Nueva Ecija co-op receives rice processing facility under DA mechanization program

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Nueva Ecija co-op receives rice processing facility under DA mechanization program — Nueva Ecija rice upgrade

Nueva Ecija is receiving additional postharvest infrastructure as the Philippine government pushes to lower rice production costs through mechanization. The new P65.6-million facility combines milling and drying equipment for a farmers' cooperative, while the broader program now runs through 2031 with a larger annual budget.

Highlights

The Department of Agriculture handed over a P65.6-million rice processing facility to Talabutab Norte Primary Multipurpose Cooperative in Nueva Ecija, featuring a P54.7-million rice mill and two dryers worth P10.88 million.
The facility can process 2 to 3 tons of rice per hour, supporting pre-cleaning, de-stoning, hulling, polishing, grading, color-sorting, and automatic packing.
The RCEF Mechanization Program, now extended to 2031 with annual allocations rising from P5 billion to P9 billion, aims to cut production costs by P2–P3 per kilogram and postharvest losses by 3%–5%.

Facility turnover and processing capacity

As reported by BusinessWorld, citing the Department of Agriculture, a P65.6-million rice processing facility has been handed over to the Talabutab Norte Primary Multipurpose Cooperative in Nueva Ecija to help mechanize rice production.

The package includes a P54.7-million multi-stage rice mill with a processing capacity of 2 to 3 tons per hour, along with two recirculating-type mechanical dryers worth P10.88 million. The facility supports pre-cleaning, de-stoning, hulling, polishing, grading and color-sorting, and it also has an automatic milled-rice packing machine.

Cost reduction goals and program extension

The machinery distribution is being carried out through the Philippine Center for Postharvest Development and Mechanization, or PHilMech, and the Rice Competitiveness Enhancement Fund Mechanization Program, which supplies equipment to qualified farmer cooperatives and associations.

The program estimates that mechanization can reduce production costs by P2 to P3 per kilogram, while postharvest technologies can lower losses by 3% to 5%. The RCEF Mechanization Program has been extended until 2031, with annual allocations increasing from P5 billion to P9 billion under Republic Act No. 12078, the Agricultural Tariffication Act, which amended Republic Act No. 11203, or the Rice Tariffication Law.

Philippine sovereign bond market reforms and planned index inclusion were previously examined in our coverage as steps meant to improve liquidity and broaden the investor base. We noted, however, that cheaper funding and deeper capital markets do not automatically translate into real-economy gains unless they are matched by credible fiscal policy and effective, productivity-boosting spending on infrastructure and other priorities.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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