Contents

Foreword

Session 1: Maintaining Rice Grain Quality

Design features and specifications of the PRPC recirculating batch dryer

A.R. Elepaño, D.D. Alojado Jr., R.E. Manalabe, and D.B. de Padua

Standards for grain dryers

D.C. Aranguren, P.S. Madamba, and A.N. Resurreccion

Assessment of milled rice quality in the Philippine retail market

R.R. Bakker, E.A. Jarcia, M.C.E. Jawili, R.D. Billate, I.R. Barredo,
D.B. De Padua, and C.C. Mangaoang

Organic grain protection in the Philippine setting

F. Caliboso, R. Caliboso, J. Dator, R. Tiongson, C. de Dios, and E. Martinez

A rotary cutting mechanism for rice harvesting

E.U. Bautista, M.J.C. Regalado, A.S. Juliano, S. Ishihara, and H. Monobe

Varietal differences in drying rates and fissure occurrence in heated air drying of rice
M.J.C. Regalado and E. Bekki

Session 2: Enhancing the profitability and sustainability of the rice-processing business

Factors affecting the use of mechanical dryers

A.C. Rodriguez and R.R. Paz

The modern integrated rice business: a concept

F.V. Borromeo

The cooperative rice milling business

F.M. Torrizo

Session 3: Institutional development through information, training, and extension

Development and promotion of the Maligaya flatbed dryer

E.C. Gagelonia, E.U. Bautista, M.J.C. Regalado, and R.E. Aldas

Evaluation of the performance of NFA farm-level grain centers

R.A. Macutay

The impact of training professional managers: a case study on the performance of

professional managers handling cooperative-based grain-processing enterprises
R.M. Recometa, R.R. Paz, and R.S. Rapusas

1
 Session 1:
Maintaining rice grain quality

1
Design features and specifications of the PRPC
recirculating batch dryer
A.R. Elepaño, D.D. Alojado Jr., R.E. Manalabe, and D.B. de Padua

The development of the PRPC recirculating batch dryer for rough rice is one of the
hardware components of the “grain drying systems” project of the Philippine Rice
Postproduction Consortium (PRPC). A rapid appraisal of the drying technology
being used by farmer cooperatives was conducted to determine the advantages,
problems, and constraints in using mechanical grain dryers. Most of the respon-
dents appreciated the importance of the mechanical grain dryers, particularly in the
wet season, when solar energy is not available for drying their crops. It was learned
also that the typical farmer cooperative has an average membership of 50 farmers,
with a total aggregate farm area of 100 ha. Based on this information, the design
features and specifications of the PRPC recirculating batch dryer were established.

Drying is the most critical postharvest operation. It is
the key method of preservation—for stabilizing and
preventing biodegradation of freshly harvested
crops. Therefore, providing farmers with access to
crop dryers is the key to reducing postharvest losses.
During the wet season, roughly 10% of palay harvest
is lost because of the inability of farmers to sun-dry
their harvest on time. Mechanical drying systems not
dependent on solar radiation are needed, particularly
during the wet season, to prevent outright rotting,
discoloration, and rapid grain quality deterioration.
Mechanical dryers are needed for both product
stabilization and to control mold infestation and
aflatoxin contamination, especially in maize. Proper
drying is an essential requisite for safe grain storage
for further processing and distribution.
Grain drying technology is critical in the chain
of rice postproduction operations (Table 1). The unit
cost of mechanical drying is slightly higher than that
of sun drying. Mechanical drying systems require
certain economies of scale and considerable skill to
operate and maintain. The engineering science for
grain drying is well understood. The problem lies in
matching the technology with the socioeconomic
requirements of small farms and the grain marketing
system.

Table 1. Rice postproduction operations and technologies.

Operation Technology Capacity Usage (%) Losses (%)

Harvesting Manual 240 man-h ha–1 99.8 2.0–3.0

Reaper 2.4–3.8 ha d–1 nil 0.2–0.4
Combine 4.5–8 ha d–1 nil
Threshing Manual 0.05–0.1 t h–1 person–1 31.0 2.1–4.2
Axial-flow 0.05–0.1 t h–1 69.0 0.1–1.6
Drying Sundrying 24 kg m–2 86.0 1.0–5.0
Flatbed 1.0–5 t batch–1 14.0 0.4–1.2
Recirculating 1.2–10 t batch–1 – –
Continuous 2.0–10 t h–1 – –
Milling Kiskisan 0.1–0.3 t h–1 10.5 –
Cono 0.5–2.0 t h–1 33.2 –
Rubber roll 0.5–2.5 t h–1 56.1 –
Storage Bag 14 m3 t–1 99.0 2.0–6.0
Bulk 1.5–1.7 m3 t–1 1.0 –

3
 The main objectives of the Philippine Rice
Postproduction Consortium (PRPC) in its grain
drying technology project are (1) to determine and
design a grain dryer that matches the socioeconomic
requirement of the end-users, particularly the farmers’
cooperatives; (2) to localize the design of grain
dryers, thus generating employment for the skilled
manpower in the manufacturing industry; and (3) to
reduce grain postharvest losses by providing the
right grain postharvest technology.
Methodology
To properly determine the basic features and
specifications of grain dryers that match the end-
users’ needs, a rapid appraisal survey (RAS) was
conducted to examine the various grain dryers being
used in the industry. The RAS team consists of
engineers, social scientists, economists, and grain
postharvest experts from the PRPC member institu-
tions (IRRI, NFA, BPRE, PhilRice, and UPLB).
Farmer cooperatives in selected areas of Luzon were
the focus of the RAS. End-users were asked what
were the advantages, problems, and difficulties they
experienced in using mechanical dryers.
Results and discussion
The RAS indicated that end-users really need the
mechanical dryers, especially during the wet season,
when solar energy is not available for grain drying.
Most of the subject dryers were the recirculating
batch type. Some of the major problems and difficul-
ties encountered were (1) lack of reliable after-sales
service for the dryers; users complained that it took a
week for the company technician to respond to their
need for repair or troubleshooting of the dryer; (2)
construction of the dryer is flimsy and users thought
it wouldn’t last its 5-year economic life; (3) the auger
for loading wears rapidly because of the very
abrasive nature of paddy; and (4) the dryer operators
lack technical knowledge for repairs, maintenance,
and troubleshooting. They also lack a thorough
understanding of the operating principles of the
dryer. Most of the respondent farmer cooperatives
have 50 to 100 members. With this information, the
design features and specifications of the PRPC dryer
and its accessories were established as follows:
Design reference of the PRPC dryer
Farmer cooperative membership is 50, aggregate area
is 100 ha, average yield is 5 t ha–1, the harvesting
period is 30 days, the daily average volume of paddy
4
for drying is [(100 ha) × (5 t ha–1)]/30 days = 16.7 t
day–1, and design capacity is 8 t per batch and 2
batches per day during the drying operation.
Basic design features of the PRPC (recirculating
batch) dryer
Dryer capacity = 8 t per batch
Loading/unloading capacity = 10 t h–1 with bucket
elevator
Recirculating unloader = rotary blades and belt
conveyor
Temperature control = adjustable drying temperature
Energy source = burner (diesel fuel) controlled by
preset drying temperature
Drying section = LSU type with inverted V-ducts at
1-t capacity
Computed average moisture reduction = 1% per hour
Drying airflow requirement = 6,000 cfm, static
pressure = 2 in water
Computed drying time = 8–10 h depending on initial
moisture content
Design, fabrication, testing, and evaluation of the
PRPC dryer
A team of engineers and social scientists from the
member agencies of the Philippine Rice
Postproduction Consortium was tasked to design,
test, and evaluate the performance of the PRPC dryer.
In addition, the Metalworking Industry Association
of the Philippines (MIAP) was identified as the
private partner that will take charge of constructing
the dryer prototypes to be tested and thereafter
constructing and selling the PRPC dryer commercial
models. The MIAP had assured the consortium that
its group could manufacture the PRPC dryer with the
same or better quality than the imported ones at the
same selling price or even lower. A memorandum of
agreement between MIAP and PRPC will be put in
place to this effect.
The “grain drying systems” project
A consortium of engineers and social scientists from
the primary research agencies of the country collabo-
rated to provide solutions to grain postproduction
problems in the Philippines. The design, fabrication,
testing, and evaluation are just one of the hardware
components of the “grain drying systems project.”
The PRPC piloted the grain drying systems that can
be used effectively to reduce postharvest losses. The
group came up with the design specifications of a
recirculating batch dryer (based on a rapid appraisal
survey of farmer cooperatives in Luzon, Table 2) and
collaborated with the MIAP to produce the dryer Table 2. Basic features of grain dryer beneficiaries in
Luzon.
prototype and its auxiliary facilities.
A training course was developed and conducted End user Capacity Type of grain
for the collaborating end-users on its operation and being dried
maintenance. The users were informed about the Custom 1.5–8 t delivery–1 Short to long,
principles of proper drying to maintain grain quality drying-servicing farmer –1 wet grain
in harvesting-drying operations. They set up an after- farmer groups
and cooperatives
sales inventory network. The same course will be Family-owned rice
extended to the service technicians of dealers, local mills
governments, and engineers of the Department of Small scale – –
Medium (2 t h–1) 10–30 t batch–1 Uses 3
Agriculture. varieties
Large scale (8 t h–1) 40–120 t batch–1 Uses 3
Who will benefit from this project? varieties
Primary cooperative
The primary beneficiaries of this project are the 1 t h–1 mill 1–3 t batch–1 –
multipurpose cooperatives of rice and maize farmers co-op –1
engaged in trading and primary processing. Their
basic profile is shown in Table 2.
The secondary groups who will be benefited are • To develop an external system of support services
the medium-scale rice millers, the local manufactur- for the efficient and effective use of grain dryers.
ing industry, and its skilled workers. This will also
benefit local machinery dealers and service contrac- Strategic plan
tors. Consequently, consumers will get a better Through the consortium, the project will conduct
quality of rice. consultative meetings with the government’s
agricultural modernization program so that the
Economic justification project will be in line with its national plans. A
The grain drying systems project will multidisciplinary team was tasked to consult with
• Minimize postharvest losses; potential users of the technologies and to come up
• Improve grain quality output during the wet with concepts for a drying plant.
season; A design team from the consortium will be
• Obtain better prices for rough rice and milled rice; constituted to work on the different components of
• Provide suitable, efficient, and cheaper grain the drying plant. During the design period, engineers
dryers; and from the manufacturers will facilitate the preparation
• Provide local employment for skilled workers in of production specifications and drawings.
the manufacturing industry. The MIAP will make the first dryer prototype for
performance testing and evaluation. Commercial-
What is the “system technology”? scale testing will be done in collaboration with the
Included in the complete drying system are private sector and a multidisciplinary team will
• Palay precleaners and a drying plant conduct the socioeconomic evaluation.
• A temporary holding bin for wet and dry paddy
• Working sheds and an auxiliary weighing scale
• An on-line moisture meter
Features of the PRPC grain dryer
The prototype dryer has an 8-t batch capacity A localized design of a batch recirculating mechani-
that has undergone technical tests. The dryer can be cal dryer (currently imported from Taiwan) was
sclaed up to higher capacity if needed. designed to overcome the abrasive character of the
rough rice. The dryer can be reconfigured for drying
Project objectives shelled maize with higher drying temperatures for
The project’s objectives are single-pass drying.
• To localize the design and manufacturing of grain The dryer was designed for mass production to
dryers intended for farmer groups and private reduce fabrication costs. Other than this, the parts of
millers, the dryer were standardized for easy maintenance. It
• To develop the capability of target users to be was also fitted with exhaust dust collectors.
able to use drying technology profitably on a
sustained basis, and

5
 Many dryer types, models, drying schemes, and
institutional arrangements have been tried in the
Philippine setting. The batch recirculating dryer
seems to be the most appropriate and acceptable.
Two people can load it and the rough rice is uni-
formly dried. The drying system runs by itself until
the grain is dried up to 14%, after which the grain is
unloaded.
Features of the temporary holding bin
A typical cooperative would have about 50 farm
household members. They have an aggregate farm
area of 100 ha, with yields of 5 t ha–1 or 500 t of
rough rice harvest per season. Within a cooperative,
the planting and harvesting period is about 30 days.
The harvesting rate is therefore about 16 t d–1. An 8-t
batch dryer can handle 2 to 3 loads per day or 16 to
24 t d–1. Hence, the temporary holding bin must be
able to accomodate this volume.
Drying plant design considerations
Site selection depends on the following: accessibil-
ity, power, water, peace and order, and the cost of
land
• Rice production (yield, area, and irrigation)
• Economics (market demand, competitiveness,
capital availability, and credit)
• Cooperative (management, technical capability,
labor availability)
6
Conclusions
1. The recirculating batch dryer was already
popularly accepted by most of the farmer
cooperatives that were surveyed.
2. The end-users need basic training on repairs and
maintenance, and troubleshooting, and a
thorough knowledge of how the system operates.
3. The imported recirculating batch dryers need to
be redesigned to eliminate the problems
encountered by end-users.
4. An 8-t per batch capacity recirculating dryer for
paddy is appropriate to handle the average
volume being harvested by the farmer coopera-
tives in the Philippines.
Notes
Authors’ addresses: A.R. Elepaño, University of the
Philippines Los Baños; D.D. Alojado Jr., National
Food Authority; R.E. Manalabe, Bureau of Postharvest
Research and Extension; D.B. de Padua, International
Rice Research Institute.
Standards for grain dryers
D.C. Aranguren, P.S. Madamba, and A.N. Resurreccion

Standard specifications for and methods for testing grain dyers were developed
under the project “Standardization of Postharvest Machinery Testing and Evalua-
tion, which was funded by the Bureau of Postharvest Research and Extension
(BPRE) and implemented by the University of the Philippines Los Baños (UPLB)
through the Agricultural Machinery Testing and Evaluation Center (AMTEC).
The Standard Specifications of the Heated-Air Mechanical Grain Dryer speci-
fies the requirements, such as performance criteria; safety; workmanship and
finish; warranty for construction and durability; maintenance and operation; and
marking and labeling, for the heated-air mechanical grain dryer.
The Standard Testing Methods for the Heated-Air Mechanical Grain Dryer speci-
fies the testing methods to determine the performance characteristics of grain
dryers in terms of their heating system, drying system, and quality of dried grains.
The standards consist of the following: general conditions for testing and inspec-
tion, test preparations, and testing procedures.
The formulation of these standards followed the working procedures in the
preparation of national standards that aim to obtain and express a general con-
sensus of expert opinion in the form of standards that are practical, realistic, and
acceptable to both the industry and consumers.

Standardization of postharvest machinery is a means Methodology

to attain a certain level of quality and can be applied
to specifications, methods of testing, and standard
performance criteria. Other countries have success-
fully demonstrated standardization as an effective
tool of progress. This has broken trade barriers
among nations of diverging needs. With standardiza-
tion, there is a greater possibility that the Philippine
postharvest industry will move forward and reach a
stage of development on a par with the newly
industrialized countries.
The development of standards for grain dryers
was one of the studies under the project “Standard-
ization of Postharvest Machinery Testing and
Evaluation,” which was funded by the Bureau of
Postharvest Research and Extension (BPRE) and was
implemented by the University of the Philippines
Los Baños through the Agricultural Machinery
Testing and Evaluation Center (AMTEC). The
general objective of the project was to develop
standard specifications and procedures for testing
and evaluating the performance of postharvest
machinery and equipment introduced, promoted, and
sold in the country.
A study team consisting of a team leader and five
team members from the public sector and the
industry undertook the study and was responsible for
formulating the standards. A full-time staff member
of the project was responsible for gathering existing
standards developed and/or adopted by international
and national organizations involved in the standard-
ization of postharvest machines and equipment. The
composition of the study team is shown in Annex 1.
The team met monthly to deliberate on and
revise the preliminary draft standards. Upon finaliza-
tion of the draft standards, these were submitted to a
technical committee (TC) for further deliberation and
consideration.
The TC consisted of the project leader as
committee chairman, the two study leaders of the
project, and three members-at-large. The composition
of the TC is shown in Annex 2.
The TC also met once a month and, after the
draft standards were finalized, these were dissemi-
nated to the various private and government organi-
zations concerned about comments and reactions.

7
The project staff was responsible for receiving and Heated-air mechanical grain dryer
collating the responses to the draft standards. The TC specifications
acted on the comments and finalized the standards.
The finalized standards were submitted to the These standards specify the requirements for the
BPRE, the funding agency of the project. These heated-air mechanical grain dryer used for commer-
standards were endorsed to the Department of cial purposes. They do not include dryers for seeds.
Agriculture for adoption as national standards.
The flow chart in the formulation of these
standards is shown in Figure 1.

Fig. 1. System flow for formulation of standards.

8
A. Requirements Table 1. Performance criteria for the mechanical grain
dryer.

1. Performance
Criteria Batch/
a) The performance of heated-air mechanical continuous flow
grain dryers shall be as specified in Table 1.
b) The indicated grain-holding capacity must be Rice Maize
attained. Final moisture content, % w.b. 14.0 14.0
c) The dried grain shall have no additional Moisture gradient, %, max. 2.0 2.0
discoloration, no traces of unburned fuel or Product qualitya
Cracked grain, % increase, max. 5.0 (2.0)b 35.0
ashes on the grain surface, and no fermented or Head rice, % decrease, max. 5.0 n.a.
musty smell. Hulled/damaged grains, % increase, max. 3.0 n.a.
d) The dryer shall be provided with a thermom- Broken/split kernels, % increase, max. n.a. c 7.0
Spillage, %, max. 0.5 0.5
eter to measure the actual air temperature Drying efficiency, % min. 75.0 75.0
entering the grain mass and a pressure gauge Heating system efficiency, % min.
to measure the working static pressure in the Petroleum-based fuel (direct-fired) 90.0 90.0
(indirect-fired) 75.0 75.0
plenum. Biomass fuel (direct-fired) 65.0 65.0
(indirect-fired) 50.0 50.0
2. Safety a
Allowable difference between the laboratory and machine’s performance.
a) The dryer shall have adequate provision for b
For continuous flow-type dryer only.
c
fire control. n.a. = not available.

b) It shall have adequate protection for all

moving parts. All rotating parts shall be
dynamically balanced.
c) It shall be provided with features for access to
parts during repair, maintenance, and opera-
tion.
d) The noise emitted by the heated-air mechani-
cal grain dryer shall not exceed 92 decibels.
e) Provision shall be made for dust control. Dust
emission shall be within the acceptable limits
set by the Department of Environment and
Natural Resources.
B. Workmanship and finish
1. The mechanical grain dryer shall be free from
defects that may be detrimental to its use and shall be
free from sharp edges and surfaces that may hurt the
operator. All metal parts should be machine-bent,
pressed, and cut to avoid rough surfaces, and all
rough surfaces should be machine-finished and
smoothed.
2. Uniformity of parts and components for the same
brand and model must be maintained.
C. Warranty for construction and durability
within one year after the date of acceptance of the
unit by the user, except for fast-moving and easy-to-
wear parts such as fan belts.
D. Maintenance and operation
1. Every heated-air mechanical grain dryer unit shall
be provided with basic tools and an operation and
parts manual containing full information on method
of installation and operation. The manual shall also
contain information regarding maintenance, replace-
ment of minor parts, list of service centers, list and
specifications of fast-wearing parts, and safety
precautions.
2. Manufacturers/dealers shall provide after-sales
service and identify wearing parts, and should
provide spare parts.
E. Marking and labeling
Each unit of the mechanical grain dryer shall be
marked in a prominent place with the following
information:

1. The construction shall be rigid and durable
without major breakdown of the following major
components: burner, fan, bin, and conveying
equipment within one year.
2. A warranty shall be provided for parts and service
1. Recognized trademark of the manufacturer
2. Name and address of manufacturer
3. Country of manufacture/made in the Philippines
4. Type: serial number
5. Load capacity in tons

9
6. Recommended power/voltage/frequency/phase
7. Weight of dry mass in metric units
8. Dimensions in metric units
Heated-air mechanical grain dryer—
methods of testing
This standard specifies the methods of testing to
determine the following performance characteristics
of grain dryers:
1. Heating system
a) System efficiency
b) Combustion efficiency
c) Burner/furnace efficiency
d) Fuel consumption
2. Drying system performance
a) Drying capacity
b) Moisture reduction per hour (per pass)
c) Heat use
d) Drying efficiency
e) Drying system efficiency
f) Electric power consumption
3. Quality of dried grains
a) Cracked grain (for rice and maize)
b) Milling quality (for rice only)
c) Hulled/damaged grain (for rice)
d) Brokens/split kernels (for maize)
e) Moisture content gradient
f) Final moisture content
4. Others (e.g., scattered grains)
A. General conditions for testing and inspection
1. Machine for testing
The machine for testing shall be commercially
produced or a prototype unit or a slightly used
machine depending on the test objective. For testing
commercially manufactured dryers, the dryer
submitted for testing shall be sampled for accep-
tance, lot, routine, and type tests in accordance with
“PNS 556-1991: Agricultural machinery—method of
sampling.”
2. Role of manufacturer/dealer/owner
The manufacturer/dealer/owner shall make the dryer
for testing available to an authorized testing agency
together with its specifications and other relevant
information. An authorized manufacturer/dealer/
owner’s representative shall be appointed to repair,
handle, adjust, and witness the test. It shall be the
10
duty of the representative to make all decisions on
matters of adjustment and preparation of the machine
for testing. The manufacturer shall abide by the terms
and conditions set forth by the authorized testing
agency. The interested party shall provide testing
materials and any other requirements.
3. Site of test
The dryer shall be tested as installed for normal
operation but it is important for testing that the site
should have adjacent to its premises suitable space
for storing and turning a sufficient quantity of grains
for drying during the test.
4. Operation of the dryer
During the test, the dryer shall be operated by the
manufacturer’s representative(s) in accordance with
the manufacturer’s published instructions (published
manual) and verified by the testing authority. The
testing authority shall make all measurements, which
form part of the test, and take the prescribed samples.
5. Measurement of dryer holding capacity
The maximum amount of grain required to fill the
dryer for proper operation shall be verified when
filling the dryer at the beginning of the test. The
holding capacity shall be measured in terms of
weight and other accompanying information such as
moisture content and purity.
6. Indication of damage
Samples of grain used for the test shall be subjected
to laboratory analysis by test milling and presence of
cracked grains before and after drying. The milling
test of the samples obtained during the drying test
shall be conducted at least 48 hours after the drying
test while air-dried samples shall be milled when
their moisture content reaches 14%.
7. Suspension of test
If, during the test run, the machine stops because of
breakdown or malfunction so as to affect the
machine’s performance, the test shall be suspended.
The decision to suspend or to continue the test is at
the discretion of the test engineer and is concurred
by the company representative.
B. Test preparation
1. Materials and equipment
a) Fuel
The fuel to be used shall conform to the specification
supplied by the manufacturer.
b) Grain
The grain to be used shall be a single variety and the
moisture content shall be 20% and above for rice and
maize, with the highest available moisture content to
be used in the test.
c) Measuring instruments
The measuring instruments for performance testing,
especially moisture testers, shall be calibrated by the
testing station prior to the tests.
2. Preparation of the dryer for testing
A check shall be made by the manufacturer and
testing authority that the dryer has been assembled
and installed in accordance with the instructions of
the manufacturer based on the installation manual.
3. Test set-up
Thermometers shall be mounted on or inside the
dryer for temperature sensing. These shall be
mounted at the following locations: (1) near the
dryer to sense ambient temperature, (2) at the grain
plenum interface, (3) after the plenum, and (4)
immediately outside the dryer to sense exhaust-air
temperature. Temperature sensors shall be partially
shielded to minimize errors due to heat radiation
effects. A schematic diagram shall be made for the
dryer, showing a numbered location for each sensor.
To measure airflow and static pressure, a pitot tube
and manometer or any other suitable apparatus shall
be installed.
The control of drying air conditions shall be by
adjustment of the setting of an automatic control
forming part of the dryer, or by manual adjustment of
the furnace by the manufacturer’s representative if an
automatic temperature control mechanism is not
fitted. Adjustments for the purpose of maintaining a
steady temperature of the drying air may be made at
any time, but any adjustment of an automatic control
shall have been sanctioned by the testing center.
4. Running-in and preliminary adjustments
The dryer shall be run-in in accordance with the
manufacturer’s operating manual before the start of
the actual test. The manufacturer may make any
adjustment during the period of run-in according to
his specifications.
C. Test procedures
1. Verification of specifications
a) This inspection is carried out to verify that the
mechanism, main dimensions, material, and
accessories of the dryer conform to the list of
specifications submitted by the manufacturer.
b) Besides the gathering of technical data on the
machine, observations on the following shall be
made: quality of manufacture, adequacy of
protection of components (e.g., bearings,
shafting, belts, etc.), presence of safety controls,
and presence of dust collection systems.
c) The operation and maintenance manual and
spare parts catalogue, and special tools required
for adjustments and repair, should be available
and supplied to end-users.
2. Performance test
a) This is carried out to test the performance of the
grain dryer.
b) Duration of test. At least two test trials shall be
carried out with the same operational setting.
The length of the test shall be such that one full
capacity of grain has been dried to a final
moisture content of 14% (for rice and maize).
c) The dryer shall be operated at the drying
temperature specified by the manufacturer.
d) For the continuous flow-type dryer, the dryer’s
discharge mechanism shall be set as specified
by the manufacturer and the grains shall
undergo a tempering process for at least 4 hours
before reloading to the dryer for another pass.
For a continuous-drying operation, the mini-
mum amount of test material to be used shall be
equal to twice the rated capacity.
e) Measurements. The following shall be mea-
sured at 30-min intervals or as necessary.
i) Air velocity. Air velocity shall be measured
at the air duct or at the heat exchanger,
whichever is applicable.
ii) Temperatures. Grain temperature, drying-air
temperature, ambient temperature, and
exhaust-air wet-bulb and dry-bulb tempera-
tures shall be recorded.
iii) Static pressure. This shall be taken at the
plenum/transition duct (between the blower
and the dryer).
iv) Moisture content reduction per pass. For the
continuous-flow dryer, the percentage of
moisture removed for each drying pass shall
be recorded.
v) Sound level. This shall be measured with the
dryer full of grain, operating at recom-
mended settings of different components,
with the burner on. (The operator’s station
will be considered to be within 1 meter of
the controls.)
vi) Moisture content. Samples for moisture
11
 determination shall be taken at the bottom, manufacture.
middle, and top layer of the grain batch- It is recommended that the proper authorities
type dryers and from the flow of grain from undertake steps for the approval, adoption, and
the discharge mechanism for the continu- implementation of these standards.
ous-flow dryer.
vii) Power and fuel. The power and fuel used Notes
during each test run shall be measured.
f) Sampling. To determine grain quality, such as Authors’ addresses: Project leader, study leader, and
cracked grain, and for the milling test (in the director, respectively, Agricultural Machinery Testing
case of rice), samples from the input and final and Evaluation Center (AMTEC), College of Engineer-
output shall be taken during each test run. ing and Agro-Industrial Technology, U.P. Los Baños,
College, Laguna, Philippines.
3. Ease of handling and safety features
The ease of loading and unloading of grain, opera-
tion, setting, and adjustment shall be observed
during the test and reported. The design from the
point of view of safety of the operator and the
different machine components/assemblies shall be
checked and reported.

4. Laboratory analysis of dried samples

This is carried out to have a comparative analysis of
the grains used before and after the drying test.

a) The quality of dried grain samples from the

dryer shall be compared with the quality of
dried grain using shade drying.
b) The grain samples taken before and after the
test shall undergo quality analysis in the
laboratory. The following shall be determined:
i) Variety
ii) Moisture content
iii) Purity
iv) Cracked grains
v) Brokens/split kernels
vi) Immature grains
vii) Fermented grains
viii) Damaged grains
ix) Foreign matter
x) Weed seeds
c) For rice grains, comparative analysis of the
milling potential of the grain used shall be
undertaken.

Conclusions and recommendations

The formulation of standards for grain dryers
followed the working procedure in the preparation of
national standards that aim to obtain and express a
genuine consensus of expert opinion in the form of
standards that are practical, realistic, and acceptable
to both the industry and consumers. These standards
will be useful in evaluating existing grain dryer
facilities and will help improve the quality of

12
Annex 1. The study team

Study team leader: Dr. Ponciano S. Madamba

Agricultural and Bio-Process Division
Institute of Agricultural Engineering
College of Engineering and Agro-Industrial
Technology (CEAT)
University of the Philippines Los Baños (UPLB)

Study team members:

1. Engineer Ricardo L. Cachuela

Bureau of Postharvest Research and Extension (BPRE)
2. Engineer Placido T. Asprec
National Food Authority (NFA)
3. Dr. Arnold R. Elepaño
UPLB
4. Engineer Teodoro Espinosa
Agricultural Machinery Manufacturers and Distributors Association Foundation, Inc. (AMMDA)
5. Mr. Raul M. Consunji
Metal Industry Association of the Philippines (MIAF)

Full-time project staff: Engineer Marife N. Reaño

Agricultural Machinery Testing and Evaluation Center (AMTEC)

Annex 2. Technical committee (TC)

TC Chairman: Engineer Darwin C. Aranguren

Agricultural Machinery Testing and Evaluation Center (AMTEC)

TC Members: 1. Dr. Ponciano S. Madamba

University of the Philippines Los Baños (UPLB)
2. Engineer Eugenio C. Castro, Jr.
International Rice Research Institute (IRRI)
3. Dr. Virgilio G. Gayanilo
College of Engineering and Agro-Industrial Technology (CEAT) of UPLB
4. Director Ruben E. Manalabe
Bureau of Postharvest Research and Extension (BPRE)
5. Engineer George Q. Canapi
Agricultural Machinery Manufacturers and Distributors Association
Foundation, Inc. (AMMDA)

13
Assessment of milled rice quality in the
Philippine retail market
R.R. Bakker, E.A. Jarcia, M.C.E. Jawili, R.D. Billate, I.R. Barredo, D.B. De Padua, and C.C. Mangaoang

Asian consumers have increasingly become more discriminating for rice quality.
This provides a challenge to the postharvest sector as technologies need to be
used that can handle, store, and process modern varieties while maintaining good
quality. After a preliminary study showed that most of the rice available in selected
markets in the Philippines was below the national standards, IRRI and the Na-
tional Food Authority (NFA) launched a nationwide study of rice quality. The objec-
tives of this study were to evaluate milled quality characteristics of rice sold in the
Philippine retail market and to evaluate the use of the current grading system for
milled rice. A total of 807 rice samples were taken from 279 representative retailers
in 17 provinces in both the dry and wet season of 2000. Besides sampling, retail-
ers were asked about sales volumes, pricing practices, and consumer prefer-
ences. Estimated sales volumes indicated that rice grading is widely adopted in
the Philippines since the majority of rice is sold with a grade indicated on the label.
Laboratory analysis, however, indicated that the majority of rice does not meet the
standards for the indicated grade. Key areas for quality improvement are the mill-
ing fractions (head rice, broken rice, brewers’ rice), damaged grains (chalkiness,
insect damage, discolored grains), and level of impurities. Surveys indicated fur-
ther that retailers primarily consider whiteness of grain and whole grains, besides
purchase cost, when setting the price of rice. According to retailers, consumers
select rice primarily on the basis of whiteness and price, with volume expansion
and taste as important secondary characteristics. The results of this study are
used to plan and implement a variety of research, development, and training activi-
ties with the ultimate goal of improving rice quality in the domestic market and
increasing the profitability of the rice postharvest sector.

