds to the difficulties and costs of the crusher/refiner. A reputation for consistent and high quality of product and performance must somehow be established. The continuing trend towards processing, in order to export in highest unit value form, is encouraging. Tobacco 115. Two main types of tobacco are produced: (a) Native, a dark air- cured cigar-filler leaf, and (b) Virginia, which is flue, or very occasion- ally, air-cured. Native tobacco production is widely dispersed over the country; flue-cured production is confined to Luzon, and is a particularly important cash crop in Ilocos. Production of both is erratic, and available statistics are far from adequate. As an export earner, tobacco ranks fourth in the agricultural sector. However, these earnings are substantially off- set by imports of cigar-wrapper leaf and flue-cured and burley tobaccos for blending in the local manufacture of internationally branded cigarettes (Table 35). Over 150 cigar and cigarette factories are registered and operating. Approximately 50% of reported production is exported. 116. There are indications that exports have been maintained by drawing down stocks. Almost certainly, the supply situation is causing international buyers of flue-cured tobacco to look elsewhere. The long-term exchange earning outlook is bleak unless a major reappraisal and reorganization of the industry takes place. 117. The Philippine Tobacco Board (PTB) performs a regulatory and promotional function for the industry as a whole. Regulation is mainly by control of export standards through the Tobacco Inspection Service of the Bureau of Internal Revenue. The Boards' funds come from the inspection fees; these amount to about ? 10 million annually. Promotion is carried out by the Bureau of Commerce. Extension is handled by the Bureau of Plant Industry, although some extension work is also done by the two administra- tions specifically responsible for each crop: The Philippine Tobacco Administration (PTA) for native tobacco and the Philippine Virginia Tobacco Association (PVTA) for flue-cured tobacco. The PTA is administered by DANR. The PVTA has very recently been moved under DANR administration. There appears to be little reason for the existence of three agencies rather than one which could ensure effective coordination of progress. ANNEX 10 Page 22 118. Exporters are not directly represented on the PTB, PTA or PVTA. Spain, the United States and France are the primary export markets for Native tobacco, although the quantity allowed preferential entry into the U.S. under the Laurel-Langley agreement is now very small. Allocation of corresponding export quotas is made by the Quotas Division of the Sugar Quota Administra- tion, which also meets the cost of providing this service. Exports of flue- cured tobacco are mainly to Europe. Preferred export varietes of Native tobacco and all flue-cured tobacco are grown in the northern part of Luzon. 119. The two administrations operate on slightly different lines. But both have a history of financial crises, high administrative overhead, and ineffective participation in the market. Both hold stocks as a result of their marketing activities. 120. Native Tobacco. About 90% of production (Table 36) is bought by the private sector, in bulk from the farmer, and regraded to suit specific destination requirements. The remaining 10% was bought by the PTA, operating through 30 buying station. Table 37 shows the cost of PTA activities and Table 38 the extent and effect of these activities on the farmer as seen by PTA. The main buying period extends from April to August. By not entering the market until June, the PTA takes the risk of being left with the dregs. A new scheme has been approved to remove PTA participation from direct buying operations but there has been little progress in implementation. 121. Virginia Tobacco. Statistical information on Virginia tobacco is even harder to come by than for Native tobacco. There is vast difference (between the figures of acreage and production provided by BAEcon and PVTA (Table 39), while total values reported by BAEcon bear no relationship to the amounts PVTA has reported spending in crop purchase operations. Recently, all trading in Virginia tobacco has been reverted to the private sector. 122. Imports are allowed in a proportion of one to four. They are taxed at 100% of landed cost. An importer is thus bound to take 4 kg of local tobacco (from PTVA/PVTA stocks) for every 1 kg imported. There were indica- tions that much of the tobacco that comes from these stocks is of little value and on occasion has to be destroyed. 123. The large domestic manufacturing industry provides a very sound base for tobacco production and world demand for cigar leaf and low nicotine flue-cured tobacco of the type produced in the Philippines is strong. Yet production is, at best, static and yields are low. Quality is not what it should be--the very large amounts of Native tobacco imported into the United States as 'scrap' (i.e., stripped) indicates a low leaf quality which is usually due to caterpillar, insect and disease damage, apart from poor curing and fermentation. 124. Tobacco in the Philippines is essentially a smallholder crop, and is expensive to produce. Apart from a small contribution by ACA, credit requirements are almost exclusively met by the private sector which, thus, virtually controls the initial disposal of the crop. Through lack of exten- sion and because of weather conditions, to a degree, plantings are staggered ANNEX 10 Page 23 over a long period. As a result, good prices for early harvesting encourage premature harvesting of later plantings, with consequent reduction in quality and therefore price. Severe flooding in the Cagayan Valley results in the need for occasional replanting and frequent shortages of seedlings occur. 125. A degree of enforced legislation and control is essential. This may be more effectively applied through a body with overall responsibility for production and marketing. Ultimate selling through a centralized auction system would promote internationally acceptable grading and quality standards. 126. Virginia production is confined to the Central and Northern parts of Luzon (Ilocos, Abra, La Union, Pangasinan, Tarlac and Nueva Ecija) while preferred export qualities of Native Tobacco are grown in Isabela and Caga- yan. Tobacco from the Visayas and Mindanao is less desirable but is sometimes "blended" for export with that from Cagayan/Isabela. The relative concentration of this export oriented production of both types of tobacco should make it relatively easy to mount an action program. 127. The farmers principal present problems stem from lack of first class seed and/or seedlings, lack of fertilizer and insecticides/acarides, low yields, staggered plantings, lack of extension, high unit production costs and low income. For the Virginia farmer, the shortage of fuel for curing, and the high cost, is becoming a major constraint. This emphasizes that marketing cannot be separated from production and the quality of the leaf. Vegetables 128. Commercial vegetable production falls into four distinct sections. The production concentrated in lowland areas directly tributary, or adjacent, to main consumer areas such as greater Manila; production in upland areas, particularly Mountain Province, from which produce may be consigned to any part of the country; production in one crop rice areas as a second crop; and the sand silt areas left by the 1972 floods. Lowland production tends to be of,a seasonal nature, while that in the more temperate uplands has more leeway to be adjusted to meet anticipated demands. 129. Government policy has been directed towards achieving local self- sufficiency in rural areas. However, the major flow of marketed produce is to Greater Manila, either for consumption or shipment to another island. (Baguio vegetables are available in Davao trading centers throughout the year.) The aim of achieving local self-sufficiency could result in temporary surpluses from various subsistence-oriented areas. If so, the marketing of produce might become prone to short-term disruptions in supply patterns and returns. 130. Apart from the Greater Manila Terminal Food Market (GMTFM), the_re are four wholesale markets in Manila; the most important is Divisoria Public Market. All of these older markets are congested, lack modern facilities, and are unsanitary in varying degree. What there is at GMTFM is of modern ANNEX 10 Page 24 design and construction and relatively clean. Ambulant vendors, both whole- sale and retail, abound. 