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Rapid Appraisal of the Postharvest Facilities Projects in the Philippines Nerlita M

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Rapid Appraisal of the Postharvest Facilities Projects in the Philippines Nerlita M Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas Rapid Appraisal of the Postharvest Facilities Projects in the Philippines Nerlita M. Manalili, Kevin F. Yaptenco and Alessandro A. Manilay DISCUSSION PAPER SERIES NO. 2015-31 The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are be- ing circulated in a limited number of cop- ies only for purposes of soliciting com- ments and suggestions for further refine- ments. The studies under the Series are unedited and unreviewed. The views and opinions expressed are those of the author(s) and do not neces- sarily reflect those of the Institute. Not for quotation without permission from the author(s) and the Institute. June 2015 For comments, suggestions or further inquiries please contact: The Research Information Staff, Philippine Institute for Development Studies 5th Floor, NEDA sa Makati Building, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines Tel Nos: (63-2) 8942584 and 8935705; Fax No: (63-2) 8939589; E-mail: [email protected] Or visit our website at http://www.pids.gov.ph Rapid Appraisal of the Post-Harvest Facilities Projects in the Philippines Nerlita M. Manalili Kevin F. Yaptenco Alessandro A. Manilay With statistical support from Prof Nelita M. Lalican and research support from Ms. Imelda V. Valenton and Carissa Joy Ozoa i Abstract The Philippine government’s postharvest loss reduction programs entail significant investments (manpower, facilities and equipment) and their impacts need evaluating. Thus, the Philippine Institute for Development Studies of the National Economic and Development Authority commissioned NEXUS Agribusiness Solutions to undertake the “Rapid Appraisal of Selected Postharvest Facilities in the Philippines”. PHF Selection process considered at least one each for Luzon, Visayas and Mindanao and for the following PHF categories: 1. Equipment and facilities required immediately after harvest 2. Processing and storage facilities 3. Market infrastructure and transport facilities Selected were four Rice Processing Centers (RPCs), established through a Korean International Cooperation Agency grant, in Pangasinan, Davao Del Sur, Bohol, and Iloilo. Using these sites as hub, other PHF nearby such as food terminals (FT), flatbed dryers (FBD) and threshers were included for evaluation. In the context of upgrading value chains, reducing postharvest losses, and improving economic outcomes for smallholder farmers, selected PHF were characterized and assessed. Evaluated PHFs were found responsive to farmers’ needs (production, postharvest, processing and marketing), met pre-set objectives and posted positive impacts. RPCs’ increase farmers’ income, produce quality milled rice, reduce postharvest losses, improve distribution, and maximize utilization of byproducts, however, continued government support is needed, until a qualified beneficiary can take over operations. FBD/thresher distribution, reportedly preserve grain quality and reduce postharvest losses, but needs ensuring that benefits accrue to farmers. FTs provide agri-suppliers with access to markets, improve availability of commodities/basic goods, employment/entrepreneurial opportunities, and strengthened LGUs- private sector partnership. Proper management, comparable prices (to nearest market) and entrepreneurial skill of beneficiaries were key to successful FT operations in addition to appropriate location. Recommendations centered on project management enhancement (timeliness of preparatory activities, participatory planning, etc.) and on operational improvements (capacity utilization, viability and sustainability). Keywords: postharvest loss, postharvest facility, value chain, agricultural marketing, rapid appraisal ii Contents 1. INTRODUCTION .......................................................................................................................................... 10 2. SITUATIONER .............................................................................................................................................. 11 2.1. Production Areas .............................................................................................................................. 11 2.2. Postharvest Losses ........................................................................................................................... 15 2.2.1. Loss Assessment of Grains ....................................................................................................... 15 2.2.2. Loss Assessment of Fruit and Vegetables .......................................................................... 16 2.3. Government Interventions for Postharvest Loss Reduction .......................................... 16 2.3.1. Rice and Corn Processing ......................................................................................................... 17 2.3.2. Marketing of High-Value Crops .............................................................................................. 19 2.3.3. Cold Chain Systems for Storage and Transport .............................................................. 22 2.3.4. Tramline Program ....................................................................................................................... 26 2.4. Summary of Situationer ................................................................................................................. 26 3. OBJECTIVES .................................................................................................................................................. 27 4. GENERAL APPROACH AND METHODOLOGY ................................................................................. 27 4.1. Identification of PHF for Impact Assessment........................................................................ 27 4.1.1. General Analytical Framework .............................................................................................. 27 4.1.2. Characterization of Postharvest Facility Projects .......................................................... 28 4.1.3. Selection of PHF Projects, Commodities, Study Sites and Respondents ............... 28 4.1.4. Respondents and Respondent selection ............................................................................ 30 4.1.5. Data Collection .............................................................................................................................. 31 4.2. Impact Assessment of PHF ........................................................................................................... 32 4.2.1. Appraisal Process ........................................................................................................................ 32 4.2.2. Assessment of PHF Projects and Project Management ................................................ 33 4.2.3. Evaluation of Project Management ...................................................................................... 37 4.2.4. Identification of Strengths and Weaknesses in Identified PHF Programs and Projects 37 4.3. Study Timeline ................................................................................................................................... 37 5. RAPID ASSESSMENT RESULTS ............................................................................................................. 37 5.1. Postharvest Facility Description and Technical Assessment ......................................... 37 5.1.1. KOICA Rice Processing Centers.............................................................................................. 37 5.2. Benefits Derived from the Postharvest Facilities Projects .............................................. 67 5.2.1. Benefits Derived from the KOICA-Rice Processing Centers ....................................... 67 5.2.2. Cost-Benefit Analysis ................................................................................................................. 72 5.2.3. Threshers and Flatbed Dryers ................................................................................................ 73 5.2.4. Benefits of Farmers/Fisherfolks in Selling to Barangay Food Terminals (BFTs) and Municipal Food Terminals (MFTS) ...................................................................................................... 75 iii 5.2.5. Employment Generation ........................................................................................................... 78 5.3. Rice Value Chain Upgrading associated with PHF .............................................................. 80 5.3.1. MFTs and BFTs ............................................................................................................................. 82 5.3.2. Flatbed dryers and threshers ................................................................................................. 82 6. PROJECT MANAGEMENT ........................................................................................................................ 83 6.1. Project Cycle: Process and Issues .............................................................................................. 83 6.2. Project Monitoring and Evaluation ........................................................................................... 87 7. SUMMARY OF FINDINGS ......................................................................................................................... 87 7.1. Relevance of PHF .............................................................................................................................
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