During the past three to four decades, Asian farmers
have dramatically raised rice yields by adopting
high-yielding varieties. At the same time, Asian
consumers have become more discriminating for rice
quality. In many countries in the region, the adop-
tion and use of modern postharvest technologies
have not kept pace with higher grain volumes and
increased demand for high-quality rice. Inappropriate
technologies, lack of knowledge, and unsuitable
management techniques during grain harvesting,
drying, storage, and milling often result in quality
deterioration and physical losses. Milled rice quality
deterioration can be in the form of high breakage,
incomplete milling, yellowing or darkening of the
kernel, impurities, or undesirable odors or taste.
In the Philippines, rice consumers are now
willing to pay a higher price for the specific rice
quality that they desire (Patindo1 2000). Complaints,
however, are often heard that the quality of milled
rice in the market is low or that the favored quality
characteristics sought by customers could not be
found in the market. A preliminary study conducted
by IRRI in 1998 (Billate et a1 1999) showed that
most of the milled rice available in selected markets
in Manila and Laguna was below the existing
national standards for milled rice. IRRI’s exploratory
study prompted the interest of the National Food
Authority (NFA) and IRRI in assessing the quality of
milled rice on a nationwide basis and characterizing
consumer preferences for rice quality. In addition, the
increased adoption of rice grades in the domestic
market (Jarcia et al 2000) motivated an evaluation of
the functionality of current grain standards in the
market. As stipulated by Baird (1987), a set of
functional grades and standards in the market can
provide incentives for farmers, traders, and processors
to produce higher quality rice.
The specific objectives of this study were to (1)
examine pricing practices and consumer preferences
in the retail market through a survey of retailers, (2)
analyze common milled rice quality characteristics
through laboratory analysis of representative samples

14
from retail outlets, and (3) assess the level of and
problems with compliance with the present national
grain standards. The project was undertaken under
the umbrella of the Philippine Rice Postproduction
Consortium (PRPC), a collaborative program of five
agencies involved in postproduction research and
extension in the Philippines (De Padua 2000).
Methodology
This study consisted of two parts: a survey of rice
retailers and sampling and laboratory analysis of rice
samples purchased directly from retailers. For the
survey of retailers, a total of 279 respondents from 17
provinces in the Philippines were interviewed. The
nationwide survey and sampling were conducted by
NFA personnel, whereas processing and analysis of
data were performed at IRRI. At the start of the
project, a training of NFA enumerators and labora-
tory analysts was conducted by a joint NFA-IRRI
project management team. At selected dates and
locations during the survey and sampling, project
team members visited NFA personnel to indicate
problems with procedures.
Stratification
The sampling areas for the survey were determined
by selecting provinces and municipalities with the
following considerations:
(1) Provinces were selected from the three major
regions in the country: Luzon, the Visayas,
and Mindanao;
(2) Four provinces were selected from each of the
four major area classifications used by
NFA—that is, very critical areas (negligible
rice production), less critical areas (rice
production not sufficient to satisfy demand),
self-sufficient areas (rice production more or
less sufficient for demand), and surplus areas
(rice production more than sufficient for
demand);
(3) From each selected province, one urban and
one rural municipality were selected.
In addition, two cities from the National Capital
Region (NCR) were selected at random to make up a
total of 18 urban and 16 rural municipalities. Figure
1 provides a geographical overview of the sites
selected for this study.
Sampling procedures
From a database of retailers provided by NFA, a total
number of rice retailers was determined for all 34
selected municipalities. Retailers engaged in
wholesale marketing were excluded from the total.
For each municipality, the total number of retailers
served as the sampling frame. To compose the
sample, 10% of the listed retailers were randomly
selected, with a minimum of three. In cases in which
sample retailers could not be located or when
retailers declined to be interviewed, substitute
respondents were chosen. From each sample retailer,
random samples of milled rice were obtained by
purchasing. Glutinous rice and rice that was clearly
labeled off-grade or damaged were excluded from the
sampling. For retailers following the prescribed
labeling of rice grades on the price tags (Fancy,
Premium, Grades 1, 2, and 3; see also Jarcia et al
2000) as advocated by the Philippine Grain Stan-
dardization Program (PGSP), one sample was taken
from each grade found in the store, including fancy
rice. A sample of ungraded rice was also obtained if
the retailers sold rice without a grade indicated on
the label. For retailers that did not follow the
prescribed labeling of rice grades on the price tags,
first a sample of fancy rice was taken (if fancy rice
was being sold). Subsequently, one sample was taken
randomly from each remaining rice variety, that is,
one from the “low-priced” (below US$0.40 kg–1), one
from the “medium-priced” ($0.40–0.44 kg–1), and
one from the “high-priced” (more than $0.44 kg–1)
varieties found in the store. During the visit to
retailers, the total number of rice varieties available
and the number of samples taken from each grade
were recorded. Aside from retailers, rice samples were
also purchased from supermarkets in the metropoli-
tan areas of Manila, Cebu, and Davao. Branches of
supermarket chains were treated as separate entities.
Ten percent of the supermarkets that were registered
with NFA were chosen.
Statistical analysis
In the retailer survey, the number of retailers in the
municipality was considered in the estimation of
means, totals, and percentages at the municipal level.
Figures from the provincial level and up were
aggregates of the corresponding municipal estimates.
However, the figures for sources of milled rice and
payment terms and questions related to benefits and
problems of the PGSP are based on sample statistics
and are merely used to profile the respondents and
obtain qualitative feedback for improving the PGSP.
To test for differences among the preferences for rice
quality traits within each area, the Friedman test was
used. Pair-wise comparisons of average ranks were
carried out when the Friedman test showed signifi-
cant results. The same tests were used for the data on
volumes purchased by consumers from the retailers.
In the data from the laboratory analysis, the esti-
15
 Fig. 1. Survey and sampling sites in the Philippines.

16
mated means and percentages at the municipal level
were derived from the counts for each grade of rice
available at each rice retailer and the number of
retailers per municipality. Similar to the retailer
survey, figures from the provincial level and up are
merely aggregates of the corresponding municipal
estimates. To test for differences among proportions
(e.g., proportion of rice whose degree of milling on
the price tag is correct), chi square-based tests were
used.
Laboratory analysis
For each rice sample, a complete physical analysis
was performed at the NFA regional laboratory of the
selected areas and at IRRI using standard procedures
provided by NFA. The NFA procedures for milled
rice included determination of head rice (equal to or
larger than 8/10 of whole kernel length), large
brokens (between 2/10 and 8/10 of whole kernel),
brewers’ rice (less than 2/10 of whole kernel), paddy
content, foreign matter content, chalky/immature
grains, insect- or mold-damaged grains, discolored
grains, red-streaked grains, and red grains. In
addition, moisture content of rice samples was
determined by using a calibrated moisture tester and
milling degree was determined by the alcohol-alkali
staining method. Finally, a 50-g subsample was
taken and submitted to IRRI for determination of
amylose content by the simplified iodine colorimet-
ric procedure. All determinations were made on total
milled rice weight, unless stated otherwise. For
selected samples, a full analysis was repeated at IRRI
for comparison of results between different laborato-
ries.
Results and discussion
Retailer survey
Of the 279 respondents interviewed nationwide, 253
(90.7%) were made up of the NFA licensees them-
selves. The remaining 9.3% of respondents were the
licensee’s spouse, the store manager, or the key
salesperson at the retail outlet. The mean number of
years in retailing of the respondents was 8 years, with
a maximum of 40 years and a minimum of 6 months.
As part of the survey, information on sources of
milled rice and payment schedules was collected.
Nationwide, almost 60% of the total retailers
surveyed obtain their rice supply from traders, 45.5%
are supplied by millers, and 18.6% obtain their
supply from the NFA. Retailers usually obtain their
rice from traders in their own area, with the exception
of retailers in the Manila region, where the majority
of retailers obtain rice from Central Luzon. Urban
retailers rely more on the rice supplied by traders
(65.9%) compared with rural retailers, who get most
of their rice directly from millers (62.0%). This is
expected since the amount of rice produced in urban
areas is lower than in rural areas. Rural retailers
(26.8%) rely more on NFA-supplied rice than urban
retailers (15.9%). In areas of low rice production,
such as retailers in very critical (66.0%) and less
critical areas (74.3%), traders are the usual source of
rice for the retail market. In contrast, millers are the
prevalent source of milled rice for self-sufficient
(69.6%) and surplus areas (76.3%) where rice
production is higher. A low proportion of the
retailers surveyed in very critical (14.7%) and less
critical (8.6%) areas rely on the NFA supply. The
majority of respondents in these areas are from Metro
Manila and Cebu City, where consumers demand
higher quality. It is believed that NFA rice, having
lower quality, does not appeal much to the discrimi-
nating consumers of these highly urbanized areas.
The overall payment scheme in the retail
business is cash on delivery (COD) (58.4%), followed
by terms in days (47.3%) and consignment (28.0%).
COD is preferred in the rice retailing business since
generally only small quantities of product are
involved. In both rural and urban areas, COD is the
prevalent payment scheme (64.8% and 56.3%,
respectively). In surplus areas, the consignment
scheme (71.1%) is more prevalent than COD (52.6%).
In self-sufficient areas, rice retailers are more inclined
to pay by cash on delivery (64.3%).
Figure 2 shows the distribution of monthly sales
volume by rice retailers classified by milling degree:
well-milled, regular milled, and fancy. Fancy rice is
not subject to standard grade specifications and
milling degree, although it must satisfy general
requirements and be sold under a specific variety
name that is certified by the National Seed Industry
Council. Figure 2 shows that regular milled rice
constitutes 58% of the projected national sales
volume, whereas 38% is well milled. Fancy rice
makes up 4% of the total volume. Figure 3 shows the
distribution of monthly sales volume classified by
standard grade (Premium, Grades 1–3, No Grade). A
large percentage (55%) of the total volume is sold as
ordinary rice of Grades 1, 2, and 3, whereas 14% is
labeled Premium rice. Rice sold without grades
indicated on the label (“ungraded”) amounts to 27%.
These data show that the grading system has taken a
definite place in the Philippine retail market, as the
majority of rice sold (73%) contains a grade indica-
tion on the label.
Table 1 presents the estimated mean volumes,
mean prices, and price ranges in urban and rural areas
17
18
milled rice.

and the different area types. Fancy rice, which is

being sold in urban markets (0.74 t mo–1) than in

cities (2.77 t mo–1). A higher volume of ungraded
(grade indication according to label), dry season 2000.

areas (4.92 t mo–1) than in urban municipalities or

urban areas (0.92 t mo–1) than in rural areas (0.35 t
considered better quality rice in terms of taste and
Fig. 2. Distribution of monthly sales volumes (t mo–1) by

mo–1). These data clearly reflect a more pronounced

degree of milling. WMR = well-milled rice, RMR = regular

demand for high-quality rice in urban areas. For rice

aroma, is consumed more in urban areas (0.20 t mo–1

rice (rice with no grade indicated on the price tag) is

mean volume of premium-labeled rice is also sold in
Fig. 3. Distribution of monthly sales volumes by rice grade

per retailer) than in rural areas (0.04 t mo–1). A higher

with grades 1, 2, and 3, mean sales are higher in rural

Table 1. Mean projected volumes of Philippine rice sold per retailer and prices kg–1 in the different geographic categories.

Fancy Premium Grades 1–3 No grade on tag

a –1 –1 –1
Category Total WMR RMR Vol. Price ($ kg ) Vol. Price ($ kg ) Vol. Price ($ kg ) Vol. Price ($ kg–1)

(t mo–1) Min Max Mean (t mo–1) Min Max Mean (t mo–1) Min Max Mean (t mo–1) Min Max Mean

Overall 3.88 1.48 2.24 0.16 0.40 1.67 0.56 0.80 0.38 0.67 0.48 3.23 0.27 0.53 0.39 0.70 0.27 0.62 0.41
Rural vs urban
Rural 5.15 1.87 3.25 0.04 0.40 0.76 0.55 0.35 0.38 0.56 0.47 4.92 0.27 0.44 0.37 0.56 0.27 0.56 0.40
Urban 3.55 1.38 1.98 0.20 0.42 1.67 0.56 0.92 0.40 0.67 0.49 2.77 0.27 0.53 0.39 0.74 0.27 0.62 0.41
Area type
Very critical 3.25 1.48 1.52 0.24 0.44 1.67 0.57 1.21 0.40 0.67 0.49 1.64 0.27 0.53 0.39 0.94 0.27 0.62 0.42
Less critical 3.03 0.92 2.12 0.00 – – – 0.04 – – – 3.69 – – – 0.12 – – –
Self-sufficient 3.44 0.91 2.52 0.01 0.44 0.58 0.51 0.15 0.38 0.56 0.47 4.75 0.29 0.47 0.38 0.18 0.33 0.47 0.37
Surplus 8.73 2.86 5.77 0.11 0.40 0.56 0.49 0.54 0.40 0.47 0.44 7.25 0.27 0.51 0.38 0.77 0.29 0.44 0.39
a
WMR = well-milled rice, RMR= regular milled rice.
rural areas (0.56 t mo–1). Price differences indicate
that a higher price is paid for better quality as
indicated by grade label: the highest mean price is
for Fancy rice ($0.56 kg–1), followed by Premium rice
($0.48 kg–1) and rice with grades 1, 2, and 3 ($0.39
kg–1). For all types of rice, the mean price is higher in
very critical and less critical areas compared with
self-sufficient and surplus areas.
Retailers were asked to rank some rice quality
traits commonly preferred by consumers, with a
ranking scale from 1 (most important) to 7 (least
important). Figure 4 summarizes the responses for
rural and urban areas separately. In rural areas, low
price (2.2) and whiteness (2.9) are the top rice
characteristics being considered by consumers,
although preference for volume expansion (3.4) is
not significantly different from preference for
whiteness. Urban consumers also consider low price
(2.8) and whiteness (2.6) of grain as the priority traits.
Aside from volume expansion (3.8), urban consumers
also put emphasis on wholeness of grains (4.3) and
taste (4.1). Overall, the three most important rice
traits that consumers prefer according to retailers are
Mean ranks
7
Rural (n = 70) Urban (n = 207)
6
5 DE
4 b
BC
AB a
3
a
A
1
Whiteness Low price Volume
expansion
Fig. 4. Rice characteristics in demand among consumers in urban and rural areas. Means having a common letter are not
significantly different at 5%. For mean ranks, 1 = most important, 7 = least important.
whiteness (2.7), cheap price (2.7), and volume
expansion (3.7). These three traits are the same
factors considered important by consumers in a
survey conducted by Abansi et al (1992) in 1987.
Retailers were also asked about factors that they
consider in setting the price for their rice. Besides the
most obvious factor in pricing (i.e., purchase cost),
many retailers identified whiteness as a very impor-
tant factor in setting the rice price (46.1%), followed
by amount of whole grains or head rice (37.1%), taste
(29.0%), aroma (24.3%), and volume expansion
(22.5%).
With the 249 retailers interviewed, 173 (69.5%)
responded that the PGSP-advocated system of grades
for milled rice benefited their business. Of the 219
respondents who were aware of the grading system,
30.1% considered the PGSP as a very good program,
53.0% rated it as good, and only 0.5% gave it a poor
rating. Further survey results indicated that 11.4%
wanted the program modified and 0.9% said that it
should not continue. Although in general the system
for milled rice grades was well accepted by the
retailers, they identified several problems regarding
E
c c
D
b CD
b
Taste Whole Age Aroma
grains
19
PGSP implementation. Most of these problems

± 1.781
± 0.201
Moisture

± 0.367

± 0.505

± 0.469
± 0.378

± 0.518

± 1.051
± 0.315
content

12.70
13.15
12.29

12.65
13.09

13.11
12.34
12.74

12.51
pertained to implementation of the price tag.

%
Another important complaint by retailers was the
noncompliance of millers and traders with the

Table 2. Means and standard errors of quality parameters for premium and ordinary rice from retailers in 16 rural and 16 urban municipalities (excluding Metro Manila)

± 11.42
± 1.64

± 4.78

± 4.04

± 3.78
± 3.86

± 8.82
± 2.63
labeling and packaging rules of the PGSP.

± 1.74
paddy
No. of

6.3

5.1
6.4
4.8

9.0

6.1

12.6

4.9

6.3
kg –¹
Laboratory analysis
Tables 2 and 3 present results of quality charac-

± 0.009
± 0.000
± 0.021

± 0.008
± 0.068

± 0.013

± 0.210
± 0.000

± 0.078
0.02

0.00
0.00

0.03

0.01

0.03

0.00
0.00

0.07
Foreign
matter
teristics for the 16 rural and 16 urban municipali-

%
ties sampled during the dry season (324 samples
analyzed) and wet season (365 samples ana-
lyzed), not including rice sampled at supermar-

immature

± 2.563
± 1.260
± 0.446

± 1.340
± 0.903

± 1.065

± 1.998
± 0.631

± 0.917
Chalky

5.19

6.03
5.21
3.90

5.91

5.61

6.34
5.91
5.07
kets. Both tables include overall means, and

and
%
means classified per grade as indicated on the
price label. For rice that has no grade indicated
on the label, results are further classified per price

± 1.340
± 0.213
± 1.875

± 0.198
± 8.434
± 0.238

± 0.326

± 0.734
± 0.190
streaked

2.08

0.40

0.53
0.43

0.33

0.69
1.10
7.83
0.71
% Red-

grains
category, that is, above $0.44 kg–1, $0.40–0.44
kg–1, and below $0.40 kg–1. For both the dry and
wet season, the selling price for graded rice
increased with a higher grade of rice.

± 0.390

± 0.127
± 0.104

± 0.093
± 0.049

± 0.468

± 1.253
± 0.051
± 0.047
0.94

0.02

0.23

0.10
0.04

0.10

0.39
0.05
% Red

0.30
grains
In the dry season, head rice ranges from 79%
for Premium rice to 60% for rice with no grade
indicated on the price label. In the wet season,
Damaged Discolored

± 0.534
± 0.985

± 0.343
± 0.604

± 2.360
± 0.698

± 3.439
± 0.152

± 1.516
head rice ranges from 75% to 63%. In general, a

0.80
1.89

2.52
3.93
0.36

1.45
1.57

5.56
grains

0.47
%

higher grade exhibits higher head rice and lower

brokens, although there is not much difference
between Grade 2 and Grade 3 rice. For both the

± 0.636

± 0.285
± 0.146

± 0.308
± 0.367

± 0.364

± 0.782
± 0.225

± 0.276
grains

0.84
1.18
1.00

1.09
0.52

1.00
1.26

1.75
0.94
dry and wet season and all samples, the amount
%

of brewers’ rice is high (higher than 1% of milled

rice), with the exception of Premium rice in the
dry season and Premium rice and Grade 1 rice in

± 0.875

± 0.633
± 0.180

± 0.343

± 0.423

± 0.578
Brewers’

± 0.213

± 0.419

± 0.371

1.78
1.67
1.15

0.40

1.56

1.04

1.73
0.78
1.07

the wet season. All graded rice samples exhibit at

%

least 1% damaged kernels, with the exception of

Premium-labeled rice (0.52% and 0.53% dam-

±4.855
±16.204
± 2.019

±3.662

±3.602

±4.422
±2.973
Brokens

±7.309
±3.977

aged for the dry and wet season, respectively).

32.24

20.28

36.36

35.75
32.09

40.72
21.83

37.98
37.52
%

Results for discolored grains are somewhat

classified by rice grade on price tags, dry-season sampling.

variable, which may be explained by the method

of determination: comparison of the same
% Head

± 2.096

± 3.723

± 2.958
± 3.649

± 4.568

± 5.041

± 7.282
± 16.744
± 4.077

60.06
79.34

62.16

63.21

60.35
66.84

56.56
rice

samples by a different laboratory gave quite

66.51

77.38

different results, indicating that determining

discoloration by the naked eye is subjective, that
price kg–¹
Selling

is, highly dependent on the person performing

± 0.024
± 0.009

± 0.015

± 0.019

± 0.018
± 0.014

± 0.008

± 0.021
± 0.015
(US$)

0.42
0.40

0.46

0.40

0.38

0.35

0.40

0.35
0.49

the analysis.
Nevertheless, data in Tables 2 and 3 show
that rice with a higher grade, or nongraded rice
samples
No. of

with a higher price, shows less discoloration than

rice

70
324

34

61

88

25

116

30
16

lower graded or lower priced rice. The percentage

of red grains and red-streaked grains is generally
low (less than 0.1% for red grains and less than
1% for red-streaked grains), with the exception of
Rice grades

Below $0.40
Above $0.44

$0.40–0.44

Grade 2 rice in the dry season (7.83% red-

on tags

No Grade
Premium

Grade 1

Grade 2

Grade 3

streaked on average). For both graded and

Overall

nongraded rice, the percentage of chalky and

immature grains is more than 5%, with the

20
 % Moisture
exception of Premium-labeled rice in the dry

± 0.284

± 0.284

± 2.611
± 0.465

± 0.439

± 0.449

± 0.542

± 0.521
± 0.179
13.29

13.19

12.63
13.30

13.61

13.20

13.14

13.30

12.68
season (3.9% chalkiness on average). Contami-
nation of milled rice with foreign matter and
paddy in general is low for all samples. Finally,
Table 3. Means and standard errors of quality parameters for premium and ordinary rice from retailers in 16 rural and 16 urban municipalities (excluding Metro Manila)

paddy kg–1 the moisture content of milled rice for graded

No. of

± 3.04
± 2.82

± 3.84
± 5.04

± 4.01

± 13.34
± 1.65

± 7.70
± 2.74
and nongraded rice is well below 14% on

5.9

5.7

8.8

6.9

8.6
4.1

4.9
7.0

7.6
average, although standard errors are often high,
indicating a wide distribution of moisture
content within one grade. Results of a compari-
Foreign

± 0.011

± 0.006
± 0.012

± 0.003
± 0.012

± 0.023
± 0.006

± 0.031
± 0.007
matter

0.01
0.01

0.00

0.01

0.01

0.03

0.03
0.00

0.00
son of means per grade indicated that, because
%

of the spread of the data, differences between

dry- and wet-season rice quality are not signifi-
immature

± 3.581
± 0.896

± 0.772
± 0.360

± 0.881
Chalky

± 1.767
± 0.797
± 0.617

± 0.797
cant. The exception is Premium-graded rice,
5.05

5.81
5.96

6.53
5.89

5.54
5.82
5.76
6.07
and
%

which shows significantly more discoloration

and higher moisture content during the wet-
season sampling period. Similarly, a comparison

± 0.666
± 0.349

± 0.563
± 0.402
streaked

± 0.167

± 0.684
± 0.412

± 0.531
± 0.315
0.72

1.01
0.68

0.38
0.68

0.79

0.42
0.85

0.32
grains
Red-

of means between rural and urban areas did not

%

reveal any significant differences, for both dry-

season and wet-season sampling. In addition, a
comparison of means between the National
grains

± 0.000
± 0.023

± 0.035
± 0.029
± 0.033
± 0.013

± 0.019
± 0.034

± 0.037
Red

0.02
0.03

0.03

0.01
0.01
0.02

0.01
0.02

0.00
%

Capital Region and other urban areas did not

reveal significant differences among quality
characteristics.
Discolored

± 0.615
± 0.548

± 1.363

± 5.545
± 2.918
± 0.775

± 1.124

± 0.879
± 0.371
grains

Analysis of quality characteristics of rice

1.62

6.53
1.58
2.64

1.96

4.01
0.36

1.51
1.37
%

sampled in supermarkets in three cities during

the dry season sampling period indicated that,
although the sample size (n = 24) is much
Damaged

± 0.255

± 0.238

± 0.683
± 0.156
± 0.149

± 0.244

± 0.249
± 0.513
± 0.531
1.01

1.46
1.08

1.10
0.53

1.06
1.04

1.08
grains

0.51

smaller than the retailer rice sample size, it is

%

evident that head rice, chalkiness, and damaged

grains of supermarket rice are not very different
Brewers’

from those of rice sold in retail markets. This is

± 0.558

± 1.270
± 0.223
± 0.215

± 0.325

± 0.451

± 0.897
± 0.574

± 0.541
1.69
0.93

1.42

1.59
0.49

1.69

1.85
1.24

1.10
%

somewhat remarkable as most rice in supermar-

kets is sold at a higher price. However, super-
market rice sold shows better quality in terms of
± 3.823

± 14.261
± 4.862
± 2.090

± 4.463

± 6.427
± 4.190

± 4.686

± 5.498
Brokens

35.33
28.84

36.03

33.62
23.91

34.55

34.66
31.53

22.97

discolored grains, red and red-streaked grains,

%

and foreign matter contamination.

classified by rice grade on price tags, wet-season sampling.

Results of laboratory milling degree

analysis (not shown) indicated that, in the dry
% Head

± 2.192

± 4.967

± 6.620
± 4.281

± 5.089

± 5.872
± 3.837

± 14.744
± 4.744

62.98
75.60

70.23

62.57

64.79

63.50
75.95
67.24

63.76
rice

season, 25% of rice is regular milled, 71% is

well milled, and 4% is either over- or
undermilled. During the wet season, actual
± 0.009

± 0.024

± 0.015

± 0.012

± 0.019
± 0.011

± 0.015

± 0.008
± 0.017
Selling

(US$)
price

0.42
kg–¹

0.46

0.42

0.39

0.39

0.36

milling degree was 22% regular milled and 77%

0.41

0.41

0.47

well milled. The preference for well-milled rice

in the domestic market is consistent with the
preference for whiteness as an important quality
samples

characteristic.
No. of
rice

52
365

53

80

110

32

90

26
12

Determination of the amylose content (AC)

of retail market samples indicated that, in the
dry-season sampling period, all graded rice falls
in the category of intermediate amylose content
Rice grade

Below $0.40
Above $0.44

$0.40–0.44

(> 21% AC), whereas fancy rice generally has a

on tag

No Grade
Premium

Grade 1

Grade 2

Grade 3

lower AC. In the wet-season sampling period,

Overall

data show the same trend as in the dry season

(e.g., all graded rice is in the intermediate AC

21
range; fancy rice is lower in AC) although there
is no apparent difference in AC among rice of
different grades.

With grades on price tags. bIn a column for each grade, season estimates with different letters are significantly different at 5%. cIn a column for each grade, no significant difference was detected because
Moisture

91.62 b
95.02 a
98.93 a
96.45 b

83.94 a
91.82 a

84.46 a
Table 5. Percentage of premium and ordinary rice with gradesa available at retailers meeting the Philippine Grain Standardization Program quality standards.

77.39 b
content

85.08

93.60
84.21
97.64
Compliance with national grain (PGSP)

%
standards
Results of quality analysis were compared to

45.80 a

84.27 a

84.14 a
73.62 b
22.98 b

72.87 b

100.00c
100.00c
standards for milled rice in the Philippines,

33.95

78.95

78.60

100.00
No. of
paddy
kg –1
which are listed in Table 4. Table 5 shows the
results of these comparisons for each quality
characteristic. For Premium, Grade 1, and Grade

98.22 a

95.27 b
94.63 b

100.00 a
98.76 a
97.47 b

100.00c
100.00c
2 labeled rice, there is less than 50% compli-

98.09
Foreign

96.54

100.00
matter

97.51
ance for the corresponding standards of the

%
milling fractions, that is, head rice, brokens,
and brewers’ rice. Quite striking is the result for

immature

69.14 a
8.58 a

94.90 b
97.00 a
37.50 b
9.74 a

100.00c
100.00c
Premium rice, for which less than 5% of all

Chalky

54.36

95.90
9.18

100.00
and
%
samples meet the standards for head rice (95%
or more head rice; see Table 4) and brokens.
For Grade 3 labeled rice, compliance is more
than 80% for head rice and brokens; however,
streaked
% Red-

99.55 a
93.42 a

99.53 a
96.54 b

99.62 a
76.51 b
grains

100.00c
100.00c
84.64

98.14

99.58

100.00
less than half of Grade 3 samples meet the
standard for brewers’ rice (1% or less). Similar
to the milling fractions, there is low compli-
ance of Premium, Grade 1, and Grade 2 labeled

96.93 a
93.12 a

90.99 b
99.01 a
91.20 b
89.47 b
% Red
grains

100.00c
100.00c
91.23

94.26

95.22

100.00
samples with the standard for damaged grains.
Results for discolored grains show that there is
moderate compliance (60–80% meet national
Damaged Discolored

standards) in discolored grains for Premium

76.58 b
73.53 a

83.87 a
91.22 a
91.89 a
83.05 a

87.12 a
45.71 b
grains

59.08

79.60

91.57

85.23
and Grade 1 rice and high compliance (more
%

than 80% meet the standards) for Grade 2 and

21.09 a
5.44 a

91.09 a
34.11 a
3.61 b

6.99 b

78.76 b
24.07 b
grains

28.82
4.49

14.50

83.91
%

Table 4. Quality standards for milled rice (National

Food Authority).
Brewers’

11.45 b
38.19 b

60.40 a
30.44 a
22.89 b
43.11 a

30.41 b
15.71 a

Grade Grade
26.46
13.44

42.93
40.74
%

specifications
Premium Grade Grade Grade
1 2 3
% Brokens

Head rice (min %) 95.0 80.0 65.0 50.0

9.24 b

85.56 b
94.59 a
3.68 a

46.94 a
4.10 a

22.13 a

47.66 a

Brokens (max %) 4.9 19.8 34.5 49.0

3.90

15.26

89.33
47.32

Brewers’ (max %) 0.1 0.3 0.5 1.0

Defectives:
• Damaged grains 0 0.3 0.5 2.0
(max %)
9.24 b

81.61 b
94.59 a
4.65 a

45.26 a
4.10 a

44.01 a
20.38 a
% Head

• Discolored grains 0.5 2.0 4.0 8.0

rice b

14.44

44.60

87.03
4.37

of zero difference in estimates.