131. Long chains of supply exist for vegetables. The Viajero (trucker- buyer) is more dominant than in other crops and plays a very important role in assembling produce as well as financing. The vialero buys either directly from a farmer, if individual supply is large enough, or from a local assembler. le then transports the produce and sells, usually to a wholesaler. Because of the size and dispersion of individual wholesale markets, the intervention of a secondary wholesaler is frequently necessary before goods reach the retailer. 132. Payment at all stages may be on a cash or credit base. If credit is involved a farmer may find that his proceeds reflect a consignment rather than merchant operation by the viajero. Some major wholesalers and institu- tional buyers work with larger producers on a crop contract basis, with price settlement at the flowering or setting stage. The Marketing Action Team of NFAC is encouraging producers to market directly to consumers, particularly those in Government offices. 1/ 133. Little information exists on annual price/volume movements, and daily market intelligence is scanty. Work was done on prices and volume for a short time during the appraisal and early stages of the GMTFM project, but this was discontinued just as the information was beginning to have some value. Considerable effort needs to be devoted to the collection, inter- pretation, and use of market intelligence. 134. Packayin.&_Gradingand Transportation. Traditional types of con- tainers are used, differing by variety of produce and also by origin. Loosely woven bamboo baskets are customary for all forms of leafy vegetables, wombok and cabbage being packed in large (100 kg) containers and lettuce and celery in smaller ones holding about 30-35 kg. Spoilage through crushing is high if the containers are not properly loaded onto a truck. The widespread use of standard-sized wooden crates or boxes would reduce spoilage, increase the load that could be carried per truck, and make accurate price reporting easier. The manufacture of bamboo baskets is, however, an important cottage industry and substitution will require careful planning. 135. Standard grades for some vegetables exist but are not generally observed. Presale practices with regard to trimming, bunching, etc., vary from area to area and crop to crop. Lack of practical simple standard grades hinders accurate price reporting. If one large wholesale market were dominant, the problems of instituting grading and packaging improvements would be eased. 1/ The development of farmers' wholesale markets in or near public markets at selected sub-regional centers could widen marketing opportunities for small producers by bringing them into contact with more buyers, and perhaps eliminating some viajero operations. ANNEX 10 Page 25 136. Transport costs to the main market (Manila) average about 4 centavos/kg from Baguio and 4.5 - 6 centavos/kg from Benguet. In lowland areas, costs are usually computed on a per vehicle basis, which results in a cost of about 2 centavos/kg upwards (on a container basis, the cost is similar). Charges by sea are calculated on a volume basis plus a handling fee (the viajero traveling with his produce is exempt from the passenger fee). Sea transport is cheapest of all on a kg/m basis, but risks of spoilage are higher because of longer transit times. 137. Marketing Margins. There are few time series data on marketing margins for perishable vegetables. Table 40 sets out a price structure, and apparent margins, derived from observations made in February 1971. Recorded margins are high, but show a reasonable relationship with perishability and likely spoilage. As an exception, margins for onions and garlic appear disproportionate to the keeping qualities of these vegetables. Margins probably fluctuate a good deal. The unregulated flow of production that results from lack of market intelligence and production planning, together with lack of storage, suggests that margins are likely to be very tight with market saturation and wide at other times. 138. Greater Manila Terminal Food Market (GMTFM). GMTFM is intended to become a combined producer-transit-wholesaler market complex. The project was created in 1968 following the report of a Presidential committee on the organization of a farmers marketing system. It is at Fort Bonifacio, situated on 120 ha of land, leased from government. 139. Expenditure of about t 225 million has either been incurred or authorized so far. Construction of a 120,000 cu m of cold storage has been authorized. This was expected to cost about t 90 million. Completion is not scheduled until mid-1973. During the 25 month period ending August 31, 1971, value of trading operations totaled only t 11.4 million, on which gross earnings were f 284 thousand or about 2.5 percent of turnover. Between 400 and 500 people are employed, some 200 on a regular basis. 140. The project is financed by DBP, under the assumption that the existence of the market would improve the viability of agricultural industries already financed by DBP. Despite large expenditure, GMTFM facilities are still limited and underutilized, although attempts to attract produce have been augmented by the granting of production and marketing credits to selected cooperatives and farmers. As of August 31, 1971, such advances totaled f 3.35 million, of which f 2.57 million had been repaid. 141. Basically, GMTFM has much in its favor. The need for a new and sanitary market place is undeniable. The immediate consumer market of about 3.5 million people has an average per capita income over three times the, national average. But it has not been successful, probably for the following reasons: ANNEX 10 Page 26 - Inadequate initial project appraisal, including operational procedures. - Devaluation and subsequent delays in construction, further hindered by severe weather. - Too wide a range of objectives. - Poor direction and management. - Failure to consolidate success in one direction before expanding in others. - Failure of municipal authorities to enforce Public Health laws in other wholesale markets. - Powerful opposition from owners and employees of other markets. - Producer disenchantment with failure to maintain original schedules of operation. - Attempting to introduce too many innovative marketing practices and paying insufficient regard to the strength of traditional ones. - Gross overstaffing relative to actual or likely turnover. 142. Current sales are estimated at about ? 120,000 daily, of which about # 105,000 is in hogs (f 70,000), poultry and eggs. Even if produce was not accompanied by its owner/seller, a staff of not more than 20 would be quite capable of handling this sort of volume. 143. Whatever the future, the following immediate action is required: (a) GMTFM's system of operations should be changed if it is a realistic and active alternative to grading and packing standards, then this must be accepted. Turnover is vital. (b) Reappraisal of possible rate of expansion and relative adjust- ment of staff. (c) Freezing of all capital expenditure. 144. Sorghum. Efforts are being made to encourage sorghum production but to date accomplishment has fallen short of target. One of the reasons is that not enough attention has been given to the marketing purposes and functions necessary for production development. Sorghum requires less moisture than corn and in the Philippines produces significantly higher yields. However, there are difficult problems in harvesting sorghum and in finding markets. ANNEX 10 Page 27 145. To stimulate production, market outlets need to be developed and some price assurance established. Farmers in Central Luzon expressed dis- appointment and disinterest in sorghum because they had been unable to sell their production profitably to local feed millers. 146. Cassava. Areas and production of cassava has declined over the last decade, despite steadily increasing local unit values (Table 41) and favorable conditions in world trade. There are four major cassava starch factories in Mindanao, each with a "home farm", and one modern plant in Pangasinan (financed by DBP) which is not operating mainly through lack of raw material. Cassava has to be processed in some degree before it can be consumed, whether as flour, starch or as an ingredient in mixed animal feed. 147. Cassava is a subsistence crop in the Philippines. A combination of marketing and extension improvements would be necessary if this crop is to contribute to the feed base and perhaps emerge as an export commodity. 