Initiatives towards inclusive trading practices of rice value chain in Pila, Laguna, Philippines

¹ Department of Agribusiness Management and Entrepreneurship, University of the Philippines Los Baños, College, Laguna, 4031, Philippines
² Department of Agricultural and Applied Economics, University of the Philippines Los Baños, College, Laguna, 4031, Philippines
³ National Crop Protection Center, University of the Philippines Los Baños, College, Laguna, 4031, Philippines

^* Corresponding author: medecastro@up.edu.ph

Abstract

Rice industry in the Philippines is beset with environmental, social, and economic concerns resulting in low farmer incomes, lack of food security and meager competitiveness. This study aimed to develop inclusive interventions on rice trading practices involving smallholder farmers. Primary data were derived from baseline interviews from farmers, traders, millers, wholesalers, and retailers to assess trading practices involved in the chain. Stakeholder consultations were also conducted to validate the findings and identify strategies for the initiatives. Based on the results, the major challenges identified include high production and marketing costs of paddy attributed to high material inputs and labor costs. This leads to a low profit margin for smallholder farmers. This gap relates to poor market linkage that limits the ability of farmers to receive higher prices for their produce. Interventions involving the improvement of marketability through market innovation were prioritized to address the gap. Recommendations concerning reducing institutional barriers towards smallholder farmers was provided to broaden adoption of inclusive trading practices and foster a more equitable and sustainable rice value chain.