The following document was presented by Mr. Omi Royandoyan, executive director of Centro Saka, Inc., during a briefing for N & PA staff on May 7,

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The following document was presented by Mr. Omi Royandoyan, executive director of Centro Saka, Inc., during a briefing for N & PA staff on May 7, 2008.

Rice Hybridization is Not the Answer to the Rice Crisis Centro Saka Inc. May 2008 1

GMA s F.I.E.L.D.S. : Php43.7 B Fertilizer 500 million fertilizer support with special focus on use of organic fertilizers (BIO-N) Irrigation and Infrastructure 6 billion for rehabilitation of irrigation facilities 6 billion for FMR and other infra like RORO Education and training of farmers and fisherfolk 5 billion for training of farmers on new technologies and R&D on increasing yield & income; 2 B for R&D and 1 B for capacity building Loans 15 B in credit for farmers, fisheries and small rural borrowers, this is on top of the Php5 B of LBP Dryers 2 billion for dryers and other post harvest facilities Seeds 9.2 billion for hybrid and certified seeds subsidies until 2010: of 6.5 B for CS and 2.7 B hybrid. The target is to plant CS in 600,000 ha for 2008 and F1 in 900,000 for 2009-2010(?) (P10B for Hybrid?) 2

F.I.E.L.D.S Aims to increase the hectarage devoted to hybrid rice production from the current 300,000 hectares to 900,000 hectares, with an allocation of PhP2.7 billion (P10B?) until 2010. Small farmers find this difficult to understand given the poor performance of the hybrid rice program and the many issues that have been raised against it over the years. 3

F.I.E.L.D.S The package of intervention measures will merely perpetuate the misguided strategies that have turned us into the world s biggest rice importer. In subsidizing hybrid rice, we are subsidizing big seed companies like SL- Agritech, including multinationals like Bayer and Monsanto, when we should be using that money to support our own rice farmers. 4

Hybrid Rice Promotes farmers dependence on these seed companies because the hybrid rice technology discourages farmers from saving, reusing, replanting and exchanging seeds. The characteristics and performance of hybrid rice varieties drastically deteriorates in the second generation or succeeding planting. Hence the farmers would have to continually depend on the commercial seed companies for fresh supplies. (as against home-saved seeds and community seed banking) 5

Hybrid Rice By expanding and promoting the planting of hybrid rice, government is also practically wiping out traditional rice varieties. Clearly, the design of the FIELDS interventions will actually make the rice program dependent on private companies with no accountability to the public. 6

Hybrid Rice Hybrid rice's heavy reliance on chemical-based inputs to reach optimum yields. With the sky-rocketing prices of inorganic fertilizers which now stand at PhP1,700, hybrid rice production will only force rice farmers deeper into indebtedness, even as the big fertilizer companies reap windfalls of profit. All of this is on top of the damage to the environment that chemical-based farming, as shown in numerous studies, will certainly cause. (as against organic/indigenous fertilizer and pest management) 7

Hybrid Rice The contribution of the hybrid rice, which has received billions of peso in government support, to rice production pales in comparison to the over 50 percent contribution of good seeds, a sector that has been receiving practically no support from government. 8

Hybrid rice is NOT the Solution According to some studies, yields from good seeds and certified seeds can reach a maximum of 9 mt/ha and 10 mt/ha respectively. Even assuming only a conservative output of 6 mt/ha, good and certified seeds can produce more than enough to feed the population. 9

Organic Rice Farming Actual field experience with farmer developed varieties also show that yields of up to 7 mt/ha are achievable using organic farming practices. This compares favorably to the less than 6 mt/ha average yield for hybrid rice. Rice farmers who employed the system of rice intensification managed to produced yields reaching as high as 9 mt/ha. 10

Organic Rice Farming Moreover, the small rice farmers have been reporting milling recovery rates of 70 percent which is much higher than that registered by hybrid rice. What is even more notable is that the small rice farmers were able to achieve this level of production without government support. Strangely, government has not tapped the expertise of these organic rice farmers. 11

Organic Rice Farming Clearly, by simply providing farmers with good seeds, promoting organic rice farming and constructing additional irrigation facilities, government could set the country on the road to self-sufficiency in food production. Needless to say, government would do well to abandon its current policy track of relying on hybrid rice or even entertaining rice imports as solutions to ensuring the availability of food. 12