148. Peanuts. Production of peanuts is largely for human consump tion in both processed and unprocessed form. Marketing is handled exclusively by the private sector and the crop is not officially regarded as a commercial one. There is, nevertheless, a strong potential domestic market for processed nuts as a source of protein in the mixed feed industry and peanut oil has considerable market appeal both locally and internationally. The world market for high class confectionery nuts is also expanding. Philip- pines could probably gain a share of world markets if production were enlarged through the development of markets and marketing services. 149. A similar situation applies to other crops, especially beans, which are traditionally regarded as belonging to the subsistence rather than commercial sector of production. Many of these products are, or can be, grown as second crops in nonirrigated areas. The study of market possibilities should be given attention in order to increase farmers annual earnings and increase the turnover of their marketing organizations in the "quiet" season. 150. Bananas. Banana exports involve "imposed" varieties for which there is scant domestic demand. Production and marketing is entirely organized by commercial companies, the largest being offshoots or subsidiaries of the dominant world banana firms. Growth of exports has been remarkable: from 300 tons in 1966 to over 224,000 tons in 1971. 151. The Philippines has become the major supplier to Japan, making serious inroads into Taiwan's share. The market is entirely dependent lupon Japan and there is no alternative buyer immediately in sight. Shipments of South American bananas are beginning to appear in the Japanese market. The Philippines may therefore find it more difficult to expand exports as rapidly some years hence. 152. Abaca. With the advent of synthetic fibers, the abaca market has been badly hit (as have all natural fibers). Manufactured exports (i.e. ropes) have stabilized somewhat, but exports of fiber have steadily declined. The main use for the fiber is now in high quality specialized ANNEX 10 Page 28 paper such as for tea bags, filters, etc. and for printed electrical circuits. Much research is being carried out to determine alternative uses for the fiber. Pending the results of technical research there is little that improved marketing practices can do for this crop. Price pressures have already made the less efficient producers and marketers turn to other crops. 153. A major plantation/pulp mill project for Bicol is under preparation and appraisal. Government must satisfy itself that the market can absorb this increased output. 154. Mangoes and Melons. The Philippines produces superb mangoes and, the quality of honeydew and cantaloupe melons appears to be well up to inter- national standards. Mangoes are currently exported to Hong Kong but there are considerable limitations on market development of both fruits as a result of fruit fly. Research aimed at overcoming this problem is quite well advanced. Assuming that this effort is successful, there will still have to be lengthy negotiations with potential markets (notably Japan) before these markets can be developed. 155. The marketing action required is two-directional. First, a full market study must be made to determine quality, variety and taste preferences in nearby potential markets (plus the usual economic investigation of price levels, elasticities, etc.). Second, a physical marketing study must be carried out to determine most desirable flow channels, economics of movement, and practical means of achievements. Probable resultant growers prices should be forthcoming from the first market study. Grading and packing should take place as near as possible to point of production in order to minimize subsequent handling and damage. ANNEX 10 Table 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 1: ROADS IN PHILIPPINES 1/ Year Kilometers (to June 30) 1960 37,153 1965 55,778 1970 67,525 2/ 1971 72,820 2/ 1/ National, provincial and muncipal/city roads only. 2/ Feeder roads: 1970 10,425 km 1971 13,791 km additional to kilometerage stated PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 2: EXISTING HIGHWAYS BY REGION AND BY SURFACE TYPES - JUNE 30, 1971. (in kilometers) SURFACE TY PES National, (in percentage) Regions Provincial, & City Feeder Misc. & Roads Roads Total Earth Macadam Bituminous Concrete Combination 0 - Manila & Suburbs / 1,371 1,371 I - Ilocos 6,893 1,498 8,391 II - Cagayan Valley 4,894 1,346 6,240 III - Central Luzon 8,89 924 9,413 25.4 48.2 19.8 4.6 2.0 IV - Southern Tagalog 8,075 1,250 9,325 V - Bicol 5,475 2,090 7,565 VI - Eastern Visayas 8,40 1,435 9,840 20.3 63.9 11.1 h.5 1.2 VII - Western Visayas 9,255 1,L96 10,751 VIII - N. & E. Mindanao 7,419 1,961 9,380 44.9 45.7 6.1 2.2 1.1 IX - S. & W. Mindanao 123543 1,797 14,340 Philippines 72,819 13,797 86,6162/ 29.8 51.4 13.4 3.9 1.5 1/ According to the DANR classification of regions. 2/ Includes cities of Manila, Caloocan, Quezon and Pasay. Other Manila and Suburbs included in Region IV. 2/ This total does not agree with total presented by the DPH in its final summary sheet. -3 P0 PHILIPPINES ANNEX 10 Tqble 3 AGRICULTURAL SECTOR SURVEY Table 3: COMPARISON OF THE COSTS OF DIFFERENT METHODS OF TRANSPORT (November 1967) Method of Transport Transport Cost Expressed as Kg.palay equivalent ier ton km. Ox (Carabao) sled 24.54 Railroad 0.14 Motor Vehicle on National Highway 0.11 (highway) Boats 0.07 Air 0.68 Source: Dr. Margaret R. Haswell - Potential For Economic Growth of Resource Development in Asian Agriculture PHILIPPINES ANNEX 10 Table 4 AGRICULTURAL SECTOR SURVEY Table 4: PSC STANDARD FREIGHT RATES 1972 (excluding loading and unloading) Transport Rate Remarks Freight Truck P 0.03/100 kg./k. Excluding (P 0.03 per ton/km.) Manila Port Area Bus, Jeep and P 0.03/100 kg./kr. Minimum auto-calesa (P 0.30 per ton/km.) charge PO.25 Interisland shipping P1.00 + P 0.0075/mile Rate per ton Basic Rate + 30fo or cubic meter plus authorized 70% + 10% + 10% + 18% whichever is PSE Increases + 301 + 30% the greatest Source: Public Service Commission. ANNEX 10 Table 5 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 5: RCA RICE ROAD RATES 1970 AND FROM JULY 1971. (per ton/kilometer) % Increase Region 1970 1971 Decue 1. Luzon Manila and Suburbs P 7.00 P 9.00 28.6 (10 km. radius) Ilocos 0.14 0.20 42.8 Mt. Province 0.30 - 0.35 0.30 1/ (0 to 16.7) Cagayan Valley 0.17 0.30 2/ 76.5 Central Luzon 0.14 0.20 42.8 Southern Tagalog 0.14 0.20 42.8 2. Visayas Negros Occidental 0.18 Within 10 km. radius 66.7 - 83.3 4.oo - 4.5o Iliolo 0.22 Beyond 10 km. radius 33.4 - 50.0 0.30 - 0.33 3. Mindanao Cotabato 0.17 76.5 Surigao 0.24 - 0.27 15 - 22.2 Davao 0.22 up to 0.30 3/ 36.4 1/ From Burgos to Mountain Province (mountainous). 2/ From San Jose, Nueva Ecija, to Cagayan (rough and mountainous). 3/ Rates reduced according to road surface. Source: RCA. ANNEX 10 Table 6 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 6: INTERISLAND AND OTHER SMALL VESSELSi Registered with Tonnage (GRT) Department of Commerce 2/ Philippine Coastguard No. Tonnage No. Tonnage Less than 100 7 1,663 41,426 101 - 500 85 2)?8 53,510 501 -1000 88 87 59,536 1001 -2000 28 271,385.27 32 49,081 2001 -3000 19 36 80,329 3000 and over 22 31 148,044 Sub-Total 271,385.27 431,926 Bay-River NA 1,268 24,025 3/ Lake Vessels Barges NA 1,124 312,312 Sailboats NA 305 4.,920 Bancas NA 20,601 5/ NA 1/ Excluding vessels owned by Philippine Government. 2/ Department of Commerce lowest "classification" is 30-100 tons. Philippine Coastguard classes "over 100 to less than 500, 500 to less than 1000, etc." however, this cannot account for the 160,000 difference in registered tonnage. 3/ Mostly tugs, ferries and barges. 4/ Excluding pleasure yachts. 5/ Includes vessels of 3 tons and less capacity. Possibly at least as many more remain unregistered. ANNEX 10 PHILIPPINES Table 7 AGRICULTURAL SECTOR SURVEY Table 7: INTERISLAND SHIPMENTS OF RICE AND PALAY (Expressed in Mbtric Tons, Rice Equivalent) Eastern Western Island Group Luzon Visayas Visayas Mindanao Year 1964/65 Incoming 12,593 3,985 4,497 Outgoing 16,680 4,395 1965/66 Incoming 14,469 4,218 6,234 Outgoing 23,740 1,271 1966/67 Incoming 53,627 25,721 3,499 8,610 Outgoing 15,626 15,465 10,595 49,771 1967/68 Incoming 29,564 30,232 4,012 24,334 Outgoing 22,024 19,006 18,858 28,255 1968/(to 9-30) Incoming 8,933 18,889 6,651 12,008 Outgoing 18,091 8,000 5,623 14,767 Source: Bureau of Census and Statistics. