The Department of Agriculture (DA) has vowed to further expand rice farm mechanization nationwide through the installation of the Rice Processing System (RPS) machineries in more farms.
The RPS machineries were specially designed and created by the Philippine Center for Posthar-vest Development and Mechanization (PhilMech) to enable palay farmers to speed up harvest procedures and reduce post-harvest losses.
Expanding rice farming mechanization will be in support of the National Food Authority, which has seen its milling and drying capacities significantly diminished since the Rice Tariffication Law (RTL) scaled back its operational role, Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement on Tuesday, August 19.
He also downplayed concerns that an expansion might lead to overcapacity in the milling sector. He explained that the DA has been targeting an 80 to 85 percent utilization rate, considered an optimal figure that will benefit all participants in the value chain.
“More important than rated milling capacity is capacity utilization… To break even, operators need at least 63 percent capacity usage. Go below that, and you’re losing money,” Tiu Laurel said.
The DA said they will not push for 100-percent full capacity, which may lead to monopolistic conditions.
“Our target utilization rate is 80 to 85 percent… That’s where efficiency improves, costs go down, and all parties, millers, farmers, and consumers benefit, provided other costs hold steady,” Tiu Laurel explained.
Once the rice mill usage stabilizes within the optimal range, PhilMech will then be capable of redirecting investments toward production-side equipment like tractors and seeders, from post-harvest infrastructure such as mills and dryers.
Tiu Laurel said the current strategy will ensure that each mill will operate efficiently to prevent surplus and idle infrastructure, by focusing on smart utilization rather than unchecked expan-sion. This will also balance market supply, stabilize rice prices, and protect farmer incomes, he said.
Tiu Laurel did not provide further details on the expansion of rice farm mechanization, saying specifics of the program will be revealed at the right time.
The DA said that since the implementation of the RTL and the allocation of funds into the Rice Competitiveness Enhancement Fund (RCEF), PhilMech has already established 122 RPS units equipped with modern multi-stage rice mills and recirculating dryers, 116 of which were com-pleted under the current administration.
The DA said that PhilMech targeted a total of 151 RPS units, with the remaining 29 scheduled for completion before the end of 2025.
The agency added that PhilMech has so far distributed more than 1,000 single-pass rice mills and village-type rice mills, and more than 500 stand-alone recirculating dryers to smaller organ-izations to support localized rice processing operations.
PhilMech is the government lead agency for the development of protocols, processes and de-signs for the country’s agricultural and fishery mechanization programs.
Under the RPS mechanization program of Philmech, large farmer-cooperatives with at least 100 members each, must meet several criteria to qualify for a mechanization grant from Philmech. Philmech, through the Department of Public Works and Highways, will build the RPS machiner-ies and the warehouse on land to be “donated” by the farmers’ cooperatives to the government for the purpose. Farmer cooperatives commit to maintain and sustain the operations of the RPS machineries under an agreement with DA-Philmech. Cooperative members will also undergo training on how to properly use the machinery.
