BIBLIOGRAPHY BATAWANG, JAMES L. APRIL 2011. ...
BIBLIOGRAPHY

BATAWANG, JAMES L. APRIL 2011. A Comparative Study on the Economic
Profitability of Taiwan and Ginulot Rice of Bila, Bauko, Mountain Province. Benguet State
University, La Trinidad, Benguet.

Adviser: Jovita M. Sim, MSc.


ABSTRACT



The study was conducted to determine the differences in production methods, postharvest
methods, yield of Taiwan and Ginulot rice, the cost incurred and returns derived from the two
varieties and determine the profitability of both varieties through cost and return analysis.

Forty five rice farmers producing Taiwan and Ginulot rice served as respondents of the
study. Majority of the Taiwan rice farmer respondents were from aged ranged of 30 to 40 years
old while the Ginulot rice farmers were older from 71 to 80 years old. Majority had rice farming
as major source of livelihood and wit an income ranging from P50,000 to 100,000 per annum.
All the farmers were producing the two varieties because of better price and income.

Cost and return analysis showed that Taiwan rice variety had a lower production cost at
an average cost of P21,520 but comprises most of the cash cost incurred while the Ginulot rice
variety had an average cost of P25,330 which comprises most of the non-cash cost such as
family labor and opportunity cost for organic inputs. Ginulot rice production gave a higher
income because of the premium price given to heirloom or traditional rice.

With the support of the Regional Development Council (RDC) and the Revitalize
Indigenous Cordillera Entrepreneurs (RICE) who are promoting heirloom rice production for

export it is recommended that production of heirloom rice like Ginulot should continue to meet
the demand of export market providing a better price and better income to heirloom rice growers
in Mountain Province.

ii 
 

TABLE OF CONTENTS

Page
Bibliography…...…………………………………………………………………... i
Abstract…………………………………………………………………………….. i
Table of Contents…………………………………………………………………...
ii
INTRODUCTION…………………………………………………………………. 1
Rationale……………………………………………………………………. 1

Statement of the Problem……………………………………………………
2

Objectives of the Study……………………………………………………...
2

Importance of the Study……………………………………………………..
3

Scope and Delimitation……………………………………………………...
3
REVIEW OF LITERATURE

Profitability…………………………………………………………………. 4
Price
Comparison…………………………………………………………… 4

Cost and Yield Comparison…………………………………………………
4

Cordillera Heirloom Rice Project and
Revitalize Indigenous Cordillera
Entrepreneurs (RICE) ………………………………………………………
5
 
METHODOLOGY………………………………………………………………… 7

Locale and Time of the Study……………………………………………….
7

Respondents of the Study…………………………………………………...
7
Research
Instruments……………………………………………………….. 7

Data Gathered .……………………………………………………………...
7

Data
Analysis……………………………………………………………….. 7
RESULTS AND DISCUSSION

Profile of the Farmers Producing Taiwan
Rice and Ginulot Rice ………………………………………………………
8


Major Source of Income…………………………………………………….
11

Annual Income of the Farmers ……………………………………………..
11

Farm Size of Respondents ………………………………………………….
12

Source of Planting Materials ………………………………………………..
12

Year Started in Producing Rice Variety…………………………………….
13

Number of years Producing Rice Variety …………………………………..
14

Reasons of the Farmers in Producing
Taiwan Rice and Ginulot …………………………………………………...
15

Market Outlet of Respondents ……………………………………………..
16

Production Practices/Methods for Taiwan
and Ginulot Rice ……………………………………………………………
17

Implements Used in the Production of Taiwan
and Ginulot Rice Varieties ………………………………………………….
17

Labor Utilization ……………………………………………………………
18

Labor Utilization ……………………………………………………………
18

Comparative Cost and Return Analysis
of Taiwan and Ginulot Rice
Production ………………………………………………………………….
18
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ………………
21

Summary
…………………………………………………………………… 21
Conclusions
…………………………………………………………………
22
Recommendations
…………………………………………………………..
23

LITERARTURE CITED…………………………………………………………...
24
APPENDIX …………………………………………………………………….
25

A. Letter o the Respondents……………………………………...................
25

B. Survey Questionnaire…………………………………………………….
26




















 
 

 
 