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 8: DOMESTIC PRODUCTION: MARKETED SURPLUS AND VOLUME CONTROLLED BY GOVERNMENT AND PRIVATE TRADERS 1954/55, 1960/61, 1965/66 - 1969/70 1/ GOVERNMENT CHANNEL PRIVATE CHANTNELS % of Production Quantity % Purchased , Handled $ Handled Crop Year Market Directed 2/ of Palay By Government Handled by Private by Private Market by FaCoMas Traders Channel Directed (M. tons) 1954/55 38.9 1,245,930 1.1 NA 98.9 -- 60/61 46.5 1,759,759 NA NA NA -- 65/66 53.5 3/ 2,178,860 1.1 1.1 97.8 98.9 66/67 54.8 3/ 2,243,523 4.4 2.2 93.4 95.6 67/68 55.8 2,544,869 9.7 3.3 87.0 90.3 68/69 53.7 2,386,780 3.0 3.5 93.5 97.0 69/70 60.5 3,166,212 7.2 2.3 90.5 92.8 Total/Percent (1965/66- 12,520,2b44 5.3 2.5 92.1 94.6 1969/70) 1/ Source: Adapted Leon A. Mears from Data collected from BAEcon, RCA, Philippine Exchange, Inc. A.C.A. 2/ Market directed considered to include rent and/or share to Landlord Debt Service to operators, farmers sales, payment to threshers. 3/ Extrapolated on basis of percentage figures from other years. co PHILIPPINES AGRICULTURAL SECTOR SURVEY 1/ Table 9: DISPOSITION OF PALAY SOLD BY FARMERS, NUEVA ECIJA (in percent of total volume sold) Survey Year 1929/30 1955/56 2/ 1961/62 1968/69 (620 farmers (985 farmers) (160 farmers) (79 non- 233 farmers (380 excluding tenants) farming and land- farmers) 3/ landlords) lords excluding sales to Buying Agency landlords Middlemen 4/ 34 53 22 58 56 Millers 66 23 30 35 37 89 Retailers 1 1 1 Money Lenders 6 3 3 FaCoMas 5 4/ 3 3 5 NARIC/RCA 4 6 Landlords 12 41 5/ 4/ Other 3 Total 100 100 100 100 100 100 1/ Source: Leon A. Mears. 2/ Excludes non-farming landlords. 3/ No further breakdown available. Sample refers to 380 farmers of whom only 342 were palay farmers. 4/ Less than one percent. 5/ This appears to the mission to be a derived figure and is accompanied by the comment, "because tenants are in urgent need of money, they sell their shares of the rice crop to their landlords long before the harvest season. O ANNEX 10 Table 10 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 10: RCA COMPARATIVE SALES VOLUME AND NUMBER OF PERSONNEL APRIL 1, 1962 TO NOVEIMER 15, 1971.1/ Year Sales Volume Number of Peso Sales per in Million Pesos Personnel Employee 1962 0.2 2266 88 1963 96.1 5694 16,877 1964 120.3 5694 21,128 1965 170.4 8422 20,232 1966 127.0 1911 64,434 1967 83.5 1830 45,628 1968 24.3 1580 15,380 1969 95.9 3213 29,847 1970 8.3 995 8,342 1971 146.2 1831 79,847 1/ Source: "The RCA in the Last 8 Months" (arithmetical error corrected). ANNEX 10 PHILIPPINES Table 11 AGRICULTURAL SECTOR SURVEY Table 11: RCA COMPARATIVE SALES VOLUME AND LOCAL ADMINISTRATIVE AND DISTRIBUTION COSTS APRIL 1962 - NOVEMBER 15, 1971 1/ Sales Volume Administration and Peso Sales per Peso Year Million Pesos Distribution Expense Million Pesos 1962 0.2 2.6 0.08 1963 96.1 11.5 8.36 1964 120.3 24.4 4.93 1965 177.h 47.8 3.71 1966 127.0 12.1 10.5 1967 83.5 22.2 3.76 1968 24.3 30.6 0.79 1969 95.9 18.1 5.30 1970 9.3 9.4 0.85 1971 146.2 10.5 13.92 1/ Source: "The RCA in the Last 8 Months" ANNEX 10 Table 12 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 12: COSTS OF RCA RICE AND CORN OPERATIONS Year 1968/69 1969/70 1970/(1 Sales (Million Pesos) 1/ 43.266 l06.1o 114.197 Purchases (Million Pesos)1/ 60.4-53 143.793 20.917 Net Cost (Million Pesos) 17.187 37.689 6.720 Overhead (Million Pesos)2W 31.741 37.104 10 .60 Sub-total (Million Pesos) 48.928 74.793 17.180 Peso Cost/peso Sale 1.131 0.705 1.210 Accrued and Current Interest (Million Pesos) 36.202 54.960 97.412 Total Cost 85.130 129.753 114.592 Peso Cost/Peso Sale 1.967 1.223 8.072 1/ Carry over stocks ignored, i.e., volume of purchasesequal to volume of sales. 2/ Including depreciation, normal stock wastage, "other income" but excluding interest charges. Source: Basic data abstracted from RCA financial statements, July 1968/June 1971. ANNEX 10 PHILIPPINES Table 13 AGRICULTURAL SECTOR SURVEY Table 13: COMPARISON OF FLOOR, CEILING AND ACTUAL PALAY/RICE PRICES P.11 Rice Year Farm Price- Suprt Price- Official Ceiling Manila Retail Price- 1965 13.34 11.50-12.50 1.10-1.30 1.46 1966 15.06 12.50-18.00 1.30-1.40 1.79 1967 15.12 16.oo-18.oo 1.40 2.00 1968 14.57 16.oo-18.oo 1.40 1.74 1969 14.95 16.00-18.00 1.40 1.71 1970 15.67 16.00-18.00 1.40 1.91 1/ Pesos per Cavan. 2/ Macan ordinario, annual average. 3/ Support range announced. 4/ Pesos per Ganta. 5/ Annual average. Source : DANR, BAEcon and RCA. PHILIPPINES AGRICULTURAL SECTOR SURVEY 1/ Table 14: PALAY: RELATIVE IMPORTANCE OF FARM AND COMMERCIAL STOCKS AS AT JULY 1, 1969-1971 ('000 Metri.c Tons) 1969 1970 1971 2/ 2/ 2/ Farm Comm. Total Farm Comm. Total _ Farm Comm. Total _ PHILIPPINES 639.056 )93.244 1132.300 43.6 855.096 326.766 1181.862 27.6 803.792 210.443 1014.235 20.7 ILOCOS 39.996 4.68i LB.677 17.8 52.140 4.044 56.184 7.2 40.788 4.858 45.646 10.6 CAGAYAN VALLEY 73.876 22.937 96.813 23.7 169.796 28.745 198.541 14.6 157.960 54.802 212.762 25.8 CENTRAL LUZON 160.116 317.503 507.619 68.4 179.872 165.048 344.920 47.8 204.380 100.729 305.109 33.0 SOUTHERN TAGALOG 08.108 32.872 81.020 40.6 53.988 .45.21 99.409 45.7 88.660 19.470 108.130 18.0 BICOL 95.563 13.825 109.393 12.6 103.444 12.795 116.239 11.0 56.364 11.383 67.747 16.8 EASTERNl VISAYAS 39.644 4.717 44.361 10.6 57.728 8.589 66.317 12.9 46.332 3.106 69.638 6.3 WESTERN VISAYAS 94.64b 19.392 114.576 17.4 109.912 28.362 138.274 20.5 72.556 8.170 80.726 10.1 N.E. MINDANAO 49.720 7.788 57.508 13.5 43.340 7.181 50.521 14.2 61.996 4.893 66.889 7.3 S.w. MINDANAO 36.3))b 34.989 71.333 49.0 84.876 26.58 111.457 23.8 74.756 3.032 77.788 3.9 1/ BASIC DATA: BAEcon. 0 2/ Commercial stocks as percentage of total stocks (excluding non-farm households). ANNEX 10 Table 15 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 15: WAREHOUSE CAPACITY BY REGIONS, 1971 ('000 metric tons) Equivalent Equivalent Equivalent Region Palay 1/ Pinawa 2/ Milled Rice 3/ Philippines h/ 2,179,672 3,205,400 4,112,588 Ilocos 18,920 27,814 35,698 Cagayan Valley 158,796 233,524 299,615 Central Luzon 756,096 1,111,906 1,426,596 S. Tagalog 254,848 374,776 480,845 Bicol 90,156 132,582 170,106 E. Visayas 152,46o 224,206 287,660 W. Visayas 154,528 227,247 291,562 N.E. Mindanao 1-4,892 213,076 273,381 .S.W. Mindanao 448,976 660,259 87,125 1/ SOURCE: BAECON. 2/ Assumed 68% of palay by volume. J/ Assumed 53% of palay by volume. 4/ NFAC/DBP total equivalent 2,998,787 tons palay. PNILIPPINES ACRICULTUHAL SECTOR SUBVEy Та51е lo: UTILIZATION OF STOIiACE CAPACITy gy RBGIONS 19б9- L 972 1,� 1969 1969 1969 1970 1970 1970 1970 1971 1971 1971 1972 1972 Feбruary 24 7и1у 1 ОссоЬЕг 1 danuary 1 дрг11 1 Ju1y 1 Ос[оЬет 1 January 1 7и1у 1 Octoбer 1 ]апивгу 1 Арт11 1 г^h111pp1nee (2,179,672) °! Рв1ву 70Э,195 49Э,244 231,585 340,085 459,В74 Э26,766 22Э,102 244,939 210,443 В2,240 171,886 267,942 Согп 3/ 52,226 24,350 59,973 В4,447 36,982 97,611 66,508 19,430 11,172 10,032 8,291 10,410 Tote1 4/ 755,421 517,594 291,55В 424,532 496,856 424,Э77 289,610 264,ЭЬ9 221,615 92,272 180,177 278,352 7. Uc111zat1on 34.7 2Э.7 1Э.4 19.5 22.8 19.5 1Э.1 12.1 10.2 4.2 8,3 12.В Ilocoe (18,920) 2/ Ре1еу 10,454 В,Ь81 2,077 5,452 4,9Э7 4,044 2,В38 1,Ч45 4,858 97 ИА NA Согп 3/ -- -- -- Т3 -- 18 14 14 -- -- NA NA Tote1 10,45G 8,681 2,077 5,475 4,937 4,062 2,852 1,959 4,858 97 ИА NA Х Ucillгa[ion 55.Э 45.9 11.0 28.9 26.1 21.5 15.1 10.4 25.7 0.5 Cegeyen Va11ey (158,796) 2/ Рв1ау з1,а1z 2z,9Э7 1а,4ьь а,ьz4 з0,289 ге,745 zз,е4е tz,z67 54,ео2 1?,257 ИА иА Согп Э/ 287 529 725 2,526 137 9 410 1,035 470 506 ИА NA То[а1 72,099 2Э,466 19,381 11,150 30,426 28,754 7у.,258 13,292 55,272 13,76Э ИА ИА 7. U[111гвс1оп 20.2 14.В 12.2 7.0 19.2 1В.1 15.3 8.4 14.8 8,7 Сепсге7 Luzon (756,096) 2/ Рв1ау 410,379 347,3Т1Э 91,392 145,719 233,715 165,04В 9В,644 131,595 100,729 27,434 NA NA Согп 3/ 210 �,:57 383 985 -- ЭЬ 27 59 -- 5 NA и� Tota1 410,589 350,855 91,775 146,704 233,715 165,084 98,671 131,554 100,729 27,434 NA NA 7. Uс111ге[[оп 54.Э0 4Ь.4 12.1 19.4 Э0.9 21.9 17.1 17.4 13.3 3.6 5ои[hern Tagelog (254,848) 2/ Ра1ау 72,965 Э2,872 18,20Э Э5,050 60,Э90 45,421 19,171 19,323 19,470 12,949 нА НА Согл 3/ 192 ЭОЬ 474 269 55 780 201 JBB 55 9 NA NA ТоСе1 7ё,157 33,178 18,677 35,319 60,445 46,201 19,372 39,711 19,525 12,958 ИА ид 7. цt111тв[1оп 28.7 13.0 7.3 1Э.9 2Э.7 18.1 7.6 15.6 7.7 5.1 81со1 (90,156) 2/ Ре1ву 16,181 13,825 3,124 16,799 10,806 12,795 4,719 В,Э95 11,Э8Э 8,501 иА NA Согп Э/ 570 Э47 492 716 ЭЬ 74Э 593 91 137 182 ИА ИА То[е1 16,951 14,172 3,616 17,515 10,842 12,5Э8 5,Э72 В,486 11,520 8,683 ИА NA 7. Ut11lга[1оп 18.8 15.7 4.0 19.4 12.0 13.9 5.9 9.4 12.8 9.6 еввсаrn vlеауев (152,460) г/ Ре1ау 7,427 4,717 4,057 9,36Э 3,480 '8,689 7,669 7,040 Э,106 2,482 NA ИА Согп Э/ 24,122 5,417 9,471 21,172 6,553 29,822 12,40Э 3,014 2,052 Э,032 NA ИА То[е1 Э1,549 10,134 13,528 30,535 10,0ЭЭ 38,411 20,072 10,054 5,158 5,514 NA NA 7. Ut111ге[1оп 20.7 б.