Republic of the Philippines

NATIONAL FOOD AUTHORITY

Cagayan Valley Region 02
Santiago City

JANUARY TO OCTOBER 2014 ACCOMPLISHMENT REPORT

Respectfully submitting the operational accomplishment of NFA Region 02 for
the period January to September 30, 2014 and the projected accomplishment
from October to December 2014.

STOCK BALANCE and FOOD SECURITY STOCKS

Our total rice inventory as of September 30, 2014 is 279,739 bags of Imported
rice. Of this quantity, 145,820 bags rice represents our food security stock
requirements. This will last only for seven (7) days based on our 29,100 bags
daily rice consumption. Our inventory will be beefed up by an additional
200,000 bags imported rice scheduled to arrive from November to December
2014 to form part of our rice distribution requirement for the first quarter of
2015.
A total of 54 NFA-Owned and leased warehouses and 8 units Silos with a
combined total effective capacity of 2,757,000 bags are currently utilized.
These are strategically located at the different buying and distribution
stations at the different provinces/municipalities in the region.

PALAY PROCUREMENT
a. For period January to September 2014, the region procured a very
minimal volume of 1,259 bags. If compared with our historical palay
procurement, this is the lowest volume procured for the past five (5) years as
follows:

Year
Volume procured
% Inc. (Dec.)
2008
1,405,505
2009
648,075
-53.89%
2010
1,103,194
70.23%
2011
459,776
-58.32%
2012
1,049,567
128.28%
2013
963,859
-8.17%
The very low accomplishment this 2014 was attributed to the following
circumstances:
b. Ex-Farm prices of clean and dry palay are still relatively high in the
region ranging from P20.00-P23.50 per kilogram. This is prevalent in the
area due to the active participation of traders/wholesalers and even
viajeros coming from other regions.
c. We projected that palay prices will tend to go downward at the peak of
harvest but it seems that prevailing prices will remain constant due to

the aggressiveness of traders to corner the stocks to augment their

depleted inventory and also to take advantage of the early harvest in the
region since other region have delayed harvest.
d. Prices of palay decreased slightly by P0.50 to 1.00 per kilogram during
the wet crop season (September to November 2014) as compared to
summer crop season (March to May 2014).
e. Palay traders with harvesters/reapers deployed their facilities and are
apparently cornering most of the early harvests as they are buying
immediately the output of their reaper/harvester. Other traders have
also intensified collecting palay as payment-in-kind from their farmerclients by mobilizing their trucks and directly hauling the latters produce
from the fields.
f. The different provincial offices are continuously conducting Ugnayan
and coordinating with the various local government units up to the
barangay level to advocate the agencys program specifically the palay
procurement program. However, despite the campaign, our palay
procurement program was not so attractive because of the price
consideration.
g. Marketing trends in Region 02:
1. Most traders are aggressively buying to increase their stock
inventory. Others are trading it immediately because of the high
price opportunity.
2. Millers are continuously milling their existing stocks as well as the
newly procured stocks to sustain their commitments to their valued
clients, and also deliver rice to deficit areas in the country like NCR
to take advantage of the high price.
3. Palay being procured by wholesalers at satellite buying stations are
immediately taken by big traders/millers who provided them with
advance working capital for palay procurement.
4. Usually during the peak harvest, price tends to go down, but with
the expected aggressive participation of traders/warehousemen to
increase their inventory, and the proliferation of viajeros in all
producing areas, the high price of palay seems to remain constant.
The high palay price is also influenced by the non simultaneous
harvest of one region to another.
5.

Apparently with the high ex-farm price of palay in the area, our
palay procurement will not produce a good turn-out.

RICE DISTRIBUTION
a. The region distributed a total of 532,178 bags for the period January to
September 2014 and projected to sell 302,000 bags for the period
October to December 2014 or a total rice distribution of 834,178 bags
for CY 2014. This is 98.14% accomplishment of the total distribution
target of 850,000 bags for CY 2014.
Said rice distribution

accomplishments are 7.96% market participation based on our daily rice

consumption of 29,100 bags. The accomplishment of the region is
attributed to the following reasons:
1. Additional traditional outlets and non-traditional outlets were
accredited to cater to marginalized end consumers who is
clamoring more NFA rice because of price consideration.
2. The demand of NFA rice was high because of the big difference of
prices of commercial rice against NFA rice.
The demand of rice for the remaining last quarter of 2014 will still be
intense due to the following reasons:
i. The low inventory of private traders in the area and the slow
movement of commercial rice might also aggravate the demand of
NFA rice in the market.
ii. The delayed arrival of imported rice allocation will force us to
calibrate our distribution/sales.
b. Historical Rice Distribution
VOLUME
YEAR
DISTRIBUTED
2008
2009
2010
2011
2012
2013

1,239,372
1,155,637
969,102
663,679
305,170
452,890

% INC.
(DEC.)
-6.76%
-16.14%
-31.52%
-54.02%
48.41%

CY 2012 is a year when we started to calibrate our sales as per

instruction from Central Office. The average retail price then of
commercial rice ranges from
P29.00 to P31.00 per kilogram as
compared to the retail price of NFA rice at P27.00 per kilogram. Low
distribution during this year was also attributed to the low acceptance of
the consuming public of the Iron Fortified Rice despite the continuous
advocacy campaign.

INTRA REGIONAL DISPERSAL

Region 03 as a disport for imported rice was the source of our rice
allocations. We were allocated 800,000 bags imported rice including the
200,000 bags imported rice scheduled to be delivered in November and
December 2014.

MILLING OPERATIONS
The region were able to mill all existing palay stocks inventory during the
period. NFA Owned ricemills were utilized to mill the 77,433 bags palay stocks
and the 48,222 bags local rice recoveries formed part of our rice distributed
thru our various accredited retailers.