INTRODUCTION


Rationale
Rice (Oryza sativa) is the principal food for the tropical population, and more
than half of the world’s population depends heavily on rice for sustenance. It is typically
grown in paddy land, which can alternately irrigated and also drained. Rice also supplies
high quality of carbohydrates, protein and sufficient stocks of rice bran feed. In the
Philippines rice is grown throughout the year (IRRI, 1985) and is the major staple food.
Despite of the introduction of varieties form IRRI, the Cordillera are still
producing the traditional or heirloom varieties of rice. There are over 300 indigenous rice
species in the rice terraces all over the Cordillera Administrative Region. However, at
present there are only 11 to 18 heirloom rice varieties reportedly grown in the different
terraces of the Cordillera. Ironically, most of the rice producing barangays in Mountain
province grow only 3-6 varieties compared to the 8 to 15 varieties in the previous decade.
Twelve out of the 145 barangays in the different municipalities of Mountain Province
grow 7 to 12 varieties and that the same are all located in Bauko, Mountain Province, the
biggest municipality in the province.
Bauko is one of the municipalities of Mountain Province. Most of the barangays
of Bauko are planting rice as their main crop. Bila is one of the barangays of the
municipality. Eighty percent of the population are rice farmers. The heirloom rice
varieties grown in the area include the Ginulot or Unkil rice, Senyora Red, Kintoman.
Aside from the heirloom rice farmers are also planting hybrid rice like the Intan and
Taiwan.
 
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011 
 



 
Taiwan rice is now widely produced in the area because of the high yield.
However, there are few farmers who are producing the traditional variety (Ginulot), and
there is also a growing demand for this traditional rice variety especially if grown in
traditional way and are referred to as heirloom rice. According to some farmers in Bila,
Taiwan variety was introduced in 1993 by the farmers from Aluling.
This study therefore was conducted to look into the costs incurred by the farmers
and the returns they get from producing it and analyze the profitability of producing
Taiwan rice and growing heirloom rice using the Ginulot variety.

Statement of the Problem
The study specifically aimed to answer the following questions:
1. What the differences of Taiwan rice and the Ginulot rice in terms of: (a)
production methods/ practices, (b) post harvest methods, and (c) yield?
2. What are the costs incurred in Taiwan and Ginulot rice production?
3. What are the returns derived from Taiwan, Ginulot rice production?
4. Which is more profitable between the two rice varieties?

Objectives of the Study
The objectives of the study were the following:
1. To identify the differences of the Taiwan rice and Ginulot rice in terms of: (a)
production methods/ practices, (b) post harvest methods, and (c) yield?
2. To find out what are the cost incurred in Taiwan and Ginulot rice production?
3. To find out what are the returns derived from Taiwan, Ginulot rice
production?
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
4. To find out which is more profitable between the two rice varieties

Importance of the Study
Farmer’s decision on the selection of crop and crops variety to plant depends on
the yield and returns (profitability), ease of production, market preference and outlet and
the availability of resources. Thus, result of the study could be used by the farmers on the
decision on what variety to plant in order to maximize profit. Result could also serve as a
guide for other who will be conducting similar studies.

Scope and Delimitation
The study focused on the profitability of Ginulot rice and Taiwan rice in Bila,
Bauko, Mountain Province.













A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
REVIEW OF LITERATURE

Profitability
Profitability is the ability of a company to earn a profit. It is relative measure of
success for a business (Investor Dictionary, 2010).
Farmers manage and stimulate the growth of plants and animals on their farms.
The production activities then on each farm constitute a business enterprise where cost
and returns are important (PCAC, 1979).
According to Rola (1997), in the Philippines, farmer’s current crop protection
practices are chemical-based. Studies show that even if farmers have indigenous
knowledge of other crop protection measures, they still use pesticides unilaterally,
especially in crops other than rice.

Price Comparison
Under this scheme, farmers get to sell a 50 kg sack of rice P2500 which is better
than 1,200 per sack for hybrid rice. Yield per hectare for heirloom rice is 50-60% of the
average 80 cavans per hectare for hybrid rice, though. That offsets the price difference
per kilo. If you consider for the savings obtain because of less expense for chemical
fertilizers and pesticides, then maybe there is a better profit margin (Cariňo, 2008).

Cost and Yield Comparison

Detailed analysis of the individual farm operations for the wet season, 1972-1973
showed a distinct relationship between yield and cost of production per cavan. Farmers
who used relatively larger amounts of important inputs and practiced improved cultural
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
practices realized higher yields. The increased yield had a tendency to reduce the cost of
production per cavan (Pecadizo et al, 1973).

Cordillera Heirloom Rice Project and Revitalize
Indigenous Cordillera Entrepreneurs (RICE)


Through the Cordillera Heirloom Rice Project, the RICE, Inc, developed a
sustainable economic enterprise that is now helping farmers use their traditional
knowledge and expertise in terrace farming and rice cultivation to develop a globally
competitive especially food product (Domoguen, 2007).