б 8.9 20.0 Ь.Ь 25.2 13.2 б.б Э.4 З.б Чев[егп Vleayae (154,526) 2/ Ре1ау Э2,3Э6 19,9Э2 5,042 Э6,744 43,916 2$ Эб2 1Э,442 14,120 8,171 4,004 ид NA Corn З/ 1,290 1,031 1,751 1,956 2,Э21 6,288 3,876 793 670 8Ьб ИА ИА q Q� n х Tote1 ЭЭ,б26 20,96Э 6,793 Э8,700 46,2Э7 34,650 17,Э18 14,91Э 8,841 4,870 GA NA ^, о 7. Ut111se[1on Т1.8 13.6 4.4 25.0 29.9 22.4 11.2 9.7 5.7 Э.2 � Table 16 (cont d) : UTILIZATION OF STORAGE CAPACITY BY REGIONS 1969 1969 1969 1970 1970 1970 1970 1971 1971 1971 1972 1972 Febr uary 24 July I October 1 January I April 1 July 1 October I January I July I October 1 January 1 April I Northern-Easterm Mindartao (144,892) 1/ Palay 13,495 7,788 13,451 12,373 6,450 7,181 5,931 12,113 4,893 4,074 NA NA Corn 3/ 1,318 930 6,840 4,669 3,329 4,473 9.052 6,133 3,165 2,243 NA NA Total 14,813 8,718 20,291 17,042 9,779 11,654 14,983 18,246 8,058 6,317 NA NA % Utilization 10.2 6.0 14.0 11.8 6.7 '8.0 10 3 12.6 5.6 4.4 Southern - Western Mindanao (448,976) 1/ palay 107.945 34,989 75,583 69,920 57,891 26,580 46,820 18,141 3,032 9,442 NA NA Corn 3/ 24,236 12,440 39,841 52,130 24,551 55,440 39,932 7,902 4,624 3,187 NA NA Total 132,181 47,429 115,424 122,050 82,442 82.*,020 86,752 26,043 7,656 12,629 NA NA % Utilization 29.4 10.6 25.7 27.2 18.4 18.3 19.3 5.8 1.7 2.8 NA NA Source: Data frm BAEcon, except where shown. Includes milldd rice convered to palay. Storage capacity expressed in ter= of palsy and aas d constant. See Table 3/ Shelled corn 80% by volume Palay, expressed as palsy May not add, due to rounding. ANNEX 10 Table 17 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 17: DISPOSITION OF PALAY PRODUCTION IN THE PHILIPPINES BY METHOD OF MILLING 1954/5 - 1967/68 (in percent) Year Hand Kiskisan Cono Not Pounding Mill Mill Milled 1954/55 19.8 27.0 42.1 11.1 1960/61 11.4 26.4 51.1 11.1 1968/69 4.2 27.9 56.9 11. Source: Mission estimate derived from data supplied by BAEcon. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 18: RICE MILLING CAPACITY (cavans of 44 kg of palay per 12 hours) Cono onCono Kiskisan 2! Kiskisan Total ! Total 2/ No. Capacity No. Capacity Eo. CapaItv No Capacity No. Capacity NE. Capacity Philippines NA 318,794 2,755 364,878 NA 379,882 11,246 504,612 NA 698,668 14,001 869,490 Ilocos NA 1,255 11 1,245 NA 35,611 1,385 49,262 NA 36,866 1,396 50,507 Cagayan Valley NA 21,028 134 23,470 NA 43,424 1,296 56,375 NA 64,452 1,430 79,845 Central Luzon NA 123,306 1,037 157,703 NA 58,624 1,232 76,280 NA 181,930 2,269 233,983 Southern Tagalog NA 38,055 440 46,614 NA 49,956 .1,703 69,651 NA 88,011 2,143 116,265 Bicol NA 17,750 196 22,934 NA 39,140 946 42,319 NA 56,890 1,142 65,253 Eastern Visayas NA 25,012 215 90,077 NA 30,083 788 35,019 NA r5,095 .1,003 55,096 Western Visayas NA 23,112 273 3:,717 NA 51,065 1,795 75,040 NA 74,177 2,068 112,757 N.E. Mindanao NA 24,097 166 22,411 NA 18,525 569 26,343 NA 42,614 735 48,754 S.W. Mindanao NA 45,179 283 32,707 NA 53,454 1,532 74,323 NA 98,633 1,815 107,030 1/ Source: NFAC/DBP (Basis December 31, 1968 plus DBP financed mills January 1969 - February 1971). 2/Source: RICOB (position at June 30, 1971). PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 19: MILLING CAPACITY UTILIZATION, 1970/71 CASE 1 CASE 2 CASE 3 CASE 4 Capacity Riskisan Capacity Cono Percent Utilization Capacit Capacity Percent Utilization Capacity Capacit Percent Utilization Capacity Capacity Percent Utilization 1500 Hours 3000 Hours (1) 1/ (2) 2! Kiskisan Cono (1) 1/ (2) 2/ Kiskinsa Cono (1) 1/ (2) 2/ Kiskisan Cono T 1500 Hours 5000 Hours 2500 Hours 3000 Hours 2500 Hours 5000 Hours PHILIPPINES 47,485.2 79,698.5 81.0 66.7 47,485.2 132,830.8 57.1 47.9 79,142.0 79,698.5 64.8 52.4 79,142.0 132,830.8 48.6 40.0 ILOCOS 4,451.4 313.7 81.3 59.9 4,451.4 522.9 77.9 58.1 7,418.9 313.7 50.1 36.7 7,418.9 522.9 48.8 35.9 CAGAYAN VALLEY 5.428.0 5,257.0 126.3 104.5 5,428.0 8,761.7 95.1 80.2 9,046.7 5,257.0 94.4 76.6 9,046.7 8,761.7 75.8 62.7 CENTRAL LUZON 7,328.0 30,826.5 74.9 57.7 7,328.0 51,337.5 55.0 37.5 12,213.3 30,826.5 65.6 51.0 12,213.3 51,337.5 44.4 34.6 SOUTHERN TAGALOG 6,244.5 9,513.8 78.4 60.7 6,244.5 15,856.2 55.9 43.9 10,407.5 9,513.8 62.0 47.2 10,407.5 15,856.2 47.1 36.4 BICOL 4,892.5 4,437.5 78.0 66.1 4,892.5 7,395.8 59.2 49.1 8,154.2 4,437.5 57.8 50.0 8,154.2 7,395.8 46.8 39.6 EASTERN VISAYAS 3,760.4 6,253.0 64.3 68.8 3,760.4 10,421.7 45.42 50.7 6,267.3 6,253.0 51.4 52.3 6,267.3 10,421.7 38.6 41.1 WESTERN VISAYAS 6,383.1 5,778.0 104.9 67.8 6,383.1 9,630.0 79.6 50.8 10,638.5 5,778.0 67.8 50.9 10,638.5 9,630.0 62.9 40.4 N.E. MINDANAO 2,315.6 6,024.2 78.7 73.8 2,315.6 10,040.4 53.1 52.0 3,859.4 6,024.2 66.4 59.2 3,859.4 10,040.4 47.2 44.3 S.1. MINDANAO 6,681.7 11,294.8 66.5 68.5 6,681.7 18,824.6 46.9 52.2 11,136.2 11,294.8 53.3 50.5 11,136.2 18,824.6 39.9 41.1 ANNEX 10 Table 20 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 20: ESTIMATED COST OF MARKETING PALAY RICE THROUGH PRIVATE-CHANNELS, FARMER-PALAY,WHOLESALER-MILLER-RICE WHOLESALER-RETAILER CONSUMER (NUEVA ECIJA TO MANILA3 1966 & 1970 1/ 1966 1970 After Devaluation P Per Cavan P Per Cavan Rice Equivalent Rice Equivalent I. Palay price at farm gate X = R 16.77 1.820X X=R19.19 1.820X II. Add Costs to Wholesale Palay: a) Transport to mill warehousei/ 0.36 o.64 b) Handling: pickup & at wholesale 0.36 0.55 c) Depreciation of palay sack 0.50 0.55 d) Palay wholesaler's profit 2/ 0.024X 0.024X Total Cost to Wholesale Palay 1.22 + 1.84hX 1.74 + 1.844X III. Add Storage Costs: a) Storage, 3 months average 0.55 0.55 b) Interest,3 " at 12%/yr. 0.054X 0.054X c) Insurance, 3 months at 1.5%/yr. 0.007X 0.007X d) Losses in warehouse & mill, 1% 0.0181 0.018X Total Cost to illing 1.77 + 1.923X 2.29 + 1.923X IV. Add Costs to Wholeogle Rice: a) Milling costs J 0.75 o.95 b) Sack - good 2nd hand jute 0.80 0.75 (plastic) c) Spillage - 0.2% of rice 0.004X 0.004X d) Miller's profit Y7 0.001 0.040X e) Less: by-products / (0.95) (1.66) Total Costs, ex-Rice Mill 2.37 + 1.967X 2.33 + 1.967X V. a) Handling; 2 movements (at mill) 0.10 0.15 b) Transport to wholesale ware- house) 0.70 1.00 c) Handling; in and out at wholesale warehouse 0.15 0.22 d) Warehouse overhead 0.10 0.20 e) Wholesaler's profit 1/ 0.025X 0.025X Total Cost to Wholesale Rice 3.42 + 1.992X 3.90 + 1.992X VI. Add Retail Expenses: a) Retailers net costs o/ 0.7 1.38 b) Retailers net profit 3/ 0.60 0.97 Total Costs to Retail (Y)/cav. rice Y=4.59 + 1.992X Y = 6.25 + 1.992X Total Costs to Retail (Y) ganta 0.195 + 0.085X 0.266 + 0.085X ANNEX 10 Table 20 Page 2 Footnotes: 1 Fastimated marketing costs in Nueva Ecija/Manila market assuming clean dry palay procured in Nueva Ecija, deposited in a bonded mill warehouse with a 300 cavan per day capacity, 12 hours operation, 200 days per year, 55% recovery by volume of common quality; milled after 3 months of storage with milled rice retailed in Manila and suburban markets. 2/ Varies with transport facilities and road conditions in the area. Where roads are poor, transport costs are much higher than prevailing motor freight rates. Transport costs included here are for good 2nd class roads. / These net profit margins reflect profit levels reported as customary. / Jute sack used 4 times; plastic sacks used 2 times. / Breakdown of daily expenses in the mill per cavan or rice recovered: 1966 1970 (after devaluation) a) Fixed charged depreciation, mainte- nance 4 repair, insurance & taxes P 0.33 P 0.35 b) Operating expenses 0.13 0.19 c) Salaries of personnel 0.08 0.11 d) Handling expenses 0.21 0.30 Total 0.75 o.95 6/ Revenue from by-products: Bran - D-1 0.61 1.02 D-3 0.20 0.43 Binlid 0.11 0.16 Mata-mata 0.03 0.0 Total revenue 0.95 1.66 / Retailer's per cavan mark-up: Less: Retailer's costs/cavan rice: Transport to retailer P 0.20 P 0.30 Unloading 0.05 0.08 Rents 0.10 0.20 Insurance, license, taxes, depreciation, interest 0.05 0.10 Suppliers (paper bags) 0.15 0.30 Labor 0.50 0.70 Losses and shrinkage allowance 0.04 0.10 Other operating expenses 0.08 1.17 0.20 1.98 0 0.37 Plus: Proceeds from sales of rice sack 0.60 0.60 Net .rofit to retailer/cavan rice 0.60 0.97 Source: RCA ANNEX 10 Table 21 Page 1 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 21: COST OF RICE AT DIFFERENT BUYING PRICES UP TO CONSUMERS ON BUY-MILL AND SELL METHOD (per 100 cavans of Palay) (1) (2) () A. Unit buying price of palay of 46 kilos gross P20.00 P3000 For 100 cavans P2,000 12,500 P3,000 B. Procurement Expenses a) Trucking from field to ware- houses at P0.50 per cavan 50.00 50.00 50.00 b) Empty sack depreciation 40.00 40.00 40.00 c) Interest at 12%/annum for 2 mos. 40.00 50.00 60.00 d) Storage fee at P0.25 for 1st 2 mos. 25.00 25.00 25.00 e) Stock insurance at 3%/annum for 2 mos. 10.00 12.50 15.00 f) Shrinkage allowance at 1% 20.00 25.00 30.00 Cost of palay, Ex-Miller's Whse. R2,185.00 12,702.50 P3,220.00 Equivalent cost of Palay to Rice P3,911.56 P24,910.06 P5,850.29 C. MLllingE4penses: aMlling fee at P .50/cavan of clean rice _/ 83.79 82.56 82.56 b) Cost of polythene sack at PO.80/piece 470 4.0 .0 Total Milling Expense P12.9 12 .59 9126. 