2. Chap 1-3.docx

CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale

A Philippine proverb says that if anyone wastes rice or throws it away, his hand will become deformed and he will never know abundance or prosperity. In the Philippines rice is much more than food, it is sustenance with historical and numerous cultural values that are deeply woven into the Filipino culture (1:2014).

Rice is not automatically be eaten after harvest, it will go through an important process called milling.

Milling is the process wherein the rice grain is transformed into a form suitable for human consumption, therefore, has to be done with utmost care to prevent greater portion of broken rice. It is a crucial step

in post-production of rice where the basic objective is to remove the husk, produce edible rice grain that is sufficiently milled and free from impurities (2:2013).

When the rice arrives in the mill, the husk and the bran layers are removed, after cleaning and packing, the rice is ready to be consume for daily purpose or can be sold to the public. The processing of rice creates many valuable by-products, rice husks can be used as bedding in poultry houses while rice-stubble and broken rice are common ingredients in making food products, rice bran is an additive for pet food. Other by-products are spring rolls wrapper made from rice flour, rice stick noodles, rice brand oil, rice vinegar, rice glue and rice paper. The rice mill also benefits the rural community in creating jobs and supplying the local market with rice. Rice is one of the most important food crops, many people depend on it for their daily meals, their culture and livelihood are evolved around the growth and protection of this staple food, for them rice is a symbol of love, rice equals life (1:2014).

These study focuses on the establishment of rice milling to provide high quality of rice in the community with the use of hi-tech equipments to satisfy the needs of every customers.

Theoretical Background

“Rice is a really special kind of farming, it tends to foster cultures that are more cooperative and interconnected because farming and milling rice requires collaboration with your neighbors.” -

Talhelm

In this rice theory of Thomas Talhelm, it tells us that rice farming, Must be done with the help of other people from farming to harvesting and also in milling wherein the main objective is to remove the husk and the bran layers from paddy rice to produce whole white rice that are sufficiently milled, free of impurities and contain a minimum number of broken rice. The milling yield and quality of rice is dependent on the quality of the paddy, the milling equipment used and the skill of the mill operator (3:2014).

RICE MILLING SYSTEM



One step milling process where the husk and the bran are removed in one pass and white rice is produced directly from the paddy.



A two-step process where the husk and the bran are removed separately, and brown rice is produced as an intermediate product.



A multistage process where rice passes through a number of different operations and machines from paddy to white rice.

Legal Basis REPUBLIC ACT NO. 3018. An act limiting the right to engage in the rice and corn industry to citizens of the Philippines, and for other purposes.

No person who is not a citizen of the Philippines, or association, partnership or corporation, the capital or capital stock of which is not wholly owned by citizens of the Philippines, shall directly or indirectly engage in the rice except as provided in Section three of this Act. As

used in this Act, the term rice shall mean and include the culture, milling, warehousing, transporting, exportation, importation, handling the distribution, either in wholesale or retail, the provisions of Republic Act Numbered Eleven hundred and eighty to contrary notwithstanding, or the acquisition for the purpose of trade of rice (husked or unhusked) or corn and the by-products thereof:

Provided, that public utilities duly licensed and registered in accordance with law may transport rice.

THEORY. Rice milling is a crucial step in post-production rice. The objective of a rice milling system is to remove the husk and the bran layers from paddy rice to produce whole white kernels that are sufficiently milled, free of impurities and contain a minimum number of broken kernels.

Brown rice contains the bran layer and the endosperm. All bran layers are removed to give very highly polished rice. The storage life of milled rice is improved when all of the bran layers are removed.

Rice milling is the process of removing the husk and bran layer to produce white rice. Rice milling can be undertaken as one step milling process where the husk and the bran are removed in one pass and white rice is produced directly from the paddy.

LEGAL BASES. An act limiting the right to engage in the rice and corn industry to citizens of the Philippines, and for other purposes. No person who is not a citizen of the Philippines, or association, partnership or corporation, the capital or capital stock of which is not wholly owned by citizens of the Philippines, shall directly or indirectly engage in the rice. That public utilities duly licensed and registered in accordance with law may transport rice.

