MARKET DEVELOPMENT OPPORTUNITIES AND STRATEGIES FOR KALINGA RED RICE Rochelle E. Gayagay Loida E. Mojica Agnes T. Banzon Jeanette Angeline B. Madamba Department of Agribusiness Management College of Economics and Management University of the Philippines Los Baños
Introduction Kalinga red rice is a traditional rice variety which is produced organically in the province of Kalinga. It is one of the most important crops in the area since it plays a major role in both the life and culture of the natives. It is currently being exported to Montana, USA and some trader-retailers are catering to the local market through organic markets and trade fairs.
Objective This
study was undertaken to assess market development opportunities of Kalinga Red Rice in Metro Manila, Baguio City, and Los Baños, Laguna through determining the consumption and buying behavior of the respondents in the three study areas and their level of awareness, perception and familiarity with red rice.
Methodology
Metro Manila and Baguio City y 100 respondents were identified through convenience and purposive sampling (50 respondents for each location) y Consumer and market survey was used which included Usage, Attitude and Image Study (UAI), Product Attribute Analysis and Price Expectation Analysis.
Methodology
Los Baños , Laguna y Home placement test which involved 50 respondents was conducted. y The respondents were identified through convenience and purposive sampling.
Key-informant interviews, store checks, and market observations were also conducted.
Storecheck Results Consumption and Buying Behavior
Storecheck Results Most brands of red rice in Metro Manila and Los Baños are found in supermarkets where most of the brands sold were labeled and vacuum-packed. The current prices of red rice in Manila and Los Baños range from Php 65-120 per kilo. The majority of the red rice varieties sold in Baguio are unlabeled and mostly offered in public markets.
Kalinga red rice sold in… Metro Manila Market
Baguio Market
Consumption Behavior
There are 74% occasional users in Metro Manila while there are 60% in Baguio. During the time of the interview, there were more non-current users in Metro Manila than in Baguio. Red rice is the second most consumed in Manila and Baguio. Los Baños respondents consume red rice as plain rice. More than half of the Los Baños respondents are willing to buy and partially substitute their current rice with red rice.
Consumption Behavior Frequency of Usage of Red Rice in Metro Manila and Baguio Manila
Baguio No. of No. of Percentag Respondent Percentage Respondent e s s Occasionally 37 74 30 60 Frequency of Usage
Everyday
13
26
15
30
Once a week Once a month Once a Year
0
0
3
6
0
0
1
2
0
0
1
2
Total
50
100
50
100
Consumption Behavior It was revealed that Baguio respondents have an almost equal familiarity with healthy rice and traditional varieties. They also consume their red rice faster than Manila respondents. Current usage and bulk purchases of Baguio respondents can be attributed to their being indigenous people.
Consumption Behavior Types of Rice Most Consumed by the Respondents Types of Rice
Manila
Baguio
Mean
Rank*
Mean
Rank*
White rice
1.74
1
1.26
1
Red Rice
2
2
1.88
2
Brown Rice
2.4
3
3.1
3
Black Rice
3.15
4
3.78
4
*1= most consumed; 4= least consumed
Buying Behavior Most of the Manila and Baguio respondents are not regular buyers. Most of Manila respondents purchase in supermarkets while most of Baguio respondents purchase in public markets. Manila respondents usually purchase in small amounts while Baguio respondents purchase in bulk. About 74% of Los Baños respondents have plans of buying the product.
Buying Behavior Buying Frequency of the respondents in Metro Manila and Baguio Frequency of buying Every week Every other week Every month Every 2 months Every 3 months Depends Not regular (rarely) Total
Manila Baguio No. of No. of Percentag Respondent Percentage Respondent e s s 4 8 30 60 14 28 1 2 0 0 10 20 0 0 1 2 0 1
0 2
2 4
4 8
31
62
2
4
50
100
50
100
Buying Behavior The total monthly household income of Baguio respondents has a significant relationship with buying frequency. Membership to an indigenous group has a significant relationship with buying frequency for Baguio and Metro Manila respondents.
Importance Ratings and Preferential Differences Metro Manila respondents valued organic characteristics the most while Baguio respondents primarily valued cleanliness for uncooked red rice. Nutritive value and eating quality ranked the most important preferred attributes for Metro Manila respondents while Baguio respondents ranked aroma and eating quality as most important for cooked rice.
Importance Ratings and Preferential Differences The ratings for texture, nutritive value, eating quality and the overall median rating of cooked red rice were significantly different with respect to area. Manila respondents have higher standards in terms of cooked red rice as compared to Baguio respondents.
Conclusions The results revealed that there are market development opportunities present in the three areas. High potential demand is being signaled by the increasing number of health conscious individuals and indigenous people. There is an opportunity in the middle to high income groups since they are most likely to be the regular buyers of red rice.
Recommendations Kalinga red rice producers must consider the differences in the three study areas when extending their markets. They may take any of the following options: y Option 1 is to decentralize distribution through traders/private assemblers and cooperatives. y Option 2 is for producers to do the trading in rice.
Option 1: Decentralize distribution through traders/ private assemblers and cooperatives
Option 2: Distribution Option for Producer as Trader/Retailer
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