The rice seed market in the Philippines is projected to witness a CAGR of 2.5% during the forecast period (2020-2025). Private companies account for around 90% of the total hybrid seeds distribution to the farmers, while in terms of non-hybrid seeds, government outlets account for around 80% of the seed distribution to farmers. 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
New Variety Developments on an Extensive Scale
The ongoing R&D in the rice seed market of the Philippines has boosted the new product developments on an extensive scale. For instance, in 2015, the National Seed Industry Council (NSIC) approved 14 new inbred and dry-seeded varieties developed by the Philippine Rice Research Institute (PhilRice), International Rice Research Institute (IRRI), and University of the Philippines Los Baños (UPLB). To date, the country released 19 drought-tolerant rice hybrids for the rainfed lowlands, four for the uplands, and 15 for saline-prone environments. Apart from being more resilient, climate-smart rice varieties are also being developed in the country. The recently released drought-tolerant rice variety, NSIC Rc 282, offered encouraging results during 2016, in an on-farm trial in Cuyapon. The contribution of these varieties to the country's food security is even more crucial because of the Philippines ' most vulnerable to climate change. Thus, these new innovations are more prone to address the challenges faced by Filipino farmers.
Rising Exports of Organic Rice from the Country
Organic agriculture is the current solution that is being promoted in developing countries, like the Philippines, which is sought to improve the productivity of farmers, while attaining environmental sustainability in crop production. Despite the efforts made by the Philippin government to promote organic agriculture for rice, its rate of adoption is still very low, particularly in the regions, like Camarines Sur, Iloilo, Negros Oriental, and Negros Occidental. With the increasing demand for organic rice in the developed markets, such as the United Kingdom and the United States, the majority of the domestic organic rice production is being directed toward export markets. In 2017, the Don Bosco Multipurpose Cooperative in the Philippines shipped around 13.5 metric ton of organic pigmented rice to the United Arab Emirates and the United States.
The rice seed sales in the Philippines increased by 6%, which can be primarily attributed to an increase in volume, which was offset by 1% decline in the local currency value and volatile exchange rates. In terms of market share dominance, SL Agritech Corporation accounted for the largest market share, followed by Bayer CropScience Inc., Pioneer Hi-Bred Philippines Inc., Syngenta Philippines Inc., and Advanta Limited.
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