(max %)
• Chalky and 2.0 5.0 10.0 15.0
immature
grains (max %)
• Red grains 0 0.3 0.5 2.0
(max %)
Overall

Overall

Overall

Overall
Grades

• Red-streaked 1.0 3.0 5.0 10.0

Premium
on tag

Grade 1

Grade 2

Grade 3
Wet

Wet

Wet

Wet

grains (max %)
Dry

Dry

Dry

Dry

• Foreign matter 0 0.1 0.2 0.5

(max %)
a

Paddy (max no. kg–1) 1 8 10 15

Moisture content 14.0 14.0 14.0 14.0
(max %)

22
Grade 3 labeled rice. Overall, there is high compli-
ance (80–100% of samples meet the standards) for
red grains and red-streaked grains, but low compli-
ance for chalky and immature grains, in particular for
Premium rice (9.2% of samples meet standards) and
Grade 1 (54% meet standards).
Results also show that the standards for foreign
matter and moisture content are generally met,
regardless of grade indication. Table 5 provides
useful information for improving the quality of
milled rice for each grade. In general, the higher the
grade of rice indicated on the label, the lower is the
compliance with the national standards set for that
particular grade. For Premium and Grade 1 rice,
opportunities for quality improvement are the
milling fractions, damaged grains, grain discolora-
tion, chalkiness, and amount of paddy in milled rice.
For Grade 2, milling fraction and damaged grains
could be improved, whereas, for Grade 3, brewers’
rice generally leads to low compliance with the
national standards.
Table 5 also presents the results of comparing
the mean compliance of the 11 quality characteristics
between dry- and wet-season sampling. For Premium
rice, most (7 out of 11) quality characteristics show
higher compliance in the dry season than in the wet
season, with the most prominent difference in
percentage of discolored grains. For Grade 1, seven
quality characteristics likewise show higher compli-
ance in the dry season, with the largest difference in
chalkiness, damaged grains, and moisture content.
For rice with Grade 2 or Grade 3 indicated on the
label, only 5 out of 11 quality characteristics show
higher compliance in the dry season than in the wet
season and differences are generally small.
Results of milling degree (MD) analysis showed
that, in the dry season, the majority (66.9%) of all
samples had the correct MD on the label and
approximately 18% had either a too high or too low
MD on the tag. In the wet season, the trends are
similar although the percentage of samples with the
correct MD on the tag (71.3%) is slightly higher than
in the dry season. In addition, the proportion of
Premium grade rice (89.2%) and Grade 1 rice (82.6%)
with the correct MD on the label is much higher than
in the dry season.
Conclusions and recommendations
Our survey indicates that 70% of the rice in the
Philippine retail market is sold with a grade indi-
cated on the label. This provides evidence that
standards for milled rice are increasingly incorpo-
rated in the domestic market. Rice retailers generally
believe that the grading system benefits their
business, as it makes it easier for customers to
identify a certain quality of rice. However, retailers
indicate that millers and traders often do not provide
all the required information regarding rice grade to
them, which leads to problems in displaying the
correct grades in retail stores. The survey further
indicated that retailers primarily consider whiteness
of grain and head rice when setting the price of rice,
in addition to purchase cost. According to retailers,
consumers select rice primarily on the basis of
whiteness and price, with volume expansion, aroma,
and taste as important secondary quality characteris-
tics. Consumer preferences differ somewhat between
rural and urban municipalities, but not to a great
extent. Estimates of rice volumes sold at the munici-
pal level, however, indicate that there is a more
pronounced demand for high-quality rice in urban
areas than in rural areas.
Surveys of the retail price of rice indicate that a
higher price is paid for better quality: the highest
mean price is for Fancy rice ($0.56 kg–1), followed by
Premium rice ($0.48 kg–1) and rice with Grades 1, 2,
and 3 ($0.39 kg–1). These price differences indicate
that grading of rice is functional as a marketing tool,
although there is much overlap among the prices of
Grades 1, 2, and 3 rice, which constitutes the
majority of rice sold in the market (55%). In general,
national quality standards for graded rice are not met,
in particular for head rice, large brokens, and
brewers’ rice. In addition, for rice with higher grades
(Premium rice, Grade 1) indicated on the label,
standards are often not met for discolored grains,
chalky/immature grains, and number of paddy grains
in milled rice. Packaged rice sold in supermarkets is
not different in quality in terms of head rice and
brokens; however, supermarket rice shows fewer
damaged and discolored grains than the rice sold in
municipal markets.
The following recommendations for future
research and development are indicated by this
study:
• There is a general lack of tools for grading of
rice. Developing a low-cost quality evaluation
kit for millers, traders, and retailers could
improve quality and compliance with the
National Grain Standards Program.
• In general, the head rice percentage of rice
produced in the Philippines is low (67% on a
total milled rice weight basis) and the rice
contains a high percentage of small brokens
(> 1%). A performance study of rice mills in the
country could assess where opportunities exist
for improving head rice recovery and reducing
23
 physical grain losses. The Philippine Rice
Postproduction Consortium has begun such a
study.
• In general, the rice produced in the Philippines
has a high percentage of chalky and immature
grains. Efforts to improve seed quality and
production practices at the farm level could
reduce chalky and immature grains.
• Discoloration or yellowing of grain and mold- or
insect-damaged grain are often observed in rice
produced and processed in the wet season.
Increasing artificial drying capacity in the
country could reduce the problem of discolora-
tion and mold damage in milled rice.
• According to retailers, consumers consider
cooking and eating qualities (e.g., volume
expansion, aging, aroma) as very important
when choosing rice in the retail market. Re-
search efforts in rice standardization should be
geared toward including cooking and eating
qualities in the present standards to make the
national grain standards more relevant to
Filipino consumers.
At the time of writing, the Philippine Rice
Postproduction Consortium has embarked on several
research activities that address some of these
recommendations.
Proceedings No. 100. Canberra (Australia): Australian
Centre for International Agricultural Research.
Garcia EA, Mangaoang CC, Sampang RL. 2000. Sustaining
the development of the grains industry through
standardisation: the Philippine experience. In: Johnson
GI, Le Van To, Nguyen Duy Doc, Webb MC, editors.
Quality assurance in agricultural produce. Proceedings
of the 19th ASEAN/1st APEC Seminar on Postharvest
Technology. ACIAR Proceedings No. 100. Canberra
(Australia): Australian Centre for International
Agricultural Research.
Patindol JA. 2000. Methods and standards for rice grain
quality assessment in the Philippines. In: Johnson GI,
Le Van To, Nguyen Duy Doc, Webb MC, editors.
Quality assurance in agricultural produce. Proceedings
of the 19th ASEAN/lst APEC Seminar on Postharvest
Technology. ACIAR Proceedings No. 100. Canberra
(Australia): Australian Centre for International
Agricultural Research.
Notes
Authors’ addresses: R.R. Bakker, M.C.E. Jawili, R.D.
Billate, I.R. Barredo, and D.B. De Padua, International
Rice Research Institute, Los Baños, Philippines, DAPO
Box 7777, Metro Manila, Philippines; E.A. Jarcia and
C.C. Mangaoang, National Food Authority, Quezon
City, Philippines.

References
Abansi CL, Duff B, Lantican FA, Juliano BO. 1992.
Consumer demand for rice grain quality in selected
rural and urban markets in the Philippines. In:
Unnevehr LJ, Duff B, Juliano BO, editors. Consumer
demand for rice grain quality. Los Baños (Philippines):
International Rice Research Institute. p 37-57.
Billate RD, Barredo JR, De Padua DB, Bell MA, Bakker
RR. 1999. Assessment of milled rice quality from
selected markets. Paper presented at the National Food
Authority Grain Standardization Workshop, Manila,
October 1999. Los Baños (Philippines): International
Rice Research Institute.
Baird H. 1987. Grading and maintaining grain quality in
storage. In: Champ BR, Highley E, Remenyi JV,
editors. Technology change in postharvest handling and
transportation of grains in the humid tropics: proceed-
ings of an international seminar, Bangkok, Thailand,
10-12 September 1986. ACIAR Proceedings No. 19.
Canberra (Australia): Australian Centre for Interna-
tional Agricultural Research.
De Padua DB. 2000. The Philippine Rice Postproduction
Consortium: needs assessment of the postproduction
industry. In: Johnson GI, Le Van To, Nguyen Duy
Doc, Webb MC, editors. Quality assurance in
agricultural produce. Proceedings of the 19th ASEAN/
lst APEC Seminar on Postharvest Technology. ACIAR

24
Organic grain protection in the Philippine
setting
F. Caliboso, R. Caliboso, J. Dator, R. Tiongson, C. de Dios, and E. Martinez

The principle of airtight or hermetic storage as it applies to grain protection pro-

vides a gastight environment in which insect pests die because of a lack of oxygen.
This paper discusses the development of hermetic storage in the Philippines by
highlighting the various scientific research activities conducted in the country and
the local experience in the adoption of the technology.
On the basis of research findings and actual use of gastight frameless flexible
envelopes (Volcani CubesTM) and weldmesh-walled silos (Mobile SiloTM) in the
operations of government and private institutions, these plastic structures can be a
safe and viable alternative to permanent structures for organic protection of rice
and maize for extended periods. Flexibility, transportability, ease of installation,
simplicity of operation and maintenance, and durability are distinct advantages.
Scientific data also show the gastight storage technology’s potential for seed pres-
ervation. Finally, this paper outlines other applications of the airtight structure for
on-site quarantine treatment of agricultural products involving carbon dioxide and
vacuum fumigation.

The success of a country’s food security program
relies heavily on its ability to safely store its food-
and feed-grain and seed stocks. Moisture content
(MC) is the major factor determining the storage
behavior of grain (Pixton 1982). Deterioration
caused by molds can be prevented if the MC is
sufficiently low. However, insect pests can still
survive in dry commodities and seriously damage the
produce. Therefore, periodic control measures are
frequently required, particularly in warm and humid
climates, to prevent loss of grain quality and
quantity.
The use of deadly pesticides to combat pests of
stored products has increasingly become unpopular
because of health concerns and the havoc their
indiscriminate use wreaks on the environment. In the
past, traditional storage structures provided some
protection against storage losses, particularly from
insects and rodents, although annual losses, which
are estimated to be from 5% to 10%, were previously
considered unavoidable. Attempts to reduce these
losses by introducing modern storage technologies
have frequently failed—being either socioeconomi-
cally unacceptable or inappropriate to local climatic
conditions and agro-technical practices (Donahaye
and Messer 1992). The approach described in this
paper involves the modification of existing struc-
tures or the construction of new structures in the
conventional style but employing modified tech-
nologies to improve grain conservation without
being too disruptive to rural life, a concept termed by
Guggenheim as “invisible” technology (Navarro et al
1999).
The method considered in this paper for grain
quality preservation is airtight storage. The substan-
tial literature on sealed storage technology, also
known as “airtight” or “hermetic” storage, has been
summarized by De Lima (1990). Its principle has
been employed since ancient times in underground
pits that are still used, particularly in semiarid
regions of the Mediterranean basin and Sahel
(Gilman and Boxall 1974, Curride and Navon 1986).
The inherent advantage of the hermetic storage of
dry grain lies in the biogeneration of an oxygen-
deficient and carbon dioxide-enriched intergranular
atmosphere of the storage ecosystem, a condition
produced by the aerobic metabolism of insects and
microorganisms. Stored grain protection is enabled
by the use of a hermetic seal that provides an airtight
environment in which insect pests die or are unable
to develop because of a lack of oxygen. The basic
principle of grain protection lies in the fact that,
during the time between the moment of sealing until
the volume of oxygen in the cube is consumed by
the insects, the damage to the grain is negligible. If
the insect population is low, the insects may survive,

25
causing minimal damage to the grains. It has been
established that, to obtain a complete kill, the
oxygen tension should drop to 2% or below (Bailey
1965).
A phenomenon that discourages the use of
airtight storage in hot climates is moisture migration
and condensation; this is especially heightened in
metal silos. So far, two approaches are known to
reduce the intensity of this phenomenon: equalizing
grain temperatures and insulating the roof. Cooling
of the grain by aeration is limited to climates with a
cool season. Comparative data on the efficacy of
aeration and the effect of insulation in preventing
moisture migration in metal silos in the tropics are
lacking.
Earlier designs of aboveground silos (metal and
concrete) did not provide a sufficiently effective seal
(De Lima 1980). The current approach to sealing
existing aboveground structures is more successful
(Ripp et al 1984). Technological advances in plastic
manufacturing provided a breakthrough in the
development of PVC liners that conform to prerequi-
site specifications of durability to climate, gas
permeability, and physical properties that enabled
the design of storage systems that are based on the
hermetic principle. Plastic structures suitable for
long-term storage as well as intermediate grain
storage for cooperatives and subsistence farmers and
for grain in bags or in bulk have been developed in
Israel (Navarro et al 1990). The influence of insula-
tion materials on reducing the intensity of moisture
migration under subtropical (Israel) and tropical
(Philippines) climates was investigated by Navarro
and Caliboso (1996) in 1996.
The design of plastic structures for storing grain
was guided by the following: (1) loss prevention
methods should not be very sophisticated and (2)
capital investment for the storage structure should be
kept at a minimum. Furthermore, in areas where
bumper crops are expected, extra storage space
should be provided close to the production site.
Therefore, speedy construction and possible translo-
cation of the storage facilities from one site to
another would be advantageous. Thus, these flexible
storage structures were designed to provide outdoor
and complementary indoor facilities for temporary,
emergency, or medium- to long-term storage of grain
for use by national government agencies involved in
grain handling and storage such as the National Food
Authority (NFA), Department of Agriculture (DA),
and Department of Agrarian Reform (DAR), and
farmers’ organizations, cooperatives, village grain
merchants, and other intermediary parties where
countryside storage forms an integral part of the
26
national grain reserve (Navarro and Caliboso 1996).
The gastight storage structures described in this
report provide an affordable, user-friendly, and
nonpesticidal alternative for insect control and
maintenance of seed quality.
Development of hermetic storage in the
Philippines
Research phase
Application of modified atmospheres on dry paddy
and maize under plastic covers stored outdoors. This
report forms part of a more comprehensive study by
the Agricultural Research Organization (ARO), The
Volcani Center, Israel, and the Bureau of Postharvest
Research and Extension (BPRE). The research
project was financed by a grant from the USAID-CDR
Program.
In the Philippines, a series of laboratory and
field trials were conducted for maize and rice from
April 1991 to May 1994. Field trials were carried out
in Bukidnon using maize and in Muñoz, Nueva Ecija
(BPRE compound), for rice. Both the frameless
flexible envelope (Volcani CubeTM) and the
weldmesh-walled silo (Mobile SiloTM) were field-
evaluated. For practical purposes, the following
discussion will focus on the field experiments alone.
After the ground was leveled and cleared of
stones and sharp objects, a foundation composed of a
4-cm layer of rice hulls followed by a 2-cm layer of
rice hull ash was laid down in an area corresponding
to that upon which the cube or silo was erected. This
is to protect the plastic from sharp objects, rats, and
soil-borne insects. In addition, where signs of termite
presence were evident, the soil where the cube or silo
will be erected was first treated with a termiticide.
The frameless flexible envelopes were designed
for stack storage in which the stack itself forms the
rigid structure of the system (Fig. 1). Although the
Fig. 1. Frameless flexible envelope known as Volcani
CubeTM with 20 t of capacity and maximum storage
volume of 30 m 3, weighing about 76 kg when empty.
When not in use, the cube can be folded and placed
inside the carrying bag shown in the foreground.
cube-shaped structures were designed for use on
open ground, under rigorous field conditions, they
are also highly suitable for use inside the warehouse.
The Volcani Cube consisted of two sections: a lower
floor-wall and an upper roof-wall. The bottom
section was laid on the ground and the bags of grain
were placed directly on the tarpaulin. No pallets were
required. Stacks were built in a pyramid shape to
allow rainwater to run off immediately on the sides of
the enclosure. After the stack had been built to the
required height, the top layer was insulated with 2–3
layers of sacks containing dry rice hull. Thereafter,
the top section was placed over the stack to meet the
lower section halfway up the side. Both the upper
and lower sections were provided with a gastight
multiple tongue and groove zipper used to zip the
sections together to form a continuous envelope.
The design was intended to be user-friendly with
dimensions that did not require mechanical loading
or high stacking. Special tension straps situated
around the cube were designed to take up slack in
the walls and pull the liner tight around the curve of
the sacks at the floor level (Fig. 1). This was done to
prevent rodents from gaining a tooth-hold on the
slippery surface, thereby preventing damage to the
hermetic seal.
The cubes were intended for bag storage from
small to huge quantities of approximately 5, 10, 20,
50, 100, and 150 t of cereal grains. The 20-t cubes
used here measured 447 × 336 × 200 cm (length ×
Fig. 2. Schematic diagram of a 52-m3-capacity weldmesh-walled silo known as Mobile SiloTM
for the gastight storage of grain in bags or bulk, suitable for storage of about 35 t of paddy.
width × height), giving a maximum storage volume
of about 30 m3 and weighing about 76 kg when
empty.
The cubes were easy to erect and dismantle. For
trucking operations, they could be transported with
the grain load and the sacks could be off-loaded
directly into the cubes at their destination.
The weldmesh-walled silos were made up of two
components: a weldmesh circular wall formed from
sections bolted together to provide the structural
enclosure and an inner liner made of heavy-duty
plastic tarpaulin, which is resistant to ultraviolet
light and is of food-grade quality. The lining came in
two parts: the lower liner welded to form a continu-
ous floor-wall unit and an upper liner forming a roof
cone (Fig. 2). First, the weldmesh sections were
bolted into place to form a circle around a floor-wall
package within the perimeter. The package was then
opened and the walls of the liner were tied to the
weldmesh. The roof section was placed evenly over
the grain using a preattached rope to pull and unfold
the PVC liner, which was zipped to the wall to obtain
a gastight seal. The roof cone was secured to the
metal weldmesh walls by ropes. The enclosures were
also provided with hooks to be fixed to the wire
mesh. The silos were designed to enable bulk storage
or bag storage, with mechanical loading or unload-
ing, with the intention of providing a useful transi-
tion phase between bag and bulk handling. The silos
used in the experiments reported here had a diameter
27
of 5.2 m and a height of 2.2 m, with a storage volume
of 52 m3 amd a capacity of 35–40 t (Fig. 2). Larger
capacities with 250, 500, and 1,000 t are also
available.
Grain temperature was monitored at seven
different locations inside the cube and silo and gas
concentration was measured at two locations. Two
maize stacks in cubes were flushed with food-grade
CO2 at 1.5 kg t–1 with a gas applicator. The applicator
consisted of a ball-and-socket gas tap attached to an
expansion chamber that passed through the plastic
sheeting into the cube and was screwed with a gasket
seal onto the tarp. Common parameters observed for
both maize and rice were moisture content, grain
temperature, gas concentration, insect infestation,
fungal infection, germinated kernels, seed viability,
and weight loss. Additional parameters gathered for
maize were aflatoxin level, moldy kernels, and
discolored kernels. For rice, these were milling
recovery, percentage head rice, percentage brokens,
and percentage of yellow kernels. Tables 1 and 2
summarize the field trials using rough rice and maize,
respectively.
A similar pattern of temperature was observed in
the paddy (or rough rice) stacks and in the maize
trials, indicating that temperature fluctuations were
reduced because of the insulating properties of the
grain mass (Navarro et al 1998a). No significant
increase in the average MC of gastight rice stacks
was noted except in two stacks in which a slight
increase occurred. There was a real trend toward an
Table 1. Summary of storage trials for rough rice.
Treatment No. of structures
observed a
Cube (bag) Silo (bulk)
Hermetic 8 1
Control 3 –
a
Total of 6 trials with 2 replicates per treatment/trial.
Table 2. Summary of storage trials for maize.
Treatment No.of structures
observed a
Cubeb Silo b
CO2 2 –
Hermetic 8 1
Control 2 –
a
Total of 6 trials with 1 to 2 replicates per treatment/trial.
b
Type of handling in bags.
28
increase in MC in the two untreated control stacks
kept during the wet season and a decrease in MC
when these were stored in the dry season. These
differences indicate the importance of having
gastight sheets to avoid loss in weight of rice stacks
as a consequence of moisture loss. Likewise, the
overall MC of rice bulk-stored under gastight
conditions in the silo did not change significantly
during the trial, suggesting that bulk storage of dry
rice in a hermetic plastic silo is feasible without
adverse effects on the MC of rice.
Initial and final counts of live insects revealed
no population increase in the sealed cubes, whereas
in the control stacks there was a marked increase in
insect density, many of which were alive at the end
of the storage period. In the silo, the initial density of
live insects declined from 10.3 to 1.3 insects kg–1 at
the end of the trial. No changes were also observed
for milling yield and quality of rice in airtight stacks.
The hermetically sealed stacks also did not show any
severe discoloration as opposed to the control stacks,
which exhibited pronounced yellowing during the
rainy-season trial.
In spite of the presence of a few live insects at
the end of storage, all treatments in the trials were
successful. This was matched by a much lower
percentage weight loss in the treated cubes compared
with the control stacks. The magnitude of loss
recorded from the gastight-sealed paddy cubes was
about 18 times lower than in the control stacks,
resulting in a weight loss of 0.23% for the gastight
Capacity (t) Duration of storage
(d)
Cube Silo
13.43–15.06 31.86 78–183
5.30– 5.56 – 78–117
Capacity Duration of
(t) storage (d)
Cube Silo
16.62–18.45 – 93– 97
15.02–19.25 38.73 93–184
4.58– 4.75 – 93– 97
cubes and 4.30% for the control stacks (Navarro et al
1998a). In the gastight silos, average weight loss was
0.20%.
Temperatures recorded in the core of the silo
with maize ranged from 28 to 30 °C, but during the
day they reached 35–40 °C below the liner at the top
of the silo. Grain temperatures in the sealed cubes
were lower inside the storage structures than the
ambient temperature. Temperatures recorded from the
various points within the sealed stacks were also
more uniform than in the control stacks. This could
be the result of the insulation procedure. The
moisture content of maize held under hermetic and
CO2-enriched atmospheres did not change signifi-
cantly during storage. At the beginning of storage,
the MC ranged from 11.44% to 13.49%; at the end of
the trial (3–6 months), the MC ranged from 11.72%
to 14.25%. Condensation was evident at the top of
the silos and the cubes when storage periods ex-
ceeded 4 mo but this obviously did not affect the
moisture content of the test commodity.
The oxygen level in the sealed stack dropped
below 2% within 3 to 4 wk of storage, whereas the
CO2 tension in most of the Volcani Cubes rose to 12–
16% and fluctuated within this range for most of the
storage period. In the CO2-flushed stacks, the
estimated decay rate of 0.21% CO2 per day indicates
that the carbon dioxide concentration exceeded the
minimum standard of 35% for 15 d of exposure to
achieve complete disinfestation of the commodity.
This demonstrates the high degree of gastightness
and integrity of the cube, making it highly suitable
for carbon dioxide fumigation of grain.
The initial (i) and final (f) mean density of the
live insect population of eight hermetic cubes and
two CO2-treated stacks did not increase significantly
(1.87i–0.95f and 0.34i–0.17f, respectively) after
storage but the mean density of live insects in two
control stacks increased substantially (1.0i–43f). In
the silo, the density of insects found at the start of the
trial was 3.0 live insects kg–1 of maize and 0.3 dead
insect kg–1, whereas, at the end of storage, the level of
live insects was 0.7 kg–1 and dead insects was 2.7
kg–1.
The growth of fungi on grains kept under
hermetic storage and CO2-treated stacks seemed to be
inhibited. Aflatoxin level, on the other hand, in four
stacks kept under hermetic conditions for about 6 mo
remained low, with no significant increases. Further-
more, discolored kernels, which may be caused by
heat damage or mold activity, did not change
significantly in the airtight stacks. Mean initial and
final values of discolored kernels were 7.29–7.9%,
respectively, in hermetic stacks and 3.48–3.9% in
CO2-purged stacks. In contrast, control stacks showed
severe kernel discoloration, with the final % discol-
ored kernels more than double (9.52%) the initial
level of 4.56% for a 3-month storage.
Seed viability was likewise preserved under
gastight atmosphere up to 6 mo. Finally, weight loss
was effectively minimized through the gastight
storage technology. Mean weight loss averaged
0.44% after 3 to 6 mo of hermetic storage, which is
comparable with that of the treated check of CO2–
purged stacks, with 0.26% loss in weight after 3 mo.
In the untreated control, mean weight loss after 3 mo
of storage was extremely high at 5.34%. In addition
to damage from insects, these (control) stacks also
suffered from mold infection and from rodent and
bird attack (Navarro et al 1998b).
Self-regulated atmospheres to prevent fungal
damage in moist paddy (BPRE). The objective of this
project was to provide a solution to the acute drying
problem in the humid tropics, where rough rice is
harvested at high moisture content during the
monsoon season. The crop must then be dried rapidly
to a safe MC to prevent molding and rotting. The
two-stage drying procedure that is advocated by
BPRE consists of rapid drying of rice to 18%, at
which stage yeast and bacterial activity are sup-
pressed. Following that is a second stage of slow
drying from 18% to 14% MC to prevent the develop-
ment of storage molds. Experience shows that the
lack of insufficient capacity of second-stage dryers
creates a bottleneck, especially during the peak
harvest season. This project was designed to develop
a technology that would enable farmers to overcome
this bottleneck at the second stage of drying by
providing them with a means of storing the interme-
diate MC rice under tightly sealed conditions and
thereby prevent spoilage for prolonged periods until
drying by sun or machine is again an available
option.
The project findings indicated that, after 1
month, the quality of sealed rough rice stored with
MC up to 18% had not deteriorated. However, further
evaluations made on paddy stored hermetically for 1,
3, and 6 mo under both laboratory and field condi-
tions confirmed that, after the first month of storage,
the quality of moist paddy (16–18% MC) deterio-
rated progressively and the grain was no longer
acceptable to the taste panels. These findings enable
us to make the following tentative recommendations
for duration of rough rice storage:
% Moisture content Maximum period Remarks
of storage
18 1 mo to 2 mo (not
29
 17 1 mo confirmed
16 Can be extended by
15 Can be extended field trials)
to 3 mo
Prevention of moisture migration in sealed
grain stacks stored in the open using reflective
covers (BPRE). In a search to develop an alternative,
inexpensive, and convenient method of insulating
the stack from diurnal temperature fluctuations, the
use of a shade screen placed above the cube was
investigated. This material, described as a “knitted
thermal screen,” is from aluminum-coated high-
density polyethylene threads.
Trials in Israel and the Philippines showed that
the reflective covers had a strong attenuating
influence on temperature gradients and condensation
at the top of the cubes if a space for the free move-
ment of air was allowed between the cover and the
plastic liner. For dry rice, it was shown that, after 5
mo of storage under a reflective cover, no perceptible
increase in moisture content was found at the top of
the stack and the grain remained in good condition.
Application of hermetic storage technology to
milled rice using the Volcani Cube (NFA). A pilot
trial on the adoption of hermetic storage using the
Volcani Cube for long-term quality preservation of
milled rice was conducted by the Technology
Resource Development Division of NFA from 1999
to 2000. Nine stacks, each containing 270 bags of
milled rice, were kept in Volcani Cubes and three
treated control stacks were used as a reference. Two
replicate gastight stacks and one control pile were
opened and sampled during each storage period of 3,
6, and 11 mo. The control stacks were regularly
fumigated and sprayed in accordance with the NFA
standard pest control program.
The moisture content of the sealed and control
stacks remained low, ranging from 11.43% to
11.97%. A very slow decline in oxygen level was
observed—it took 90 d (3 mo) for the oxygen to
decrease to 11.4% and 180 d (6 mo) for it to reach
5.4%. In the latter part of the experiment, the oxygen
analyzer became defective, preventing the research
staff from taking readings of the oxygen level. In the
last sampling period (11th month), when a new
oxygen meter was obtained, the oxygen level
registered 3.6% in the last sealed stacks.
Live insects were found on samples from the
sealed stacks up to the 6th month. These were
predominantly the lesser grain borer (Rhizopertha
dominica), the saw-toothed grain beetle
(Oryzaephilus surinamensis), and psocids. Complete
disinfestation was achieved 11 mo after storage. It
30
was generally observed that a dense population of
dead psocids was found around the bottom of the
plastic sheet upon opening of the covered stacks in
every sampling period. In contrast, insects in the
control stacks multiplied rapidly from the 3rd month
onward. Grain yellowing was not discernible in
either the sealed or control stacks. Except for two
stacks that had damaged cubes, average weight loss
was minimal (0.06%) in the sealed stacks kept for 3
to 6 mo. No substantial rise in weight loss was
recorded from 3 to 6 mo. On the contrary, the control
stacks lost 0.39% of their weight after 3 mo, which
increased to 0.72% in 6 mo. This value could rise
sharply if the loss in weight of the experimental stack
after reconditioning (i.e., removal of mothballs and
insect-damaged rice) has been considered. In
addition to insect pests, the commodity was also
exposed to attack by rodents and birds. Rice quality
in terms of color, aroma, glosiness, etc., was pre-
served throughout the trial as opposed to the
reference stacks, which were heavily infested in 3
mo.
The slow depletion of oxygen can be attributed
to the extremely low population of live insects at the
onset of the trial. Rice imported from Vietnam was
used as the test commodity, which was fumigated
immediately before it left Vietnam for the Philip-
pines. This is why the insect count was nil in the
bioassay data obtained from the initial samples. It is
surmised that the insects that survived the fumiga-
tion were still in the immature stages (egg, larval, and
pupal stages), which were most likely inside the rice
kernels. Although these atmospheres were insuffi-
cient to obtain complete mortality of insects present,
particularly during the first 6 mo, the modified
condition retarded insect growth and development as
evidenced by the weak and abnormal progenies of
the lesser grain borer encountered. Insect feeding was
also adveresely affected, which led to minimal
damage on the sealed stacks.
It was concluded that hermetic storage using the
Volcani Cube is a feasible alternative for the safe
storage of milled rice for more than 6 mo; thus, its
nationwide adoption was recommended.
Preservation of slightly moist milled rice using
the Volcani Cube: a preliminary experiment (NFA).
It has been the practice of commercial rice mills to
dry their paddy up to only 15–16% MC. They claim
that, at this point, milling recovery is at its peak
combined with a high percentage of head rice.
Millers do not experience quality deterioration
because the newly milled rice is immediately sold.
While it may be true that rough rice is less prone to
breakage when milled at 15–16% MC, the current
practice of the NFA to store milled rice for an average
of 3–6 mo, which is inherent in its food security
program, essentially prevents it from adopting the
millers’ practice.
Encouraged by the positive results obtained
from the initial use of Volcani Cubes at the NFA, a
preliminary experiment was conducted to determine
whether hermetic storage could preserve the quality
of milled rice kept at marginal MC for a maximum of
6 mo. The trial was set up at the NFA warehouse in
Koronadal, South Cotabato, from April to October
2000 using one stack of newly milled moist rice at
15.7% MC sealed in a 10-t-capacity Volcani Cube,
which accommodated about 13 t. Another stack was
set up as a control, containing 8 t from the same lot
of rice. The uncovered control stack received the
usual pest control measures of fumigation and
spraying in accordance with the NFA standard
operating procedures.
The gastight stack was sampled 1 mo after
sealing to determine whether the experiment should
proceed or be discontinued. The odor of the stack
was also occasionally checked by slightly opening a
small portion of the zipper on one side. Each time,
the stack was immediately resealed. Since the rice
quality was still good each time it was checked, the
experiment was extended up to 6 mo. Although no
oxygen readings were obtained during the early part
of the experiment, it was later detected that the
oxygen was 0.8% in the third month. However,the
sharp fall could have occurred during the first 2 wk
of storage. Initial and final samples were analyzed for
quality parameters in the laboratory.
A faint sweet aroma came from the stack as it was
opened after 6 mo. Oxygen concentration was still
0.4%. The original rice quality was retained; the rice
was still glossy and completely free from insect
damage, including mothballs. No live insects were
found. Dead insects were found on the sides of the
bottom sheet. On the other hand, insect density was
high in the control stack, which was regularly
fumigated and sprayed with insecticide. A foul and
musty odor was noticeable from the samples. In
addition, the rice turned dull, dark gray, and pow-
dery, indicating mold and heat damage. A lot of
broken and chalky kernels were also apparent. The
stack had to be reconditioned to remove the moth-
balls, which obviously will lead to physical and
monetary loss.
Since the results are very encouraging, the NFA
plans to pursue a full-scale trial, as this could
increase milling yield and reduce drying costs
substantially because the last stage in the drying
process is the longest and therefore most costly.
Commercialization phase: use of Volcani Cubes at
various levels
Government agencies. Table 3 shows the various
government agencies currently using the Volcani
Cube.
BPRE, being the proponent of this technology,
was the first to acquire the commercial model of the
10-t-capacity Volcani Cube in large quantities—200
units. It donated 196 units to farmer cooperatives,
seed growers, the NFA, and PhilRice as part of its
technology transfer program. For a cooperative to be
qualified, it must be engaged in rough rice or maize
trading, it must have a minimum marketable surplus
volume of 200 bags of rough rice or maize per
season, and it must have a sound financial standing.
The technology was initially promoted widely
among farmer groups and the NFA. The agency also
provided on-site training for recipients of the cube.
The Department of Agriculture, through its
regional field offices, also acquired the Volcani Cube
for distribution to farmer-cooperatives and seed
growers as an interest-free loan payable in five years.
On-site training for recipients was also conducted at
each site by the local distributor, Farms, Inc. Feed-
back was almost nil except for two cooperatives that
also produced rice seeds in Banay-banay, Davao
Oriental. DORAMCOFED acquired five units and
used these three times from 1998 to 2000, each time
for less than 1 mo. DOSEPCO, on the other hand,
used the cube for 6 straight months from December
1999 to June 2000. Although both had favorable
comments, the latter benefited more since it was able
to keep the grain for an extended period, thereby
obtaining a much better price for its produce. Both
also signified their intention to continue using the
facility.
The National Food Authority is the single
biggest user of the sealed storage technology in
terms of total quantity kept in cubes and aggregate
capacity of the cubes in volume. In addition to the
small cubes donated by BPRE, the NFA has acquired
Table 3. List of government agencies using Volcani Cubes.
User a Capacity Total
5t 10 t 150 t
BPRE 1 4 – 5
DA 50 212 – 262
NFA – 20 64 84
PhilRice – 2 – 2
Total 51 238 64 353
a
BPRE = Bureau of Postharvest Research and Extension, DA = Department
of Agriculture, NFA = National Food Authority, PhilRice = Philippine Rice
Research Institute.
31
64 units with 150-t capacity, 34 of which are due for for immediate cash, bankruptcy, and cessation of
delivery. The cubes will be jointly installed by the trading activity.
staff of BPRE, NFA, and FARMS, Inc., which also Two seed growers who also received the cube
provided the hands-on training of NFA field staff. from BPRE are regularly using the facility to protect
The NFA technical staff monitored all the installed seeds from pests and maintain viability. They are
cubes for initial and final weight, quality (including satisfied with the cube’s perfomance and find it
moisture content of stocks), oxygen tension, and highly relevant to their need.
insect density. The plastic cubes were also periodi- IRRI has likewise acquired the small cube (5-t-
cally inspected to check for possible tears or holes, or capacity) and the GrainSafe (1-t-capacity) for their
openings along the zipper. Tension straps were also evaluation. The GrainSafe is a sealed granary for
readjusted at times to pull up the slack. bulk storage of small quantities of produce.
Twenty-two cubes were filled with either Two special users of the Volcani Cube are
Vietnamese rice or freshly milled local rice, four with private food companies. One uses it for CO2-fumiga-
rough rice, and another four with maize. Of the 22 tion of organic maize for the Japanese feed market.
rice cubes, 11 have been opened and the stocks sold. This type of fumigation is now widely accepted in
The length of storage ranged from 1 to 8 mo. No live various countries as a quarantine treatment. The
insects were found on the samples, but many dead other company uses it for organic preservation of
insects, including psocids, lined the sides of the floor processed food ingredients used for instant mixes
sheet. Rice quality was excellent at the end of the such as rice, flour, peanuts, and mungbean.
storage; the rice retained its color, luster, and aroma.
Weight loss ranged from 0.004% to 0.09%. The Conclusions
stocks were highly preferred by retailers and custom-
ers of the NFA. For rough rice, only one stack out of Hermetic structures made of gastight plastic liners
four has been opened. The laboratory analysis of can be a safe and viable alternative to permanent
samples and other data are not available yet. The structures for the organic protection of rice and maize
quality of maize sealed in the cubes was likewise
preserved. Weight loss for the stack kept for 5 mo
was only 0.02%. These stocks commanded a high Table 4. List of Volcani Cube recipients among farmer-
price when sold to feed manufacturers. cooperatives.
The moisture content of all the stacks kept in the Region a No. of No. of % monitored
Volcani cubes did not change until the end of beneficiaries monitored
storage. The sharpest drop in oxygen concentration cooperatives
from 21% to less than 2% occurred within 1 to 2 mo CAR 1 – –
of storage in maize, whereas the same phenomenon I 13 2 5
took 2 to 3 mo in rough rice stacks. As expected, the II 23 – –
III 37 22 20
slowest decline in oxygen was observed in milled IV 24 11 15
rice stacks, reaching about 7% in 2 mo and decreas- V 12 8 22
ing further to 2% or less in 4 mo. VI 3 3 33
VII 2 2 22
The Volcani cubes at PhilRice are mainly used VIII 3 3 33
for quick disinfestation of infested seeds. The cube X 19 – –
here serves as a portable fumigation chamber without XI 16 16 33
XII 7 1 5
the need to build expensive concrete structures. ARMM 4 – –
NGOs and private organizations. Table 4 lists CARAGA 4 – –
the farmer-cooperatives that are recipients of the 168 Total 168 68 14
units of Volcani Cube from BPRE. Of the total of 168 a
CAR = Cordillera Administrative Region, ARMM = Autonomous Region of
recipient cooperatives, BPRE was able to monitor Muslim Mindanao, CARAGA = name of cooperative .
only 68 co-ops or 14% of the total beneficiaries. Of
these, 31 used the facility, whereas 16% (11) also Table 5. Result of monitoring of Volcani Cube users,
cooperative level (December 1999).
used the cube but were not able to maximize its use
(Table 5). Thirty-eight percent (26) of those surveyed Degree of use No. of cooperatives Percentage
have not used the cube at all. Most of the reasons
Used 31 46
cited for their failure to exploit the benefits of having Underused 11 16
the cube are lack of sufficient surplus volume, need Not used 26 38
Total 68 100