Thank you!! 13

Rice Production By Seed Type, CY 2006 Hybrid, 12%, Good Seed 50% Certified Seed, 38% Hybrid Certified Seed Good Seed Source: GMA Rice Program 14

3,000,000 2,500,000 Planting Trend of F1, CS & GS 2,556,204 2,538,904 2,511,982 73% 72% 67% 2,371,738 2,407,960 62% 58% A r e a P la n te d (h a ) 2,000,000 1,500,000 1,000,000 1,302,627 43% 1,247,783 41% 1,097,625 34% 919,788 28% 1,213,557 34% 500,000-28,379 80,061 1% 3% 208,886 374,261 319,277 2002 2003 2004 2005 2006 Area Planted to F1 Area Planted to CS Area Planted to GS (%) Percent contribution to the national production 8% Year 15% 12% 15

Hybrid Rice Budget 2001-2005 YEAR BUDGET No. of Hectares 2001 327 Million 12,550 2002 378 46,824 2003 289 132,520 2004 945 316,114 2005 780 214,000 (target) 16

Possible Source of YIELD Increase Wet Season Grain Yield (t/ha/season) Dry Season Hybrid Seeds Certifie d Seeds Good Seeds Hybrid Seeds Certifie d Seeds Good Seeds Maximum attainable yield (limited only by climate & variety) 9.20 8 7.20 11.50 10 9 Yield with best nutrient and cultural management (limited by lodging) 7.36 6.40 5.76 9.20 8 7.20 Yield when there are macronutrient (NPK) and water problem 5.52 4.80 4.32 6.90 6 5.40 Yield when there are micronutrient, pests, and management problems 3.68 3.20 2.88 4.60 4 3.60 Source: Securing Rice, Reducing Poverty: Challenges and Policy Directions. Balisacan, Sebastian and Associates. 2006 17

We can be self-sufficient Good Seeds Certified Seeds Yield 8 mt/ha 6 mt/ha 9 mt/ha 7 mt/ha Hectares 4,272,000 4,272,000 4,272,000 4,272,000 Palay Production 34,176000 25,632000 38448000 29904000 Milled Rice 22,214,400 16,660800 24991200 19437600 18

Hybrid rice is NOT the solution Cost and Return Analysis of the Different Rice Production Practices Rice Production Practice Luzon Visayas LEIRP LEISA MRT (Iloilo) SRI (Hybrid) SRI (Inbred) Cost of Production per ha 19,194 26,990 20343 12670 17004 24378 25150 Yield (tons/ha) Chemical Farming 4.5 3.5 Sustainable Agricultural Practice 4.4 4.5 3.25 11.6 12.5 Source: R1 s Documentation of Selected Rice Farming Methods Gross Income 49,500 35,000 48400 49500 32660 93800 100000 Net Income 30,306 8,010 28257 24160 15656 69422 74850 19

SL Agritech Recommended Fertilizer Application Dry Season Wet Season Time of Application UREA Amount Per Hectare Complete Time of Application Amount Per Hectare UREA Complete 5 DAT or BASAL 2 sacks 2 sacks 5 DAT or BASAL 1 sack 2 sacks 15 DAT 2 sacks 2 sacks 15 DAT 2 sacks 2 sacks 40-45 DAT PLANERGY 30-50 ml/knapsack 40-45 DAT PLANERGY 30-50 ml/knapsack 60 DAT 1 sack 60 DAT 1 sack 70-75 DAT PLANERGY* 30-50 ml/knapsack 70-75 DAT PLANERGY 30-50 ml/knapsack 45 DAT 60 DAT 7 days after 15 days after BLB Stopper BLB Stopper SEEDBED PREPARATION 2 sacks of urea 2 sacks of urea 45 DAT 60 DAT BLB Stopper BLB Stopper SL-Agritech 2-3 days before produces transplanting and sells Planergy and BLB BLB Stopper Stopper. BLB Stopper is a pesticide to prevent Bacterial Leaf Blight which is a common disease in hvbrid rice varieties. Source: SL-Agritech Website 20

Costs of Fertilizers: 5 sacks urea @ P1,200 = Php6,000 4 sacks complete @ 1,600 = Php6,400 4 sacks of urea @ 1,200 = Php4,800 Total Costs =Php17,200 21

