The Philippines hybrid rice seed market is projected to register a CAGR of 4.3% during the forecast period (2021 - 2026). Due to Covid-19, the country suffered from supply chain disruptions.The farmers suffered due to the shortage of planting material and other services. The primary producers and all the players in the value chain have suffered income losses. The lockdown restrictions has led to transportation problems across the country. Although the area under rice crop declined in 2016 over that of 2015, the area expanded to reach 4.8 million hectares in 2018. The production area of hybrid rice in the Philippines is still low at around 200,000 hectares, as compared to some of its neighboring countries, such as Vietnam and Indonesia. Although the country is one of the major consumers of rice globally, it is still a net importer of the commodity. Thus, the country is aiming to boost its domestic production of rice by introducing hybrid seeds. The market for hybrid rice is on the rise in the Philippines. As the government is pushing toward increasing the area under the cultivation of hybrid rice, it is trying to change the procurement method of hybrid rice, in order to provide better-quality hybrid seeds to the farmers.
Key Market Trends
Favourable Government Initiatives
Rice is an important food crop as well as a source of livelihood in the Philippines. The intakes from the “Food Staples Sufficiency Program 2011-2016” reveals that in the country, more than two million households are engaged in rice-based farming and trading for a living. The report also mentions that around 45% of the calorie intake of the Filipino comes from rice. Rice imports went up, owing to the growing population and increased incomes, particularly among the lower-income consumer groups. These supply shortages and price instability can further have serious implications for poverty and hunger in the country. Thus, in order to address these supply shortages, the government took an initiative named the Food Staples Self-sufficiency Program (FSSP) to boost the overall agricultural productivity, in order to achieve the national goal of self-sufficiency. This policy provided the rice producers a stable and remunerative environment that is conducive to investment in higher farm productivity. While rice is the main focus of FSSP, other equally healthy staples are also included in the program.
Increased Adoption toward Modern Rice Varieties
Over the years, technological innovations have been prominent in rice production in the Philippines. The establishment of two rice R&D institutions, namely, the Philippine Rice Research Institute (PhilRice) and the International Rice Research Institute (IRRI), paved the way for extensive development of modern rice technologies in the Philippines. According to the International Rice Research Institute Data verse analysis, the choice of a rice variety for farming depends on many reasons, like high yielding, faster maturity rate, high milling recovery, and intermediate amylose content. Moreover, in the early 2000s, the total area planted with modern varieties of rice was 75% in both irrigated and rainfed areas, which increased to 100% in 2003. This further dropped down to 88% in 2016. This sharp decline was primarily attributed to the modern varieties (developed in 2016) that failed to meet the desired yielding choices of the farmers.
The Philippines Hybrid Rice Seed Market is a consolidated market with few players in the market. Bayer CropScience Inc. has been one of the most active players, in the market. Some of the other prominent players are Bioseed Research Philippines Inc., Long Ping Hi-Tech, Meta-helix, Lifesciences Ltd, Pioneer Hi-Bred Philippines Inc., S L Agritech Corporation, and Syngenta Philippines Inc.
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