32
for extended periods. Flexibility, transportability,
ease of erection, simplicity of operation and mainte-
nance, and durability are distinct advantages. Their
availability in various sizes, capacities, and forms
can suit a wide range of requirements to fit several
levels of operation. They are particularly valuable for
relief operations.
The gastight storage technology also
provides a simpler and cheaper alternative to cold
storage for seed preservation. The hermetic structure
can be used as a portable fumigation chamber, for
application of CO2 to organically grown cereals or
for application of conventional fumigants to other
agricultural products. The feasibility of the technol-
ogy for protecting dried fruits and controlling
wax moth in honeycombs has also been established.
Recent advances have led to the sealed plastic liner’s
application in on-site vacuum fumigation of coffee
and cocoa beans.
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(Australia): ACIAR. p 353-363.
Pixton SW. 1982. The importance of moisture and equilib-
rium relative humidity in stored products. Trop. Stored
Prod. Info. 43:16-29.
Ripp BE, Banks HJ, Bond EJ, Calverely DJ, Jay EG,
Navarro S, editors. 1984. Controlled atmosphere and
fumigation in grain storages. Developments in
Agricultural Engineering 5. Amsterdam (Netherlands):
Elsevier Scientific Publishing. 798 p.
Notes
Authors’ addresses: F. Caliboso and R. Caliboso, Filipinas
Agri-Aqua Resources Marketing and Management
Systems (FARMS), Inc., 3E Carmel Suites, 15
Chronicle St., West Triangle, Quezon City; J. Dator and
R. Tiongson, Bureau of Postharvest Research and
Extension, CLSU Complex, Muñoz, Nueva Ecija; C. de
Dios and E. Martinez, National Food Authority, 101 E.
Rodriguez Sr. Ave., Quezon City, Philippines.
Acknowledgments: The authors wish to express their
appreciation to Ms. Raquel Bermudo, director of the
Food Protection Department, BPRE, for her coopera-
tion and full support in preparing this paper. Thanks are
also due to Mr. Efren Regpala, also of BPRE, for his
expert assistance. Our gratitude is likewise extended to
Mr. Crestituto Mangaoang for his encouragement and
guidance.
33
A rotary cutting mechanism for rice
harvesting
E.U. Bautista, M.J.C. Regalado, A.S. Juliano, S. Ishihara, and H. Monobe

A design of a rice reaper for small farms based on a rotary cutting mechanism was
developed as a low-cost alternative to reciprocating cutter-bar-based reapers. The
design employs three high-speed cutting discs rotating at 20–30 m s–1, a set of
lugged conveyor belts, and an open-type chain-sprocket transmission for machine
motion of 2.6 km h–1. The whole machine is powered by a 4.5-kw gasoline engine
attached at the rear of the open power transmission for machine motion.
Field tests of a commercial model showed a comparable performance with a
commercial unit having a field capacity of 2 ha d–1 and grain-shattering losses of
0.1% to 1.3%, depending on the shattering resistance of the rice cultivar. Three
models with distinct features have been developed with cooperating manufactur-
ers. The new design could enhance the acceptability of mechanical harvesting of
rice in developing countries because it is relatively cheaper and easier to manufac-
ture, repair, and maintain.

Harvesting and related operations are one of the most
labor-intensive activities in rice production in Asia’s
developing countries. Harvesting and threshing in the
Philippines consume around 60% of the total person-
hours devoted to rice compared with only 18% for
mechanized systems (Takahashi 1994). Harvesting
costs around 10–15% of the total farm produce.
Reaping alone requires a high labor input from 10 to
16 d ha–l (Juarez et al 1988) and is a monotonous and
tiresome activity because of traditional systems and
practices. Losses from reaping and the corresponding
piling of reaped plants can reach 5% of the total yield
(Andales 1998).
In Asia, walking-type reapers were developed and
introduced as attachments to two-wheel tractors
(Ezaki 1970). The design of the reaper windrower is
based on the cutter-bar assembly, composed of a
reciprocating triangular serrated blade placed above a
stationary ledger. This type of mechanism is highly
suitable for windrow operation since plants have
practically no horizontal movement after cutting and
are kept standing before they are conveyed to one
side.
A cutter-bar mechanism reciprocates at low speed
and requires low power. However, its assembly is
critical and tolerances must be strictly followed to
maintain high performance and durability. The
serrated high-carbon steel blades have to be sharp-
ened after every 25–50 ha of use. Its main disadvan-
tage is the difficulty for small manufacturers to
assemble this mechanism because of the critical
tolerance needed between the blade and ledger. It is
also an expensive mechanism for small farmers since
the main parts are imported from developed coun-
tries.
In 1980, the International Rice Research
Institute (IRRI) and the Chinese Academy of
Agricultural Mechanization Sciences (CAAMS)
jointly developed the first reaper-windrower de-
signed for operation and manufacture in a develop-
ing-country context. The IRRI-CAAMS reaper
features a cutter-bar assembly below two matching
vertical conveyors. These belt conveyors are
equipped with lugs that are in contact with
starwheels in front of the machine. The starwheel is
housed beneath a protruding triangular guide plate
to help hold standing plants during cutting and
subsequent conveying. Plants are cut and conveyed
in an orderly manner and are released in neat
windrows at one side of the machine. The design
eliminated the lugged V-belts, which are features of
earlier reapers developed in China and Japan, and
simplified the power takeoff, conveyor drive, and
cutter-bar mechanism (Tiangco et al 1982).
Shortly after the IRRI reaper was introduced, a
Japanese company introduced to the Asian market a
similar reaper with a higher level of technology. The
Kubota AR120 Rice Reaper is a sound technology
for Filipino farmers because of its suitable features
such as durability, light weight, and comfortable
operation even in small muddy fields characteristic
of Philippine rice paddies during wet-season
harvesting. Although it cannot harvest lodged crops
and it requires manual reaping of field corners as well

34
as the periphery of the field (which can be optional
depending on the skill of the operator), it is the only
alternative to manual harvesting for farmers located
in areas where hired labor is lacking. The main
constraint to its wide adoption, however, is its high
investment cost, which is not acceptable for ordinary
farmers. Despite its cost, however, it slowly replaced
the locally manufactured reaper in labor-deficient
areas. At present, it is widely used in some areas of
the Philippines and is providing custom services
during the peak season. Local manufacturers did not
attempt to produce cheaper versions because of a
lack of alternative technologies that can be used to
assemble the design locally, such as lightweight
materials and die-cast components, a transmission
with forward and reverse gears, and a drive shaft with
a clutch for transmitting power from the engine to the
reaper assembly. A cheaper design that can be
manufactured locally with less precision therefore
becomes important. This paper presents the new
rotary reaper-windrower system developed for rice
harvesting.
Description of the new reaping
mechanism
Design concept
The criteria for developing a new design of a
walking-type reaper are (1) simplicity of the mecha-
nism, (2) the use of locally available materials, (3)
ease of manufacture, (4) light weight, and (5) low
cost. We focused on replacing the reciprocating
cutter-bar assembly with a rotary cutting mechanism
that would require fewer blades, less manufacturing
tolerance, and a simpler power train. To minimize
development work, consideration was given to
adapting some of the mechanisms of the IRRI-
CAAMS reaper, such as the header–power tiller–
engine arrangement, windrowing mechanism, and
other components such as crop guides and
starwheels.
The new design was expected to work in
transplanted and direct-seeded rice fields during the
dry and wet seasons. Because rice plots are generally
small, maneuverability and transfer across levees are
important, which necessitates a reverse motion for
the design. Adjustment for cutting height is neces-
sary with indica cultivars and because some farmers
prefer variable cutting height (about 5 cm cutting
height until about 30 cm for better thresher effi-
ciency).
To simplify manufacturing requirements, the
rotary reaper design has two basic features: the use of
a rotary cutter instead of a reciprocating cutter-bar
assembly and incorporation of easy-to-assemble
standard parts. Alternative designs for windrowing
by (1) a side-delivery flat belt, which is an original
feature of earlier designs, (2) chain and sprocket, and
(3) V-belt and pulley were provided depending on
the model. Power transmission for the carriage unit
used an open-case chain-sprocket mechanism
connected by V-belt and pulley from the engine to
the tiller shaft. Reverse motion, again by V-belt and
pulley transmission, was also provided. The engine is
placed behind the tiller as in previous designs for
balance and easy operator access.
Cutting mechanism
To assess the preliminary performance of the rotary
cutter with rice and determine the proper position
and cutting zone for orderly windrows, Takahashi
(1993) tried a standard Japanese grass cutter in
reaping rice plants. From this trial, the desired
effective cutting zone of the rotary cutter was
selected. In the ideal zone, there was less plant scatter
and the centrifugal force and rotational direction of
the blade facilitated the conveyance of plants to one
side. Ezaki (1970) established the design parameters
for this mechanism with optimum cutting perfor-
mance at 20–30 m s–1. This was also confirmed in a
laboratory set-up that examined the effect of operat-
ing speed, rake angle, type of blade, and number of
blades on cutting efficiency, power requirement, and
scattering and shattering of plants.
Figure 1 shows the two models of the rotary
reaper mechanism and Table 1 compares three
alternative models. Two models, the Morallo and the
AGAD models, are now available in the market,
whereas the Lakas Kuliglig model is still being
evaluated.
Field performance and economics
Table 2 shows the results of tests of the Morallo
reaper model in comparison with the commercial
Kubota reaper. The rotary reaper is already compa-
rable with the Kubota reaper in performance since
harvesting can be accomplished orderly and neatly.
The main advantage of the rotary reaper is its lower
cost, which is nearly one-half the cost of the im-
ported reaper, and the ease of manufacture and
maintenance of the cutting discs. For field perfor-
mance, the locally developed reaper can harvest
fields that are weedy and have a soft soil condition
and crops that are shorter than 50 cm.
The only remaining question about the adoption
of the rotary reaper is its durability. Several units
already purchased by farmer-adoptors are being
35
 Morallo model AGAD model

Fig. 1. Two commercial models of the PhilRice-JICA rotary reaper.

Table 1. Comparison of the design of components of rotary reaper models available in the Philippines.

Parameters/components Morallo model AGAD model Lakas Kuliglig model

Cutting mechanism
Conveying mechanism
Traction device
Engine type
Starwheel
Blades
Tiller transmission
Height adjustment
Cutting width (m)
Total machine weight (kg)
V-belt drive
Flat belt, single
Combined rubber tire
and cagewheel
6 hp, gear reduction
Sheet metal
Fabricated from high-
carbon steel saw blades
Two-stage RC 50 chain-
sprocket transmission
Bolt and nut in different
positions at the support
frame between tiller
and reaper
1.1
158
Chain and sprocket, Chain and sprocket,
light duty light duty
Chain and sprocket, V-belt, double
double
Combined rubber tire Combined rubber tire
and cagewheel and cagewheel
6 hp, regular speed 6 hp, regular speed
Vertical flat bar, Plastic
spider design
IRRI reaper blade IRRI reaper blade
made in Taiwan
Two-stage RC 50 One standard speed reducer,
chain-sprocket single-stage RC 50
transmission chain-sprocket transmission
Basic design same Two ways: (1) same as in
as in Morallo model Morallo model and (2) by
adjusting position of
the cagewheel through the
tiller frame
1.04 1.2
168 130

observed and durability and performance aspects are
continuously being monitored. So far, the greatest
constraint to the wide acceptance of the single
conveyor model is its limitation for plants lower than
50 cm (this is already addressed by the AGAD and
the LK model). PhilRice and the cooperating
manufacturers are working on the durability aspects
of the machine in the production process.
Analysis (see Table 3) has indicated that the new
reaper design is more economical to use than the
Kubota reaper, which incur a total harvesting cost of
US$37.18 and $44.33 ha–l, respectively. This is
mainly because of the lower investment cost for the
new reaper (at $1,444 unit–l including engine and
accessories versus $3,111 unit–l for the imported
model). In addition, the new reaper has a lower
breakeven point at 37 ha y–l than the imported
counterpart at 83 ha y–l for a lifespan of 5 y.
Yasunobo (2000) noted that the reaper should be
economical to own when harvesting more than 4.13
ha. In selected areas at present, however, farmers have
good incentives to own a reaper irrespective of the
size of the rice farm because of the income-generat-
ing potential of contract hiring.
Conclusions
A new rice reaper-windrower design mounted in front
of an open chain-and-sprocket transmission carriage
unit was developed for local manufacture and use in
the Philippines. It was developed considering the
local field conditions and the level of skill of

36
Table 2. Comparison of the rotary reaper and the Kubota manufacturers and farmers who would adopt the
AR 120 reaper.
design. The reaper employs high-speed rotary cutting
Parameter 1.1-m rotary 1.2-m AR discs instead of conventional reciprocating cutter-bar
reaper (Morallo) 120 (Kubota) blades, and it has easy-to-assemble standard parts for
Overall length (cm) 244 239 simplicity of manufacture and maintenance.
Overall width (cm) 138 147 Field tests of the reaper showed that it attained
Overall height (cm) n.a. 90 complete cutting and orderly and neat windrowing
Weight (kg) 158 116
Engine (kW) 4.5 1.7 similar to previous designs. The commercial design
Cutting width (m) 1.1 1.2 has a capacity of 2 ha d–1 at a forward speed of 2.6 km
Traveling speed (km h–1) 2.6 2.6 h–1 and with shattering losses of less than 2%.
Cutting device 38 cm dia., 120 cm,
rotary reciprocating Economic analysis indicated that the new design is
Min. cutting height (cm) 8.0 30.0 economical if it can operate an area of around 37 ha
Field capacity (ha h–1) 0.26 0.29 y–1. Owing to its simple design and ease of manufac-
Shattering losses (%) 0.1–1.3 1.2

Table 3. Economics of using the rice reaper compared with the manual harvesting method, PhilRice, 2001.

General assumptions
Estimated useful life (y) 5 Tax and insurance (% of IC) 2
Salvage value (% of investment) 10 Interest on investment (% of IC) 22
Repair and maintenance 10 Fuel (gasoline) cost ($ L–1) 0.31
(% of investment cost, IC)
Fresh paddy price kg–1 ($) 0.16 Oil cost ($ L–1) 0.93
Manual custom rate, % of yield 7 Annual harvesting use (d) 50
Payment of operator ($) 4.44 Paddy yield (t ha–1) 4.0
Payment of other laborers ($) 3.33

Item Harvesting method

Manual method Rotary reaper 110 Kubota AR 120

Specific conditions
Investment cost for equipment 0 1,444.44 3,111.11
Labor requirement, person-days ha–1(incl. gathering) 25 8 8
Field capacity (ha d–1) 1 2 2.3
Fuel requirement (L h–1) 0 1.2 1
Oil requirement (L h–1) 0 0.018 0.018
Operating labor cost (US$ ha–1) 0 4.44 4.44
Gathering/helping labor cost (US$ ha–1) Incl. in harvesting 23.33 23.33
Harvesting fee ha–1 (US$) 43.56 43.56 43.56
Cost components for the 1st year ($)
Depreciation cost 0 260.00 560.00
Interest on investment 0 349.56 684.44
Repair and maintenance 0 144.44 466.67a
Tax and insurance 0 28.89 62.22
Wage of operator 0 444.44 511.11
Wage of helper/gatherer 2,178.00 2,333.33 2,683.33
Fuel cost 0 149.33 124.44
Oil cost 0 6.27 6.72
Annual fixed cost excl. depreciation 0 522.89 1,213.33
Annual variable cost 2,178.00 2,933.89 3,325.61
Total harvesting cost ha–1 ($) 43.56 37.17 44.34
Source of benefits ($)
Harvesting fee 2,178.00 4,355.56 5,008.89
Salvage value 0 144.44 311.11
Benefit ha–1 (from custom fees) ($) 43.56 43.56 43.56
Net cash flow
Year 0 0 –1,444.44 –3,111.11
1 0 1,248.40 1,154.40
2 0 1,248.40 1,154.40
3 0 1,248.40 1,154.40
4 0 1,248.40 1,154.40
5 0 1,248.40 1,154.40
Discounted net present value – 5,433.02 7,307.78
Discounted benefit-cost ratio – 1.73 1.92
Payback period (y) – 0.38 0.71
Breakeven point (ha) – 37 83
a
Assumed to be 15% of investment cost because of higher cost of parts.

37
ture and maintenance, the new reaper design has high Notes
potential in the Philippines and in other Asian
countries where the only option for manual harvest- Authors’ addresses: Scientist I, division head, science
ing is an imported design. research specialist 1, and PhilRice-JICA long-term
experts, respectively, National Rice Engineering and
Mechanization Center, Philippine Rice Research
References Institute (PhilRice), Maligaya, Muñoz, Nueva Ecija, e-
mail: eubautista@philrice.gov.ph.
Andales SC. 1998. Report on postharvest loss assessment.
Acknowledgments: We wish to acknowledge the support and
Bureau of Postharvest Research and Extension, Muñoz,
suggestions given by Dr. Santiago R. Obien and Dr.
Nueva Ecija, Philippines.
Hitoshi Takahashi in the project. The assistance of
Ezaki H. 1970. Binders and combines. Tokyo (Japan):
JICA short-term experts Hiroyuki Takahashi, Tatsushi
Agricultural Books Co. (In Japanese.)
Togasi, and Kunihiko Maeoka in testing and suggesting
IRRI (International Rice Research Institute). 1987. IRRI
design modifications was crucial in successfully
annual report. Los Baños (Philippines): IRRI. p 512-
generating better designs of this mechanism.
513.
Juarez F, Te A, Duff B, Crissman L, Stickney RE,
Manaligod HT, Salazar GC, Fernandez CP. 1988. The
development and impact of mechanical reapers in the
Philippines. Agricultural Economics Paper No. 88-23.
Los Baños (Philippines): International Rice Research
Institute.
Takahashi H. 1993. Report on the development of the
Maligaya reaper. Rice Engineering and Mechanization
Division, PhilRice, Muñoz, Nueva Ecija, Philippines.
Takahashi H. 1994. Present situation and problems of rice
production in the Philippines. Paper presented at the
Workshop on Farming Management of Rice-Based
Lowland Farms, PhilRice, Muñoz, Nueva Ecija, 5
December 1994.
Tiangco VM, Diestro MS, Nafziger ML. 1982. Critical
design parameters and development of CAAMS-IRRI
reaper. Paper presented at the 32nd National Conven-
tion of the Philippine Society of Agricultural Engineer-
ing, Manila, Philippines, 29-30 April 1982.
Yasunobo K, Casiwan C, Manalili R, Francisco S. 2000.
Factors influencing farm mechanization in the Philip-
pines: socioeconomic context. Report to the JICA
Technical Cooperation Project, PhilRice, Maligaya,
Muñoz, Nueva Ecija, Philippines.

38
Varietal differences in drying rates and
fissure occurrence in heated air drying
of rice
M.J.C. Regalado and E. Bekki

Drying rate is the common index of drying ability for a recirculating columnar grain
dryer. In developing this dryer, manufacturers in Japan conventionally apply a stan-
dard drying rate, at which the upper 3% limit for heavy fissure occurrence in heated
air drying of rough rice is not exceeded. Until now, the allowable upper limit for
drying rate has been 0.8% h–1. Recently, however, a Japanese manufacturer com-
mercialized a new dryer with a claim that the drying rate was doubled to 1.6% h–1.
Hence, the authors carried out basic single-grain layer-drying experiments to in-
vestigate this possibility using several rice cultivars. Results showed that varietal
differences in grain-fissuring resistance were unexpectedly great. Of the five variet-
ies used, Yaeminori was the weakest, with many light fissures occurring even in
natural shade drying. Koshihikari was the strongest among the medium-grain
varieties used. In drying this cultivar at 3.6% h–1 at 48 °C, the 3% heavy fissure limit
was not exceeded. The intended 1.6% h–1 rate could possibly be realized for this
variety when this result is applied to commercial drying. For Hitomebore and
Tsugaruroman, the upper limits to which the rate could be raised were 1.2% h–1
and 1.5% h–1, respectively. The long-grain IR64 remarkably showed the highest
fissure resistance and, for this cultivar, the standard rate may be easily doubled. To
optimize a rice dryer’s performance, the drying rate should be easily adjusted to
suit a particular variety.

The drying ability of a high-capacity grain dryer
with continuous material flow and high-temperature
heated air is indicated by the maximum allowable
drying rate in its specifications. In Japanese-made
dryers, an average rate of 0.8% h–1 (on a wet weight
basis) is usually specified with the assurance of less
than 3% heavy fissure occurrence. Heavily fissured
grains occurring in rough rice drying and brown and
white rice processing are listed as inspection items to
assess the magnitude of damaged grains. This is
indicated by an upper-limit percentage in the criteria
for quality grade set by the Japan Food Agency
(1956). A 5% allowable upper limit is usually
applied in experimental research carried out at
research institutes or universities. However, for new
product development by dryer manufacturers, a 3%
limit that includes safety considerations is applied.
In 1999, a manufacturer placed a new dryer on the
market that was claimed to have a drying ability
twice the usual rate. Hence, these basic laboratory
experiments on single-grain layer, heated air drying
of rough rice were carried out to ascertain whether
the claim is possible or not.
This study also shows the results of investigat-
ing the relationships between the drying rate and
fissure occurrences using five selected varieties.
Varietal differences in the relative resistance to grain
fissuring have already been described by Schmidt
and Hukill (1656), Srinavas et al (1977), Srinavas
and Bhashyam (1984), Juliano and Perez (1993), and
Lan and Kunze (1996). In Japan, two detailed
experimental studies can be cited as the representa-
tive references for this study. One was conducted by
Okamura (1937) and the other, by Ban (1971), was an
investigation using practical heated air dryers. This
subject was also referred to in the reports of Teranaka
and Genjyo (1967) and Takahashi et al (1973) and
the research data of the National Agriculture,
Forestry and Fishery Council (1971). Moreover, the
work of Nagato (1963) showed the difference among
various varieties in small rice grain hardness. His
results supported the fact that japonica varieties,
which consist of a soft core inside the grains, are
more easily fissured than indica varieties, which have
a hard grain core. The varieties now being cultivated
in Japan have changed markedly and now have a

39
better taste. Formal experimental data on fissure Table 1. Varieties and drying conditions.
occurrence in recently grown varieties have not been Variety Moisture Temperature Relative
reported yet, so this study also attempts to obtain and content (%) (°C) humidity
present the fissuring characteristics of these varieties. (%)
Initial Final

Materials and methods Yaeminori

(produced on
25.6
25.9
15.2
15.6
26
27
37–38
33–37
Ishigaki Island, 25.8 15.2 28 33–37
Experimental procedure and apparatus harvested 25.8 15.8 29 35–37
A rough rice sample was taken out of the refrigerator on 13 June 25.7 15.6 30 34–37
and its initial moisture content was measured using 1999) 26.3 14.8 36 44–46
Koshihikari 27.4 14.6 30 33–40
an infrared-type moisture meter (Kett, model F-1A). A (Miyazaki 27.0 15.1 32 35–41
216-g sample was spread as a single grain layer on a Pref., 1 Aug.) 27.4 14.8 34 35–35
steel wire mesh and put at the center of a constant 27.2 15.2 36 33–33
27.2 15.2 38 31–31
temperature and humidity chamber (Tabai, model 27.3 15.2 40 29–29
PR-1) having a capacity of 40 × 50 × 60 cm3. For 26.9 14.8 44 27–29
each drying run, the sample was taken out of the 26.8 14.8 48 34–34
27.2 14.6 52 35–35
drying chamber every hour, quickly weighed using Hitomebore 28.6 14.6 30 35–37
an electric balance (Sartorius, model BP310S), and (Chiba Pref., 29.5 14.8 32 34–35
then put back in the chamber. The changes in 22 Aug.) 28.3 14.9 34 32–33
28.2 15.2 36 30–32
temperature and humidity inside the chamber owing 28.5 15.2 38 31–31
to the opening and closing of its door were only 28.2 15.0 40 28–30
minimal fluctuations. 28.6 14.8 42 28–28
Tsugaruroman 26.6 15.0 30 36–36
The moisture content Mi (% on a wet basis) at (Aomori Pref., 26.6 15.4 32 32–37
every hour within the drying period was calculated 12 Sept.) 26.4 14.6 34 32–32
using the following equation: 26.4 15.4 36 32–32
27.1 14.2 38 32–32
W0 (1 – M0) 26.2 15.6 40 30–30
Mi = 1– (1) 26.3 15.6 42 28–28
Wi IR64 26.6 15.4 30 37–37
(Philippines, 26.6 14.6 32 34–36
where W0 = initial moisture content (g), Wi = mois- 13 Sept.) 26.9 15.4 34 42–43
ture quantity (g) at every hour, and M0 = initial 26.7 15.4 36 30–32
moisture content (%, w.b.). 27.0 15.7 38 32–32
26.6 15.4 40 30–30
Each drying run was stopped when the desired 26.7 15.6 42 28–28
15% final moisture content was reached, as indicated
by the plot of calculated Mi values with elapsed time
on a cross-section paper. The final moisture content rence in natural drying was observed, so temperatures
was repeatedly measured after each drying run using ranging from 30 to 42 °C were chosen. Fissure
the infrared moisture meter to compare the calculated occurrence in Koshihikari was minimal not only in
and measured moisture quantities. The difference natural drying but also in 40 °C heated air drying, so
between the two values was minimal. the upper-limit temperature raised to 52 °C was tried.
In IR64, only small fine fissures less than those found
Air temperature and humidity in Koshihikari were observed, so the temperature
The temperature inside the drying chamber was set at range of 30 to 42 °C was chosen. This was the same
the values given in Table 1. Fluctuations in tempera- range used for Hitomebore and Tsugaruroman.
ture readings were about ±1% of the set temperatures.
The relative humidity was difficult to regulate to less Varieties
than 30% at the set temperature for each experiment. Yaeminori was harvested on Ishigaki Island,
Most of the humidity values ranged from 30% to Okinawa Prefecture, on the earliest date (13 June
40%. In setting the air temperature for each variety, 1999). A remarkably high percentage of lightly
the occurrence of fissures during natural shade fissured grains was observed in natural shade drying.
drying was considered. Yaeminori had many fissured Koshihikari was harvested in Miyazaki Prefecture on
grains occurring even in natural shade drying; hence, 1 August. A Japan Food Agency report in 1999
the air temperatures were purposely set at a lower showed that the percentage of cultivated area for this
range of 26 to 36 °C. In both Hitomebore and variety was highest in Japan at 34.6%. Hitomebore
Tsugaruroman, a medium degree of fissure occur- was harvested in Chiba Prefecture on 22 August. It

