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From Rice to Riches The Philippines

In the wake of the Asian financial crisis of 1997-98, rice producers in the Philippines

have weathered extremely tough times. As a result, they have explored diverse ways

of finding new markets for their produce. An increasingly common way to do this is by

using rice by-products to make products such as rice paper, rice coffee and rice wine.

Combining relatively simple methods with entrepreneurial flare, these ventures create

much needed extra wealth for poor producers.

Rice Facts

More than 90 per cent of the worlds rice is grown and consumed in Asia, where

people regularly eat rice at least three times a day. Nearly 500 million tonnes of rice is

consumed in Asia every year, costing over half of a households income. In 1999, the

Philippines produced over 11 million tonnes of rice from a yield of 2.9 tonnes per

hectare.

Rice is harvested from the field in

the form of paddy, which is the

complete rice seed. Each grain of

paddy contains one rice kernel, and

many other layers. The outer layer

of rice is known as the husk, which

consists of two interlocking covers

each protecting a half of the paddy.

The husk consists mostly of silica

and cellulose. The next layer is a

very thin film of bran. This consists

of fibre, vitamin B, protein and fat,

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and is the most nutritious part of the

rice. At the base of each grain is the embryo, which is the part that will grow into a new

plant. The innermost part is the rice kernel, consisting mainly of two types of starch

(amylose and amylopactin). This mixture of the two types determines the cooking

texture of the rice.

http://www.handsontv.info

Steve Kramer

There are three main varieties of rice in the world: Indica (long grain), Japonica (round

grain) and Javanica (medium grain). The Philippines produces mainly Indica rice, as it

grows best in the warm climate belt running through Indochina, Thailand, India,

Pakistan, Brail and the southern parts of the USA.Prosperity Through Rice

Prosperity Through Rice is a joint venture between the International Rice Research

Institute (IRRI) and the University of the Philippines Los Baos (UPLB), which

explores profitable and sustainable uses for rice by-products. Fe Frialde, personnel

officer for the Forest Products Research and Development Institute (FPRDI) in Los

Baos, was able to benefit from the initiative by establishing a small-scale cottage

industry, making paper from rice straw. With initial capital reserves of P11,000

(Philippine Pesos) and a loan of P22,000 from the Government Insurance System in

1986, Frialde started the Los Baos Handmade Paper Enterprises, producing a

range of rice paper products. The products were later spotted by foreign customers

at the Centre for International Trade, Expositions and Missions (CITEM).

Frialdes products include multi-coloured wedding gifts, invitations, gift wrappers,

boxes, folders, wall decorations and stationery. Having been trained in indigenous

fibre papermaking by the FPRDI, Frialde does not have to be confined to using rice

straw.

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There are no standard methods for handmade papermaking. The

techniques and tools used in each step vary, depending on the availability

of resources and the makers capability to discover cost-saving and easyto-adopt innovation to create

the desired effects on paper. The more

unique the paper, the more saleable it will be.

(FPRDI)

The process of papermaking involves pulping, preparation of stock (liquid starch),

and sheet formatting. The materials required for making the paper include rice

straw, starch, solid resin, alum (tawas), caustic soda, okra juice, water, sodium

hydrochlorite (bleach), and dyes. The tools needed for production include a wooden

mortal and pestle, a vat or basin, a mould and deckle (a pair of movable rectangular

frames with a detachable screen), cheesecloth, a rolling pin, and a drying board.

One kilogram of rice straw is able to make six sheets of writing paper. According to

Frialde, products such as a 150mm hexagonal box, covered with kakawate leaves,

sells at US$1.92 on the international market. A picture frame, meanwhile, will fetch

US$2.67. Clearly, there is great money-earning potential in papermaking from rice

straw.

Producing paper from agricultural residues has now become so popular that it has

penetrated foreign markets in Australia, Europe, Japan and the USA. April to June

are the main exporting months; September to December are dominated by the local

market, because of the Christmas season. This expansive market that Frialde has

established means that she now owns premises in Los Baos, and employs a dozen

staff. Papermaking from rice straw is more than a surviving art, it is a culture and a

livelihood from which Frialde has substantially benefited. Rice Coffee

In the face of global coffee giants such as Starbucks, entrepreneur Letty Basubas is

producing a local drink from the countrys rice granary in Nueva Ecija. Letty was so

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dedicated to planting and harvesting rice that she decided to improve the traditional

rice coffee, which her grandmother had served her every morning when she was

young.

