The Rice industry

Title

The Rice industry

Creator

Hill, Percy A.

Language

English

Year

1928

Rights

In Copyright - Educational Use Permitted

Fulltext

April, 1928 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 31 THE RICE INDUSTRY By Percy A. Hill of Muitoz. R'ucra Ecija, Director, Rife Producers’ Association. Prices for both palay and rice took a decided slump during March and the offerings were the lowest since the year of deflation. The reasons for this slump were pure ly local, in spite of the fact that there is a good deal less palay than at this time last year. The slump was due to the following domestic facThe carry-over and deposits, as well as the unseen stocks held by the producers of last year’s crop, 1926-1927, were, as predicted, thrown upon the market at peak supply, causing a glut; the abnormal shipments of over a half million sacks of rice during the first sixty days of the year caused congestion in the Manila bodegas and buyers practically got their own price; the lack of circulating medium called for by local buyers and sellers was restricted by sheer inability to mobilize the ready cash; and the crop was placed upon the market some weeks earlier this year, due to the universal use of the motorized separator, producers shipping their palay at once instead of holding it as they did last year. While terminal offerings in Cabanatuan were 1'2.80, and in Tarlac 1'2.70, local offerings were not above 1’2.50 per cavan— spelling a loss to the industry this year of many millions. Below are two charts, No. 1 showing the fluctuation of the price of palay for the last twenty years, or the period 1909-1928. Banner crops have a tendency to reduce price irrespective of what the production cost may have been and the chart shows we are little removed from the "North Coast Limited” “One of America's Fine Trains" prices offered two decades ago. There is per haps no industry which shows such violent fluctuation. In chart No. 2 is shown produc tion costs and annual prices and gains, over a seven year period, 1921-1928. This data accu rately tabulated was taken under the best con ditions and shows the high average yield for the entire period of 53.5 cavans per hectare, considering that the average Philippine yields for the period 1920-1925 were only 24.51 per hectare. It is also seen that production costs are fairly constant over this period while the net gain follows prices offered very closely. To show this year’s production cost over a larger area and volume the data from 6 rice producing units are hereby attached. These show a cross-section of the industry producing nearly 200,000 cavans, and using the usual equal share system under which the cereal is grown. Crop Hectare Cost Net Unit Cavans Yield Cavans Gain Loss 1 4980 52.6 2 848 53.0 3 135200 50.4 1.94.1 1’0.55 9 2.06.1 0.43 9 2.22 0 28 4 2019 54.0 1.70 080 5 28026 42.9 3.04.8 1’0.54.8 6 7030 28.8 3.97 1 47 This cross section of the industry shows the profits and losses of a total of 178,123 cavans produced under the most favorable circumstances, the lands being all irrigated, and unit 6 used some 1’4,500 of mineral fertilizer in addition. The high yields of the others speak for themselves over such a large area, some of the units being in Nueva Ecija and some in Tarlac. Only in a few cases were profits equal to the normal rate of legal interest on capital invest ment. This loss to the industry at present prices is not less than 1’70,000,000 below that of the crops of 1925 and 1926. This amount approximates ten per cent of national earnings and is about equal to the total revenues. As a consequence the effect of this restriction of spending power to the producer will have some effect on business. iVS-4 <V<«-7 V >>* .-o 0_D ,, 4* i / / shows you the Cascade Mountains, the Rocky Moun tains and the Mission Range by daylight. From the main line of the Northern Pacific, travelers see 28 ranges of mountains, and the train rolls along 1406 miles of rivers—pictures of “startling beauty” all the way. The “North Coast Limited” is a new train—new engines one-third of a block long! New Pullmans, new observation cars, wonderful new type dining cars. We Meet All Boats at Victoria and Seattle A. D. Charlton, G. P. A., Portland, Oro. W. H. Jaynes, G. A., Vancouver, B. C. R. J. Tozer, A. G. P. A., Seattle, Wash. E. E. Blackwood, G. A., Victoria, B. C. Northern Pacific Railway "Ffrsf of the Northern Transcontinentals” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL

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