Philippines Hybrid Rice Seed Market is projected to grow at a CAGR of 5.2% during the forecast period (2020-2025). Although the area under rice crop declined in 2016, over 2015, the area had expanded to reach 4.8 million hectares in 2018. The production area of hybrid rice in the Philippines is still quite 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. This is the reason that the country is aiming at boosting 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 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
Increasing Government Initiatives, like Food Staples Self-sufficiency Program
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 more than two million households are engaged in rice-based farming and trading for a living in the country. The report also mentions that around 45% of the calorie intake of the Filipinos comes from rice. Rice imports went up, owing to the growing population and increased incomes, particularly among the lower-income consumer groups. Imports as a proportion of consumption escalated to 16.4% in 2006-2010, from less than 1.4% in the 2000’s. 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 has taken an initiative named 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, conducive to invest 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 to plant depends on many reasons, including high yielding, faster maturity rate, high milling recovery, and intermediate amylose content. Moreover, in the early 2000s, the total rice area planted to modern varieties 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 is primarily attributed to the modern varieties (developed in 2016) that failed to meet the desired yielding choices of the farmers.
Bayer CropScience Inc. has been one of the most active players for the past five years in the Philippines hybrid rice seed 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., among others.
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