40
ranks second to Koshihikari, with 9.3% of the total
cultivated area. Tsugaruroman was harvested in
Aomori Prefecture on 13 September. It is a variety
developed with good taste but its cultivation is
limited to only Aomori Prefecture. The four previ-
ously mentioned varieties belong to the same
category of medium-grain japonica. IR64 was
harvested in the Philippines on 10 September. It is a
long-grain indica variety, very popular and widely
planted in that country.
Initial moisture content and drying rate
The drying ability of 1.6% (w.b. h–1), as the expres-
sion of overall drying rate for the drying span from
initial to final moisture content, can be realized.
However, to achieve this, there may be no other
recourse but to increase the rate to 2.4% h–1 at the
high moisture stage of 20% and more, then revert to
the usual 0.8% h–1 rate at the low moisture stage
(20% or less). On this subject, Ban (1971) reported
that, in heated air drying of rough rice, both whole
and heavy fissures increased as the initial moisture
content increased. Hence, the procedure as men-
tioned may be contrary to or disregarding Ban’s
findings. However, it would really be unavoidable to
risk some extent of fissure occurrence as the drying
rate is substantially raised. To ensure high initial
moisture content for each variety, as shown in Table
1, the samples were harvested earlier. Raw rough rice
immediately after harvest easily deteriorates so the
harvested materials were stored in a refrigerator and
then put back after being taken out in each experi-
ment.
Airflow rate
As one of the conditions necessary for single-grain
layer drying, Hukill (1969) stated that the effect of
air velocity must be negligible. The forced air
circulating inside the drying chamber had an average
velocity of 1.2 m s–1 about the sample. Based on this
velocity value, the calculated specific airflow rate,
33.2 m3 s–1 100 kg–1 rough rice, was considered more
than adequate compared with the rate of 20 m3 s–1
100 kg–1 used by Ban (1971) in similar experiments.
Since the changes in air temperature and humidity
inside the chamber were controlled to slight fluctua-
tions only, it was therefore judged that the condi-
tions for single-grain layer drying have been met and
well regulated.
Fissure check
Two hundred and fifty grains of brown rice were
randomly sampled and checked for fissures in each
experiment. On the number of grains used for
checking, Kato (1985) described that, in using 250
grains, it is 95% probable that fissured kernels exist
within ±6% of the detection rate. However, consider-
ing that even the existence of fine fissure must be
judged with the naked eye, the authors deemed the
error of ±6% as allowable. The degree of fissure was
judged in accordance with the criteria given by the
Japan Food Agency (1956). As an improved method
for detecting fissures, the light transmitted from a
halogen lamp through a fiber optic guide was
applied. A heavily fissured grain was differentiated
from whole fissured grains as one wherein the fissure
originating from the grain core has definitely reached
the surface. Fissures were checked 3 d after drying
each sample. Dried rough rice grains were manually
husked. The degree of fissure was expressed in terms
of the percentages of light and heavy fissures found
in the brown rice kernels. Whole fissure occurrence
was expressed as the sum of both light and heavy
fissure percentages.
Results and discussion
Drying rates and fissure occurrence
The effects of air temperature on overall drying rate
and fissure occurrence are illustrated in Figures 1 and
2, respectively. The relationship between drying rate
and fissure occurrence is shown in Figure 3, which is
a combination of Figures 1 and 2.
Yaeminori had 43% light fissures even under
natural drying conditions, which was shade drying to
moisture content of 15% in the laboratory. Of the
five varieties used, it gave the highest percentage of
whole fissure occurrence in heated air drying.
However, it had one peculiar characteristic: the light
fissures did not easily transform into heavy ones. As
shown in Figures 2 and 3, despite the very high
whole fissure percentages, the heavy fissure percent-
ages were relatively low.
Shade-dried Koshihikari had a very low light
fissure occurrence of only 0.1%. Whole fissure
occurrence was minimal even when air heated to 42
°C was used in drying. However, when air tempera-
ture was elevated to 52 °C, whole fissure occurrence
rose to 43.6% and heavy fissure percentage increased
to 10.4%. Figure 2 shows that the 3% upper limit for
heavy fissure was exceeded when the air temperature
went beyond 48 °C. These results show that
Koshihikari had the strongest resistance to fissure
occurrence among the four medium-grain varieties.
Shade-dried Hitomebore had 23% light fissure
occurrence. Nevertheless, although the drying rates
obtained for this variety were lower than those for the
41
 Fig. 1. The relationship between drying rate and drying air temperature. A = Yaeminori, B =
Koshihikari, C = Hitomebore, D = Tsugaruroman, E = IR64 (long grain).

Fig. 2. The relationship between air temperature and fissure occurrence. Solid lines show
whole fissure and broken lines show heavy fissure. A = Yaeminori, B = Koshihikari, C =
Hitomebore, D = Tsugaruroman, E = IR64 (long grain).

42
 Fig. 3. The relationship between drying rate and fissure occurrence. Solid lines show whole fissure,
broken lines show heavy fissure, and × = whole fissure after shade-drying on lab floor as a control.
A = Yaeminori, B = Koshihikari, C = Hitomebore, D = Tsugaruroman, E = IR64 (long grain).

other three medium-grain varieties, it appeared to be temperature of 36 °C corresponds to a drying rate of

easily fissured.
For Tsugaruroman, the shade-drying rate was
about the same as that for Hitomebore, but with a
slightly lower (21%) light fissure occurrence.
However, in heated air drying, it appeared to be less
resistant to fissuring than Hitomebore.
IR64 was shade-dried at a low rate of 0.4% h–1
with no fissures occurring. Light and heavy fissure
occurrences were also minimal in heated air drying.
At the lowest level of drying rate for this variety,
light fissure occurrence was only 0.8%.
Possibility of elevating the allowable upper limit of
drying rate
It was shown that fissure occurrence was remarkably
different among the varieties mentioned above. If the
flow was continuous, heated air dryers were equipped
with function controls for material flow rate and
heating quantity, which could easily be done by
adjusting the heated air temperature; it was then
possible to elevate the upper-limit drying rate. As
shown in Figure 1, for Koshihikari, a heated air
1.6% h–1, which is twice the usual rate of 0.8% h–1.
Heavy fissure occurrence at 36 °C is minimal (Fig. 2).
Accordingly, doubling the usual drying rate with
minimal heavy fissuring can be realized for
Koshihikari.
Yaeminori showed a unique characteristic of
having many lightly fissured grains, although the
percentage of heavy fissure occurrence is low. In this
case, it is questionable to decide to raise the allow-
able upper limit of drying rate on the sole basis of
heavy fissure occurrence. The many fine light
fissures may possibly develop into heavy fissures
owing to environmental conditions after drying.
However, since the cultivated area devoted to this
variety is small because of the limitation to a certain
locality, the drying rate for Yaeminori is likely to be
kept the same as the usual rate.
Although the heated air-drying rates obtained
for Hitomebore and Tsugaruroman were very
different (Fig. 1), there were only small differences in
fissure occurrences between the two (Figs. 2 and 3).
From Figure 3, the drying rates that intersect the 3%

43
heavy fissure line can be read as 1.2% h–1 for where Mi and M0 are as defined in equation 1.
Hitomebore and 1.5% h–1 for Tsugaruroman. With The plot of Wi/W0 versus time, θ , for each
due consideration of a safety factor for fissure variety is shown in Figure 4A, B, C, D, and E. The
increase, the allowable upper-limit drying rate may resulting exponential Wi/W0 curves at each set
be raised to 1.2% h–1. temperature may be expressed according to the
For the long-grain IR64, the drying rates were following equation:
intermediate among the five varieties. Whole fissure Wi
occurrence did not exceed 1.6%, even at a high = a exp (–bθ) (4)
drying rate of 3.1% h–1; thus, the upper-limit drying W0
rate can easily be doubled. where parameters a and b were calculated using the
least squares method in the following linear equa-
Generalization of the drying process tion:
It was not possible to have uniform initial moisture Wi
content for the samples of the five varieties used in ln = lna + bθ (5)
W0
the experiments because of different harvesting
conditions in the areas where they were cultivated The calculated values are shown in Table 2.
and obtained. Their initial moisture contents ranged Parameter b corresponds to the drying constant k in
from 26% to 28% as shown in Table 1. Generally, the equation 2. Parameter a expresses the difference
moisture ratio (MR) equation, which simulates resulting from the decrease in the standard index at
Newton’s model, has been used to mathematically the initial moisture content, which is 1.0, after 1 h
describe the rice-drying process as follows:
(Mi – Me)
MR = = exp (–kθ) (2) Table 2. Parameters a and b in the equation
(M0 – Me) Wi/W0 = a exp (bθ).
where Mi and M0 are as defined in equation 1 and k = Variety Air temperature a (× 10–1) b (× 10–2, h–1)
drying constant (1/h), q = drying time (h), and Me = (°C)
equilibrium moisture content (% on a wet basis).
Yaeminori 26 8.338 5.47
However, the equilibrium moisture content has 27 8.303 5.88
to be measured through many long-duration experi- 28 8.160 6.11
ments. Thus, to simplify the equation, Chinnan 27 8.261 7.46
30 8.307 7.63
(1984) substituted Me for the final moisture content. 36 8.170 10.57
In this study, however, drying was purposely Koshihikari 30 8.454 5.42
discontinued when the final moisture content of 32 8.525 6.56
34 8.471 7.88
about 15% was reached. At this final moisture 36 8.587 8.60
content level, equilibrium with the surrounding air is 38 8.568 9.92
not completely attained yet. In substituting Me for 40 8.334 10.03
44 8.228 14.50
the final moisture content, it is necessary to obtain 48 8.386 19.25
such final moisture content as completely equili- 52 7.796 18.95
brated to the set air conditions of each experiment. Hitomebore 30 8.152 4.53
32 8.235 5.52
Thus, only Mi/M0 as modified MR was consid- 34 8.324 6.53
ered, assuming that Me is zero. Nindo et al (1995) 36 8.174 6.92
used this simple expression, with moisture content 38 8.294 7.97
40 8.146 9.05
values on a percent dry basis. In this study, the 42 8.253 11.03
moisture quantity ratio (MQR), defined as Wi/W0, Tsugaruroman 30 8.151 7.64
was used. This has the same significance as Mi/M0 32 8.347 8.70
34 8.069 9.10
because the moisture contents are expressed on a 36 7.998 9.68
percent wet basis as measured in the experiments. 38 7.828 10.05
MQR is the ratio of the moisture quantity, Wi, at any 40 7.808 10.98
42 8.815 15.45
time to the initial moisture quantity, W0, in a drying IR64 30 8.078 6.11
process. This ratio was calculated by using the 32 8.020 6.87
following equation: 34 8.040 8.26
36 8.020 8.28
Wi = Mi (1 – M0) 38 7.933 8.14
(3) 40 8.151 12.18
W0 = M0 (1 – Mi) 42 7.862 11.42

44
Fig. 4. Wi/W0 curves indicating the change in moisture quantity ratio (MQR) with time for each variety. A = Yaeminori, B =
Koshihikari, C = Hitomebore, D = Tsugaruroman, E = IR64 (long grain).

45
has elapsed from the start of drying. It is different
from the quantity of moisture reduction in the early
drying stage. For Koshihikari, this difference from
1.0 was generally small. This meant that for this
variety the value of MQR is also small. In contrast,
the opposite was true for Tsugaruroman. However,
parameter a is generally subject to the weather
conditions during harvesting and successive
handling; thus, it is difficult to view it as a parameter
expressing varietal properties.
Dependence on temperature
The dependence of parameter b on absolute tempera-
ture, T (°K), was investigated using Arrhenius’s
equation:
–B
b = A exp (6)
T whereas the long-grain IR64 was by far the most
where A and B are parameters expressing the respec-
tive characteristics of each variety. The results of
calculation using equation 6 are shown in Figure 5,
which also shows the curves obtained for the five
varieties.
Parameter b is shown as related to the reciprocal
of T in equation 6. Hence, as the drying rate in-
creases, parameter b becomes larger and dependence
on temperature increases. It was confirmed that all
Fig. 5. Thermal dependence of drying parameter b.
46
the varieties showed high drying parameter values as
well as high dependence of the drying constant k in
Newton’s model on temperature.
Relationship of whole fissure occurrence to drying
parameter b
The plot of whole fissure occurrence versus param-
eter b, as shown in Figure 6, shows remarkable
differences in this relationship among the five
varieties. Similar to the relationship between whole
fissure occurrence and drying rate as illustrated in
Figure 3, Figure 6 also shows that Yaeminori had the
highest whole fissure occurrence, followed by
Hitomebore and Tsugaruroman, which had approxi-
mately the same percentages of fissure occurrence.
Koshihikari had the highest resistance to fissure
occurrence among the four medium-grain varieties,
resistant among the five varieties. The strong
resistance of long grains to fissure occurrence has
already been reported by Srinivas et al (1977,
1978a,b), Juliano and Perez (1993), and Lan and
Kunze (1996). The commercially available continu-
ous-flow grain dryer at present has no function
control for drying rate corresponding to varieties and
is manufactured with uniform drying ability.
However, it is possible to add a function control that
 Fig. 6. The relationship between drying parameter b and whole fissure occurrence.
A = Yaeminori, B = Koshihikari, C = Hitomebore, D = Tsugaruroman, E = IR64 (long grain).
can easily change the rate of grain circulation in the
dryer. Hence, a method to adjust the drying rate can
be contrived corresponding to the fissure resistance
of each variety.
Conclusions and recommendations
Conventional heated-air drying rates applied in the
rice industry can still be raised beyond the standard
limit. However, in raising the drying rate, the variety
to be dried has to be considered since varietal
differences in fissure occurrence are great. Moreover,
the drying air conditions should not be kept constant
throughout the drying process but should be easily
adjusted to suit a particular variety.
It is recommended that the drying ability of
commercial dryers not be set at a uniform rate but be
made adjustable according to the variety to be dried.
It would be possible to respond to this idea by
adding function controls to the dryer that can easily
change the drying rate. However, there is still the
issue of taste value reduction caused by raising the
grain temperature, which needs to be considered and
discussed, although this does not refer to the problem
addressed in this paper.
References
Agriculture, Forestry, Fishery Technological Council. 1971.
Studies on drying and storage of raw rough rice. Res.
Results 48. (In Japanese.)
Ban T. 1971. Experimental studies on crack of rice in
artificial drying. Natl. Agric. Mech. Inst., Tech. Rep.
No. 8:13-16. (In Japanese.)
Chinnan MS. 1984. Evaluation of selected mathematical
models for describing thin-layer drying of in-shell
pecans. Trans. ASAE 27(2):610-615.
Hukill WV. 1969. Drying of grain. In: Anderson JA,
Alcock AW, editors. Storage of cereal grains and their
products. 2nd ed. American Society of Agricultural
Engineers. p 414-415.
Japan Food Agency. 1956. Explanation on the standard
sample of damaged grains and others concerning the
rice grain as domestic products. Tokyo (Japan): Japan
Food Agency. p 1-11. (In Japanese.)
Juliano BO, Perez CM. 1993. Critical moisture content for
fissure in rough rice. Cereal Chem. 70(5):613-615.
Kato K. 1985. Physical properties of agricultural products
and measuring method. 2nd ed. Tokyo (Japan):
Japanese Society of Agricultural Machinery. p 253-
257. (In Japanese.)
Lan Y, Kunze OR. 1996. Fissure resistance of rice varieties.
Appl. Eng. Agric. 12(3):365-368.
47
Nagato K. 1963. Study on grain quality of rice. Part 1. Jpn. Takahashi E, Miura S, Itoh S, Takahashi T. 1973. Harvest-
Soc. Crop Sci. 32:181-189. (In Japanese.) ing, drying, storage and quality taste of rice. Akita Pref.
Nindo CI, Kudo E, Bekki E. 1995. Test model for studying Agric. Exp. Sta. Rep. 18:107-118. (In Japanese.)
sun drying of rough rice using far-infrared radiation. Teranaka K, Genjyo T. 1967. Study on systematic analysis
Drying Technol. 13(1&2):225-238. of fissure occurrence. Tohoku Agric. Exp. Sta., Prompt
Okamura T. 1937. Studies on fissure of rice. Ohara Agric. Rep. 7:37-43. (In Japanese.)
Inst., Agric. Sci. Res. 27:166-194. (In Japanese.)
Schimdt JL, Hukill WV. 1956. Effect of artificial drying on
the yield of head rice and the germination of rice. Rice
Notes
J. 28-31. Authors’ address: Supervising science specialist, PhilRice,
Srinivas T, Bhashyam MK. 1984. Varietal difference in the Muñoz, Nueva Ecija, and retired professor, Hirosaki
topography of the rice grain and its influence on milling University, Hirosaki City, Japan, respectively.
quality. J. Food Sci. 49:393-401.
Srinivas T, Bhashyam MK, Mahadevappa M, Desikachar
HSR. 1977. Varietal difference in crack formation due
to weathering and wetting stress in rice. Indian J. Agric.
Sci. 47(1):27-31.
Srinivas T, Bhashyam MK, Mahadevappa M, Desikachar
HSR. 1978a. Intravarietal selection for low shedding
and crack resistance in rice. Indian J. Agric. Sci.
48(12):747-751.
Srinivas T, Bhashyam MK, MuneGowda MK, Desikachar
HSR. 1978a. Factors affecting crack formation in rice
varieties during wetting and field stress. Indian J.
Agric. Sci. 48(7):424-432.

48
 Session 2:
Enhancing the profitability
and sustainability of the
rice-processing business

1
Factors affecting the use of mechanical
dryers
A.C. Rodriguez and R.R. Paz

A survey was conducted to determine the factors affecting the use of mechanical
dryers by farmers’ cooperatives engaged in rice trading and milling. Sixty-nine
percent of the respondents answered positively as users of the technology and
31% have either used or tried it but eventually stopped using it. The reasons for
using the technology were grouped and classified into five factors: climate, tech-
nology, socioeconomics, business, and training. Seventy-eight percent cited cli-
mate as the main factor. A majority of the respondents used the technology during
continuous rain only; others used it most of the time. Only a few indicated most of
the time whenever there is wet grain. Some attributed the nonuse of mechanical
dryers to business factors and the owners themselves.

Drying is the process of removing the excess
moisture of grains before storage and milling. Delay
in drying grains immediately after harvest will cause
serious damage to grain quality and reduce market
value in the process. Wet paddy left undried for 2 to
3 d after harvest could result in “yellowing” of
kernels, discoloration of the hull, and/or germination
of the seed. Maize, when attacked by molds, pro-
duces toxins hazardous to human or animal health.
Philippine agriculture is basically traditional
and “sun-drying” is a common practice. Farmers dry
their grains on mats, cement roads, and other
concrete pavement. They handle relatively large
volumes so they don’t use mats. The adoption of
mechanical dryers has been rather slow despite their
being commercially available in the country as early
as the 1970s.
All people involved in the industry want to dry
their grains, be it farmers, traders, or millers. Drying
adds market value to the crop. Farmers and traders
normally get P0.50 to P1.50 revenue per kilogram if
sun-drying is accomplished. Millers, on the other
hand, save the extra cost added to the buying price
for dried grains.
But sun-drying is unreliable and is a risky
method of drying during the rainy season. The
burden of drying is being passed on from farmers to
millers. With the scarcity of “better” drying facili-
ties, the market for wet grains is greatly affected.
Drying slows down or stops when the rain becomes
continuous. Whoever has wet grains is bound to
encounter losses.
Mechanical dryers seem to be the logical
solution to the drying problems of the grain indus-
try. As early as the 1980s, big rice millers in Central
and Northern Luzon began using these machines.
Common then were the continuous-flow and
columnar batch type of dryers. The last decade also
saw a large increase in the demand for these ma-
chines. From 1993 to 2000, the national government
and local government units were able to assist in the
distribution of more than 1,000 units of small-
capacity recirculating, flash, and flatbed dryers to
farmers’ cooperatives engaged in grain trading and
milling.
Today, a variety of mechanical dryers exists all
over the country. Some of these dryers are owned by
the private sector, a lot more by farmers’ coopera-
tives, and a few by local government units as service
facilities. Surveys and monitoring of these dryers
have sown very low use, despite their increasing
number.
This paper presents and describes the factors
affecting use and nonuse of mechanical dryers by
farmers’ cooperatives, especially those engaged in
grain trading and milling.
Drying practices and systems
Almost everyone in the grain marketing system
performs drying. Farmers, traders, and millers dry
their grains in varied styles, using different methods,
and for different purposes and situations. Accounts of
drying practices and systems from interviews of
farmers, traders, and millers in some parts of southern
Mindanao are presented below.

51
Farmers
Typical farmers harvest grains from an average of
1–2 ha of farmland. Given the opportunity, farmers
dry the grains to maximize their income. They do
sun-drying, use family labor, and preferably do
drying on roads or public pavement just to minimize
drying cost.
During the rainy season, farmers may attempt to
dry grain, though the general practice is to dispose of
the crop immediately after harvest. The risk from
losses if drying is delayed is high. When the rains
come, and much as farmers would like to sell the
grains immediately, traders and millers stop buying
wet grains and/or bring down the buying prices to
very low levels.
Farmers’ only hope is for the sun to shine. Where
mechanical dryers are available, farmers would
consider using them only to prevent further losses.
Traders (small to large)
Small traders at the production site have limited
capital for procurement or, in some cases, none at all.
Acting as agents for other traders or millers, they
derive income from commissions and/or margins that
they add to prevailing farm-gate prices. Their option
to dry any wet grains passing through their trading
operations is very attractive. In fact, they will do this
during the dry months. On rainy days, small traders
prefer to buy only dried grains.
Large traders, aside from their warehouse, have
large investments in drying facilities. Drying is one
of their major profit-earning activities. Their drying
pavements have to be wide and have tarpaulin sheets
to cover the grains when rains occur. Large traders
may have mechanical dryers as back-up facilities to
sun-drying. The dryers provide them with a competi-
tive advantage in grain procurement during rainy
days.
Many farmers’ cooperatives operate like
large traders. But, unlike the latter, cooperatives are
obligated to take in the farmers’ harvest, wet or dry,
Table 1. Usage of mechanical dryers by farmers’ cooperatives engaged in rough rice trading and milling
business, 2000.
Usage Farmers’ cooperatives engaged in
Trading only
Frequency
Users 49
Nonusers 23
Total 72
1
On-going research project: “A National Survey on the Utilization of Mechanical Dryers Among Farmers’ Cooperatives.”
52
raining or otherwise. Some cooperatives have
mechanical dryers.
Big millers
Big millers also engage in drying. They prefer to buy
wet grains so that they can dry them properly,
resulting in better quality of milled products. Their
volume of wet grain procurement is limited, however,
only by their drying capacity. Big millers have semi-
or fully mechanized drying systems.
The drying practices and systems of typical
farmers and big millers have been summarized. In
between these two groups are traders and small
millers, who face situations or conditions that define
their needs for other drying systems, such as me-
chanical dryers.
Users and nonusers of mechanical dryers
One hundred forty-two cooperative respondents were
surveyed1 by the Bureau of Postharvest Research and
Extension to identify the factors affecting the use of
mechanical dryers by farmers’ cooperatives engaged
in rice trading and milling. When asked whether they
were using their mechanical dryers in their rice
postharvest operations, 69% of the respondents
answered positively as users of the technology. The
other 31% have either used or tried the machines but
eventually stopped using them (Table 1).
A majority of the users described their use as
“seldom—during 2–3 days of continuous rain only”
or “sometimes—when it rains.” Some cooperatives
answered “most of the time,” whereas only a few said
“always—whenever there is wet grain.”
Table 1 compares and describes the responses of
dryer owners when grouped according to their line of
business. From the data, the percentage of farmers’
cooperatives engaged in milling using mechanical
dryers was higher than the users among the farmers’
cooperatives engaged in trading. Though the
difference is insignificant, it is also noted that the
millers surveyed were not big millers. In fact, most of
Total
Trading and milling Frequency %
% Frequency %
68 49 70 88 69
32 21 30 44 31
100 70 100 142 100
the traders had volumes comparable to those of the Table 2. Reasons for the use or nonuse of dryers by trader-
and miller-respondents, 2000.
millers.
Reasons/ Farmers’ cooperatives Total
factors engaged in
Factors affecting the use of mechanical
dryers Trading Trading and Frequency %
only milling
The same respondents were asked why they used or
Frequency % Frequency %
did not use the mechanical dryers. A variety of
reasons were given and identified. These reasons Users
were then grouped and classified, and five broad Climate 40 82 36 74 76 78
Technology 39 80 33 67 72 73
factors were established: climate, technology, Socio- 28 57 21 43 49 50
socioeconomics, business, and training (Table 2). A economics
comparison of factors on dryer use by type of Business 11 22 7 14 18 18
Number of 49 100 49 100 98 100
business and by type of mechanical dryer is pre- users
sented in the following section.
Nonusers
Technology 14 61 14 67 28 64
Dryer use by type of business Socio- 14 61 13 62 27 61
Table 2 summarizes the factors affecting the use of economics
mechanical dryers given by the 142 farmers’ coop- Climate 7 30 10 48 17 39
Business 3 13 4 19 7 16
erative respondents engaged in trading only and Training 2 9 4 19 6 14
farmers’ cooperative respondents engaged in trading Number of 23 100 21 100 44 100
and milling. nonusers
Climate. Climate is the main factor in the use of
mechanical dryers among farmers’ cooperatives.
Seventy-eight percent of the user-respondents cited The use of mechanical dryers is not as risky as
climate as their primary reason for using the dryers. sun-drying. The dryers assure users that no damage
The ability to dry when sun-drying is not possible is will occur to the crop and that their income from
a factor that makes the respondents consider the produce will be guaranteed.
mechanical dryer as an alternative drying method to Business. Eighteen percent of the user-respon-
sun-drying. The data provided by those surveyed dents attribute their use of mechanical dryers to
confirm that a majority of the volume of grains dried business factors. These pertain to the type and size of
using the machine came from the wet-season harvest. business that the users are engaged in. In particular, it
Technology. Technology is the second impor- is the volume of grains handled and the market that
tant factor affecting the use of mechanical dryers as the users supply. For cooperatives, this involves
reported by 73% of the user-respondents. It is capitalization and the soundness of their business
obvious that these respondents appreciate the activities.
mechanical dryer and its advantages. Mechanical Nonusers of mechanical dryers gave the follow-
dryers were cited as fast in drying, convenient, and ing reasons by factor.
easy to operate. Some reasoned that less spillage and Technology. About 64% of the total nonuser-
clean and better-quality grains are the advantages of respondents reported that the reason for not using the
using the dryers. Many farmers’ cooperative-millers mechanical dryer is related to the technology.
recognized that mechanically dried rough rice results Nonusers complained that the machine is too
in higher milling recovery and better-quality milled complicated to operate and that some of the units
rice. delivered to them were defective. Others have
Socioeconomics. Fifty percent of the respon- damaged units that they can repair or maintain.
dents regard socioeconomic factors as reasons for Socioeconomics. About 61% of the total
using mechanical dryers. Two major issues related to nonuser-respondents said that nonuse was because of
the use of mechanical dryers were identified: excess the very high drying cost when the machines are
or lack of laborers and security of income through used. At this level of costs, mechanical drying would
protection from drying losses. be a losing business.
The users of mechanical dryers may have Climate. Thirty-nine percent of the total
problems relating to labor used for sun-drying. Either nonusers preferred to sun-dry grains because of the
the labor force is difficult to maintain or support or available sunshiny days during harvest time.
the lack of it favors the use of the drying machines.

53
 Business. Sixteen percent of the 44 nonusers
attributed nonuse to business factors or to the owners
themselves. Some farmers’ cooperatives were
inactive and had ceased drying operations, whereas
other cooperatives had stopped their trading or
milling operations.
Comparison of factors on dryer use by type of
business
Grain trading and milling were the two types of
farmers’ cooperative businesses considered in the
survey. Trading or “buy and sell” refers to the
business of buying grains from farmers at one end
and selling the same grains to other large traders or
millers at the other end. Drying is done when the
grains purchased from the farmers are wet and the
market demands dried grains. Milling is the conver-
sion of rough rice to milled rice. Millers also procure
wet grains that they have to dry before milling.
Traders and millers constitute the sectors of the
industry that handle wet grains in large volumes. The
few big millers who are the market leaders in the
milling industry are excluded from the analysis
because they are already in the advanced class of
grain processors. Besides, seldom do cooperatives
fall within the leader category. Although both sectors
perform drying operations, their objectives and
systems are different.
Table 2 also compares the factors of dryer use
when the cooperatives are simply trading or engaged
in milling. Both sectors made the same ranking of the
factors (as discussed above) in the user and nonuser
categories. The differences in weight or percentage
per factor are insignificant, which indicated that the
cooperative millers more approximated the business
conditions of the traders than those of the private big
millers with semi- or fully mechanized drying
systems. Both sectors ranked climate as the number-
one factor, implying that cooperatives, traders, and
millers use the dryers mainly during rainy days.
Dryer use by type of dryer
The 142 cooperative rough rice traders and rice
millers own 192 mechanical dryers (MDs). Of these,
the flash dryers (mobile flash and rotary flash)
represented the most at 114 units. The imported
recirculating dryers were 62 units and the flatbed
dryers were 16 units.
Sixty-eight percent of the 114 units of flash
dryers were being used. On the other hand, 89% of
the recirculating grain dryers were reported as used
and 62% for the other types of dryer.
Table 3 summarizes the factors on dryer use by
type of dryer. The factors of use are enumerated and
are grouped similar to those of the traders and
millers. Also, the ranking of the reason follows
closely the ranking of the reasons reported by
cooperative traders and millers.
Reasons of users of MDs by type. Climate or the
inability to do sun-drying was the main reason that
the flash dryer is being used. Sixty-nine percent of
the user-respondents mentioned climate as the main
reason for using the mechanical dryer. The technol-
ogy factor related to the attributes of the mechanical
dryer such as the ability to clean the grains and
remove impurities was the second reason, reported by
56% of the user-respondents. Ranking third is
economic factors, reported by 37%. During inclem-
ent weather when sun-drying is not possible, using
the flash dryer can prevent wet grains from further
deteriorating, thus reducing monetary losses.