Because rice coffee is somewhat belittled by some coffee aficionados

due to its not-so-good quality, I experimented in making the rice coffee an

equal of imported coffee.

Letty Basubas

According to the Agriculture Secretary, Luis Lorenzo, Letty is probably the only rice

coffee producer in the country, since there are no records in the Department of

Trade and Industry or the Bureau of Internal Revenue that show other individuals or

groups engaged in the same business. Letty first explored the market for her rice

coffee at the anniversary celebration of PhilRice (Philippine Rice Research Institute),

from which she made a profit of P600 (US$10.71). She regarded it as a sign of

things to come and established a niche market for her rice coffee products during

trade fairs and exhibits.

Lettys rice coffee products come in three flavours: peanut, three-in-one (coffee with

sugar and milk), and caramelised carabao milk. These products have earned Letty

an average monthly income of P25,000 (roughly US$447). However, in a ten-day

province-wide exhibit she made P7,000 (US$125), and she also made a profit of

P35,000 (US$626) in a three-week exhibition in Manila. Letty believes that the

reason behind her success is the quality of her coffee:

Unlike the coarse traditional rice coffee, my product has a powdery

quality.

With the assistance of the provincial government of Nueva Ecija, the Department of

Trade and Industry, and PhilRice, Lettys market niche grew and she now caters for

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the coffee needs of thousands of consumers at 30 outlets in the province.

Rice Wine

At PhilRice, they are keen to encourage new ways of making a living from rice, and

have taken traditional practices of rice fermentation and adapted them to the

modern market for wine. The Rice and Rice-Based Products Programme run by the

Rice Chemistry and Food Science Division of PhilRice develop and pilot the

production of rice-based products. The project has three objectives:

1. To establish the functional properties, and identify processing applications of

Philippine rice varieties;

2. Modify and standardise processing methods of rice wine, beer and thermally

processed rice-based products, and to prepare these technologies for

dissemination; 3. To enhance the adoption of developed products and technologies by

expanding and sustaining strong linkages among processors, manufacturers,

research and development organisations, and consumers.

The project has accomplished a series of ventures

that aim towards these objectives. The institute

has successfully transferred standardised ricebased production technology through an on-going

training and skills programme. The project has

also studied the shelf-life of Tapuy (the local name

for rice wine) and the effect that rice variety and

storage conditions have on the end product. This

research revealed that samples stored in a

refrigerator were significantly lighter in colour,

more acidic, and more acceptable than samples

kept at room temperature. The survey of the

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market for Tapuy was carried out during the Asian

Ethnic Food Fest (AEFF). Suggestions included

having more blends, different flavours, changing

the bottles, and having boxes for safer transport.

Courtesy of IRRI

Fermentation of Rice Wine

Ingredients required: glutinous rice, water, bubod, activated carbon or bentonite.

1. Weigh 1 kg of glutinous rice and wash through with water three times.

2. Drain and add 1.5 litres of water.

3. Cook in a rice cooker until well done. Let it cool.

4. Spread the cooked rice on a tray and inoculate with powdered bubod (rice

yeast) at 1g per 100g of raw rice.

5. Cover the tray with a piece of paper or cloth and incubate at room

temperature for two days.

6. Transfer to a fermentation jar with a water seal to allow the rice to ferment for

two weeks, or until the bubbling stops.

7. Press out the alcoholic juice through a cheesecloth and discard the residue.

8. Pasteurise the freshly harvested wine at 65-70

o

C for 30 minutes.

9. Allow it to stand for one to three months in a dark, cool place to prevent

discolouration.

10. Siphon the clear wine. If the wine is not yet clear, add one spoon of activated

carbon or bentonite for every litre of wine. Mix well and filter.

11. Bottle the wine and pasteurise at 65-70

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o

C for 20 minutes. Approximately 1

litre, or 3 bottles at 350ml, can be harvested from 1 kg of rice.

A return on investment for rice wine can reach 88 per cent, meaning that investment

can be recouped in seven or eight months. According to PhilRice, with a total

monthly production expense of P44,000 (US$785.99) and an average wine production estimated at 1500

350ml bottles (fetching P82,500 / US$1473.74),

producers can expect a net income of P38,553.92. (US$688.71).