Heirloom rice will be marketed as a positive social and ecological purchases. The
Philippine Rice Terraces of Northern Luzon stand in quiet testament to a culture that has
revolved around rice, ecology and relationship to the environment. Over the centuries,
indigenous farmers carved into the steep mountainsides an engineering masterpiece of
integrated irrigated rice terraces. In 1995, UNESCO designated five of the most
spectacular terraces areas as World Heritage sites. These dramatic terraced landscapes
were the first sites to be designated within the category of “living culture landscapes”
(Hensley, 2005).

The potential international market for heirloom rice encouraged numerous rice
terraces in the three provinces of Cordillera (Mountain Province, Ifugao and Kalinga) to
go back to their rice farms and continue indigenous farming practices which are helpful
in the preservation and protection of the rapidly denuded watersheds especially in the
three provinces (See, 2010). Furthermore, See added that because of the shift from
chemical farming to organic rice farming, the greenery in the denuded mountains is
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
slowly going back since the barren areas are now being planted with herbs, shrubs and
grasses which are used as organic fertilizers of the heirloom rice.

Hundreds of native rice farmers in this landlocked province will export at least
eight tons of heirloom rice to the lucrative United States (US) market this year to
augment the volume of native native rice being exported by the province of Kalinga and
Ifugao. The heirloom rice to be exported will be sourced out from the different
municipalities of Mountain Province such as Tadian, Bauko, Natonin, Sadanga and
Barlig (See, 2010).















A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
METHODOLOGY


Locale and Time of the Study
The study was conducted in Bila, Bauko, Mountain Province. The study was
conducted from September to October 2010.

Respondents of the Study
A total of 40 rice farmers growing Taiwan variety and five farmers growing
Ginulot rice variety served as source of data. The respondents were chosen at random.

Research Instruments
The study made use of secondary and primary date. Primary data were gathered
through survey. Survey questionnaire were distributed to the respondents. Data were
validated on the collection period of questionnaire. Secondary data were taken from the
record of Municipal Agricultural Office.

Data Gathered
The data gathered were the physical features, production methods, post harvest
methods and yield of Taiwan and Ginulot rice. The cost incurred and returns derived in
Ginulot and Taiwan rice production were gathered for the cost and return analysis

Data Analysis
The data collected were analyzed using frequency and descriptive analysis. Cost
and return analysis and Return on Expenses (ROEs) were used on the profitability
analysis
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
RESULTS AND DISCUSSION

Profile of the Farmers Producing
Taiwan and Ginulot Rice


The profiles of the farmers were described as to their age, gender, civil status and
educational attainment.
Age. For the respondents producing Taiwan rice, 10% were ages ranging from 30
to 40 years old; 42.50% were ages ranging from 41 to 50 years old; 27.50% were ages
ranging from 51 to 60 years old; 12.50% were ages ranging from 61 to 70 years and
7.50% were ages ranging from 71 to 80 years old. This shows that there were still old
farmers who are into rice production and interesting to note that they have accepted the
new variety of rice. For the respondents producing the traditional variety- Ginulot rice,
20% were ages ranging from 41 to 50 years old; 20% were ages ranging from 51-60
years old; 20% were ages ranging from 61-70 years old and 40% were ages ranging from
71 to 80 years old. There were no rice farmers ranging from ages 30 to 40 years who
were planting the Ginulot rice. As expected, majority of the rice farmers producing the
traditional variety were older or are already senior citizens.
The result implies that still the older farmers are not receptive to changes on
technology such as change on variety planted or even changes on planting
methods/practices. The younger farmers were more receptive to changes, thus, majority
of them had changed the traditional variety to Taiwan which is high yielding and shorter
maturity.
Gender. Farming is a job both for male and female. As shown in the result, 50%
of the respondents who were into Taiwan rice production were male and 50% were
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 


 
female. All the respondents for Ginulot rice production were females. This result implies
that in farming, male and female are equal.
Civil status. Majority (97.5%) of the respondents were married only one was
single.
Educational
attainment. Some of the farmers have not attended formal education
but some also have attended formal education. For the Taiwan rice respondents, 2.5
percent of the respondents have no formal education, 35% have finished or undergraduate
of elementary, 42.50% have finished undergraduate of high school, and 20% have
finished college. For the Ginulot rice respondents, 40 percent of the respondents have no
formal education, 20% have finished elementary, 40% have finished high school. This
result implies that for Taiwan rice growers, most of them had finished or undergraduate
of high school and for the Ginulot respondents, most of had finished high school and no
formal education.
Household size of the respondents.