Table 3. Reasons of users/nonusers of mechanical dryers (MDs) by dryer type, 2000.

Reasons/factors Flash dryer Recirculating Othersa Total

Frequency % Frequency % Frequency % Frequency %

Users
Climate 53 69 29 53 5 50 87 61
Technology 48 62 29 53 2 20 79 56
Socioeconomics 35 45 15 27 2 20 52 37
Business 14 18 6 11 1 10 21 15
No. of used MDs 77 100 55 100 10 100 142 100

Nonusers
Socioeconomics 25 68 4 57 6 100 35 70
Technology 25 68 0 0 2 33 27 54
Climate 14 38 3 43 2 33 19 38
Business 3 8 2 29 3 50 8 16
Training 4 11 1 14 1 17 6 12
No. of unused MDs 37 100 7 100 6 100 50 100

54
 Both climate (53%) and technology (53%) are
the main factors enhancing the use of the recirculat-
ing dryer. Users indicated that the recirculating dryer
is fast and easy to operate. Also, fewer laborers are
required to load and unload the grains. Economic
factors relating to the cost of drying were third
(27%), suggesting that drying cost is perceived to be
“lower” when this type of dryer is used compared
with the flash dryer.
Other dryers are the flatbed and reversible-flow
flatbed type of mechanical dryer. Similar to the other
two types of dryers, climate (50%) is the main factor
in the use of these dryers. The other factors have a
similar weight at 20% each.
Reasons of nonusers of MDs by type. The high
cost of drying remains the main reason that the flash
dryer is not used, as reported by 68% of the nonuser-
respondents. Being a two-stage drying technology
that combines flash drying and sun-drying, the
drying cost is relatively higher than with the other
drying technologies. Complaints about defects,
being difficult to operate, and other problems related
to technology are also reported by 68% of the
nonuser-respondents. The ability to use sun-drying
ranked third (38%), whereas operator’s training on
drying operations ranked as the fourth factor (11%).
As with the other dryers, the high drying cost is
the number-one reason that recirculating dryers are
not being used (57%). Climate (43%) ranked second,
followed by business (29%) and training (14%) as
contributing factors in the nonuse of the dryer. No
complaint was made about the technology.
All of the nonusers of other types of dryers
reported that the drying cost somehow stopped them
from using the mechanical dryer. Discontinuance of
the cooperative business also contributed to the
nonuse of these dryers (50%).
Comparison of factors on dryer use by dryer
type. In general, responses by the different users show
that they are aware of the importance of the mechani-
cal dryer in maintaining good grain quality at
harvest, particularly its effect on the quality of milled
rice. Also, with the ease in operating the mechanical
dryer, particularly the recirculating grain dryers,
anybody can be trained easily to operate the me-
chanical dryer. A highly skilled and well-trained
operator is not necessary for operating these me-
chanical dryers because dryer operation is automati-
cally controlled.
Dryer capacity matches the cooperative’s drying
requirement. With the large volume of wet grains at
harvest and during inclement weather, farmers’
cooperatives can dry their procured stock at the
earliest and in the fastest time to minimize quality
loss, thereby preserving grain quality, not to mention
reducing drying losses. Decreasing the possibility of
drying losses caused by overdrying and spillage will
increase the income of both the cooperative and the
individual farmer-members.
All of the nonusers of the mechanical dryer agree
that mechanical drying is costly. However, most of
the negative comments and feedback by the nonusers
of the mechanical dryer pertain to the technology
defects of the flash dryers.
Summary/conclusions
1. Different drying requirements define different
drying systems. Farmers, traders, and millers
handle different volumes of wet grains for
different purposes. Farmers will always try to
maximize income through sun-drying, whereas
big millers will always try to mechanize their
drying operations for more stocks and quality
products. Farmers predictably will use mechani-
cal dryers to save their crop from further losses,
after attempting sun-drying. The drying system
requirements of cooperative traders and small
millers have to be determined and clearly
defined.
2. Although a majority of the dryer owners
consider themselves as users of the technology,
the degree of usage can be described as minimal
and dependent on whether sun-drying is
possible or not. Obviously, mechanical dryers
are considered as an alternative to sun-drying.
The notion that mechanical dryers are “for
emergencies only” seems a fitting description of
how farmers, traders, and small millers perceive
dryers.
3. This notion is highly supported by the findings
of the survey that climate is the number-one
consideration in using the dryers among the
owners of the mechanical dryers. Second is the
appreciation of convenience and high-quality
results after mechanical drying attributable to
the technology.
4. On the other hand, nonusers complain about the
high costs of drying when using the machines.
Whenever sun-drying is possible, they have
decided not to use their mechanical dryers. Other
considerations are of similar weight, such as
problems relating to the operation of the
mechanical dryers. Some of the nonusers were
inactive cooperatives with closed trading and/or
businesses. Last among the factors was the
reason that owners were not trained on how the
drying machines work.
55
5. By type of mechanical dryer, the flash dryers are Paz R et al. 1996. Aflatoxin in maize, Philippines (Phase II).
accepted for their ability to dry grains quickly Unpublished terminal report. NAPHIRE, Muñoz,
during rainy days. The recirculating dryers are Nueva Ecija, Philippines.
appreciated for their ease in operation. Rodriguez AC. 1999. Factors affecting the continued use of
the mobile flash dryers by farmers’ cooperatives,
Nueva Ecija, Philippines. Unpublished MS thesis.
Bibliography Massey University, New Zealand.
Andales S, Manebog E, Bulaong M. 1994. Food handling in
the Philippines. Nueva Ecija (Philippines): Institute for Notes
Research and Extension.
Cardino A. 1984. A socio-economic study on the utilization Authors’ address: Supervising science research specialist
of mechanical dryers. A Terminal Report. NAPHIRE, and director I, respectively, Bureau of Postharvest
Muñoz, Nueva Ecija. Research and Extension, Muñoz, Nueva Ecija.
NAPHIRE. 1994. Integrated rice-processing enterprise for
farmers’ cooperatives. NAPHIRE, Muñoz, Nueva
Ecija.
NFA (National Food Authority). 1999. NFA-ITR dryer
assistance program nationwide survey of the NFA-ITR
mechanical grain dryers.

56
The modern integrated rice business:
a concept
F.V. Borromeo

A modern integrated rice business (MIRB) was conceptualized as a profit-oriented

business enterprise. The enterprise operates with two basic industry functions of
rice production with postharvest processing and rice marketing. The MIRB con-
sists of four key components: farmer association/cooperative, modern postharvest
processing facility, rice wholesale distributors, and agribusiness entrepreneur
group. This concept was implemented on a 127-hectare farm developed into a
model rice farm in Victoria, Laguna, from 1983 to 1989. It was proven that a continu-
ous and adequate supply of high-quality rice in the market can be achieved, farmer
participants can earn a substantially increased income per hectare and can be
liberated from borrowing money for farming expenses, and the integrated rice
business is profitable. However, the weakest link of the MIRB concept is the farm-
ers who are unwilling to change their traditional farming culture.

In the 1960s and ’70s, I noted fundamental deficien-
cies that I considered critical in the Philippine rice
industry. These were recurring seasonal supply
shortages with attendant unstable market prices and
the continuing poverty of small rice farmers who do
not earn a fair share of the market value of rice.
As a staple food, rice must be available in the
market throughout the year in sufficient quantities,
have good quality, and have fairly stable prices. Yet,
in spite of the well-known modern technologies of
rice farming and postharvest processing, the tradi-
tional rice industry failed to maximize the use of
these technologies to meet the needs of rice consum-
ers. At the same time, although the Agrarian Reform
made the small rice farmers the owners of their rice
farms, thereby making them solely responsible for
deciding how to make the best use of the land, they
still failed to make the correct decisions that would
increase their income from rice farming. They
continued to produce little and to earn little.
Obviously, it is in the national interest that rice
shortages and poverty on rice farms be resolved,
because they threaten social and economic stability
and are a drag on national economic development.
To pinpoint the problem areas in the principal
sectors of the rice industry, I commissioned a
graduate student of a business management school to
trace the material process flow from the time the rice
seed is planted on the farm to when the rice grain is
cooked and consumed at the dining table. This study
guided me in undertaking my own commercial pilot
project for the purpose of developing a profitable
method of rationalizing rice farming operations,
postharvest processing, and rice marketing, which
would increase productivity and cost efficiency on
the farm and in the postharvest plant, increase the
quality of rough rice and milled rice, increase the
market value of rice, and assure continuity of the rice
supply in the market.
This pilot project was carried out from 1983 to
1989 in the following facilities:
• A leased 127-ha rice farm in Victoria, Laguna,
which developed into a productive model rice
farm.
• A wholly owned modern postharvest facility
constructed in Pagsanjan, Laguna—complete
with mechanical dryers; conveyers; dried rough
rice storage silos; rice milling, grading, and
blending machinery; packaging equipment; and
a quality control laboratory.
From three separate activities in this pilot
project—farm rice production, rice postharvest
processing, and milled rice marketing—the concept
of a modern integrated rice business evolved.
Concept overview
The integrated rice business is a business enterprise
in agriculture—agribusiness—operated for profit. Its
main purpose is to supply the rice requirements of its

57
dedicated consumer market by producing its own
rough rice, which is processed into the milled rice
required.
The enterprise operates as a wholistic system
that puts under a unified training and quality control
supervision the two basic industry functions of rice
farming and postharvest processing, and directly
manages rice marketing. In this system, organized
group farmer rice production is directly linked to
postharvest processing and milling operations, and
both are geared to supply the rice market of the
system.
Milled rice is the only product sold, not rough
rice.
Exploiting the higher market value of milled
rice compared with that of rough rice, the enterprise
treats the three basic activities of the industry as
expenses and therefore as cost centers, which
together are deducted from the revenues of rice
product sales to arrive at the gross margin of the
business. Thus, its income statement format is as
follows:
• Revenues Sales of milled rice
products
• Cost of sales Expenses of rice
production, postharvest
processing, and milling
• Gross margin Revenue minus cost of
sales
• Operating expenses Expenses of administra-
tion, training, market-
ing, and finance
• Net profit before Gross margin minus
income tax operating expenses
In contrast, in the traditional rice industry, each
of the basic activities is generally a separate indi-
vidual business of the rice farmer, the miller, and the
trader. Under this setting, typical rice farmers earn
only a meager profit after deducting their farming
expenses from sales of rough rice at farm-gate prices,
which is one of the major reasons for their poverty.
Concept components
The four key components of the modern integrated
rice business are the following, with their respective
functional responsibilities:
1. Farmer association/cooperative
• A well-managed organization of selected,
qualified, and trained small rice farmers who
together pool their respective small farms
and organize them into supervised produc-
58
tion units, and who work by group farming
instead of the traditional individual farming
practice.
• Implements for technically prescribed
farming methods that are market-oriented,
planned, organized, scheduled, well-
financed, budgeted, cost-controlled, and
centrally supervised with well-defined
inputs of farm machinery and labor.
• Contracts to produce the rough rice require-
ments of the enterprise—specifications of
volume, quality, production cost, and
delivery schedules.
2. Modern postharvest processing facility
• Located in the vicinity of the farm produc-
tion area.
• Is complete with machinery and equipment
to implement modern technologies of
mechanical rice drying, milling, grading,
blending, and packaging of products.
• Keeps sufficient inventory of dried rough
rice between harvests to maintain an
adequate and continuous rice supply in the
market throughout the year.
• Contracts to process rough rice into the
required products of the enterprise—
specifications of dried rough rice, milling
yields, storage and packaging, processing
costs, and delivery schedules.
3. Rice wholesale distributors
• Qualified rice wholesale distributors with
their respective network of qualified rice
retailers who are the desired channels of
distribution in the consumer market of the
enterprise.
• Cater to discriminating, quality-conscious
rice customers who demand better rice
quality for the price they pay.
• Maintain adequate and continuous rice
supply in the market.
• Participate in customer-oriented sales
promotion programs of the enterprise.
4. Agribusiness entrepreneur group
• An entrepreneur organization of manage-
ment, finance, marketing, and investment
interests that sees the business opportunity
in the concept and wants to implement it.
• Identifies specific rice requirements of a
potential dedicated rice consumer market.
• Leads the establishment of the three other
components of the concept.
• Packages the financial requirements of the
farmer association/cooperative.
• Prescribes the technologies and work
 methods of rice production, postharvest (wet to dried rough
processing, and milling operations. rice based on above
• Provides training and quality control conditions)
supervision of rice production, postharvest, B. Rice milling yield per dried rough rice input
and milling operations. • Hull 25% (4,150 kg) 1,037 kg
• Promotes and manages the marketing of • Brown rice 75% (4,150 kg) 3,113 kg
high-quality rice. 4,150 kg
• Provides overall management of the C. Brown rice processing per dried rough rice
enterprise. input
• Bran 10% (4,150 kg) 415 kg
The quality specifications for rough rice and • Milled rice 65% (4,150 kg) 2,697 kg
milled rice adopted by the enterprise are improve- 3,113 kg
ments of National Food Authority (NFA) Grade I III. Milled products for sale in percent of brown rice
Standards for Palay and Milled Rice. • Grade I 70.5% 2,197 kg
(extra)
Concept business management, • Brokens 16.1% 501 kg
productivity, and technology guidelines 13.3% 415 kg
• Bran 3,113 kg
Managing the integrated rice business enterprise is
guided by the following principles: Technical guidelines
1. The supply of high-quality milled rice is
dependent on the supply of high-quality rough With reference to commercially proven appropriate
rice. technologies, the enterprise prescribes technical
2. For a successful rice business, the critical factor work methods to achieve its goals of productivity on
is availability of a year-round adequate supply the farm and in the postharvest facility. The follow-
of cost-competitive high-quality rough rice, ing elements illustrate these technical references:
which is totally dependent on the production A. For rough rice production
output of the rice farmer. Element A Rice plant stages for growth
3. Fundamental changes in traditional industry (guide to preparation of
practices are a prerequisite to the correction of time-activity schedule,
shortcomings on the farm, in the postharvest cropping calendar—3 crops
facility, and in the rice market. per year—and production
4. The intervention of an agribusiness entrepre- budget)
neurial organization is required to make the Element B Programmed farming work
changes needed. (guide for using mechanical
farm machinery in heavy
The following are the productivity guidelines of physical work)
the enterprise: Element C Programmed farming work
I. Rough rice production goals (guide for light manual
A. Crop harvests work of individual farmers)
per hectare B. For mechanical drying: to begin within 24
B. Farm yield Per hectare—1 crop hours after harvesting
Wet rough rice 5,000 kg Drying curves
25% moisture Wet rough rice inputs at 24% and 26%
content (max) moisture content
95% purity (min)
II. Rough rice postharvest processing goals Concept conclusions
A.. Dried rough rice 4,150 kg
14% moisture This paper cited seasonal rice shortages and continu-
content ing poverty of the rural small rice farmers as critical
99% purity deficiencies in urgent need of correction. Lessons
(weight correction learned from the pilot project that developed the
factor = 0.83) concept of an integrated rice business demonstrated
ways to correct these deficiencies.

59
 Operations of the business enterprise as designed
prove that
• A continuous and adequate rice supply in
the market can be achieved by translating
market requirements into year-round goals
of production on the farm and in the
postharvest facility.
• Rice farmer-participants earn a substantially
increased monthly cash income per hectare,
and furthermore are liberated from borrow-
ing money for farming expenses and taking
risks of crop damage and fluctuating rice
farm-gate prices.
• The integrated rice business becomes
profitable by
• Selling only rice—all rough rice
produced is processed into milled rice;
• Operating with economies of scale on
the farm, in the postharvest facility, and
in the marketplace;
• Increasing the productivity of work and
the quality of the product and reducing
unit operating costs;
• Using the resources of management,
technology, methods engineering,
finance, marketing, and trained and
skilled personnel to reach the goals of
the enterprise; and,
• Altogether, satisfying customer market
needs.
To illustrate the disparity of monthly cash
income per hectare between traditional rice farmers
and productive farmer-participants in the rice
business, two income statements are presented
(Tables 1 and 2). Further information supporting the
statements in Table 2 is provided in Appendices A
through D.
Aside from the increased income benefits to the
rice farmers participating, the proforma income
statement shows an attractive return to the
agribusiness group, which now assumes the business
risk, whereas the farmers are free of the burden of
farming risks. Under this concept, the farmers can
look forward to a regular monthly cash income.

Table 1. Isabela rice farmers’ organizations, reported net income per hectare, 1997. a

Item Irrigators’ FIA-II CAMPUCO/ Pagsanggiran Triple-V IA

association MPCI LUZON MPC Irrigators’
Association

Wet rough rice yield (bags) 120 120 120 120 100
per ha (50 kg bag–1)

Less: deductions (bags)

Family use 20 21 20 20 20
Leasehold share 15 15 12 15 18
Harvester’s share – 6.5 8 9 7.5
Threshing 8.4 7.5 8 8 6.5
Hauling (animal) – – – 3 –
Interest on other loan 10 – – 9 10
Irrigation fee – 3 3 3 3
Total deductions (bags) 53.4 53 51 67 65

Rough rice quantity for sale (bags) 66.6 67.0 69.0 53.0 35.0
Gross sales (pesos):
Fresh palay sales:
At P5.00 kg–1 16,650 16,750 17,250 13,250 8,750
At P 7.50 kg–1 24,975 25,125 25,875 19,875 13,125

Less: crop production expenses

Production loan (pesos) 10,000 – – – –
Seeds – 900 1,200 1,500 1,400
Land preparation 2,000 1,800 2,000 2,000 1,500
Pulling (rice seedlings) 600 300 900 600 700
Transplanting 1,500 1,500 1,200 1,500 1,200
Fertilizer – 2,010 2,720 2,040 2,710
Chemicals – 1,520 1,970 1,610 1,650
Irrigation fee 1,000 – – – –
Harvesting fee 2,000 – – – –
Interest on loan – 1,281 – – –

continued

60
Table 1. continued

Item Irrigators’ FIA-II CAMPUCO/ Pagsanggiran Triple-VIA

association MPCI LUZON MPC Irrigators’ Association

Total expenses (pesos)

Net cash income (pesos)
Per hectare
At P 5.00 kg–1 (450) 7,439 1 4,000.00 (410)
At P 7.50 kg–1 7,875 15,814 15,876 10,625.00 3,965
Per 2 crops ha–1 y–1
At P 5.00 kg–1 (900) 14,878 14,502 8,000.00 (820)
At P 7.50 kg–1 15,750 31,628 31,752 21,250.00 7,930
Monthly cash income ha–1
At P 5.00 kg–1 (75) 1,240 1,209 667 (68)
At P 7.50 kg–1 1,313 2,636 2,646 1,771 661
a
Farmers interviewed did not submit documents to confirm the farm yield, sales, and farming expenses (cash or in-kind) they stated from memory. The low
crop production expenses of P10,000 per ha are unrealistic; hence, their reported monthly cash incomes are questionable. bFIAD-II, MPCI, CAMPUCO, and
Luzon MPC are names of farmers’ organizations in Isabela Province.

Table 2. Modern integrated rice business, proforma income statement (amounts in Philippine pesos).a

Item Per hectare—3 crops y–1

Amount Percent of sales

I. Sales 149,703 100.00

II. Cost of sales (total farm/postharvest/packaging expenses)· 101,850 68.0

• Rice production 86,730 57.9
• Postharvest processing 13,626 9.1
• Packaging 1,494 1.0

III. Gross margin 47,853 32.0

IV. Operating expenses 22,170 14.8

A. Sales/administration 8,982 6.0
B. Technicians-trainers/quality control supervisors (4% of sales) 5,988 4.0
C. Financing cost· 7,200 4.8
• Working capital (per ha—3 crops y–1)·
• Interest (per annum) (18%) 40,000

V. Net margin (profit before income tax) 25,683 17.2

VI. Return of working capital (per ha—3 crops y–1): 62.4%

a
Based on the operations of the pilot project. Figures are updated to reflect prevailing costs/prices in 1997 of the following items: rice selling prices, farm
material input costs, mechanical farming service fees, postharvest/rice milling fees, fuel/transportation costs, irrigation fees, crop insurance premiums,
financing costs, and other costs.

A word of caution is in order to the implementor
of this concept: the weakest link in the chain of rice
industry resources is the traditional farmer, who is
bogged down in an age-old, outmolded farming
culture and is reluctant to change. Putting the desired
nontraditional productive farmer organization in
place is not easy. It takes expertise to search for
farmers who are likely to want to change and to train,
orient, and organize them in their new role. Notwith-
standing this handicap, the modern integrated rice
business concept can very well be a model for the
modernization of the Philippine rice industry and
alleviation of rural poverty.
Notes
Author’s address: Agribusiness development consultant,
Pagsanjan, Laguna.

61
 Appendix A. Modern integrated rice business, benchmark operating data.

Item Per hectare for 3 crops y–1 (kg)

I. Farm yield 15,000

Wet rough rice at 25% moisture content, 95% purity
II. Postharvest processing
A. Dried rough rice at 14% moisture content, 99% purity 12,450
(wet rough rice to dried rough rice based on
above conditions)
(weight-loss factor = 0.83)
B. Milling yield (net of milling losses)
Dried rough rice input: 100%·
• Hull 25% (12,450 kg)· 3,111
• Brown rice 75% (12,450 kg) 9,339
C. Milled products for sale in percent of brown rice·
• Grade I (extra) 70.5% (9,339 kg)· 6,591
• Brokens (mix rice) 16.1% (9,339 kg)· 1,503
• Bran 13.3% (9,339 kg) 1,245

III. Projected sales (P) Retail kg–1 Wholesale kg–1 Amount

Grade I (extra) 23.50 20.00 131,820
Brokens (mix rice) 10.50 9.00 13,527
Bran 3.50 4,356
Total 149,703

Appendix B. Modern integrated rice business, proforma rice production expenses.

Item Per hectare—3 crops y–1

Amount (P) Percent of sales

A. Rice farmer association/cooperative contract fees 42,000 28.06

1. Farmer fees (use of farm, manual labor, 36,000 24.05
crop security)
2. Association/cooperative margin 6,000 4.01

B. Materials input costs 20,430 13.65

• Certified seeds 3,900 2.61
• Fertilizers 9,120 6.09
• Chemicals 7,410 4.95

C. Mechanical farming service fees 16,950 11.32

• Land preparation 6,600 4.41
• Direct seeding 1,350 0.90
• Harvest and threshing 6,750 4.51
• Rough rice hauling 2,250 1.50
(farm to postharvest facility)

D. NIAa irrigation fees 3,600 2.40

E. Crop insurance premium 3,750 2.50

Total rough rice production expenses 86,730 57.93

a
NIA = National Irrigation Administration.

62
Appendix C. Integrated rice business, proforma rice postharvest processing expenses (ref: NFA Northern Philippines Grains
Complex Fees).

Item Quantity Fee Per hectare—3 crops y–1

(kg) (P)
Amount Percent of
(P) sales

A. Rough rice mechanical drying

• Weighing (fresh) 15,000 0.01 kg–1 150 0.10
• Drying 12,450 0.049 kg–1 6,100 4.08
B. Rice milling 12,450 0.50 kg–1 6,225 4.16
C. Storage
• Dried rough rice 12,450 0.065 kg–1 mo–1 1,151 0.76
• Bagged milled rice 8,094 0.042 kg–1 mo–1
(equivalent to 3 mo
storage)
Total postharvest processing expenses 13,626 9.10

Appendix D. Proforma packaging expenses, per hectare—3

crops y–1.

Item Cost per bag Amount Percent

(P) (P) of sales

Total packaging expenses 1,494 1.00

• Products to bag (kg)
Bran 1,245 Material 6
Rice 8,094 Labor 2
Total 9,339 Total 8

63
The cooperative rice milling business
F.M. Torrizo

This paper presents the experiences in a cooperative rice milling business of Susi
Foundation Inc., established in 1989 as part of the Integrated People’s Livelihood
Cooperative System. Government and private organizations planning to venture
into a cooperative rice milling business must carefully consider the following tech-
nical and socioeconomic realities: (1) selling dried rough rice has no advantage
over selling wet rough rice, (2) pricing of rough rice should be the same for mem-
bers and nonmembers of a cooperative, (3) different places have different rice
quality preferences, and (4) mechanical dryers can never be financially viable as a
stand-alone technology.

Susi Foundation Inc. was established in 1989 as part 8. Pampanga Agro- Pampanga
of the Integrated People’s Livelihood Cooperative Industrial Development
System (IPLCS), the precursor of the “KABISIG” Foundation (PAIDF)
program. The IPLCS is a nationwide nongovernment 9. Pangasinan People’s Pangasinan
organization (NGO) movement replicating the model Development
of the People’s Livelihood Foundation (PLF), which Foundation (PPDF)
was eventually called the Tarlac Integrated Liveli- 10. People’s Livelihood Tarlac
hood Cooperative (TILCO) organized by Bernabe Foundation
Buscayno in Capas, Tarlac. It tapped the resources 11. Susi Foundation Inc. Quezon
and expertise of government organizations and (SUSI)
NGOs in planning and implementing integrated 12. Tarlac Agro- Tarlac
agricultural development programs involving rice Industrial Development
production, postproduction, and marketing. The Foundation (TILCO)
IPLCS was implemented in 12 provinces and 13. Tinguha Foundation South Cotabato
involved the following 13 NGOs: * Technical Assistance Davao
Center for the
NGO Province Development of
Rural and Urban Poor
1. All Move Foundation Bulacan Inc. (TACDRUP)
(All Move)
2. Alay Tangkilik Nueva Ecija Integrated People’s Livelihood
Foundation (ATF) Cooperative System
3. Bikol Institute of Camarines Sur
Development The general objective of the IPLCS is to implement
Technology an integrated people’s livelihood program by
(BIDTECH) assisting farmers and their households in developing
4. Bukidnon Development Bukidnon a viable, sustainable, and effective livelihood system
Foundation (BSDF) that could serve as a learning venue for other
5. Meralco Foundation Rizal communities and development managers. More
(MF/RIPPLE) specifically, the objectives are to
6. Mt. Malasimbo Agro- Bataan • Build a farmers’ organization with enough
Industrial Development membership to organize and implement a viable
Foundation (MMSF) economic activity,
7. Negros Kabisig Negros Occidental • Set up a system of cooperation among the
LivelihoodFoundation participants, particularly in production activities
(NKLF)

64
 that could bring about optimum gains for them,
and
• Establish a system in which NGOs can be
partners of government in delivering services to
the poor.
The IPLCS had the following program compo-
nents:
• Organizational institutional support
• Low-cost credit
• Training and appropriate technology
• Postharvest facilities
• Marketing support
Susi Foundation Inc.
The Susi Foundation Inc. (SUSI) is a privately
owned, nongovernment organization operating
among farmers and rural workers in District II of
Quezon Province. Its activities are as follows:
1. Cooperatives for National Transformation
Project. In this activity, SUSI seeks to catalyze
the formation, growth, and strengthening of
people-powered cooperatives through organiza-
tion, education, and mobilization for develop-
ment. Activities include the following:
• Bahay Tuklasan—a seminar house with
live-in facilities for 40 participants
• Bahay Sanayan—a handicraft house
• Model agricultural projects
2. SUSI DOST IV Pilot Project on the production of
compost or organic fertilizer
3. SUSI Ten-Hectare Reforestation Project
4. SUSI Sustainable Agricultural Project
5. IPLCS Project. This is a project among the
Technology Livelihood and Resource Center
(TLRC), a government institution, and SUSI,
which aims to improve the socioeconomic and
political conditions of the rice farmers of
Quezon Province by organizing them and
eventually empowering them to manage the rice
industry complex from production to marketing.
The project has the following components:
a. Crop production loan
• P8,000 ha–1 for regular rice production
• P14,000 ha–1 for organic rice produc-
tion
• P18,000 ha–1 for organic seed produc-
tion
• An 18–20% interest rate per annum
• Insured under PCIC (Philippine Seed
Board recommended varieties)
• Payable at the end of the cropping
season/harvest
b. Equipment loan
• Power tillers, pumps, threshers, etc.
• A 24% interest rate per annum
• Payable in 1 year/2 croppings
c. Postharvest facilities service
• Transportation
• Mechanical dryer (40 t d–1 capacity)
- 4 silos, batch type
- Rice hull-powered furnace
- P30 per 45 kg dry rough rice
drying fee
• Rice mill (3 t rice ha–1 capacity)
- 2 hullers
- 2-stage whiteners
- P40 per 50 kg milled rice milling
fee
• Warehouse (2,000 m2)
d. Rice trading/marketing
e. Seed production
f. Carabao loan
• Organic rice products
• An 18% interest rate per annum
• Payable in 1 year/2 croppings
g. Equipment rental service
The project is envisioned to be owned by a
federation of farmers, rice traders, and employee
cooperatives in the near future.
Experiences/observations in the IPLCS
project
1. The crop production and equipment loans were
initially thought of as doles just like other
government loans.
2. Farmer-members with 1 ha of rice land or less
can be considered a high risk for loans. One or
two cropping errors or losses eventually make
them incapable of paying, unless they have
other sources of income.
3. The 18–24% interest rate per annum for crop and
equipment loans is usually thought of as
excessive. However, if the cost of money is 12%
per annum and the cost of crop insurance is
about 5% per annum (two croppings), then the
net income becomes very insignificant when
considering the management cost.
4. Loans passing through a farmers’ credit commit-
tee result in higher loan repayment.
5. The pricing of rough rice varies from place to
place subject to the postproduction handling of
farmers in the area. In Laguna, which practices a
harvesting-threshing system, the price of rough
rice is usually lower by 30 to 50 centavos per kg
65
 than in Quezon, which practices the harvesting-
infield drying-threshing system.
6. The price of rough rice is dictated by the
prevailing price of rice in the market. The
availability of low-priced rice/imported rice
brings down the price of rough rice.
7. For business purposes, the pricing of rough rice
should be the same for both members and
nonmembers.
8. In a highly competitive rice business, there is no
advantage in selling dried rough rice over
selling wet rough rice. Sometimes, millers even
prefer to purchase wet rough rice, especially if
they have dryers, as they can monitor the
processing of the rice. Sometimes, dried rough
rice is deceiving in appearance.
9. Dryers are necessary. However, they can never be
financially viable by themselves.
10. Sun-drying gives a higher whiteness index than
mechanical drying. Besides, it is a lot cheaper
than mechanical drying.
11. Milling efficiency varies because of many
factors. However, one of the most significant is
the brewers’ rice screen.
12. Different municipalities/places have different
rice preferences. While some look for good
eating quality, others look for a lower price.
13. The rice industry has no permanent customers.
14. Although rough rice buying, storage, and
milling usually result in a higher margin per
sack, rice trading, which does not involve
storage, sometimes has the same margin consid-
ering the time involved.
15. The IPLCS should be managed like a business
corporation by professional managers and staff.
There should be a marked delineation between
the business aspect and the socioeconomic
aspect of the project.
66
16. With a milling capacity of 9,000 t y–1 (180,000
bags y–1), the SUSI-IPLCS with the recom-
mended 49 staff members, including handlers/
temporary workers, is overstaffed. With its
present staffing of 22 regular employees and 17
temporary workers, it is still considered over-
staffed. A study showed that a mill with this
capacity needs only 12 regular employees and
10 temporary workers.
17. For SUSI-IPLCS to operate at full capacity, it
needs three times its present capitalization.
Conclusions
For a rice milling business to be successful, whether
it is owned and operated by an NGO or a private
organization (cooperative), the interests of the
individual members should be accounted for first.
Benefits should be looked at only after all processes
are accomplished and costs accounted for. As the
saying goes, “In business, there are no such things as
brothers and sisters,” but the fruits of the business
should be divided equally among all who are part of
it.
Notes
Author’s address: manager, Susi Foundation, Inc.
 Session 3:
Institutional development
through information,
training, and extension

1
Development and promotion of the Maligaya
flatbed dryer
E.C. Gagelonia, E.U. Bautista, M.J.C. Regalado, and R.E. Aldas

A high-capacity flatbed dryer developed in Vietnam using rice hulls for fuel was
modified, evaluated, and developed under Philippine conditions. This dryer has
three main parts: the drying bin, blower, and rice hull furnace. It was modified to suit
the needs of farmer cooperatives in the Philippines. This modified design was
locally named the Maligaya flatbed dryer.
This flatbed dryer solved farmers’ problems in paddy drying. This dryer had a
lower drying cost than the existing dryers mainly because of the use of rice hulls as
fuel, the low labor requirement and cost, the low repair/maintenance cost, and the
higher drying capacity than that of similarly priced dryers.
One hundred thirteen units of the Maligaya flatbed dryer were built and are now
operational in different regions of the Philippines. Adopters include private entre-
preneurs, local government units, and farmer-cooperatives that also financed the
construction of the dryers. The Philippine Rice Research Institute (PhilRice) pro-
vided technical assistance during installation, including training of operators on
the proper operation of the dryer.
The adopters are successfully using the dryers on a commercial scale. The
dryers are also used to dry maize, soybean, coffee, and banana chips. According to
one adopter in Solano, Nueva Vizcaya, operation of this dryer resulted in more profit
in coffee and maize drying. The investment cost can be recovered in less than a
year if the dryer is used for coffee drying. For this, the annual use is 30 t with a
20.5% internal rate of return. Likewise, one adopter in Muñoz, Nueva Ecija, had a
net income of P40,000 from custom drying during the 1998 dry-season harvest
period, which was one-third of his investment cost in setting up the dryer.
Based on the adopters’ experiences, critical factors that should be considered
in the promotion of the dryer are management capability of the adopter, location of
the installation with respect to the rest of the community, and the training/skills of
the operator.