The Value of Rice

Value-added rice products enhance the profitability derived from rice farming. Upon

establishing a nice market, the products can contribute to the improvement of the

rice market in general. They also have a significant role to play in lifting the income

of struggling rice farmers. By diversifying into the industry of value-added rice

products, people are able to supplement their existing income and even sustain their

lives fully on the generated income.

Acknowledgements

ITDG would like to thank the Philippines Rice Research Institute for providing

information and helping in this case study.

The case study draws on articles written by the Philippine Rice Research Institute.

Further Information

Business in Asia: The Philippines

Runckel & Associates,

6611 SW Parkhill Dr.,

Portland,

Oregon 97239-2657

USA

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Tel: 503-244-4551

Website: http://www.business-in-asia.com/philippines.html

Department for International Development

1 Palace Street,

London

SW1E 5HE

Tel: 020 7023 0000

Fax: 020 7023 0019

Email: enquiry@dfid.gov.uk

Website: http://www.dfid.gov.uk

Knowledgebank

Email: e.azucena@cgiar.org

Website: http://www.knowledgebank.irri.org/International Rice Research Institute (IRRI)

Los Baos,

Laguna,

Philippines

Mail: DAPO Box 7777, Metro Manila, Philippines

Tel: +63 (2) 580-5600

Fax: +63 (2) 580-5699

Email: irri@cgiar.org

Website: http://www.irri.org

IRRI Library

DAPO Box 7777,

Metro Manila,

Philippines

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Tel: (63-2) 580-5600

Fax: (63-2) 580-5699

Email: ariel-irri@cgiar.org

Website: http://ricelib.irri.cgiar.org/

ITDG Publishing

Schumacher Centre for Technology Development

Bourton Hall

Bourton On Dunsmore

Warwickshire

CV23 9QZ

Tel: +44 - 01926 634501

Fax: +44 - 01926 634502

Email: marketing@itpubs.org.uk

Website: www.itdgpublishing.org

PhilRice: Philippine Rice Research Institut

RELATED: Visit theRice Knowledge Bankfor more in depth information on the good agricultural practices for irrigatedrice and rainfed rice environments.

Seed selection

Seed is a living product that must be grown, harvested and processed correctly to maximize its viability and subsequent

crop productivity. For the yield potential of any rice variety to be realized, good quality seed must be sown.

Good seed is pure (of the chosen variety), full and uniform in size, viable (more than 80% germination with good

seedling vigor), and free of weed seeds, seed-borne diseases, pathogens, insects, or other matter.

Using good seed leads to lower seeding rates, higher crop emergence (more than 70%), reduced replanting, more

uniform plant stands, and more vigorous early crop growth. Vigorous growth in early stages reduces weed problems

and increases crop resistance to insect pests and diseases.

LINK:Introduction to seed management

http://www.knowledgebank.irri.org/rice.htmhttp://www.knowledgebank.irri.org/rice.htmhttp://www.knowledgebank.irri.org/rice.htmhttp://www.knowledgebank.irri.org/qualityseed/http://www.knowledgebank.irri.org/qualityseed/http://www.knowledgebank.irri.org/qualityseed/http://www.knowledgebank.irri.org/qualityseed/http://www.knowledgebank.irri.org/rice.htm

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VIDEO:Seed sorting by flotation

Land preparation

The land to be planted is prepared to place the soil in the best physical condition for crop growth and to ensure that the

soil surface is level. This is done using manual labor, with the use of animals of burden, or farm machinery.

Land preparation typically involves plowing, harrowing, and leveling the field to make it suitable for crop establishment.

Draft animals, such as buffalo and oxen, 2-wheel tractors or 4-wheel tractors can all be used as power sources in land

preparation. The initial soil tillage can also be performed with a rotovator instead of a plow.

LINK:What you need to know about land preparation

Crop establishment

The two main practices in establishing the rice plant is through direct seeding and transplanting.In direct seeding, dry seed or pre-germinated seeds and seedlings are broadcast by hand or planted by machine. This is

usually done in rainfed and deepwater ecosystems.

On the other hand, transplantingtransferring pre-germinated seedlings from seedbed to fieldrequires less seed but

much more labor. This method also serves as a means of weed control.

LINK:Introduction to plant establishment

VIDEO:Establishing a modified mat nursery for rice

Water management

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Cultivated rice has a semi-aquatic ancestry. It is for this fact that rice is extremely sensitive for water shortage. To

ensure sufficient water, most rice farmers aim to maintain flooded conditions in their field. This is especially true for

lowland rice. Naturally, water management practices will vary depending on the environment.