Table 1 shows the distribution of
respondents according to household size, annual household income and their major
source of income. Based on the number of household, Taiwan rice farmer respondents,
(57.5%) have a household size of 1 to 4 members and (42.5%) have a household size of 5
to 9 members. For the Ginulot rice farmer respondents, (40%) have a household size of 1
to 4 members and (60%) have a household size of 5 to 9 members. According to the
farmer, the big size of a family is an advantage in farming because of labor. Farming
requires intensive labor, thus, the family labor could be utilized. Most of the problem of
farmers in the area was lack of labor, because majority of the labor forces have migrated
to the urban areas like Baguio City and La Trinidad, Benguet.
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

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Table 1. Profile of the respondents
TAIWAN RICE FARMERS
GINULOT RICE FARMERS
PARTICULAR
F % F %
Age (years)




30 – 40
4
10.00
0
-
41 – 50
17
42.50
1
20
51 – 60
11
27.50
1
20
61 – 70
5
12.50
1
20
71 - 80
3
7.50
2
40
TOTAL
40
100.00
5
100
Gender



Male
20
50.00


Female
20
50.00
5
100
TOTAL
40
100.00
5
100
Civil status




Single
1
2.50
0
-
Married
39
97.50
5
100
TOTAL 40
100.00
5
100
Educational attainment




No formal education
1
2.50
2
40
Elementary level
14
35.00
1
20
Secondary level
17
42.50
2
40
College level
8
20.00


TOTAL
40
100.00
5
100
Household members




1 – 4
23
57.50
2
40
4 – 9
17
42.50
3
60
TOTAL 40
100.00
5
100


A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

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Major Source of Income

Majority (87%) of the Taiwan rice farmers mentioned that farming is their major
source of income while all the Ginulot rice farmer respondents were into farming as
major source of income (Table 2). There were two respondents who were employed but
were also engaged in farming and three respondents were engaged in business and
farming is an alternative/additional source of income. Result implies that for some
farmers, rice farming is only a source of additional income or source of rice for home
consumption especially if the area planted is small.

Annual Income of the Farmers
Rice production is not as attractive as other crops especially for high value
vegetable crops. In terms of production and income rice production is too laborious as
compared to vegetables. In the case of Bila, Bauko Mountain Province result shows that
income of farmers were high ranging from P50,000 to 200,000 per annum with an
average annual income of P125,000 from rice farming. For Taiwan rice farmer, 40
percent of the respondents had an income of P50,000 – 100,000 annually and 27.5% had
an annual income of PhP 101,000-200,000 and for the Ginulot rice farmer respondents,
20% had an income of PhP 50,000- 100,000 per annum. The result implies that the rice
farming in Bila, Bauko Mountain Province provide a high to farmers. This maybe
attributed to the high price both for Taiwan and Ginulot rice. According to the report of
Carino (2008), a 50 kgs (1 cavan) of Taiwan rice sells at P2,500 per cavan and P2,800 per
cavan for Ginulot rice as compared to the hybrid rice which sells P1,500 per 50 kgs or
one cavan..

A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

12 
 
Table 2. Major source of income and annual income of respondents
TAIWAN RICE
GINULOT RICE
FARMERS
FARMERS
PARTICULAR

F % F %
Major source of income




Farming
35
87.50
5
100
Employment
3
7.50


Business
2
5.00


TOTAL 40
100.00

5
100
Annual household income





P50,000 – 100,000
16
40.00
1
20
P101,000 – 200,000
11
27.50




Farm Size of Respondents

Table 3 shows the farm size of the respondents. Ten or 25% of the farmers
producing Taiwan rice have small area ranging from 200 to 250 sq.m. , 35% have an
area of 251 to 500 sq.m. and 27.5% have an area of 501 to 1,000 sq.m. Result shows
that farm area of farmers is relatively small. Farmers producing Ginulot rice have also
small farm size. Majority (80%) has 200 to 250 sq.m. area and 20% have 501 to 1,000
sq.m. area.

Source of Planting Materials

All the respondents used palay from their previous harvest as planting materials.
Farmers buy from other farmers who have extra if there is shortage of seeds. The
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

13 
 
Table 3. Farm size of respondents
TAIWAN RICE
GINULOT RICE
SIZE
(SQ.M)
FREQUENCY PERCENTAGE PARTICULARS FREQUENCY
200-250 sq.m
10
25.00
4
80
251-500 sq.m
14
35.00


501-1000 sq.m
11
27.50
1
20

common practice of the respondents is after harvest a portion of the harvest is set aside
for seeds.

