Establishment of Agribusiness for the Local Rice Farmers in the City of Cabuyao

In the most prominent rice marketing chain involving multiple channels, the farmers, who invested the most effort and sacrifices to produce quality rice, are the most deprived of the monetary returns from the sales. In the average retail price of 40.75/kg, only 5.44/kg or less goes to farmers. Farmers remained poor as most of the profits are being received by the rice milling and trading companies. Thus, to alleviate the deprivation to profit of the farmers in Cabuyao City, an agribusiness that offers integration of post-harvest services to produce commercial rice is proposed. By accommodating 90.23% of the harvests in the City of Cabuyao, the rice farmers in the said area can receive up to an additional P2.00/kg or 15% increase in profit. In addition, the projected return on investment is 17% in the initial year of the business.