A rice milling service owned by a citizen of the Philippines which has the purpose to immediately remove the husk and bran layer to produce white rice. To provide relief to the customers especially to the hard-working farmers.

Established JAGNA RICE MILLING CENTER in Canjulao, Jagna, Bohol.

Figure 1 THEORETICAL FRAMEWORK

Related Studies

The following studies have been availed to substantiate and give more support to this investigation:

Rice remains an important agricultural commodity in the Philippines. It accounts for one-fifth of agricultural gross value added, is a major source of employment and income for rural people, and poor households spend about 25% of their income on rice. Given its importance in the national and political economy, rice has become one of the main focuses of R&D, and an important topic for empirical studies in the Philippines. The main motivation of this study is to disentangle the effects of technology and managerial ability on the productivity of rice farmers. In doing so, we employ a multi-stage procedure in order to control for biases from observables and unobservable and address some of the shortcomings in previous studies.

The proceeding information was underscored by the researchers to support as bases for the conclusion of the feasibility of the proposed business.

Conceptual Background of the Study

The concept “Jagna Rice Milling Center” would like to promulgate a branding in instant hit, which the proponents want to impart their loyalty and aid to contribute in the development of Jagna in terms of socio and economic development, job opportunities and exhibit fair price. Followed by the word “center” means that the most important or pivotal in relation to an indicated activity and also it is located at Canjulao where it is near the center of Jagna. As an advantage compare to other competitors “Jagna Rice Milling Center” provides advanced machine to offer quick and relieve to the customers. Through surveys, questionnaire, observations and interviews the researchers conducted. To gather information, opinions, reality fact among proponents and existing owners of this kind of business and we believe this will be accomplished through effort and patience of the researchers. This project concept implement reforms and strategic plans on how to accomplish a good result of this study. a. A survey is conducted and questionnaires were accomplished to know the preferences of the proponents of the question typed survey.

b. With personal interview of some existing business enterprise of the proposed project directly to the owners to know more about this kind of business, to have a related and guide towards the project. Thus, eager to have stability and availability towards customers. c. The development and attraction of market industry, with its technical, management and aids to highlight economic aspects and topics that helps to be accounted to be accounted feasible the proposed project. After gathering of information it is patterned based on condition set the group members contributed and collaborated ideas to make deeper the topic, in which may understandable and presentable. After series of detrimental sleeps, this project is deemed tangible implementation for business affairs and ready to make a difference based on the feasibility and with payment capacity showed and projected income statement.

Input Data gathered from the respondents through survey, questionnaires and direct interviews.

Process 1. Distribution of questionnaires 2. Tabulation of gathered data 3. Analyzing the gathered data 4. Statistical treatment 5. Findings 6. Conclusion 7. Recommendation

Output

Established JAGNA RICE MILLING CENTER in Canjulao, Jagna, Bohol.

Figure II CONCEPTUAL FRAMEWORK

THE PROBLEM

Statement of the Problem

The study aimed to find out the proposed feasibility plan of Jagna Rice Milling Center with the extent of Mobile Rice Mill if it is feasible and suit to its target market. It is estimated about 10 percent of paddy/rice is damaged and/or lost in processing, storage and transport with the present methods and machinery. Sixty to eighty percent head yield is obtained with 10-25 broken and admixture of bran and husk whereas with modern techniques, 68-72 percent head rice with 5-7 percent broken and better utilizable by-products. The estimated loss in terms of money due to ill rice recovery and excess broken with present methods would run into crore of rupees. Since paddy is the staple food of practically all paddy growers and also it is seasonal with one harvest per year, there should be some facility in storage which can be protected from various hazards like damage caused due to spontaneous heating, damage by birds, rodents and insects.