Year Started in Producing Rice Variety

According to the respondents Taiwan rice have been introduced in the area in
1993 by a farmer from Aluling, from there the number of farmers producing the variety
had increased to 28 from 1993 to 2000 (Table 4). The number of Taiwan producer
increased because of a better price for Taiwan rice as compare to other commercial rice
or the IRRI varieties. These farmers shifted to Taiwan from the Ginulot rice production.
In early 2000’s, the government started to promote organic production of crops until the
Executive Order 481 was signed in 2005, the government (Municipal Agriculture Office)
organized rice farmers and promoted production of traditional rice referred to as heirloom
rice. Heirloom rice are traditional varieties and were produced in the old traditional or
indigenous method of production where no chemical inputs were used. The conventional
or production with chemical inputs started in the area when Taiwan rice was also
introduced. With the RA 100681 (Organic Agriculture Act), the Department of
Agriculture through the Municipal Agriculture Office strengthened the Heirloom rice
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

14 
 
Table 4. Year started in rice farming by the respondents
TAIWAN RICE FARMERS
GINULOT RICE FARMERS
YEAR STARTED
F % F %
1950 - 1980


1
20
1981 - 2000
28
70
2
40
2001 - 2010
12
30
2
40
TOTAL 40
100
5
100

production organization in Mountain Province and other areas of Cordillera
Administrative Region.
For the Taiwan rice respondents, 70% of the respondents started late 90’s to 2000,
Twelve or 30% of the respondents started Taiwan rice production in 2001 to 2010. On
Ginulot rice production, 20% of the respondents started production in 1950-1980, 40%
started in 1981-2000 and 40% started in 2001 to 2010 (Table 4). This implies that Ginulot
rice production had started long ago.

Number of Years Producing Rice Variety

Table 5 shows the respondents number of years in producing Ginulot and Taiwan
rice. For the Taiwan rice respondents, 52.50% of the respondents have been in rice
production for 1 to 10 years, and 47.50% percent have been in rice production for 11 to
20 years. For the Ginulot rice respondents, 40% of the respondents have been in rice
production for 11 to 20 years, 20% for 21 to 30 years and 40% have in rice production
for more than 30 years. The result implies that most of the respondents had produced the
Taiwan variety for 1to 10 years.
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

15 
 
Table 5. Number of years growing the variety

TAIWAN RICE
GINULOT RICE
NUMBER OF
YEARS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
1 to 10
21
52.50

11 to 20
19
47.50
2
40
21 to 30


1
20
31 and above


2
40
TOTAL 40
100
.00
5
100


Reasons of the Farmers in Producing
Taiwan Rice and Ginulot Rice


Table 6 shows the reasons of the respondents in producing Taiwan and Ginulot
rice. Majority (90%) of the respondents producing Taiwan and all the respondents
producing Ginulot rice mentioned that the reasons why they produce these varieties were
because of premium price providing them a better income. As stated by Cariňo (2008),
traditional rice varieties from the Cordillera commands a better price at P2,500 per cavan
as compared to the hybrid or Mestisa rice at P1,500 per cavan. Other farmers produce for
own/home consumption especially that these varieties of rice are good eating quality.
The Ginulot rice is sold as heirloom rice, taste and aroma is good. The findings shows
that majority of the respondents are concerned with the income benefits, that the major
reason of producing the varieties was because of a better income derived. Furthermore,
the respondents were producing the rice both for income and for consumption.
Sometimes farmers sell their produce at a higher price and purchase NFA rice which has
a lower price.
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

16 
 
Table 6. Reasons in producing Taiwan and Ginulot rice
TAIWAN RICE
GINULOT RICE
REASONS
FREQUENCY PERCENTAGE FREQUENCY PERCENTAGE
Better income
delivered
36
90 5 100

Premium price
36
90
5
100
Home
40
100
2
40
consumption


Market
22
55
2
40

*Multiple response

Market Outlet of Respondents

Table 7 shows the market outlet of the respondents. Taiwan rice producers sell
their produce to nearby barangays (17.50%), sell to their neighbor in the barangay
(40.00%) and 17.50% sell to rice agent/traders. The Ginulot rice producers sell their
produce to nearby barangays (40%). Result implies that most of the rice produced in Bila
were sold in the community and neighbors and nearby barangays and few sell to agents
and are sold to other areas as heirloom rice.