Average Production Volume and Length of Practice of 25 Organizations into Organic Rice Farming Organization No. of Hectares Ave Production (Cavans) Metric Ton Length of Practice LUZON FMPC 64 67.5 3.38 5-10 yrs Gratia Plena 168 142.86 7.14 5-10 yrs Pakisama-Bikol 117 85 4.25 5-10 yrs Pecuria Dev t Coop 40 80 4 5-10 yrs KALIKASAN-NE 160 110 5.5 11 yrs above SACOT 60 100 5 1-2 years SANDIGAN 42 70 3.5 5-10 years AVERAGE 4.68 22

Average Production Volume and Length of Practice of 25 Organizations into Organic Rice Farming Organization No. of Hectares Ave Production (Cavans) Metric Ton Length of Practice Visayas KABBUHIAN 60 50 2.5 3-5 yrs KATIN-ARAN 35 80 4 5-10 yrs MACASABAT 25 75 3.75 5-10 yrs PAGLAUM 3.7 93.51 4.68 3-5 yrs PATANOM 45 90 4.50 3-5 yrs PRDCI 300 85 4.25 5-10 yrs AVERAGE 3.94 23

Average Production Volume and Length of Practice of 25 Organizations into Organic Rice Farming Organization CONSERVE DASURFAI DON BOSCO ECOTECH MASIPAG KAANIB KAMANG KATMO KSN MAKAKABUS PANAW SAC-JP TAMLANG AVERAGE No. of Hectares 80 327 1600 78 57 20 15 95 30 400 32 Ave Production (Cavans) Mindanao 110 Source: Profile of 69the Organic Rice Industry in the 80 Philippines, 2005. PDAP. 50 95 160 80 50 60 80 80 90 65 Metric Ton 2.5 4.75 8 4 2.5 3 4 4 4.5 3.25 5.5 4 4.16 Length of Practice 5-10 yrs 5-10 yrs 5-10 yrs 5-10 yrs 11 yrs above 11 yrs above 3-5 yrs 5-10 yrs 5-10 yrs 11 yrs above 5-10 yrs 5-10 yrs 24

Province Luzon Abra Camarines Sur Catanduanes Ifugao Quezon Nueva Ecija Pangasinan Sorsogon Tarlac Sub-Total Province Visayas Bohol Guimaras Iloilo Negros Occ Sub-Total PDAP s Estimate Organic Rice Production Areas and Potential Areas No. of Farmers 15 217 40 30000 33 620 25 90 37 31077 No. of Farmers 50 56 370 264 740 No. Hectares 20 223 8 10000 8 328 12 42 60 10701 No. Hectares 30 60 439 130 659 Potential Areas 90 393 68 17000 838 1831 12 92 160 20484 Potential Areas 0 200 683 382 1265 25

PDAP s Estimate Organic Rice Production Areas and Potential Areas Province No. of Farmers No. Hectares Potential Areas Mindanao Agusan Del Sur 141 135 780 Bukidnon 105 87 60 Davao Del Norte 200 45 200 Davao del Sur 182 327 500 Davao Oriental 18 5 100 Misamis Oriental 15 15 1000 North Cotabato 1090 2069 3550 South Cotabato 91 95 500 Zamboanga DS 50 400 6300 Sub-Total 4892 3178 12990 TOTAL 36709 14538 24038 26

Organic Rice Farming Organic rice farming was re-introduced in the Philippines in the mid-1980s with two main objectives: poverty alleviation among small farmers reduction of production costs and inputdependency; Improvement of environment and farmers health the green revolution in the 1960s resulted to the loss of farming biodiversity i.e. traditional seeds, friendly and beneficial insects, soil nutrients, etc. 27

Organic Rice Farming The Magsasaka at Siyentipiko Para sa Pagunlad ng Agrikultura (MASIPAG) together with various NGOs, POs and advocates actively promotes sustainable use and management of biodiversity through farmers control on genetic and agricultural production resources. The Masipag Rice Technology (MRT) is one of the many organic rice technologies being practiced by small farmers. The MRT s main feature is the use of farmer-bred rice varieties and improved traditional varieties adapted to local farming communities coupled with alternative soil fertility management practices and crop diversification practices. 28