Paddy drying is one of the most critical operations in
the postharvest process. This is also a problem
because of humid conditions at harvest time,
particularly during the wet season and in areas that
are continuously wet or that have no distinct wet and
dry seasons.
In the Philippines, the moisture content of the
grain is commonly lowered by sun-drying. This is
still the predominant practice even if mechanical
dryers are available since sun-drying is cheaper, the
milling quality of sun-dried paddy is believed to be
better, and mechanical dryers have a limited capacity
(Andales 1995). With the double-cropping system in
most rice production areas and with one harvest
season coinciding with the rainy period in most rice
areas, mechanical dryers can maximize the value of
the wet-season harvest.
So far, the simplest mechanical dryer developed
for Philippine conditions is the flatbed dryer.
Originating from the University of the Philippines at
Los Baños (UPLB) and developed and promoted
further by the International Rice Research Institute
(IRRI), the flatbed dryer was introduced in the late
1970s to early ’80s to rice farmers. This technology
was not widely adopted, however, because of several
constraints, which were mainly socioeconomic rather
than technical in nature (Sison et al 1983). The
reasons for nonadoption were the dryer’s high fuel
cost/high operating cost, poor quality of processed
rough rice, inconvenient drying operation, limited
capacity, and short time of use (Cardino 1985).
Vietnam’s experience with flatbed dryers,
however, was in contrast with that of the Philippines.
Based on the IRRI design, locally modified flatbed

69
dryers along the Mekong Delta were reported to be
popular (Hien et al 1995). The dryer was modified to
accommodate a larger volume of rice to dry (with
models having capacities of 2, 3, 4, 5, 6, and 8 tons
per batch). To reduce the operating cost, all modified
dryers used rice hull waste to heat the air. Local
materials were also used in its construction to reduce
the investment cost. Now, these dryers are used
intensively in the region for custom drying (Hien
1991).
Objectives
In 1994, PhilRice embarked on a collaborative
project with the University of Agriculture and
Forestry, Ho Chi Minh City, Vietnam, to assess the
adaptability and acceptability of the Vietnam-
designed dryer in the Philippines; to promote and
accelerate the adoption of mechanical rice dryers in
the country; to create awareness among seed growers,
farmer-cooperatives, private entrepreneurs, and other
financing institutions on the technology and its
benefits; and to ensure the quality and viability of
the rice harvest through proper and timely drying.
Methodology
Data and information from previous studies on the
development and promotion of the flatbed dryer were
gathered. We analyzed and determined the causes of
its low adoption and failure in its promotion.
Based on the previous studies, the constraints to
wide adoption were more socioeconomic than
technical in nature. These include the dryer’s high
fuel cost, higher labor requirement, and slow rate of
drying (Cardino 1985). Also, one reason mentioned
by users is the lack of skill in proper operation and
the incompatibility of the drying capacity with the
total requirement (Sison 1983, NAPHIRE 1990).
Existing flatbed dryers were studied and
evaluated to select a simple design that could be
improved and made appropriate at the farm level.
The flatbed dryer designs introduced by UPLB and
IRRI during the late 1970s to early ’80s were already
simple and low-cost. These flatbed dryers had a
capacity of 1–2 t per batch and a kerosene burner as
the heat source. Also, a rice hull furnace developed
by IRRI was used as an alternative heat source. This
furnace was equipped with a vibrating ash grate and
an inclined step feeder. However, these designs did
not gain wide acceptance because of the high drying
cost and their small capacities. A design with a
higher capacity and low drying cost that uses
70
biomass fuel was thus needed to fit the farmers’
requirement.
In Vietnam, five models of flatbed dryers were
developed. Of these, the SHT-6 was selected since its
capacity (6 t batch–1) was suited to the farmers’
average production. This dryer has a design similar
to that of the 2-t flatbed dryer of UPLB and IRRI. In
1992, the Philippine Rice Research Institute set up a
6-t-per-batch dryer based on the Vietnam design to
evaluate its suitability to Philippine conditions
(Gagelonia et al 1994).
Results and discussion
Improvement and evaluation of the Maligaya
flatbed dryer
Modifications were made, particularly in the bin, by
using hollow blocks and cement instead of fire-
bricks as in the original design. The IRRI rice hull
furnace was adapted to the dryer as the heat source.
However, it was observed that the vibrating ash gate
was worn out after one season. This was replaced
because it could no longer be moved, which resulted
in an accumulation of ashes in the grate. The material
could be replaced by cast iron but it is expensive.
Similarly, because of the high temperature in the
combustion area, the top portion of the furnace frame
expanded. This caused breakage of the fire-brick
wall.
The furnace design was improved to make the
furnace durable and lessen the repair and mainte-
nance cost. A stationary inclined grate was adopted
and an arched design in place of the flat top surface
was used. The rice hull feed control was made
simpler by placing a metal trap in the lower end of
the hopper, which can be opened and closed, rather
than adjusting the metal sheet on one side of the
hopper. With this improved design (Fig. 1), the grate
lasted longer and it could be used even when
deformed, and the feed control is easier to use.
Breakage of the fire-brick wall on top was likewise
minimized.
The modified dryer, called the Maligaya flatbed
dryer (Fig. 2), has the following parts:
Drying bin. The drying bin was constructed from
reinforced hollow blocks (10 × 15 × 20 cm) and
cement. It has a dimension of 702 × 402 × 130 cm
with a maximum grain depth of 52 cm (the distance
of the false floor from the top). It has several windows
for grain unloading. The perforated false floor is
made of 22-gauge perforated sheets with 2.44-mm-
diameter holes and is supported by 4 × 8-cm wooden
frames. The plenum has two openings, one at the rear,
Fig. 1. Modified rice hull furnace.

Fig. 2. The Maligaya flatbed dryer.

71
which is bolted with 2-mm galvanized iron sheets
for cleaning purposes, and the other in front, where
the blower is connected for air entry.
Blower. The blower has a diameter of 75 cm and
consists of 10-vane axial-type blades. It runs at 1,600
rpm to deliver around 0.83 m3 s–1 t–1 of paddy at 30-
mm water static pressure at a power requirement of 9
kw. The output of the blower is channeled to the
plenum through a round metal opening using a cloth
canvas transition duct to prevent effects of fan
vibration on the bin.
Rice hull furnace. The step grate furnace is made
of fire-bricks and a steel frame. It is composed of
three sections: the first serves as the combustion
chamber and the other two trap ash from the heated
air before it is diverted into the duct and plenum. The
furnace has dimensions of 110 × 89.5 × 121 cm and
is designed to consume 20–50 kg h–1 of rice hulls.
Testing and evaluation
Seven test runs were conducted during the evalua-
tion of the dryer. The drying tests showed that
around 5 t of paddy at initial moisture content of 22–
26% could be dried to 14% in 4–6 h at drying air
temperature of 43–49 °C (Table 1). The moisture
removed ranged from 285.5 to 502.5 kg, correspond-
ing to a mean drying rate of 1.5–2.1% moisture
content h–1. The moisture content difference between
the top and bottom layer ranged from 0.5% to 2.1%,
which is almost the preferred value of 2%. The
furnace had a rice hull consumption rate of 21.0–
32.5 kg h–1 and was capable of maintaining the
drying air temperature at 41–50 °C.
Table 2 shows data on the average milling
quality of rough rice. The highest milling recovery
was 65.60% and the lowest was 57.14%. Milling
recovery of rough rice dried in the dryer was compa-
rable with that of the control (rough rice dried under
a shade). Head rice recovery (HRR) was reduced at a
high drying air temperature. Thus, the drying air
temperature affected the HRR.
Table 3 presents the average paddy germination
data at different drying air temperatures. The
relationship of the drying air temperature to germina-
tion was significant such that overexposure of paddy
to high air temperature resulted in low germination.
Wimberly (1983) had proven that, at a drying
temperature of 45 °C, rough rice could stand the heat
for 75 min without its viability being affected. On
the other hand, the Philippine Council for Agricul-

Table 1. Results of drying tests at different grain depth, fan speed, and drying air temperature for the PhilRice-Maligaya
flatbed dryer, PhilRice, 1994.

Item Test no.

1 2 3 4 5 6 7

Crop production
Initial MCa (%) 24.0 23.2 22.5 22.9 22.7 26.0 30.0
Final MC (%) 15.3 14.0 14.1 13.4 13.8 14.0 14.1
Initial wt. (t) 4.7 3.5 2.9 4.8 4.8 5.8 5.0
Final wt. (t) 4.3 3.2 2.6 4.3 4.3 5.1 4.4
Grain depth 27.0 24.3 19.9 29.8 29.6 35.0 31.3
Ambient conditions
Temperature (°C) 31.0 33.5 32.0 31.0 33.0 31.0 30.0
Relative humidity (%) 75 64 67 75 60 72 85
Drying results
Drying air temperature (°C) 43 43 41 43 51 49 43
Drying time (h) 5.5 5.0 5.3 5.0 4.0 6.0 10.0
Drying capacity (kg h–1) 1,149 1,053 479 853 1,076 895 1,250
Top and bottom, MC (diff., %) 2.1 1.8 0.5 2.0 1.8 2.0 2.1
Moisture removed (kg) 443.0 346.5 285.5 525.5 495.6 502.6 572.8
Drying rate (% MC h–1) 1.6 1.8 1.5 1.9 2.2 2.0 1.6
% MC reduction 8.7 9.2 8.4 9.5 8.9 12.0 15.9
Rice hull consumption (kg) 145 105 137 160 130 180 300
Feeding rate (kg h–1) 26.4 21.0 25.8 32.0 32.5 30.0 30.0
Fan operation
Static pressure (mm water) 19 16 15 17 20 22 22
Airflow rate (m3 s–1 m–2) 0.22 0.19 0.19 0.19 0.21 0.22 0.22
Airflow (m3 s–1) 6.2 5.3 5.5 5.5 6.2 6.2 6.2
RPM 1,750 1,500 1,450 1,630 1,620 1,700 1,700
a
MC = moisture content.

72
Table 2. Average milling quality of paddy at different grain Training of operators is an important component
depth and drying air temperature, PhilRice, 1994.
of dissemination that must always accompany the
Grain Drying Milling Head Broken installation of new dryer setups. This hands-on
depth air recovery rice rice training includes familiarization with drying
(cm) temp. (%) recovery (%)
(°C) (%) procedures and furnace operation, an adjustment
procedure for drying temperature, a briefing on
19.9 41 58.7 87.6 12.1 critical factors such as effect of temperature, and
24.3 43 61.7 88.2 11.6
27.0 43 65.6 88.5 11.2 moisture content determination. The skills of the
29.6 51 57.1 82.3 17.2 operator are very important in the adoption of this
29.8 43 61.1 88.2 11.5 technology. The operator must be knowledgeable
31.3 43 63.5 88.1 11.9
35 49 64.2 84.2 15.8 about controlling the drying air temperature and
F valuea 1.72 ns 31.64** 26.69** feeding the rice hulls. The operator must also have a
R2 0.51 0.95 0.94 basic knowledge about the drying process.
a
ns = not significant. ** = significant at the 1% level. Initial activities for disseminating information
on this drying technology included the following:
• Development and dissemination of printed
Table 3. Average percentage germination of paddy at materials (bulletins, leaflets)
different grain depths and drying air temperature, • Television programs (in collaboration with the
PhilRice, 1994.
Technology Livelihood Resource Center,
Grain depth (cm) Drying air temp. (°C) Germination (%) TLRC, the dryer was featured on the national TV
agricultural programs “Agrisyete” and “Agri-
19.9 41 90.3
24.3 43 91.8
Link”)
27.0 43 85.7 • Press releases (Philippine Panorama, Marid
29.6 51 72.3 Digest, Animal Husbandry, and Agricultural
29.8 43 92.5
31.3 43 91.6
Journal)
35.0 49 75.8 • Briefings and demonstrations (during rice seed
F valuea 27.93 production training and farmer visits to
R2 0.94
PhilRice)
a
** = significant at the 1% level • Custom drying at PhilRice during the initial
promotion of the dryer to make seed growers in
the adjacent community aware of its value.
For training of manufacturers, initially, inter-
ested owners of small farm machinery repair and
ture, Forestry, and Natural Resources Research and welding shops were invited to participate in a 5-d
Development (1987) recommended a drying air hands-on training on the fabrication of the blower
temperature of 43.3 °C for seed purposes. assembly and furnace frame. This training also
included the fabrication of jigs for the fan, a briefing
Promotion on the operation of the dryer, and a visit to one of the
Strategy. During the initial promotion activities, the adopters of the Maligaya flatbed dryer. Succeeding
largest group was the seed growers and cooperatives training included bigger manufacturers.
that could afford the dryer and that had an incentive Monitoring of adopters. At present, 113 dryer
for drying. In the promotion of the PhilRice- units are installed in different regions of the Philip-
Maligaya flatbed dryer, several important aspects pines. The dryer was used mostly in drying paddy
were considered. and other grains such as maize and coffee. Most of
Technical assistance is needed in the construc- the adopters used the dryer in drying their own
tion of the furnace and in the provision of jigs and harvest and some used it for custom drying. Others,
fixtures for the construction of the blower assembly. such as cooperatives, used the dryer in drying the
Testing of every dryer installed was part of the harvest of their members at a minimal fee.
dissemination strategy in order to monitor the For rough rice drying, a seed grower in Nueva
performance of newly installed setups at the sites, as Ecija, farming 20 ha, used the dryer for his own
well as assure adopters of reliability and technical harvests. The dryer was also used in custom drying
support. the harvest of farmers in neighboring towns. The
drying fee charged to farmers was P25 bag–1, includ-

73
ing loading and unloading of rough rice in the dryer.
Based on the actual drying operation in 1995 (Table
4), the cost was only P0.23 kg–1 at an annual use of
300 t y–1.
Likewise, one of the adopters in Muñoz, Nueva
Ecija, had a net income of P40,000 from custom
drying of paddy during the 1998 dry-season harvest,
which is one-third of his investment cost in setting
up the dryer.
A farmer organization in Isabela used the dryer
to dry maize. The Diocese of Ilagan, Isabela, financed
the dryer and the foundation is being managed by
the Good Shepherds Sisters. The members could dry
their harvest and the fee collected paid for the cost of
setting up the dryer. The foundation is now supply-
ing maize for a feed mill in Zambales.
For multicrop drying, an entrepreneur from
Solano, Nueva Vizcaya, was successful in his coffee
and maize trading business when the dryer was
installed. Before adoption, he had had large losses
because of the deterioration of coffee and maize
during the wet season. From his drying operation in
1997 (Table 5), the drying cost was P1.18 kg–1 at an
annual use of 120 t.
The dryer in Aurora, Isabela, is being hired to
dry commercial rough rice and maize. According to
the owner, mixing of rough rice was done during the
drying process to lessen the drying time and to
accommodate 2–3 batches of drying for 24-h
operation. With the continuous use of the dryer, the
furnace collapsed after drying 20,000 bags. In spite
of this, the investment was recovered in just two
seasons and only P1,000 was spent for repairing the
furnace.
During monitoring, we found out that some
adopters constructed the Maligaya flatbed dryer on
their own without requesting assistance or the
presence of the accredited manufacturers. This
resulted in a longer drying time, overdried paddy,
and high drying air temperature. In one case, the
transition duct (canvas cloth) burned because a flame
instead of hot air was coming out of the furnace.
The introduction of the Maligaya flatbed dryer
solved the adopters’ problem in paddy drying. Based
on actual drying operations, the dryer was found to
have a lower drying cost than other existing me-
chanical dryers, which are imported. This was mainly
because of the following: (1) the use of rice hulls as
fuel, (2) low labor requirement and cost, (3) low
repair/maintenance cost, and (4) drying capacity is
higher than that of similarly priced dryers.
During on-site evaluation of the dryer, it was
observed that the following should be considered for
the introduction of the technology:
74
• Management capability. For the technology to
be effective and efficient, the adopter must have
the capability to operate and manage the drying
operation and other related activities. For
custom operation, the adopter should have a
good relationship with prospective customers
and should be service-oriented.
• Location of the dryer with respect to the rest of
the community. The dryer must be installed in a
place where drying activities are not hampered,
even for operations at night. Proper handling
and disposal of the rice hulls and ash must be
observed to not irritate neighbors in the commu-
nity.
• Training of operator. The skills of the operator
are very important in the adoption of this
technology. The operator must know how to
control the temperature and to feed the rice
hulls. The operator must also have a basic
knowledge of the drying process.
Conclusions and recommendations
Based on tests and actual operation, the Maligaya
flatbed dryer was found to have a lower drying cost
than that of existing mechanical dryers because of
the use of rice hulls as a heat source. It is simple and
easy to operate, it has a low maintenance cost, it can
dry grains completely to 13%, it has a lower invest-
ment cost than other dryers with the same capacity,
the drying air temperature can be regulated, and it
can dry seed and rough rice for commercial purposes.
However, its operation is still manual and the ash
should be removed from the dryer at regular time
intervals.
The adoption of the Maligaya flatbed dryer
solved the farmers’ problems of drying rough rice.
The flatbed dryer can be an alternative method for
drying rough rice and other grains during the wet
season. With the increasing number of adopters, it
can be inferred that the dryer is socially acceptable.
Moreover, the year-round use of the dryer even for
other crops also increases its profitability. It is
recommended for use by traders, farmer-cooperatives,
or seed growers. However, technical assistance and
training of operators are necessary for the successful
introduction of a dryer. Training of manufacturers
also facilitated dissemination of the dryer to other
parts of the country.
Table 4. Economics of using the PhilRice-Maligaya flatbed dryer based on actual drying operation in Gapan, Nueva Ecija,
PhilRice, 1995 wet season.

General assumptions/actual conditions

Dryer investment cost (IC) (P) 150,000 Interest on investment (%) 20
Estimated useful life (y) 5 Tax and insurance (% of IC) 2
Salvage value (P) 0 Drying time batch–1 (h) 5
Repair and maintenance (% of IC) 10 Diesel cost (P L–1) 7.30
Payment of operator (P) 150

Specific conditions
Annual use (t y–1) 50 100 150 200 300
Operating days y–1 with 5 t d–1 cap. 12 20 30 40 60
% Paddy recovery (by weight) after drying 90 90 90 90 90
Benefit from drying (P kg–1) 1.00 1.00 1.00 1.00 1.00
Fuel requirement (L h–1) 1.8 1.8 1.8 1.8 1.8
Loading/unloading labor wage (P t–1) 80 80 80 80 80

Drying cost (P45 kg–1) 30.29 20.39 15.44 12.97 10.49

Drying cost (Pkg–1) 0.67 0.45 0.34 0.29 0.23
Drying cost (% paddy value) 8.41 5.66 4.29 3.60 2.91

Discounted net present value –105,803 –4,303.80 122,570 249,444 5,003,192

Discounted benefit-cost ratio 0.63 0.99 1.38 1.73 2.32
Internal rate of return (%) –94.77 14.63 36.78 44.83 51.59
Return on investment (%) 8.9 29.6 55.5 81.3 132.9
Playback period (y) 11.12 3.37 1.80 1.23 0.75

Table 5. Economics of operating the PhilRice-Maligaya flatbed dryer to dry coffee in Nueva Vizcaya in 1997 (the case of
Mr. Casumpang).

General assumptions/actual conditions

Dryer investment cost (IC) (P) 100,000 Interest on investment (%) 24
Estimated useful life (y) 5 Tax and insurance (% of IC) 2
Salvage value (P) 0 Drying time batch–1 36
Repair and maintenance (% IC) 30 Electricity cost (P kwh–1) 4
Payment of operator (P 8-h working day–1) 100 Cost of labor for loading and unloading (P60 kg–1) 2

Specific conditions
Annual use (t y–1) 30 60 90 120
Operating days y–1 15 30 45 60
% Coffee recovery (by wt.) after drying 22 22 22 22
Benefit from drying (P kg)a 55 55 55 55
Electricity requirement (kwh h–1) 7 7 7 7
Loading/unloading labor wage (P t–1) 33.33 33.33 33.33 33.33
Transportation cost (P kg–1) 0.60 0.60 0.60 0.60

Drying cost (P60 kg–1) including transportation 137.08 93.08 78.41 71.08
Drying cost (P kg–1) including transportation 2.28 2.28 2.28 2.28
Drying cost (P batch–1) including transportation 13,708 9,308 7,841 7,108

Discounted net present value 755,933 1,732,662 2,709,391 3,686,121

Discounted benefit-cost ratio 4.17 7.76 10.89 13.62
Internal rate of return (%) 20.53 21.48 22.95 25.48
Payback period (y) 0.32 0.15 0.10 0.07
Return on investment (%) 311.65 667.30 1,022.96 1,378.60
a
Benefit = price of dried milled coffee (P65 kg–1) – cost of fresh coffee (P8 kg–1) – cost of milling (P1 kg–1).

75

References
Andales SC. 1995. Problems and priorities of grain drying
in the Philippines. In: Grain drying in Asia. Proceed-
ings of the International Conference, 17-20 October,
Bangkok, Thailand. p 46-53.
Cardino AG. 1985. Case studies of mechanical dryer in the
Philippines: lessons learned. In: Small farm equipment
for developing countries. Proceedings of the Interna-
tional Conference on Small Farm Equipment. Los
Baños (Philippines): International Rice Research
Institute. p 431-437.
Gagelonia EC, Ragalado MJC, Aldas RE, Bautista EU.
1994. Adaption of Vietnamese batch dryer for
Philippine conditions. Paper presented at the 44th
Annual National Convention of the Philippine Society
of Agricultural Engineers, 26-28 April, Cagayan de
Oro, Philippines.
Hien PH. 1991. Grain dryer for the summer-autumn crop in
southern Vietnam: the case for the flatbed dryer. Paper
presented at the 14th ASEAN Seminar on Grain Post-
harvest Technology, 5-8 November, Manila, Philip-
pines.
Hien PH, Tam NH, Vinh T, Loc NQ. 1995. Grain drying in
Vietnam: problems and priorities. In: Grain drying in
Asia. Proceedings of the International Conference, 17-
20 October, Bangkok, Thailand.
NAPHIRE. 1990. Annual report. Muñoz, Nueva Ecija,
Philippines.
PCARRD. 1987. The Philippine recommendations for rice
post-production operations. Technical Bulletin Series
No. 63. Los Baños (Philippines): PCARRD.
76
Sison OF, Adriano MS, del Rosario CR, del Rosario CA.
1983. Technological and socio-economic dimensions of
the transfer of agricultural engineering technology
packages to small farmers. Los Baños (Philippines):
University of the Philippines Los Baños.
Wimberly JE. 1983. Technical handbook for the paddy rice
postharvest industry in developing countries. Los
Baños (Philippines): International Rice Research
Institute.
Notes
Authors’ address: Senior science research specialist, chief
science research specialist, supervising science research
specialist, and senior science research specialist,
respectively, National Rice Engineering and Mechaniza-
tion Center, Philippine Rice Research Institute,
Maligaya, Science City of Muñoz, Philippines.
Acknowledgments: The authors extend their thanks to Dr.
Phan Hieu Hien for providing the original designs and
personal communications that made the study success-
ful, and to Mr. Nguyen Hung Tam for technical
assistance during testing.
Evaluation of the performance of NFA farm-
level grain centers
R.A. Macutay

The performance of the farm-level grain centers (FLGCs) loaned to various farm-
ers’ organizations nationwide was evaluated. Lack of working capital was the domi-
nant problem of the FLGC beneficiaries. As a result, warehouses, rice mills, and
other postharvest facilities were underused because of the small volume of pro-
duce being handled. The beneficiaries were reluctant to get loans from govern-
ment lending institutions because of the high interest rate and stringent loan re-
quirements. A majority of the beneficiaries were able to settle their amortization on
time using the incentive funds set aside by the National Food Authority. The highest
net income was P569,712 while the lowest net income was negative P102,326.

The national government recognizes the importance
of monitoring and evaluation in its economic
development efforts. With limited resources for
public investment, it needs to ensure the efficient
and effective implementation of development
programs and projects. Recent development indi-
cates a growing demand for monitoring and evalua-
tion information for decision making. Likewise, the
general public would like to be regularly informed
about the progress of development activities
undertaken by government offices, including, among
others, the National Food Authority (NFA).
Monitoring and evaluation are crucial functions
in the planning and implementation of development
programs/projects. They are bundled together,
indicating that the activities of monitoring and
evaluation are interrelated. These are concerned with
gathering information about performance and the
effectiveness of the program/project. Data generated
by the monitoring system help explain trends and
effects and assess the impact of the project. By means
of monitoring, significant departures from expecta-
tions, which have been identified at the start of the
project, are noted. An ongoing evaluation can
examine the assumptions and the premises on which
the project design was based. Such a review can be
valuable to management in its decision-making and
policy formulation functions.
To be able to assess the operations and manage-
ment of the farm-level grain centers (FLGCs) that
were loaned to farmers’ organizations, the NFA has
designed a monitoring and evaluation system that is
implemented nationwide to be able to detect and
diagnose potential problem areas that may require
remedial measures. A periodic review, which is done
every 6 months, helps ensure that the targeted
outputs and necessary actions are carried out
according to plans.
The general objective of FLGC project monitor-
ing and evaluation is to monitor and evaluate the
operations and management of the FLGC project and
determine the effects and impact of the project on the
beneficiary farmers’ organizations (FOs) and the
community as well.
The NFA Farm-Level Grain Center Project
Background
The National Food Authority is one of several
government agencies supporting the MAKAMASA
Program, which became the Gintong Ani Program
(GAP) of the Department of Agriculture, which aims
to increase and sustain rough rice and maize produc-
tion to meet the country’s needs by providing
necessary production inputs and agricultural support
services, enhancing income and stabilizing prices at
levels equitable to both consumers and producers,
and ensuring the productivity and profitability of
rice and maize farming over the long term.
Under the program, the NFA is responsible for
spearheading two of the seven components identi-
fied: postharvest and marketing assistance. The
postharvest component provides access to and
ownership of postharvest facilities/equipment for
farmers’ organizations following the provisions of
the magna carta for small farmers, whereas the
marketing assistance component requires the NFA to
intensify its regular marketing programs in providing

77
food security and ensuring stabilized prices for rice
and maize.
The NFA concentrates its efforts on the
postharvest facilities built up through the establish-
ment of the FLGCs and municipal-level grain centers
(MLGCs). The source of funds for these projects is
part of the proceeds of the importation of Thailand
rice. In 1996, the NFA Council provided the NFA,
under its special projects, with P142.0 million1 to
establish FLGCs and MLGCs in identified key grain
areas (KGAs) nationwide.
The FLGC project is envisioned to enhance the
existing grain operations of small farmers’ coopera-
tives in the country. The project will enable them to
directly process and market their own grain produce,
thus eliminating intermediaries and maximizing the
return to their investment.
FO-beneficiaries of this project will be able to
expand their own business operations by obtaining
access to drying, warehouse, and milling facilities for
their farmer-members and eventually for other small
farmers in the community. Likewise, a training
program on postharvest technology and cooperative
enterprise management will be provided to prepare
them for the actual operations of the FLGC.
Project description
The FLGC is farm-based and designed to be compact
and complete with postharvest facilities and equip-
ment capable of servicing primarily the small grain
farmers situated in identified KGAs. Beneficiaries of
the project are viable farmers’ organizations/
cooperatives that are capable of amortizing the
FLGC loan package.
FLGC category
The FLGC is categorized as FLGC I, II, and III based
on warehouse storage capacity, warehouse-related
structures, project lot area, and project cost (Table 1).