Table 7. Market outlet of the respondents
TAIWAN RICE
GINULOT RICE
MARKET
OUTLET
FREQUENCY PERCENTAGE PARTICULARS FREQUENCY
nearby
7
17.50
2
40
barangays

Neighbors in the
16 40.00
barangay



Agent
7
17.50


*Multiple response
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

17 
 
Production Practices/Methods for Taiwan
and Ginulot Rice


Production practices and method vary for Taiwan and Ginulot rice. Taiwan rice
production follows the conventional method similar with other rice producing areas in the
Philippines. Chemical fertilizers such as complete fertilizer (Triple 14 or 16) were
applied to the plants to get a better yield. Insecticides were also used to protect the plant
from pest. Plant height of Taiwan rice is short approximately 1.5 to 2 ft. and are early
maturing (4-5 months) as compared to Ginulot rice at 5-7 months maturity with a height
of 3 to 4 ft. The quantity of fertilizer applied on Taiwan rice varies among farmers
sometimes it depends on the availability of cash to purchase farm inputs. On the average,
the amount of fertilizer applied is 2 bags per hectare.
Traditional or indigenous practice was employed in the production of Ginulot
fertilizers used were organic such as application of sunflower leaves in the farm, animal
manure and other materials that are available in the area.
In harvesting, Taiwan rice, producers practice the “gapas” method. “Gapas” is a
local term of harvesting palay where the palay are cut from the base of the plant. Ginulot
rice is harvested through “ani” method. “Ani” is a local term of harvesting palay with
the use of “lakem” to cut the palay from the plant from a length of 1.5 ft. This is
practiced for Ginulot because the plant is tall.


Implements Used in the Production of Taiwan
and Ginulot Rice Varieties

In the production of Taiwan and Ginulot rice varieties, the implements used are
the same. The farmers in the area use carabao and grab hoe to plow the farm area. They
use sickle and bolo to clean the surroundings of the area. In harvesting also, in Taiwan
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

18 
 
rice, the farmer uses sickle and thresher while in Ginulot rice, farmers uses the old
tradition as the “lakem”.

Labor Utilization


Production of the two varieties of rice differs on the application of fertilizers and
on the harvesting method. Land preparation is the same. More labor is required for the
Ginulot rice production because of the additional 20 mandays for the gathering of
sunflower leaves and manure for fertilizer, additional manual milling and threshing and
harvesting which takes a longer time.


Comparative Cost and Return Analysis of Taiwan
and Ginulot Rice Production


The Taiwan rice had a lower price as compared with the Ginulot rice (Table 8).
Ginulot rice when sold in the market are classified as heirloom rice which command a
higher price almost double than the commercial rice.
Under this scheme, farmers get to sell a 50 kg sack of rice P2500 which is better
than 1,200 per sack for hybrid rice. Yield per hectare for heirloom rice is 50-60% of the
average 80 cavans per hectare for hybrid rice, though. That offsets the price difference
per kilo. If you consider for the savings obtain because of less expense for chemical
fertilizers and pesticides, then maybe there is a better profit margin (Cariňo, 2008).

On the cost and return analysis, result shows that lower cost of production is
incurred with Taiwan rice production at an average cost of P 21,520 per ha and for
Ginulot rice at an average cost of P 25, 330, a difference of P3, 810. The cost incurred in
Taiwan rice production comprises most of cash cost while for Ginulot rice it is more on
non-cash cost using opportunity cost in the analysis. However, net income derived from
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

19 
 
Ginulot rice (P118,670 per ha) was a little higher than the Taiwan rice (P118,480 per ha)
because of the premium price for Ginulot or heirloom rice. If production/yield of
Ginulot rice would increase then a better profit will be derived. Return for cash cost
cost/expenses was higher for Ginulot rice at 12.39.

Result implies that growing both variety of rice provides a good income to the
farmers. However, the priority of the Agriculture Office is the production of heirloom
rice (growing the traditional/indigenous varieties using also traditional or indigenous
method), because of the agreement with United States that the Cordillera will export 8
tons of heirloom rice per year (See, 2010). The export of heirloom rice to the US is being
administered by the Revitalized Indigenous Cordillera Entrepreneurs (RICE) which has
established linkages with prospective markets in order to accommodate the increasing
production of native rice. Revitalized Indigenous Cordillera Entrepreneurs (RICE) is a
non-stock (non-profit) corporation registered in the Philippines with a mission to preserve
heirloom rice and the culture of the community rice production that surrounds it.