9 Gross cost of rice after milling P4,040.05 P5,036.65 P5,976.88 Less: D. Revenue from by-products 108.10 121.90 121.90 Cost of rice after deducting revenue from by-products P3,931.95 P4,914.75 P5,854.98 Per cavan P39.32 P49.15 P58.55 E. Add: a7 Transportation from whse. to wholesalers whse. per cavan of 56 kilos (Manila) 1.00 1.00 1.00 b) Profit of Millers at about 5% of total cost 1.97 2.4 29 Cost of Rice to Wholesalers(Manila) T 0 . F. Add: 7 Cost of storage at P0.25 per Cavan of 56 kilos 0.25 0.25 0.25 b) Profit of Wholesaler at 3% of his investments 1.27 1L5 1.87 Cost of Rice to Retailer Ex-Whole- saler Warehouse ?44.11 954.43 164.60 G. Add: Retailer's Expenses a) Trucking expenses from whole- saler 's warehouse to retailer at PO.50/bag 0.50 0.50 0.50 b) Profit of Retailer at R0.15 per ganta minimum 3.52 Final cost of rice per cavan up to consumer P48.13 P58_45 P68.62 Per Ganta P 2.05 9P2.49 P 2.92 CEILING PRICE P 2.10 P 2.50 P 2.90 Excess of Ceiling Price over that to consumers per ganta P 0.05 P 0.01 R(O.02) Per Cavan / P 1.17 P 0.0235 P(0.47) 1 Column 1 was estimated at milling recovery rate of 68% by weight while ti-at of Columns 2 and 3 was estimated at 67% by weight. 2 This will probably add up to the Wholesalers profit/cavan or represent to about 5.8% for M-2; 3.44% for Special and 2.24% for Fancy instead of straight 3%. Ordinarily, profit of wholesalers to retailers ranges from RJ .00 to P1.50 per cavan or about 2.4% to 3.5% of money invested. Source: Adopted from figures provided by RCA. ANNEX 10 Table 22 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 22: PAIAY/RICE PRICE RELATIONSHIPS Farm Price Wholesale Retail Retail C. Luzon)/ Cabatuana Cabanatuan2 Manila (1)!/ (2)2 (1 ) 4 (2 )2/ 1969 July 16.05 1.45 1.55 1.88 August 17.40 1.56 1.75 1.88 September 18.37 1.64 1.70 1.9b October 20.00 1.77 1.85 2.02 November 15.33 1.39 1.66 2.02 December 16.13 1.46 1.51 1.91 1970 January 17.55 1.76 17.41 1.56 1.51 1.72 February 17.79 1.78 17.26 1.55 1.50 1.68 March 18.32 1.82 17.00 1.53 1.50 1.71 April 19.28 1.90 17.00 1.53 1.66 1.87 May 19.77 1.95 20.00 1.77 1.80 1.90 June 19.74 1.94 - - 1.80 1.90 July 19.29 1.91 23.29 2.03 1.83 1.99 August 19.10 1.89 22.48 1.97 1.88 2.03 September 19.87 1.95 22.62 1.98 1.90 2.06 October 17.80 1.78 21.70 1.90 1.90 2.03 November 17.12 1.72 19.70 1.74 1.90 2.01 December 19.73 1.94 19.00 1.69 1.82 1.98 1971 January 21.20 2.07 23.15 2.02 2.06 2.02 February 24.59 2.36 25.93 2.24 2.15 2.17 March 24.33 2.07 26.35 2.28 2.20 2.32 April 26.28 2.50 27.41 2.36 2.31 2.43 May - - 27.68 2.38 2.36 2.46 June 26.42 2.51 29.20 2.50 2.28 2.50 July 28.00 2.65 34.14 2.90 2.52 2.61 August 29.04 2.73 36.00 3.05 2.69 2.81 September 30.09 2.82 35.65 3.02 2.70 2.87 October 27.75 2.62 25.00 2.17 2.65 2.89 November 29.34 2.76 31.50 2.69 2.72 2.88 December 28.96 2.73 - - 2.83 2.80 1972 January 29.79 2.55 2.76 February 27.79 2.40 2.75 March 30.06 2.57 2.73 April 2.78 Per cavan Palay. Equivalent Retail price per Ganta Rice, Manila (Table Retail price per Ganta. Source: BAEcon for Basic Data, RCA for conversion factors. ANNEX 10 Table 23 PHILIPPINES AGRICULT7jRAL SECTOR SURVEY Table 23: PRODUCTION OF WHITE AND YELLOW SHELLED CORN ('000 metric tons) (1) (2) (3) (2) as % of Crop Year White Yellow (1) + (2) 1964/65 834.7 296.2 26 1965/66 872.6 309.6 26 1966/67 918.3 325.8 26 1967/68 922.6 327.4 26 1968/69 1,476.6 256.2 15 1969/70 1,773.9 185.3 9 1970/71 1,780.9 209.2 10 Source: BAECON and NFAC, Feedgrains Program. ANNEX 10 Table 27 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 24: PRODUCTION OF SHELLED CORN BY VARIETY, 1969/70 - 1970/71 ('000 metric tons) 1969/70 1 1970/71 White Yellow Other Total- White Yellow Other Totali Philippines1! 1,773.9 185.3 49.0 2,008.2 1,780.9 209.2 14.9 2,005.0 Ilocos 4.1 4.4 1.7 10.2 8.0 2.5 0.2 10.7 Cagayan Valley 170.7 5.5 24.7 200.9 216.6 1.9 5.5 224.0 Central Luzon 30.7 9.3 1.9 41.9 37.3 9.9 1.5 48.7 Southern Tagalog 41.8 97.5 10.3 149.6 44.7 115.2 2.0 161.9 Bicol 44.6 22.1 0.9 67.6 57.2 13.5 - 70.7 Eastern Visayas 180.7 1.0 181.7 177.5 0.4 1.7 179.6 Western Visayas 154.7 31.5 5.5 191.7 166.2 43.0 0.5 209.7 N.E. Mindanao 169.1 2/ 1.4 170.5 156.8 2.9 - 159.7 S.W. Mindanao 977.5 13.9 2.5 993.9 916.6 19.9 3.5 940.0 1/ Totals may not add due to rounding. 2/ Less than 100 tcns. PHILIPPINES AGRICULTURAL SECTOR SURVEY 1/ Table-25: FARM AND COMMERCIAL STOCKS OF CORN, AS OF JULY 1, 1969-1971 (metric tons) 1969 1970 1971 Farm as Farm as Farm as Farm Commercial Total % of Total Farm Commercial Total % of Total Farm Commercial Total % of Total Philippines 80,415 30,438 110,853 72.5 103,495 122,015 225,510 45.9 134,138 13,965 148,103 90.6 Ilocos 211 - 211 100.0 621 23 644 96.4 393 - 393 100.0 Cagayan Valley 3,118 661 3,779 82.5 7,877 11 7,888 99.9 8,436 587 9,023 93.5 Central Luton 479 4,189 4,668 10.3 234 46 280 83.6 1,311 - 1,311 100.0 Southern Tagalog 2,485 382 2,867 86.7 2,491 975 3,466 71.9 6,988 68 7,056 99.0 Bicol 5,928 433 6,361 93.2 8,710 929 9,639 90.4 4,725 171 4,896 96.5 Eastern Visayas 7,609 6,772 14,381 52.9 15,145 37,278 52,423 28.9 16,559 2,565 19,124 86.6 Western Visayas 3,565 1,288 4,833 73.3 5,854 7,860 13,714 42.7 8,715 838 9,553 91.2 N.E. Mindanao 24,949 1,163 26,112 95.5 20,229 5,592 25,821 78.3 50,964 3,956 54,920 92.8 S.W. Mindanao 32,091 15,550 47,641 67.4 42,334 69,301 111,635 37.9 36,047 5,780 41,827 86.2 Total Corn Imports 1969 - 24,937 1970 - 65 1971 - 39,190 1/ Includes milled corn converted to shelled corn. Source: Basic Data, BAECON. ANNEX 10 PHILIPPINES AbE 26 Table 26 AGRICULTURAL SECTOR SURVEY 1/ Table 26: CORN MILLING CAPACITY (CAVANS OF q7 KGS SHELLED CORN PER 12 HOURS) (JUNE 30, 1971) Cono Mills Kiskisan Mills Total No. Capacity No. Capacity No. Capacity Philippines 596 73,871 3,h6 1h9,o53 4,02 222,924 Ilocos - - 75. 4,143 75 4,143 Cagayan Valley 30 1,663 499 23,419 529 25,082 Central Luzon 17 2,030 124 7,oo 141 9,034 Southern Tagalog 1 30 116 4,956 117 4,986 Bicol 23 2,130 172 6,728 195 8,858 Eastern Visayas 94 25,938 294 10,367 388 36,305 Western Visayas 61 6,896 296 12,053 357 18,949 N.E. Mindanao 122 15,567 488 24,004 610 39,571 S.W. Mindanao 248 19,617 1,382 56,379 1,630 75,996 1/ Excluding dual purpose mills. Source: RICOB PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 27: WHITE CORN CONSUMPTION AND INTER-REGIONAL MOVEMENT REQUIREMENTS, 1970-71 Apparent Crude Net 1/ Movement 1/ 2/ Whole Grain Production 1/ Surplus 1/ Seed Surplus Required Consumption Population Consumption 1/ Equivalent White Corn (Deficiency) Requirement 1/ (Deficiency) Inwards Kg/head 3// '000 year Philippines 23.0 37,528 863.4 1,288.6 1,780.9 492.3 35.1 457.2 337.1 Manila 0.5 3,267 1.6 2.4 - (2.4) - (2.4) 2.4 Ilocos 2.5 1,641 4.1 6.1 8.0 1.9 0.3 1.6 Cagayan Valley 28.0 1,723 48.2 71.9 216.6 144.7 3.8 140.9 Central Luzon 6.0 5,222 31.3 46.7 37.3 (9.4) 1.1 (10.5) 10.5 Southern Tagalog 1.5 5,148 7.7 11.5 44.7 33.2 0.8 32.4 Bicol 12.0 3,017 36.2 54.0 57.2 3.2 1.3 1.9 Eastern Visayas 65.0 4,758 309.3 416.6 177.5 (284.1) 4.9 (289.0) 289.0 Western Visayas 29.0 4,556 132.1 197.2 166.2 (31.0) 4.2 (35.2) 35.2 N.E. Mindanao 32.0 3,097 99.1 147.9 156.8 8.9 4.3 4.6 S.W. Mindanao 38.0 5,099 193.8 289.3 916.6 627.3 14.4 612.9 1/ '000 metric tons. x 2/ Wholegrain equivalent. 3/ Mission estimate derived from FNRC data. Source: BAEcon, NFAC. ANNEX 10 Table 2b PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 28 MARKETING MARGINS. 1965-1970 Grain 1/ Grits 2/ Commercial 5/ Margin to 6/ per Kilo per Kilo Margin 3/ Imports 4/ Stocks % Retail Manila 1965 0.256 0.h80 h7 0.36 na 42 1966 0.281 0.480 41 0.18 na 38 1967 0.258 0.455 43 6.99 na 42 1968 0.249 0.450 45 4.73 na 49 1969 0.263 0.500 47 24.94 32.4 43 1970 0.329 0.501 34 0.06 62.1 35 1971 0.468 0.940 50 39.19 13.8 44 1/ National average price received by farmer. 2/ National average price paid by farmer. 3/ Marketing margin as percentage of price paid by farmer. U/ 'Q000 metric tons. 3/ As at July 1. T/ Average Manila retail price for whole grain. