The Philippines is the 9th largest rice producer in the world, accounting for approximately 2.6% of global rice production. (Source: United States Department of Agriculture, Aug 2016).
The impacts of climate change on rice production play a vital role in ensuring food security. At a predicted 19 million metric tons of palay (unhusked rice) to be produced in 2016, the country will fall just short of its current rice self-sufficiency goal of around 20 million MT.
The Island of Leyte ranked 9th in palay production in the country in 2014 with half a million metric tons produced. (Source: Philippines Bureau of Agricultural Statistics)
Rice is the staple food throughout the Philippines – the majority of the population eating it 3 times a day.
Different commercial standards of rice exist, each priced slightly higher than the last:
- regular milled rice is from a standard single pass mill
- well milled rice is from a double or triple pass mill
- premium rice is achieved when you have a grader installed in the line (what Plentex Philippines will produce)
- special (fancy) varieties, such as Thai, Japonica, fragrant etc
There is a low margin (US$0.05/kg) between wholesale and retail prices.
Plentex's agri-product plant site is in an established agricultural region with a lack of rice mills in the area providing a strong commercial opportunity. The plant will be located in the heart of the new Tacloban North residential development (50,000 people).