Table 8. Comparative cost and return analysis of Taiwan and Ginulot rice production (1
ha)

PARTICULAR TAIWAN
GINULOT
Gross Sales/Revenue


Yield (cavans)
56
48
Price (P)
2,500
3,000
TOTAL REVENUE
140,000
144,000
Cost of Production


Cash Cost


Fertilizer
3,200

Insecticide
800

 
A Comparative Study on the Economic Profitability of Taiwan
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Table 8. Continued.
PARTICULAR TAIWAN
GINULOT
Weedicide/herbicide
1,200

Labor (uprooting seedlings, planting


and harvesting)
3,000
4,500

Labor (Land preparation)
1,500
1,500
Threshing cost
3,000
3,000
Milling cost
3,000

Sacks
660
580
TOTAL CASH COST
13,760
9,580
Non-Cash Cost


Seeds
2,200
2,200
Compost, sunflower leaves, etc. (labor

4,000
for collecting and hauling)
-

Manual milling

2,000
Drying of palay
1,500
1,500
Labor
cost
(Land
preparation,


uprooting of seedlings, transplanting,


harvesting, etc)
4,000
6,000

Depreciation cost
60
50
TOTAL NON-CASH COST
7,760
15,750
TOTAL COST
21,520
25,330
NET INCOME
118,480
118,670
RETURN ON EXPENSES
5.51
4.68
RETURN ON CASH COST/EXPENSES
9.32
12.39
RETURN ABOVE CASH COST
126,240
134,420
RETURN ABOVE NON-CASH COST
132,240
128,250

A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

21 
 
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

Summary

The study was conducted to describe the differences of Taiwan rice and the
Ginulot rice production in terms of production methods, post harvest methods and yield.
To identify the cost incurred in Taiwan and Ginulot rice production, identify the returns
derived from Taiwan and Ginulot rice production and to identify which is more profitable
between the two varieties.
There were 45 respondents from the area which is 40 for Taiwan and 5 for the
Ginulot rice. The data were collected through survey using survey questionnaire.
Findings show that majority of the respondents for Taiwan rice were ages ranging 30-40
years old while for Ginulot rice were ages ranging 71-80 years old. The number of male
respondents is equal to the number of female respondents which implies that farming is
both a work for male and female.
Majority of the respondents had rice production or farming as their major source
of income and some consider it as additional source of income or rice for home
consumption. Most of the respondents had an annual income ranging 50,000-100,000 for
both Taiwan and Ginulot rice farmer respondents. For both Taiwan and Ginulot rice
farmer respondents, majority were in rice production for 1-10 years.
Majority of the respondents mentioned that they grow Taiwan and Ginulot rice
because both varieties deliver a better income. This is due to the fact that the price of
both rice is premium or higher than the other rice varieties commonly grown in other
areas of the Philippines. The result show that income derived from production is the
major consideration of farmers in the decision on what variety to produce.
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

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Cost and return analysis, result shows that lower cost of production is incurred
with Taiwan rice production at an average cost of P 21,520 per ha and for Ginulot rice at
an average cost of P25, 330. The cost incurred in Taiwan rice production comprises most
of cash cost while for Ginulot rice it is more on non-cash cost. Net income derived from
Ginulot rice (P118,670 per ha) was a little higher than the Taiwan rice (P118,480 per ha)
because of the premium price for Ginulot or heirloom rice. Return for cash cost
cost/expenses was higher for Ginulot rice at 12.39.

Conclusions
Based on the findings the following conclusions were derived;
1. Production of Taiwan rice employed conventional method using synthetic
fertilizers and chemical pesticides. Production of Ginulot rice follows the traditional or
indigenous rice production practiced by old folks in the area. Thus more labor is utilized
in Ginulot rice production.
2. Production of both Taiwan rice and Ginulot are profitability giving a high
income ranging at P 118,480 and P118,670 per annum respectively.
3. Yield of Taiwan rice was higher as compared to Ginulot rice but the price of
Ginulot variety was higher thus higher income for Ginulot rice.

Recommendations
Based on the conclusions, it is recommended the production of both varieties to
continue in the area to cater to the export and local market because of the good eating
quality of both varieties. With the assistance of RICE to heirloom rice farmers in the
Cordillera and linkage to the US market then farmers should be encourage to produce
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

23 
 
heirloom rice to meet the demand of the market at the same time supporting the
objectives of the RICE. The growing of heirloom rice in Mountain Province, Ifugao and
Kalinga is a significant development of the government in an effort of the concerned
agencies to preserve and protect the man-made rice terraces as well as the bid to preserve
and protect the deteriorating watersheds and forest in the region being spearheaded by
the Regional Development Council.

