Land preparation for flooded soils consumes more than a third of the total water required for growing rice in an irrigated

production system. High water loss during land preparation is caused by water flowing through cracks in the soil.

Seepage and percolation flows from rice fields are major pathways of water loss. A rice field can be compared with abath tub: The material of a bath tub is impregnable and it holds water well. However, water can run out immediately

from even one hole, such as with removing the plug of a bath tub. Rice fields with only a few rat holes or leaky spots will

rapidly loose water by seepage and percolation. Thorough puddling results in a good compacted plow pan that reduces

percolation rates throughout the crop growing period. The efficacy of puddling in reducing percolation depends greatly

on soil properties.

LINK:Water management in lowland irrigated rice

VIDEO:Alternate wetting and drying (AWD)--using less water to grow rice

Nutrient management

Ensuring that the rice plant gets the exact nutrients it needs to grow is of great importance. This is because each growth

stage of the rice plant has specific nutrient needs.

Site-specific nutrient management (SSNM) provides scientific principles for optimally supplying rice with essential

nutrients. It enables rice farmers to tailor nutrient management to the specific conditions of their field, and it provides a

framework for nutrient best management practices for rice.

LINK:Site-specific nutrient management

VIDEO:Tales of Ryza the Rice Plant: Proper nutrition makes healthy rice plants

Pest management

The rice plant has a wide array of enemies in the field. These include rodents, harmful insects, viruses, etc. Each of

these pests and diseases are controlled using specific strategies.

Understanding the interactions among pests, natural enemies, host plants, other organisms and the environment

improves pest management decisions. Understanding the ecological factors that allow pests to adapt and thrive in a

http://www.knowledgebank.irri.org/watermanagement/http://www.knowledgebank.irri.org/watermanagement/http://www.knowledgebank.irri.org/watermanagement/http://www.youtube.com/watch?v=tfKWKfagfFshttp://www.youtube.com/watch?v=tfKWKfagfFshttp://www.youtube.com/watch?v=tfKWKfagfFshttp://www.knowledgebank.irri.org/INM/http://www.knowledgebank.irri.org/INM/http://www.knowledgebank.irri.org/INM/http://www.youtube.com/watch?v=tkVNnZcF07ohttp://www.youtube.com/watch?v=tkVNnZcF07ohttp://www.youtube.com/watch?v=tkVNnZcF07ohttp://www.youtube.com/watch?v=tkVNnZcF07ohttp://www.knowledgebank.irri.org/INM/http://www.youtube.com/watch?v=tfKWKfagfFshttp://www.knowledgebank.irri.org/watermanagement/

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particular ecosystem will help to identify weak links in the pests' life cycle and factors that can be manipulated to

manage them.

LINK:Crop Health: Application of ecology to pest management

Harvesting

Depending on the variety, a rice crop usually reaches maturity at around 115-120 days after crop establishment. The

harvesting activity includes cutting, stacking, handling, threshing, cleaning, and hauling. It is important to apply good

harvesting methods to be able to maximize grain yield, and minimize grain damage and deterioration.

Harvesting can be done manually using sickles and knives, or mechanically with the use of threshers or combineharvesters. Regardless of the method, a number of guidelines should be followed to ensure that good grain quality is

preserved during harvest operations and harvest losses are kept to minimum.

LINK:Introduction to harvesting

VIDEO:Cambodia: Machines of Progress

Postharvest

After harvest, the rice grain undergoes a number of processes depending on how it will be used. Such methods include,

drying, storing, milling, and processing.

Drying is the process that reduces grain moisture content to a safe level for storage. Drying is the most critical operation

after harvesting a rice crop. Delays in drying, incomplete drying or ineffective drying will reduce grain quality and result

in losses.The purpose of any grain storage facility is to prevent grain loss from weather, moisture, rodents, birds, insects

and micro-organisms.

Milling is a crucial step in post-production of rice. The basic objective of a rice milling system is to remove the husk andthe bran layers, and produce an edible, white rice kernel that is sufficiently milled and free of impurities. Depending on

the requirements of the customer, the rice should have a minimum of broken kernels.

LINKS: Introductions topaddy drying, storage, andrice milling

VIDEO:Mechanization and postharvest issues in east and southern Africa

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