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 29 VISAYAS AND MINDANAO: 1969 FARM CORN PRICES, WHOLESALE GRIT PRICES AND MARKETING MARGINS Farm Wholesale Farm Wholesale Farm Wholesale . Farm Wholesale Average Price Price Margin Price Price Margin Price Price Margirt Price Price Margin Margin Pesos/Kilo Pesos/Kilo Percent Pesos/Kilo Pesos/Kilo Percent Pesos/Kilo Pesos/Kilo Percent Pesos/Kilo Pesos/Kilo Percent Percent Eastern Visayas 0.29 0.34 15 0.29 0.43 33 0.27 0.41 34 0.26 0.34 24 26.5 Western Visayas 0.29 0.37 21 0.29 0.46 37 0.24 0.45 47 0.20 0.35 43 37.0 N.E. Mindanao 0.22 0.34 35 0.23 0.46 50 0.20 0.38 47 0.21 0.32 34 41.5 S.W. Mindanao 0.21 0.34 38 0.22 0.40 45 0.18 0.38 53 0.23 0.33 30 41.5 January to March April to June July to September October to December Source: BAEcon and 'A view of Marketing Agricultural Production Visayas and Mindanao' (DANR). ro ANNEX 10 Table 30 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 30: RCA GRADES FOR YELLOW AND WHITE CORN Factor 1/ Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 1. Purity 2/ 98 97 96 95 93 2. Cracked Kernels and Foreign Matter 3/ 2 3 4 5 7 3. Other Colored 3/ 2 3 4 5 5 4. Damaged Kernels 3/ a) Total Damaged 3/ 3 5 7 10 12 b) Heat Damaged 37 0.1 0.2 0.5 1 3 5. Immature Kernels 3/ 3 5 10 13 15 6. Maximum Moisture 3/ 14 15 16 18 20 1/ Based on gross weight for factors 1 and 2, net weight for factors 3 to 6. 2/ Minimum percentage allowed. 3/ Maximum percentage allowed. PHILIPPINES ANNEX 10 Table 31 AGRICULTURAL SECTOR SURVEY Table 31: SUGARCANE: TOTAL RATED MILLING CAPACITIES Crop Year Mills Total Rated Cane Pro- Average Capacity 1 duction 2 Utilisation 3/ 1961 23 84,844 11,744.6 69.2 1962 25 87,261 13,097.6 75.0 1963 25 87,911 14,229.1 80.9 1964 25 92,857 16,442.5 88.5 1965 26 104,218 16,100.0 77.2 1966 25 104,551 13,282.2 63.5 1967 25 110,948 15,277.3 68.8 1968 25 115,136 15,280.0 66.4 1969 26 119,801 16,448.o 68.6 1970 33 144,298 20,218.1 70.0 1971 34 164,845 23,305.8 70.7 1972 37 175,314 24,629.8 70.2 1/ Short tons cane per day. 2/ '000 short tons. 3 Percentage basis average 200 day milling year. 6/ Estimated. Source: Basic Data Philsugin and National Federation of Sugarcane Planters. PHILIPPINES ANNEX 10 Table 32 AGRICULTURAL SECTOR SURVEY Table 32: SUGAR PRICES PHILIPPINES1/ & NEW YORK2/ US cents/lb (1) (2) (3) (4) (5) (6) Year Philippines New York Gross (3) as % ISA daily (5) as % ___ _ _Margin of (2) price of (1) 1960 3.32 6.31 2.99 47.38 n.a. n.a. 1961 4.18 6.29 2.11 33.59 2.70 64.6 1962 4.90 6.46 1.56 24.15 2.80 57.1 1963 6.50 8.18 1.68 20.54 8.31 127.8 1964 5.13 6.90 1.77 25.65 5.77 112.5 1965 4.76 6.75 1.99 29.48 2.08 43.7 1966 5.87 6.99 1.12 16.02 1.81 30.8 1967 6.24 7.28 1.04 14.29 1.92 30.8 1968 6.39 7.52 1.13 15.03 1.90 29.7 1969 6.65 7.75 1.10 14.19 3.20 48.1 1970 5.30 8.07 2.77 34.32 3.68 69.4 1971 6.23 8.52 2.29 26.88 4.50 72.2 1] Reported average export prices paid in Luzon and Visayas (Source Philsugin) converted at DTF exchange rates. 2/ Cif Duty paid. 3j Arithmetical average of the NYCSE contract No. 11 spot price and the London daily price after converting the latter to US cents per pound fob stowed Caribbean Port in bulk. Basic Data. Philsugin and ISO Sugar Yearbooks. PHILIPPINES ANNEX 10 Table 33 AGRICULTURAL SECTOR SURVEY Table 33: COPRA: PRICES RECEIVED BY FARERS AND MARKETING MARGINS Year Farmers Pricel/ Export Price / Marketing Margini 1961 301.6 484.7 37.8 1962 367.2 566.6 31.2 1963 431.8 636.9 32.2 1964 432.8 670.6 35.5 1965 526.5 752.3 30.0 1966 462.4 651.7 29.0 1967 482.6 656.3 26.5 1968 549.3 755.3 27.3 1969 509.4 676.1 24.7 1970 737.4 1,125.2 34.5 Average 480.1 697.6 31.2 1 Pesos per 1,000 kg Resecada. 2 Pesos per 1,000 kg fob export steaer (converted at IMF rates of exchange). / As percentage of fob price. Source: Basic Data Central Bank and BAEcon. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 34: COCONUT OIL AND COPRA NEAL - MARKETING MARGINS Price- Oi4sCr~ 6/ Year Copra Pricei/ Oil as_cpr Meal as Copra Oil Margin Oil & Meal Margin- Copra Margin6/ 1961 301.6 473.1 57.4 36.2 75.9 37.8 1962 367.2 535.2 85.1 31.4 6t.9 35.2 1963 431.8 598.6 95.7 27.9 60.8 32.2 1964 432.8 653.6 77.5 33.8 68.9 35.5 1965 562.5 722.7 89.5 27.1 54.3 30.0 1966 462.4 600.8 98.4 23.0 51.2 29.0 1967 482.6 647.2 81.2 25.4 50.9 26.5 1968 549.3 760.6 80.5 27.8 53.1 27.3 1969 509.4 629.9 73.1 19.1 36.0 24.7 1970 737.4 1,161.7 135.5 36.2 75.9 34.5 1/ From Table 10.1, column (1) (Pesos per 1,000 kg). 2/ Export price converted basis 64/ extraction rate (Pesos per 1,000 kg). 3/ Export price converted basis 35% extraction rate (Pesos per 1,000 kg). 4/ Difference between (2) and (1) as percentage of (2). 5/ Difference between LT2) + (3f and (1) as percentage of L2) + (3)7. 6/ From Table 10.1, column (3). Source: Basic Data: Central Bank and BAEcon. Exchange rates IMF. X PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 35 TOBACCO: EXPORTS, IMPORTS AND VALUES EXCESS EXPORTS OVER EX P 0 RTS IMPORT S EXCESS IMPORTS FOB FOB Landed Landed Landed Quantity Value Value Value Quantity Value Value Value Quantity Value m tons 1000 US$ Pesos/kg US cents/lb m tons '000 US$ Pesos/kg US cents/lb m tons 1000 US$ 1964 33,341 18,130 2.12 24.65 514 650 4.93 126.46 32,917 17,480 1965 24,571 13,590 2.16 25.13 903 830 3.60 91.91 23,668 12,760 1966 22,146 10,680 1.88 21.93 1,740 1,980 4.45 113.14 20,406 8,700 1967 27,438 12,720 1.82 21.07 2,436 3,200 5.15 131.36 25,002 9,520 1968 33,440 17,090 2.01 23.23 3,157 4,870 6.05 154.26 30,283 12,200 1969 32,625 16,020 1.93 22.32 4,836 8,110 6.62 167.70 27,789 7,910 Source: FAO Trade Yearbook 1970 and USDA. D) z ANNEX 1 PHILIPPINES Table AGRICULTURAL SECTOR SURVEY Table 36: AREA PRODUCTION, YIELD AND VALUE OF NATIVE (CIGAR) TOBACCO 1964-1971 Total Year Area Production Yield Value to Farmer Value TaT (Kg) (Kg/per ha) (peso/kg) (US cents/lb) IUUU Peso 1964 61,020 44,133,00 723 0.56 6.5 24,876.7 1965 47,290 28,566,800 60% 0.55 6.4 15,800.0 1966 60,300 43,276,000 717 0.64 7.5 27,850.6 1967 57,700 36,413,000 631 0.82 9.5 29,767.0 1968 65,890 47,960,000 728 0.98 11.3 46,912.0 1969 57,082-/ 36,943,700 647 1.73 19.9 64,078.3 1970 54,040 39,222,700 726 2.05 14.5 80,317.3 1971 46,6402/ 35,776,hoo 769 1.85 13.1 66,296.1 1/ Estimate. 2/ Preliminary Source of Basic Data: BAEcon and PTA. PHILIPPINES ANNEX 10 Table 37 AGRICULTURAL SECTOR SURVEY Table 37: PTA BUYING EXPENSES Crop Purchase Year Bales Cost Overhead Percentage 1958 18,415.45 P1,491,926.o6 P 366,o7.32 24.53% 1959 24,605.46 1,748,097.74 481,90.72 27.56 1960 4,533.68 434,626.24 310,890.06 71.53 1961 23,876.01 3,024,219.65 1,00,544.70 46631 1962 1,O4O.29 1,607,167.76 992,698.83 61.76 1963 29,056.95 3,412,147.92 1,672,849.58 49.02 1964 30,685.42 3,186,512.03 2,093,111.14 65.68 1965 5,007.23 477,359.45 1,L111,059.05 2W1.39 1966 4,846.09 565,952.84 889,359.14 157.14, 1967 6,677.55 844,O19.05 807,418.30 95.70 Source: Philippines Tobacco Administration PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 38: PRICE CYCLE OF CIGAR LEAF TOBACCO (Annual/Season Price Average for Three (3) Years (1966-1968) in Leaf Tobacco Buying, by Period and System in the Cagayan Valley (Isabela, Cagayan and Nueva Vizcaya)by Private Sector BASIS - Registered Average Annual Leaf Crop of 19.5 Million Kilos (Three (3) Provinces) BUYING VOLUM IN AVERAGE PRICE VOLUME OF LEAF PRICE INCREASE STACES AND SYSTEM OF BUYING PERIOD OR PER CENT MILLION PER KILO CROP PRUCHASED AVERAGE BY MONTH BROUGHT KILOS (Farmers' Level) (Farmers' Level) PERIOD 1. FIRST STAGE a. Private Sector Nov.-Dec. 15% 2.925M P0.25 P 731,250.00 b. PTA (not yet ready to buy) 2. SECOND STAGE a. Private Sector Jan.-Feb. 15% 2.925M PO.47 1,374,750.00 b. PTA (not yet ready to buy) B. EARLY STAGE OF LEAF BUYING WITH CASH 1. Private sector Mar.-Apr. 15% 2.925M PO.52 1,521,000.00 PC.436 (45%) (8.775M) P 3,627,000.00 2. PTA (Buying Program not yet started) C. MIDDLE STAGE OF LEAF BUYING WITH CASH 1. Private Sector Apr.