A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

24 
 
LITERATURE CITED

CARIŇO, D. 2008. Highland rice varieties target global markets. Retrieved July 28,
2010 from http;//querry.nytimes.com/gst/abstract.html

DOMOGUEN, R.L. 2007. Hankering for more Indigenous Rice from the Rice Terraces.
Retrieved February 18, 2011 from http://7 4.6147.41/search/srpcache? ei=UTF.
8&p=Heirloom +rice+pr

HENSLEY, M. 2005. SIT Alumni Promote Traditional Rice Farming in the Philippines.
World Learning. Bridging Cultures, Transforming Lives. Retrieved February 18,
2011 from http://ourworld . worldlearning.org/site/News2?page=News Article

INTERNATIONAL RICE RESEARCH INSTITUTE, 1985. Rice Production in the
Philippines. IRRI Research Results. University of the Philippines, Los Baños,
Laguna, Philippines.

INVESTOR DICTIONARY. 2010. Profitability Analysis. Retrieved July 28, 2010 from
http/www.investor dictionary .com/definition/profitability.aspx

PRESIDENTIAL COMMITTEE ON AGRICULTURAL CREDIT (PCAC). 1979.
Agricultural Concepts for Rural Progress: Concepts and Procedures.

PECADIZO L.M., N.M. FORTUNA, and E.P. ABARIENTOS. 1973. Cost of producing
palay in Laguna. Department of Agricultural Economics. University of the
Philippines. Los Banos, Laguna. P. 1.

ROLA, A. C. 1997. Pesticides, Rice Productivity and Farmers’ Health; An Assessment.
IRRI. Manila Philippines.

SEE, D.A. 2010. RP to Export Heirloom Rice to US. Retrieved February 18, 2011 from
http://74.6147.41/search/srpcache?ei=UTF.8&p=Heirloom +rice+pr






A Comparative Study on the Economic Profitability of Taiwan
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APPENDICES
APPENDIX A
Letter to the Respondents

Republic of the Philippines
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT


September 2010

Sir/Madam:
I am a fourth year student taking up Bachelor of Science in Agriculture major in
Agricultural Economics at Benguet State University. To fulfill my field of study, I am
required to conduct this research titled, “A Comparative Study on the Economic
Profitability of Taiwan and Ginulot Rice of Bila, Bauko, Mountain Province”. In this
connection, may I therefore ask your time, your honesty, and sincerity in giving the
needed information about my study.
Thank you very much! God bless you.

Respectfully yours,
JAMES L. BATAWANG
Student Researcher



Noted by:

JOVITA M. SIM
Thesis Adviser
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

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APPENDIX B
Farm Survey Questionnaire

A. Farmers Profile
Name: ____________________
Age: ________
Gender: ___________ Marital Status: ____________
Educational Attainment
____ No formal education
____ Elementary graduate ____Vocational
____ High school graduate ____ College graduate
_____Others, specify
Household size: ______
Annual household income: ______
Major source of income: _______
What are the varieties of rice produced?
How many years producing that variety?
Reasons in producing that variety of rice
____ Low cost of inputs

____ Premium price
____ Better income Delivered
____Others, specify
B. Farm Profile
Farm location:
Year started farming:
Characteristics of the farm area:
____ Elevation
____ Open area
Size of the farm area: _______________________________________
A Comparative Study on the Economic Profitability of Taiwan
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Source of planting materials:
____ Own seeds



____ from neighbors
____ bought from farm supplies

____ Others, specify
C. Labor Cost
MD/MH/ MA
COST/MD/MH
TOTAL COST
ACTIVITY
Taiwan Ginulot Taiwan Ginulot
Taiwan
Ginulot
Rice
Rice
Rice
Land
Preparation

Planting
Fallowing
Weeding
Fertilizer
Harvesting

D. Farm inputs
QUANTITY PRICE
FARM INPUTS

Taiwan rice
Ginulot
Taiwan rice
Ginulot
Seedlings


Fertilizer




Sacks,




Pesticide,


Weedicide




A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

28 
 

E. Farm implements
QUANTITY PRICE
FARM IMPLEMENTS
Taiwan
Ginulot
Taiwan
Ginulot
Rice
Rice
Plow



Sickle



Grab hoe




Trowel



Bolo



Irrigation implements




Shovel




F. Variety
Variety
Can(s)of rice produced
Price per cavan
Taiwan Rice


Ginulot Rice



What is/(are) your market outlet(s)?

Are you producing for the market or for home consumption?



 
A Comparative Study on the Economic Profitability of Taiwan
and Ginulot Rice/ James L. Batawang 2011
 

Document Outline

  • A Comparative Study on the EconomicProfitability of Taiwan and Ginulot Rice of Bila, Bauko, Mountain Province
    • BIBLIOGRAPHY
    • ABSTRACT
    • TABLE OF CONTENTS
    • INTRODUCTION
    • REVIEW OF LITERATURE
    • METHODOLOGY
    • RESULTS AND DISCUSSION
    • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
    • LITERATURE CITED
    • APPENDICES