DA pushes for more rice facilities
The Department of Agriculture (DA) is pushing for the development of additional rice mills to maximize production and reduce postharvest losses.
In particular, the agency is looking at building more Rice Processing System (RPS) units — comprised of machines used for drying palay (unmilled rice) and milling. This, even as the DA is boosting the capacity of the existing large-scale ones.
Agriculture Secretary Francisco Tiu Laurel Jr. said the DA is batting for capacity utilization to improve production efficiency and redirect funds for other purposes.
“Our target utilization rate is 80 to 85 percent,” Tiu Laurel said in a statement on Tuesday.
“That’s where efficiency improves, costs go down, and all parties—millers, farmers, and consumers—benefit, provided other costs hold steady,” he said.
The DA emphasized that aiming for a full capacity often signals “monopolistic conditions,” although the agriculture chief downplayed concerns that such expansion might lead to overcapacity in the milling sector.
“More important than rated milling capacity is capacity utilization,” Tiu Laurel said. “To break even, operators need at least 63 percent capacity usage. Go below that, and you’re losing money.”
According to the DA, the Philippine Center for Postharvest Development and Mechanization (PHilMech) can use funds from building additional mills and dryers to supporting production equipment such as tractors and seeders.
This could boost the National Food Authority’s milling and drying capacity.