FLGC amortization period

Table 1. Categories of farm-level grain centers (FLGC).
The FLGC loan packages are amortized by benefi-
ciary FOs within specific periods depending on the
FLGC Project components Project cost FLGC type.
category

FLGC I Warehouse (3,000-bag P2.2–2.5 million Monitoring and evaluation of FLGCs (July to
capacity) and its related December 2002)
structures (dryer shed,
pavement, peri-
Regular monitoring and evaluation are essential
meter fence, water steps in finding out the effectiveness of the program.
system, sentry post, etc.) Results of these activities are a useful tool for
Lot (800–1,200 m2)
Ancillary PHFs/equipment a
determining systematically and objectively the
Postharvest facilities FLGC project relevance, efficiency, effectiveness,
(equipment) and impact to ensure the productivity and profitabil-
Rice mill/maize mill
(platform scale)
ity of the FOs over the long term. This will also serve
Dryer (moisture meter) as a basis for designing necessary and appropriate
Thresher (bag closer) training interventions to further strengthen the weak
Mechanical reaper (pallets)
Maize sheller (tarpaulin)
areas of the FOs.
FLGC II Warehouse (5,000-bag P2.5–2.7 million A total of 25 FLGC units were monitored from
capacity) and its related July to December 2000. The general objective of the
structures (same as FLGC I)
Lot (900–1,400 m2)
project monitoring and evaluation activities is to
Ancillary PHFs/equipment b monitor and evaluate the operations and manage-
(same as FLGC I) ment of the FLGC project and determine its effects
FLGC III Warehouse (10,000-bag P3.2–4.7 million
capacity) and its related
and impact on the FO-beneficiaries and the commu-
structures (same as nity. Specifically, the FLGC is monitored and
FLGC I and II) evaluated for its effects and impact based on the
Lot (1,300–2,000 m2)
Ancillary PHFs/equipment b
following aspects (see Table 2): marketing,
(same as FLGC I and II) postharvest, financial, organizational, socioeco-
a
nomic, and environmental.
PHF = postharvest facility. bThe choice of one or any combination of the
ancillary PHFs/equipment is left to the beneficiary FOs. The PHF and
equipment loan component is P800,000. Any amount in excess of the I. Marketing
P800,000 allocated budget will be shouldered by the beneficiary FOs.
A. Procurement
Monitoring results showed that the lack of working
1
At an exchange rate of US$1 = 40 Philippine pesos (P).

78
Table 2. Amortization of farm-level grain centers.
FLGC type Amortization period
I & II
Lot, warehouse, and 15 years in 30 semiannual
related structures payments
PHFa/equipment 5 years in 10 semiannual
payments
III
Lot, warehouse, and 20 years in 40 semiannual
related structures payments
PHF/equipment 5 years in 10 semiannual
payments
a
PHF = postharvest facility.
capital is the most dominant problem among the
FLGC beneficiaries. Eight FLGCs were not able to
procure it from their members. Procurement of rough
rice ranges from a low average of 1.55% or 400 bags
of its expected production to a high of 36,912 bags
per harvest season. Most FLGC beneficiary FOs were
not able to maximize their procurement activities.
B. Sales
Most of the rough rice stocks of FOs were sold to the
NFA to accumulate Cooperative Development
Incentive Funds (CDIF) for their FLGC amortiza-
tions. Rough rice gross sales revenues were P26,650
to P13,868,408. Gross rice sales revenues ranged
from P31,930 to P1,430,960. The presence of
imported rice in some areas affected rice sales.
Generally, most FOs posted an increase in gross
income from July to December 2000.
II. Postharvest
A. Warehousing
Warehouses were generally underused because of the
small volume of stocks stored. Six FLGC warehouses
were not used. The FLGCs are located in
Talimundok, Tarlac, Sta. Cruz, Marinduque, Carmen,
Bohol, Ma. Asuncion, Southern Leyte, Pinabacdao,
Western Samar, and Siay, Zamboanga del Sur.
Warehouse use rates ranged from 0.4% to 100%.
A majority of the FLGCs (16) were reportedly used at
the lower range. The reason cited was the lack of
stocks being handled by most FLGC beneficiaries.
B. Drying
Twelve FLGC beneficiaries used mechanical dryers
(MDs) but use is also very low. Farmers were not
using their MDs because of the high cost of operat-
ing expenses (fuel and electricity).
Results of monitoring also showed that, al-
though the drying operation is not profitable, drying
activities contributed to the increase in milling and
head rice recovery, resulting in better-quality milled
rice.
C. Milling
Under the postharvest facilities/equipment loan
component of the project, 16 beneficiaries acquired a
rice mill. It was noted that milling operations were
very low. Four rice mills were reported to be defec-
tive. These rice mills are used by FOs located in
Dumingag in Zamboanga del Sur, Alakaak in
Mindoro Occidental, and Ligao, Albay, and Plaridel
in Misamis Oriental.
Rice milling operations were not maximized
because of limited customers. Also, the dispersal and
presence of NFA rice in the area affected the demand
for locally milled rice.
III. Financial
A. Working capital
A majority of the FLGC beneficiaries used their own
limited funds from the Capital Build-Up (CBU) FO
funds and other fund sources to finance their
operations. Six FLGC beneficiaries used working
capital loans from LBP, Quedancor, and other private
lending institutions.
B. Income
The highest quarterly net income was P569,711.94
and the lowest P102,325.96. Four FLGCs incurred an
average net loss of P34,277.99.
C. Amortization
A total amortization payment of P4,411,526.94 was
received from 19 FLGC beneficiaries or 5.3% of the
total P89,416,423.64 loan exposure to beneficiary
FOs under the NFA FLGC Project.
Most of the beneficiary FOs were able to settle
the FLGC semiannual amortization payments using
their accumulated CDIFs with the NFA as payment.
Some beneficiary FOs that were not able to settle
their amortizations requested a deferment of their
payments.
IV. Organizational, socioeconomic, and environmen-
tal aspects
There was a significant 28% average increase in
membership of most beneficiary FOs. Also, more
women are now involved in managing their organi-
zations. A 37% average increase in women’s partici-
pation in the overall management of their farmers’
organizations was also noted. A total of 111 young
professionals from among the FLGC beneficiary FOs
79
are now involved in the organization as either 1. Part of the FO’s accumulated CDIF will now be
members or employees. used as working capital.
New businesses for the FOs were opened or 2. Beneficiary FOs should be encouraged to use the
started. The establishment of most FLGCs gained Quedancor working capital loan inasmuch as the
positive acceptance in the community except for funds for this FLGC loan component are
two that were reported to have caused pollution in provided by the NFA.
the neighborhood (in Sta. Cruz, Occidental
Mindoro, and Lagonoy, Camarines Sur). Notes
Considering the above observations, it could be
concluded that FLGCs are viable and beneficial Author’s address: director, Extension Department, National
projects of the government that would assist farmers’ Food Authority, and deputy executive director, GAP-
organizations in having access to or ownership of PMG.
basic postharvest facilities and/or expanding their
own business operations. A majority of the FLGCs
incurred net profits in their marketing operations.
Further, the establishment of FLGCs in various
provinces nationwide has gained acceptance in the
community.
The lack of working capital was also cited as
the major cause of limited operations of most
beneficiaries. Previously, working capital was part
of the FLGC Project loan package. But, because of
policy changes of the government and the limited
mandate of the National Food Authority, the
working capital loan component of the project was
removed. Hence, this loan component is now being
implemented by Quedancor. Out of the 24 benefi-
ciary FOs, only four were able to use the working
capital loan from Quedancor. The reasons cited for
nonuse of this loan are high interest rates and
stringent requirements in the obtaining of the loan.
Likewise, training on grain postharvest technology
and cooperative enterprise management among
officers and members of beneficiary FOs by the
Extension Department proved to be a great help in
the operation of their grain business enterprise.
The NFA’s policy recommendations on the
problems of beneficiary FOs regarding the lack of
working capital are as follows:

80
The impact of training professional
managers: a case study on the performance
of professional managers handling coopera-
tive-based grain-processing enterprises
R.M. Recometa, R.R. Paz, and R.S. Rapusas

A study was conducted to determine the effect of professional managers in han-

dling cooperative-based grain-processing enterprises. It was proven that the inter-
vention of professional managers in the case cooperatives brought hope of finan-
cial recovery even for those having accumulated debts almost beyond recovery.
The professional managers must possess proper qualifications consisting of a
combination of personality, educational background, related experience, special-
ized training, and fair salary and benefits. The professional managers must have a
thorough understanding of the social, cultural, and political complexities of farm-
ers’ cooperatives in the Philippines as a requisite to successful interventions.

Cooperative development is not only the pursuit of
the cooperative spirit but also the formation of strong
enterprises that can carry out effective services and
other functions for their members. Agricultural
cooperatives are established primarily because of felt
needs to improve the productivity and welfare of
farmers.
Many of the farmers’ cooperatives in the
Philippines were born in the 1970s. Farmers were
organized into a “Samahang Nayon,” whose basic
purpose was the effective delivery of farm inputs to
farmers and the assembly of their products for
marketing. Rice farmers’ groups, to maximize
productivity, began engaging in full-scale grain
procurement, processing, and marketing of milled
rice.
Government or nongovernment organizations
promoted and supported the establishment of
cooperative-based grain-processing enterprises. Yet,
despite these efforts, only a few flourished and many
failed to completely achieve the desired results. The
venture of cooperative-based grain-processing
enterprises was characterized by constant failures.
A case study conducted by NAPHIRE in 1987
on the failure of the KAISA (Kapisanan ng mga
Irrigators Associations) in Laguna, Philippines,
highlighted the following reasons for failure: (1)
limited education and management capability, (2)
poor rural credit delivery system, (3) inadequate
market information and support services, (4) limited
access to technological information, (5) lack of and
inefficient postharvest facilities, (6) lack of capital,
and (7) financial mismanagement.
Many more studies were conducted to document
success or failure stories of farmers’ cooperatives.
Much information pointed to several reasons to
which failures or successes could be attributed. Many
conjectures have been expressed citing efficient and
effective management as the key factors.
Farmers’ cooperatives normally handle their own
business affairs. Their business managers are usually
selected from among their members and have good
leadership qualities, high education, and experience
in business. When that ideal is not met, the enormous
task of managing the enterprise is relegated to a less
qualified member.
Yet, even the most qualified manager of a
cooperative will find difficulties without any real
experience and formal training or background in
business and cooperative management. To succeed,
one has to go through the long process of learning
and gaining experience in the overall complexities
of the cooperative enterprise.
Professional cooperative managers are needed to
turn disorganized resources of farmers, machines, and
money into a useful cooperative enterprise. Profes-
sional managers are the catalysts who (1) conceive of
the services that the cooperative can render, (2)
mobilize the required resources, (3) coordinate
activities both within the organization and outside,
and (4) could inspire the farmers associated with the
organization to work for the common objectives.

81
 In a rice processing and trading business, the
professional cooperative managers would be the
most knowledgeable of the technologies. They
understand the technology for processing the rice
grain to produce high-quality milled rice. They are
the financial analyst who can determine the eco-
nomic feasibility of projects and who can forecast
prices and trends in the market. They are the strate-
gist who plans and actively participates in the
development of the industry. Professional managers
deal with people in the organization and are the
leader of the group.
The Bureau of Postharvest Research and
Extension, under the Gintong Ani-Agrikulturang
Makamasa Program, helps develop and create a pool
of professional cooperative managers. The pool shall
be available to any interested cooperative engaged
in grain processing and marketing. To determine the
basis and requirements of this provision, we under-
took a case study.
Objective
The general objective of the study was to determine
the performance of professional cooperative manag-
ers in handling cooperative-based grain-processing
enterprises. Specifically, the study wished to achieve
the following:
1. To determine the qualifications and training
requirements in managerial and technical skills
needed by professional cooperative managers to
operate a cooperative-based grain-processing
enterprise.
2. To evaluate the technical, financial, and
marketing performance of the grain-processing
enterprises as managed by professional coopera-
tive managers.
3. To determine some socioeconomic factors that
may influence the acceptance or rejection of
professional managers hired for farmers’ coop-
eratives.
Methods and results
Selection of project coordinators and sites
Three major rice-producing areas in the country were
selected as project sites: Central Luzon, Western
Visayas, and Central Mindanao. (The Western
Visayas site was later discontinued.)
In each area, a list of cooperatives was secured
from the Cooperative Development Authority (CDA),
1
At an exchange rate of US$1 = 40 Philippine pesos (P).
82
evaluated, and reduced in number according to the
following criteria:
1. Previously or presently engaged in or planning
to engage in grain procurement, processing, and
marketing of finished products.
2. Has a membership of at least about 200 farmers
or a service area of 300 ha per season, irrigated
with two croppings a year.
3. Has a minimum potential volume of grain
procurement of 60,000 bags per year.
4. Has the basic dryer, warehouse, trucks, and
milling facilities.
5. Is a cooperative duly registered by the CDA.
6. Is financially stable or has a financial source for
working capital or has high potential to recover
from debt obligations.
7. Has identified sources of working capital for
trading, credit, and production loans for its
members.
8. The general assembly approves the project and
is willing to be audited by an external auditor
appointed by the project.
One cooperative per area on the short list was
selected, after a short survey and business evaluation
were conducted. (The names of the real cooperatives
and the professional co-op managers are withheld to
observe confidentiality.) Table 1 describes the
selected case cooperatives.
In a nutshell, the case cooperatives were
primarily engaged in rough rice procurement and
milling. Because of their inability to aggresively
open markets for milled rice, the cooperatives
resorted to selling rough rice and custom milling.
Both rice mills were observed to be underused and
they needed minor repairs and maintenance.
Financially, the case cooperatives were weak
and on the verge of collapsing. Co-op 1 with P30
million1 and co-op 2 with P5.5 million in liabilities
had mainly past-due loans that would be very hard to
recover. The Land Bank of the Philippines (LBP) and
National Agricultural and Fishery Council (NAFC)
promised support to rehabilitate co-op 1 and co-op 2,
respectively.
Selection of candidate managers
The project advertised in the national newspapers the
need for applicants willing to be trained and to work
as professional co-op managers for agricultural
cooperatives. The qualifications of the applicants
sought were
 Table 1. General information about the case cooperatives, 1998.

Information Case co-op 1 Case co-op 2

Location Talavera, Nueva Ecija Lala, Lanao Norte

Type Primary Federation
Age 11 y 17 y
Total service area 866 ha 1,880 ha
Membership 449 91
Active 253 41
Inactive 196 50

Businesses Production loan relending Rough rice/milled rice trading

Farm input sales Custom milling
Rough rice/milled rice trading
Grocery
Market of milled rice Cabanatuan City Local

Facilities
Warehouse 40,000 bags 30,000 bags
Rice mill 2.5 t h–1, multipass 1.5 t h–1, multipass (for rehab.)
Mechanical dryer 4 units, recirculating 3 units, reversible flatbed
1 unit, in-store dryer
1 unit, flash dryer
Drying pavement 400 bags capacity 300 bags capacity
Trucks 100 bags, forward 250 bags, forward
470 bags, 10 wheels 100 bags, dump truck

Paid-up capital (P)

Common shares 2,000,000 2,500,000
Paid-up capital 1,605,900 (80%) 2,024,329 (81%)
Loans (P)
Production loans 8,386,852 (past due) 1,364,847 (past due)
Working capital loans 5,133,333 (past due) 5,000,000 (past due)
Facility loan 310,000 (outstanding) 1,200,000 (past due)
Others 169,181 (outstanding)
Financial status (1998)
Net income (4,248,085) (977,810)
Trading capital 2,803,000 6,000,000
Current assets 16,628,336 5,669,252
Fixed assets 13,768,784 2,551,280
Current liabilities 29,815,933 5,498,980
Members’ equity (12,521,742) (2,548,908)
Financial indicators (1998)
Current ratio (0.56) 1.03
Equity ratio (0.35) 0.28
Equity to debt ratio (0.27) 0.31
Gross profit margin 0.09 0.09
Sales to assets ratio (0.12) 1.56

1. Must be at least 30 years old.
2. Must be college graduates, preferably in
agriculture, agricultural engineering, agri-
business, agricultural economics, or agricultural
extension.
3. Must have 2 years’ experience in organizing
farmers’ groups/cooperatives.
4. Must be willing to be assigned to the indicated
project sites.
5. Must be of good moral character.
Of 55 applicants, 24 took the aptitude and
supervisory examinations, 8 passed the final inter-
view, and 3 were invited for the specialized training
as candidate managers. Table 2 shows the profile of
the candidate managers.
The three candidate managers had little or no
exposure to managing farmers’ cooperatives. None
had actual experience in rice milling or in trading
milled rice. On the managerial/supervisory tests, the
average ratings of the candidate managers were
“average” to “above average.”
Specialized training course for professional
cooperative managers
The main objective of the training was to strengthen
the managerial and business capabilities of the
candidate managers on cooperative-based grain-

83
 Table 2. Profile of candidate managersa, 1998.

Profile Manager 1 Manager 2 Manager 3

Personal information
Home address Laguna Iloilo Bukidnon
Age 34 37 30
Sex Male Male Female
College degree BS in agricultural AB in economics BS in business
engineering management
School CLSU Ateneo, Davao UPLB
Related work experience Operations officer, General manager, Farm manager,
Quedancor Iloilo Hograiser LEAF farm
Association
Program officer, PBSP Trade industry officer, DTI Operations technician,
Pacific Farms Inc.
Managerial/supervisory tests
Planning ability Above average High average Above average
Judgment/comprehension Above average Superior Superior
Managerial capability Average High average High average
Supervisory ability Low average Low average Above average
Employee relationship Average Very superior Above average
a
CLSU = Central Luzon State University, UPLB = University of the Philippines Los Baños, PBSP = Philippine Business for Social Progress, DTI = Department
of Trade and Industry.

processing and marketing enterprises. The specific Table 3. Overview of specialized training courses held at
the Bureau of Postharvest Research and Extension.
objectives of the training were to
Title Duration No. of subjects
1. Identify leadership qualities, values, and ethics
Value formation and 2.5 d 5
by understanding the sociocultural variables strengthening and (18.5 h)
associated with farmers’ attitudes and behavior. leadership seminars
2. Present the status of agricultural cooperatives in Farmers’ cooperatives 4.5 d 8
in the Philippines (30.5 h)
the Philippines with emphasis on the problems and organization
associated with their organization and business and management
management. Grain production and 4.5 d 11
postharvest (36.5 h)
3. Enhance knowledge of grain production and technologies
postharvest technologies required of a coopera- Marketing management 2.5 d 6
tive-based grain-processing and marketing (21 h)
Financial management 3.5 d 6
enterprise. (29 h)
4. Enhance knowledge of marketing management Computer applications – –
and be able to identify and develop grain On-the-job training and 8d –
case study (64 h)
marketing plans and strategies appropriate for Preparation of business 3d –
farmers’ cooperatives. plan and reporting (24 h)
5. Identify and formulate steps and procedures for
financial planning, analysis, and control, and be
able to prepare the financial aspects of a grain
business plan. The training was output-oriented. Before the
6. Use modules to provide opportunities to the training began, each candidate manager was given a
candidate managers to interact with other case cooperative to prepare a business plan. Every
managers and to observe the actual operations module required specific recommendations as part of
(and differences) of co-ops and private firms the business plan, to be critiqued at the end of each
engaged in grain processing and trading. module by the resource persons and the training
management.
The training approach was modular. The whole Each module was managed by a module
training course was divided into modules comprising coordinator, whose function was to facilitate all the
different strategies in topic presentations such as activities in the module. The coordinator was
lectures, testimonials, workshops, and lots of case expected to orient the resource persons on the
methods. Table 3 presents an overview of the course objetives and scope of the topics to be presented.
modules.

84
 There was an on-the-job training and observa-
tions on actual operations of co-ops and private firms
with postharvest facilities. The trainees were asked to
prepare a case analysis on the observed organiza-
tions. They also had the chance to interview manag-
ers and officials of successful and unsuccessful co-
ops.
The specialized training course was held at
BPRE from 9 November to 16 December 1998. The
course consisted of several modules.
Each module has been evaluated by the partici-
pants. They were also given pre- and posttests to
determine the change in their knowledge level. At
the end of the course, the trainees were given
practical questions to gauge their understanding of
some issues related to grain-processing enterprises.
They were also requested to recommend topics that
should be added or deleted to make the design more
appropriate to professional co-op managers.
In the overall evaluation, the participants
declared that the training was a success, that the
objectives were completely attained, and that the
contents were very relevant to them. The three
candidate managers also passed the final examina-
tions and became graduates of the training course.
Commissioning the professional cooperative
managers
The professional co-op managers were ready for
commissioning to their respective co-op assign-
ments. Each manager was covered by a 1-year
renewable service contract, with the project as the
employer. Each manager receives a P15,000 salary
per month for managing the case cooperative.
The project also had a memorandum of agree-
ment with the case cooperatives. Some of the salient
points in the agreement were as follows:
1. The professional co-op manager will be directly
under the full authority, control, and supervision
of the cooperative’s board of directors and the
project will not be held liable for any action or
decision made by the manager of the coopera-
tive.
2. The cooperative may at any time during the
project duration request to discontinue the
services of the commissioned co-op manager.
3. The project will not intervene in the affairs of
the cooperative, though upon request it may
provide expert opinions or consultancy services
on matters relative to the business enterprise.
4. The cooperative will have the option to rehire
the professional manager after the project is
terminated.
Accomplishments and operations
The project kept a regular monitoring record of all
activities initiated by the professional co-op man-
ager. Regular visits by the project implementers to
the cooperatives were made to update and validate
reports.
In co-op 1, the professional manager was able to
establish a harmonious relationship with the board of
directors. He was given full authority to make
changes in the operations of the grain enterprise. The
LBP, which reneged on its earlier commitment to
restructure the cooperative’s past-due loans, left co-
op 1 with no working capital to start the business
anew.
The professional manager decided to go on
milling the small stocks left at his warehouse. He was
able to encourage the members to lend their stocks to
the co-op with delayed or staggered payments until
the milled rice was sold. With cost reductions in the
operations and even selling the scrap machinery
owned by the cooperative, a measly working capital
was raised and used in the business.
Because co-op 1 had no mist polisher in its mill,
the cooperative found it difficult to compete in the
quality milled rice market. The manager did not
compete in the Manila market but delivered his
products to Laguna. The rest of the products were
sold in the local market of Nueva Ecija.
The professional manager assigned to co-op 2
had a hard time dealing with his board of directors. In
fact, the board would not support many of his
activities in the grain enterprise. But, unlike co-op 1,
which has no trading capital, co-op 2 received from
ACPC (Agricultural Credit Policy Council) P5
million from the rehabilitation fund. The money,
however, was channeled to the local Cooperative
Rural Bank (CRB), which in turn immediately
deducted all past-due loans incurred by co-op 2 in
the previous years. About P1.8 million were left,
which the manager found to be too small to operate
an aggressive milling/trading business.
The professional manager therefore withdrew the
remaining funds from the CRB and deposited the
money at LBP, where he was given a P4 million
credit line for working capital. What the manager was
unaware of was that some of his board members were
also members of the CRB board of directors.
The grain enterprise of co-op 2, meanwhile,
moved according to the business plan designed by
the manager. Milled rice outlets were opened in
Iligan City and Maranding town. To facilitate fast
deliveries of stocks, the manager acquired a lease-to-
own 10-wheel truck from LBP.
85
 The relationship of the manager to the board of
directors of co-op 2 was strained. The board, 8
months later, requested the project to replace the
professional manager.
Table 4 summarizes the detailed activities and
outputs of the professional co-op managers in the
two case cooperatives.
Financial evaluation of the case cooperatives
In the 1 year in which the professional managers
served the cooperatives, significant changes occurred
in the financial status of the grain enterprises.
Co-op 1, in just over 6 months, was able to
generate an income of P861,346 from milling and
marketing operations (see Fig. 1). Having no real
working capital for procurement, co-op 1 was able to
devise schemes to get the raw materials from farmers.
For one, it allowed partial payment in-kind for the
past-due loans of the farmers. It also instituted
incentives that encouraged farmers to accept delayed
or staggered payments for their harvests. Perhaps, the
key was the business plan of co-op 1 not to continue
trading rough rice, if possible, but do full-scale
processing and marketing of milled rice. The
professional manager was able to expand his market
for milled rice by bypassing Manila for less competi-
tive but more lucrative markets in Laguna.
Fig. 1. Income trends of the case cooperatives before and after the commissioning of the professional managers.
86
Co-op 2, after 7 months of operations, generated
an income of P271,821 (Fig. 1). This was almost
double its income in 1998. The professional manager
was able to transform all the past-due loans of co-op
2 to current accounts. The business plan that was
followed was to concentrate on rough rice procure-
ment and milling rather than custom milling to
clients as in the previous years. The mill that used to
operate 8 h a day in 1998 was already using a double
shift per day. The establishment of market distribu-
tion outlets in Iligan City and Maranding town made
the milling business more successful for co-op 2.
Co-op 1 and co-op 2 were able to increase their
gross profit margins to 11% in 6 months compared
with their 9% margins for the whole year of 1998.
Performance appraisal of the managers
The cooperatives conducted a performance appraisal
of the managers after 1 year of service (Table 5). The
ratings were separate for the board of directors and
the management staff. On a scale of 1 to 5 or from
poor to outstanding, the activities/accomplishments
of the professional managers were rated. The ap-
praisal was conducted to determine whether the
cooperatives, through the board of directors and the
management staff, were satisfied with the services of
the professional managers.
Table 4. Activities/outputs of the professional co-op managers in organizational, marketing, technical, and financial
aspects of the cooperative-based grain enterprises.
Issues/concerns Co-op 1
A. Organization and management aspects
Inactive membership - Began regular site visits
and dialogues with farm
cluster groups
- Launched reorientation
and education programs
for members
- Did careful monitoring
and had regular meetings
with cluster leaders
Conflict with board of directors - Fostered good working
relationship with board
- Attended board meetings
regularly
Nonfunctional committees
Excess of laborers - Divided the group into
two, shifting alternately
every day
Overstaffed management - Reduced staff from 9 to 7
- Merged staff functions
Staff development - Held regular meetings and
consultations
- Defined functions and
responsibilities
Unimplemented policies - Strictly implemented credit
guidelines
- Had strict compliance with
internal control systems,
such as disbursement, cash
disposition, auditing, etc.
B. Technical aspects
Unsystematic procurement - Devised and implemented
procedures a price table or index
- Monitored prevailing prices
of rough rice daily
- Used moisture content meter
Drying problems - Had dryers repaired to
improve efficiency
- Used the in-store dryer
- Taught laborers the proper
and efficient way to
sun-dry rough rice
Poor milling efficiency - Replaced worn-out parts
of the mill
- Set regular maintenance
day
Poor warehousing management - Made regular inventory of
stocks
- Repaired walls/roofing
- Used pallets and
systematized piling
- Maintained cleanliness/
sanitation
- Used plastic enclosures
for seeds
Lack of hauling facilities
C. Marketing aspects
Low procurement volumes/ - Offered incentives for rough rice
no capital sold with delayed or staggered
payments
- Close coordination with clusters
Co-op 2
- Reactivated the participation
of the primary co-op chairmen/
managers by calling regular meetings
- Assisted the other Samahang nayan
members in converting to
cooperatives
- Did not attend board meetings
when his business plan
was not considered
- Proposed to remove all
nonfunctional committees
- Adopted a per-move basis
for laborers
- Reduced administrative staff
- Merged functions
- Had regular meetings/consultations
- Conducted socialization and
team-building activities
- Installed deep well; purchased
refrigerator, TV, and kitchen utensils
for staff use
- Conducted meetings with
trader-customers on new policies of
co-op
- Imposed strict compliance with
office procedures
- Applied first come, first
served policy
- Implemented a price table or index
- Made regular survey of
prices of traders
- Had mechanical dryers repaired
and rehabilitated to minimize
smoke emissions
- Rehabilitated the rice mill
to increase output capacity
- Acquired and installed a
new rice huller
- Devised and fabricated a utility cart
to move stocks inside warehouse
- Adopted a new piling system
- Regularly cleaned inside and
outside of warehouse
- Acquired a 10-wheel truck under
LBP’s lease-purchase program
- Procured directly from members
and nonmembers
continued
87
Table 4. continued

Issues/concerns Co-op 1 Co-op 2

No market for milled rice - Established market outlets - Opened milled rice outlets in
in Laguna on COD terms Iligan City and Maranding and
- Accepted 7–15-d postdated at the cooperative
checks at outlets in
Cabanatuan City
- Maintained supply of rice
to institutional buyers
- Delivered directly to outlets
to save expenses on agents
and middlemen
- Had marketing tie-up with
NOVADEC & Pangasinan
Federations of Co-ops
- Actively participated in
bidding to supply milled rice
Poor-quality products - Repaired rice mill - Used mechanical dryer for good
- Improved drying practices stocks procured
- Proposed acquisition of
mist polisher in the future
D. Financial aspects
Fund sourcing - Submitted the proposed - Used operating capital/
business plans to government credit line at LBP
financing institutions and
NGOs for funding
- Lobbied at LBP to approve
restructuring of loans
Cost reduction in operations - Reduced management staff - Streamlined staff functions
- Reduced number of drivers - Adopted a per-move basis
to 1 for laborers
- Adopted a per-move basis
for laborers
Collection of payables - Strict compliance with - Launched a massive
loan applications and collection campaign
payments
Other income - Sold all nonfunctional - Made income from sweepings
machinery owned by the of rough rice in the warehouse
cooperative - Opened a “rolling” retail store

Table 5. Performance appraisal of the professional co-op managers from January to November 1999.a

Aspect Professional manager 1 Professional manager 2

By By By By By By
board management members board management members
staff staff

Part I (accomplishments) 3.51 3.78 4.08 2.92 3.38 3.78

Part II (skills/management) 3.34 3.48 4.18 2.44 2.91 4.05
Part III (attitude) 3.75 3.92 4.07 3.22 3.88 3.11
a
Rating scale: 5.0 and above = outstanding, 4.0–4.99 = very satisfactory, 3.0–3.99 = satisfactory, 2.0–2.99 = fair, 1.0–1.99 = poor.

The general performance rating of the managers Summary and conclusions

by the co-op members was very satisfactory. The
management staff and the personnel working for the
manager rated their supervisor satisfactory. The
board of directors of co-op 1 rated its manager better
than the co-op 2 board rated its manager.
In total, the co-op managers had a satisfactory
performance and generally were acceptable.
1. The project characterized the professional co-op
manager as a combination of personality,
educational background, related experience,
specialized training courses, and appropriate
salary or benefits. These factors were considered
when selecting managers for the project.

88
 Incidentally, though, the managers selected had
no or very limited experience in the fields of
cooperatives and the grain business.
2. The objectives of the specialized training course
for professional co-op managers were satisfacto-
rily attained, from the training evaluation of the
participants and, more importantly, from their
actual performance with the real cooperatives.
Some of the training modules, however, had to
be revised to emphasize the social, cultural, and
political complications of farmers’ cooperatives
in the Philippines.
3. The case cooperatives selected by the project
reflect the worst scenario of a cooperative-based
grain-processing enterprise on the verge of
collapse. The professional managers were able to
rehabilitate the enterprise. Co-op 1 was the case
of an enterprise with accumulated debts almost
beyond recovery. Co-op 2 had a political and
institutional problem, with members of the
federation losing trust and confidence over
inefficient services and management of their
grain-processing enterprise.
4. The intervention of the professional managers in
the case cooperatives brought hopes of financial
recovery. The professional managers (even for a
short period of time) have proven that coopera-
tive-based grain-processing enterprises are
viable businesses under trained professional
management.
5. The creation of a pool of professional managers
that can be hired by any farmers’ cooperative
should be further studied.
Notes
Authors’ addresses: R.M. Recometa, R.R. Paz, and R.S.
Rapusas, supervising science research specialist,
director I, and director II, respectively, Bureau of
Postharvest Research and Extension, Muñoz, Nueva
Ecija.
89