-May 30% 5.850M PO.80 P 4,680,000.00 PO.564 (75%) (14.725M) P 8,307,000.00 2. PTA (Buying Program not yet started) D. LAST STAGE BUYJNG WIT11 PTA BUYING 1. Private Sector June-Sept. 20% 3.900M P1.06 P 4,134,000,00 PO.661 (95%) (18.625M) P12,441,000.00) 2. PTA (Buying starts JUNE) 5% 0.975MI P1.05 P 1,023,750.00 P1.06 1/ 100% (19.600M) P13,464,750.00 (PO.69)- co Source: PTA ANNEX 10 Table 39 PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 39: AREA AND PRODUCTION FIGURES, VIRGINIA (FLUE CURED) BAEcon PVTA Area 1/ Production 2/ Area 1/ Production 2/ Yield 3/ 1964 34,500 20,907.6 62,399 48,175.8 772 1965 28,790 17,150.9 60,229 46,218.2 767 1966 25,370 14,846.0 39,109 26,075.5 668 1967 24,800 14,739.7 44,265 31,933.0 726 1968 28,660 17,369.5 49,221 45,000.2 914 1969 - - 60,606 55,552.7 916 1970 33,370 21,983.3 48,614 45,123.6 928 1971 28,950 20,037.3 31,510 30,395.0 965 1/ Hectares 2/ '000 metric tons 3/ Kilograms per hectare IT/ Estimated. PHILIPPINES AGRICULTURAL SECTOR SURVEY Table 40: VEGETABLE PRICE STRUCTURE: PADRE RADA-DIVISORIA AREA AND PUBLIC MARKETS SELLING PRICES /2/ 3/ akei Commodity Description Unit Farmer- Viaero2/ Wholesale- Retai MarkginZi -------------- Peso s------------------- Percent Ampalaya Pampanga kg 0.60 0.70 0.80 1.20 50 Cabbage Baguio kg 0.20 0.30 0.35-40 0.80 75 Vigan kg 0.15 0.25 0.30 0.60 75 Garlic Ilocos kg 3.60 4.00-5.00 5.50-6.00 10.00 64 Onions White kg 0.30 0.30-40 0.35-45 0.80 62 Pechay Tagalog kg 0.10 0.15 0.20 0.60 83 Potato White kg 0.95 1.00 1.10-1.20 1.60-1.70 41-47 Tomatoes Native kg 0.15-J.20 0.25 0.35 0.60 66-75 Calamansi Bicol kg 1.00 - 1.70 2.20 54 Banana Latundan piece 0.02 - 0.035 0.05 60 1/Provides containers; may bear shrinkage allowance as for onions. 7/May finance farmer and wholesaler. Bears transport cost, "tong" and pilferage in transit, plus handling fees at source. 3/Pays stall or market space fees, handling and "protection" fees within market. May pay storage fees and finance retailers or large buyers. 4/Bears risk of carrying inventory, losses through peeling, shrinkage, trimming and.spoilage. 3 Pays stall fees. 5/As percentage of retail price. (D OTO Source: Compiled from data collected & processed by the Economics and Information Unit GMTFM, February 1971. PHILIPPINES ANNEX 10 Table 41 AGRICULTURAL SECTOR SURVEY Table 4i: CASSAVA, AREA, PRODUCTION AND VALUE Area1/ Production2/ Unit Value! Total ValueP- 1964 93,5ho 596.2 0.09 55,099.2 1965 93,280 645.7 0.08 54,561.5 1966 89,700 614.4 0.11 65,075.2 1967 86,520 528.7 0.13 69,567.5 1968 83,880 481.9 0.15 74,453.9 1969 85,690 487.3 0.18 87,066.2 1970 82,620 4h2.2 0.31 138,198.3 1971 81,820 427.1 0.33 142,456.5 Hectare. '000 m tons. Pesos per Kilo. '000 Pesos. Source: BAEcon. 16RD-10217R 11е° 1 0° 1 2° 1 4' 1 6° APR1L I873� CLA551F1CAT10N Oi PROVINCES, D Г Н � L � Г Г Е 1 V EJ ВУ GEOGHAPMICAL REG10N5, '972 ° 9QJ� TRANSPORT SYSTEM "1.CITYOFMANILA V11.WESTERNVISAYAS � `,� а V 18е 35. Ak1an '-"'-"-" 18° п aocos зб. АпбЧие 5 п Vicente Geп.Sonros Project Locat оп L АЬга Эг поио . z, иосо,ио,ге Эв, саР�= °"' Primory Highwoy5 Э. 1locosSur э9. ив9го.осс�аспгаi L°о° а, оаип,оп 2 ) �--.-�»--. Roilwo s ао. Rотыоп / У 5. Моипга�п Province s. вапупег vuL ЕАSтЕRи Vi5AVA5 _ 0 .i3 Principal PorfS 7. гшуао 4г. вона j �; 8 .� Trunk Line А rporl 8. Ka�iпga�Apavao q2 Се� Э Ти9ие °г°О 111.CAGAYAN VALLEV а3. Norгherп Leyte r -------- D151f1c1 BOUnCJOГ1QS � 9 вагапег а4. Souгhcrn Lсуге '. __ - - го, саауап 45. Ев,гетsатаг ' iiogon - Regional Boundaries г г i: ьвiа 48. иеугог Олепгаi 3 5-" --• гz. ииа°awzcaya 4г иопnет5вта. � �г - lnternoliono Boundaries 48. WеггегпSатаг ' ^1;� l ' iv. сеит8А� шzои 5°п ;.'6 I�, ,_ �� �6° г3, вагаал 1Х. NORTHERN & EASTERN Fernon � � �6° 14. виlасап MINDANAO 0�5г Веп иег �,z 15. Nueva Еп1а 49. Agusan tlei Norte от 7hr дипгг�l.r.iгг dr��n�r' .гп thi5 пар ✓г, иг,1 � nrrp/и г•iнlr�rs<rпrril rr а�rгрги�п bг� гhг ге. Ратпап9а 5о. виигдпоп и,,.юfrшгктвгiлвlГ+�а�ег. 17. Pangas ап 57. Lапво aeI Norte ° оп � t8. Ta�lacln 52. Lвпао де1 Sur Bug 11оп 19. 2ambalcs ° )os 53. Misamis Осс�депгаl 54. Misamis Orien[а1 � v.юитнЕниТА0А�оG 55. 5иг�ааодгiиопв ;�Т�г�9с С°Ьап °п /�� ю о so ioo iso еоо 2о. 8atangas ц, 5urigao де1 5иг �• / L U Z О/ V 2г Cyvlte __ K1LOмpтERS 2z. �а9иПга 5z Agu:anamsur 9�',._ ,-'\'- 23. Маг� аи9ие 5в. свп�9и�п у 14 I 2а. Мидогоосс�nемвг 01опд°р _ _ SFегпоЛдо 25. Мгпдотог�епгвг х. 5оитнЕни а wеsТЕни 13 8'•27 �� о 26. Palawan MINDANAO А 1L PosiЗ, 2Z оиекоп 59. СогаЬаго 14, 28. игzаi Go. Davao deI Nогге Covi Р а С 1 f/ С �q° 6t. Zamboaпga dei Nогге Taqo г у � Р Sг S uz / ose Ропgогоб°п . vi. eic0� Р �, : 0 63. Sulu�aпqa де1 Sur Nozugб Q �� �ис' о 9 ° 29. А1Ьау 30. Сатаггпег None 6q, 5оит Стаьаго О С е а П эг. сатагие:sиг �о -'' v 5о�п 3� ; 3 32, Сагапдиапек 65. Oavao deI 5ur � � Вого о5 \ Nog ._i у 3з. маsЬат 66. Oavao Ог;опп� �Со1а °п �q� 1OC 3а. 5огковоп р 2З С= _ Та6°ср ��' � � 29' edFJ МINO 024 ``� � � �/ - -- Р _.�� ��У � � Sou/h Chiпo �� ��дАо� ,1 , '� а 5°п 1os � (4� � �s6°г� д 47 -- 12° SB а `', р� а� � 3 о Calбayog��. 12° Q U А5В `оа� � ;,�AMAR и11оп�, � "- � �: C0rбobg° 1 к .о5\1 �� ,л � ;35 а �' � О г а PANAY � 38 о (з а//��J' 'то оп р 1._" ;� а в"''Ог о � 0 son 1о5е б�,� / ; д3 ��° о П де Виеп°.ist 1oi1o � BUQпjrд �7 /��- °соlо Г,('и �� а L.i `Лг Ри1° °пQ° 39 о% 6 Д '� Уц 2 еи � ZЬ >.� - , IO° �°°sin �,f� го° NE ROS� 41 � `( �, иеrго Princes° � 5uri 95 �р PA L A W A N �,С, ВОНО[ J BOyow° ДЬ � . ; � -.,. ит uete � ' %� / 58 qq,, NaSip' ��,� �:/g 4 �зиге п.- ;56 SU/U Sea D°Рiю °д °��п _ - О U Ь,�--р 53к � Ggarf�T 1г� -- ^/ '� ; --�� so � М � N О А / V - .'"-Рад°di°п 5�. ' � � / � е° 2 0° 5� , ЬО ?Ьб СогаЬаг , � � с н i и д �ТА�wыи �, �/ 4 �.г � ' и . iЕтид Z°тЬо°п � г Q Рос�1�с В�оп 59 , Digos у\ � Осеоп �iг </ -. гг'� 5nuzn ' Л В 5/[AN А �5S ��1 Сhгпо PHIUPPINE$ VD' •- -' 1` Ь4 кнмЕв� seo v° 1о1 бз О'•. Gen 5оп о REP %5 ,�иЕ Ам � ы� д р. 0 да � д�� р, �р ;; г� оа Се/ebes Sea ' виии г �( /,,J� р� MALAV 1 � � ,J/v'gQ i N D 0 N Е 1 д Г/�✓0°' i22° У24° � 6° 18RD 10218 П8° ! О° 1 2° 124' � 6° оееЕмееИ гвп CLASSIFICATIONOFPROVINCES, Q� �nI�I��I���� � еУ GEOORaP1Hp1 ZAl нEG10NS, ч АΡ 1. C1TV OF MANILA V11. WESTERN VISAYAS �� а О�� / 1\ I� L� ��О t• ie° з5. nk�an '�� -----v- ��9%S) 1в° u.i�OCOS зв. ппгсqиа 7, АЬга 37. 11oi1o и+��.� 2. 11осоs Norre зв. СаР1к АРO1Г1 з. иовояsиг 39. иврго:Оввfдвпгвг �г �; $саlе of flow (iп Cavans Ра1ау 45kg5) а. Еа ипlлп аб. Rотыоп г; � 5. моипхатРгоviпсе - �r 1r; --� Less thon-5oo,000 6. Веприеt VПUEASTERNVISAYAS СΡ� 7. нирво а1. eoboi � -' ц" в. каип9а-nРаую а2. cew ;' 1 � �. __ --�-� so оо - о оо 1i � о,о г,о о,о • 9Э. Northern LeYta г w.cncnrnиvnEEEY аа. sоогьетЕечгв -- .,,� ,,,,,,, ;�:., ,-,^, 2,о0о,000-3,500,о0о 9. ватпа: л5. Еагтгп Samar ю. ирачап аб. ивр.оs Orвпwi _ -� 11. 1геЬем 97. NorthlгП бвтдг у� �: ,2. иивва�,ксауа <6. wаягвтбатаг � ��,.-�• ��1 з,soo,ooo-s,ooo,000 1V. CENTNAL IUZOи 1%. нORTHERN & EASYERN лJ�' ��г3-' �-- 16° i6° 13. ввгввп Мгиопило 9;, , �- 5,000,000- Over ОВе(+ 14. виlасап 49. AgusaпdelNorгв � `-s� �.-��� • "� �/ 15. Nueva Edja 5и. Bukidnoп -�_ //�м ,в. Ратрюра 51. wпаодеiиопе - ,j%� ----_____ �i5trict boundories 17. Panpasinan 52, Lапюдвl5иг 18. Уагlас 53. Misamu Occidental _- _ � 19. ZатЬаlея 50, MisamisOriomal = -ы� -+��.•� ц. гиг�раодегиогге . ,f -� Regional бoundaries v.50итЧ�нитАОпИОс 56, su.�pюdвisur )g �' 1 2о. вагапраг 57. при.юдв�5иг -�- - lnьemationol бoundaries 21. Cevite � ' 58. Camipuin' .� 22. Laguna �� ��"� �� t 23. Mariпduque Х. SOUTHEfiN & WESTERN R, '; { � 50 0 50 100 150 200 N 24. Миеого0осiдвпtаl MINDANAO �,'\_ ; ll1 г г , i � i 25. MiпдoroOriemai 59. Согаьаго '113 � ? с�t 2В. Раlаwап 6D. Davaodel Norte А°' ���� v р Kilomelers 2). Оиекоп 81. Zamboanpa де1 Norte ,��� � 2в, Rizai 62. Zвтбоапра дв1 5иг 14° вз. 5uw ��� P 7 c i f i c 14°- � и. вгсоЕ sa. soum согатгл 2 г, О 3U 29, А1Ьау 65. Davao деI 5иг D р ЗО. Сатагlпе:иоггв 6в. ОаvюОг{впгвг �П�__ .�� �� Осеап з1. сатаппвг 5иг .и°г млwп и л.с. '� ` з2. сагюеиапвг __ � �з� i 33, МагЬагв О (I�...�,уΡ 34. 5оггоеоп / v � � I.� Ё. . �4 s 24 д о м ` �� � � ,. South Chiпo %�' Q; --�.�, 0� ���111 ,г Q 7 4 � 3�', ' � ° � - �z° Se а . � �z° ��� .� _ _-_ � � aq ` � ` 3 � �••.,,,,,, �, _,,,J О• а , 0 р , --'J�i"., е �, _РГf г� Уо 1' О !V о �.6� � 1 д � �g� .� и f� � --°°...� з4�,� f io• 2б /,г '�7� •" б !, � О° ! 41 � � о Риегго Princesa �у 1 � � r пб "'г� `эг-_ �Р� � � �� i - ;',,i Su/и Seo - I ап ' ' 7 ' � )i ; а � Е, _ t_,, sз -_ � _ _ oi. - - /�t' S1 •' `51� - ---- ,; 8° 'тг ипвпдап , д�иип лп rЫr мд ап пог �7 � _ �� L . \ '�1! -� - "" " 8° lniplv гмдовостепг т перипК Ьу rhr "У �� wо,iаввпк°мгпвlNюга -� } _ С н i и n л � Cotabar ' .� ( frлiwди _ v о К� V t� _ V1ETN � > Zamбoan - Q Pacilic � Осеоп jг :Г�\ Sau1h Л �ъ _ '___ г S i�1 САiпо 1L1PP1NES VD '• ����,'�: ---- !,' �• - ..:::::.... , кнмеи� 5ео b3 • � вЕVт JS. а Q О�1 � ,SviET дм � f`�� j' В� р 0 _ � �� оа �р Се/ebes Seo 'г виии i р� MALAY 5 г i Q �-�� 1 0° 122° �124° 1 6° �1ND0 NE 1 д '
Groupe de la Banque mondiale · Pre-2003 Economic or Sector Report
Philippines - Agricultural sector survey (Vol. 3 of 4) : Annexes 6-10 : Rice production, corn and grain feed production, sugar and tobacco production, rice estimate of supply and disappearance, and crops marketing
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