Organic Rice Farming Other sustainable and organic rice farming technologies being adapted are Biodynamic Agriculture (by Don Bosco Foundation in Mindanao), LEISA or low external input sustainable agriculture (LEISA), low external input rice production (LEIRP), System of Rice Intensification (SRI), and diversified and integrated farming technology (DIFT) 29

Organic Rice Farming Compared to conventional farming system, sustainable organic rice farming enhances small farmers control of the means of production especially on seeds, inputs and pesticides. It also harnesses farmers traditional knowledge on farming methods and systems. It also helped them improved and developed their own farming technology that is suitable and adaptable to their local farming conditions. Sustainable organic rice farmers also conserve and preserve rice varieties through community seed banks. The seeds/varieties do not get lost and it evolved and adapted to changing environment. Moreover, varieties remained under the farmers control and became more dynamic. 30

Organic Rice Farming In some cases in Mindanao, organic rice (using organic seeds or farmer-bred and traditional varieties posted an average of 70-73 percent milling recovery rate. This is higher compared to the average milling recovery rate of inbred and hybrid, which is 60-65 percent. 31

Organic Rice Farming In Visayas, farmer using MRT reported a 25-28 percent reduction in farm inputs. Farmers are encouraged to use readily available organic materials from their farm and alternative pest management methods. Thus, they are not tied with traders as sources of credit for production capital. In Nueva Ecija, about P6,000 were saved using organic inputs. Through application of organic inputs, soil fertility is restored and micro-organisms are enhanced and beneficial insects came back to the field. The agro-biodiversity and ecological balance in the farms are restored and maintained. Thus pest outbreaks are prevented. 32

Organic Rice Farming Majority farmers practicing sustainable organic rice farming also practice crop and animal diversification which led to their increased income. Farmers are maximizing the use other their lands for other crops such as vegetables, fruits, livestock raising etc. Through crop diversification, farmers have a steady source of income on weekly or monthly. Aside from steady source of income, crop diversification and integration and intercropping also promoted ecological balance and diversity in the farms. One documented case of farmer using Biodynamic farming recorded a 63 species of crops in his 3.11 hectares. 33

Organic Rice Farming The diverse crops grown in their farms ensure steady supply of healthy food for their local needs and consumption at household and community. 34

Irrigation Providing Water and Doubling Production Irrigation remains a crucial component of rice production. Sadly, irrigation development is very dismal. Of the total 3.1 million hectares of irrigable lands only, 1.4 million hectares are irrigated. From 1.5 million hectares of irrigated lands in 1990, it dropped to 1.4 million hectares in 2007. 35

Irrigation Under the Arroyo administration, there was even a decline in irrigation development with new areas covered by irrigation dropping from 28,148 ha. in 2002 to only 12,127 ha. in 2004. Areas rehabilitated by the National Irrigation Administration (NIA) were almost halved from 269,665 in 2002 to 129,451 in 2004. 36

Irrigation If government will manage to construct irrigation facilities in the irrigable lands, the country stands to add as much as 1.26 million hectares to the country s irrigated lands, and potentially double current production yields. 37

Irrigation Providing Water and Doubling Production A study by the United Nations Food and Agriculture Organization (FAO) revealed that compared to its neighbors in Southeast Asia, the Philippines exhibited no growth in irrigated lands. 38

Country SOUTHEAST ASIA 1. Cambodia Comparative Growth Rate of Irrigated Lands in Selected SEA Countries, 1992-2002 1992 260 F 1999 270 F 2000 270 F 2001 270 F 2002 270 F Annual Growth Rate 1992-2002 0.2 % 2. Indonesia 4 500 4 800 F 4 815 F 4 815 F 4 815 F 0.7 % 3. Lao PDR 145 F 172 F 175 F 175 F 175 F 2.0 % 4. Malaysia 350 F 365 F 365 F 365 F 365 F 0.4 % 5. Myanmar 998 1 841 1 910 1 985 1 996 7.0 % 6. Philippines 1 550 F 1 550 F 1 550 F 1 550 F 1 550 F 0.0 % 7. Thailand 4 433 4 948 4 998 4 924 4 957 F 1.2 % 9. Viet Nam 2 900 F 3 000 F 3 000 F 3 000 F 3 000 F 0.2 % 39