This study specifically tries to discover the answers the following questions:

1. What is the profile of the respondents in terms of residence, whether living within or outside the town of Jagna:

1.1 Residence 1.2 Occupation

2. What is the background of respondents in the context of:

2.1 Rice Paddy/Paddies Availability 2.2 Palay Availability 2.3 Purposes of Harvesting/Buying Palay 2.4 Average Monthly Volume for milling 2.5 Mode of Payment

3. Perception on the proposed Jagna Milling Center:

3.1 Factors considered in choosing where to mill rice 3.2 How feasible the proposed business in the community 3.3 Tendency in availing the mobile rice mill

Significance of the study

Upon concluding the feasibility of the study and going on for its implementation thereafter, this study is significant to the proponents or capitalist who wants to engage in this kind of business. It will help them to know more about Jagna Rice Milling Center and through this they can also earn income, it would be beneficial to the following:

To the proponent upon affirming the feasibility of the proposed Jagna Rice Milling Center enterprise, the proponent would be directed with the result of this study whenever he wishes to bring the proposed into reality.

For the customers Having an additional milling center for the process of rice will help the customers to provide more reliable and efficient way of milling with this so called Mobile Rice Mill due to other far milling business. This establishment would be a great help for them as carry out burden.

To the hired workers This business needs workers, it can give income to those who will worked in the shop.

For the Municipality of Jagna It is an addition to local government tax revenues, generate income and promotes the town as a good site in engaging business enterprise.

To the researchers It helps them to practice or apply their knowledge about the basic principles learned in the business course. Also help the researchers to grow mature to test their attitude towards another.

Scope and Limitations of the Study This study seeks to hit upon the feasibility of establishing a Rice Milling Center in Canjulao, Jagna, Bohol. To achieve this, a careful compilation of data was conducted. A distribution of questionnaires was being conducted into the municipalities of Jagna, Duero and Garcia-Hernandez, a total of three hundred (300) respondents. This study has to be accomplished within the semester to formulate the proposal inclusive of the correction by the examining tribunal.

RESEARCH METHODOLOGY

Research Design

In this study, the researchers made used of the descriptive normative survey method employing the questionnaires and interview techniques and observation in order to secure sufficient data and valuable information for investigation. The data being gathered were

carefully analyzed. The result of the survey will serve as basis in establishing the feasibility of the proposed business.

Research Instrument

A questionnaire was utilized for the purpose of gathering data to secure responses to certain questionnaires necessary to the completion of the study. The researchers opted to use the questionnaires as a tool since the responses to a questionnaire are objectified and standardized which made the tabulation easy. But more importantly, the respondents’ replies are of their own free will because there is no interviewer to influence them. This is one way to avoid biases, particularly from interviewers. The researchers also made used of the tables and charts for data presentation.

ENVIRONMENT AND SUBJECT

Research Environment

The proposed study will be established in Canjulao, Jagna, Bohol. And respondents currently resides at the towns of Duero, Jagna and Garcia-Hernandez in the province of Bohol. Basically, these respondents were asked regarding the current status of services and their personal views about product and service satisfaction.

Data Gathering Procedures

In the gathering of various data, the researchers asked first the approval of the respondents to conduct the survey. Prior to the distribution of the research instrument, the respondents were preinformed as to what the survey was all about. The social surveys and distribution of questionnaires were done personally by the researchers to further explain well certain items on the questionnaires to ascertain efficiency.

Data Analysis The data gathered for the respondents profile were grouped and tabulated. A percentage of the different variables were made according to their experienced in farming and desire to have a rice milling business in the municipality. P = f/n Where: f = Frequency of response n = Number of respondents P = Percentage

DEFINITION OF TERMS

The following terms are defined specifically to be able to understand the project study. Bran layers

also known as miller’s bran, is the hard outer layers or cereal grain.

Broken rice

fragments of rice grains, broken in the field during drying, transport or by milling.

By-products

an incidental or secondary product made in the process in rice milling.

Capitalist

a wealthy person who uses money to invest in trade and industry for profit in accordance with the principles of capitalism.

Impurities

undesirable element or substance commonly or naturally contained in something that lowers the things quality or value.

Rice Bran

also known as miller’s bran, is the hard outer layers of rice grain.

Rice husks

also known as “rice hulls” are the hard protecting coverings of grains of rice.

Rice Paddies

a field where rice is grown. A rice before threshing or in the husk.

Rice-stubble

stubble is that part of a plant left after the seed has been harvested, very effective way of preventing wind and water erosion.

Stochastic Production Frontier analysis

refers to a body of statistical techniques

used

to

estimate

production or costs functions in economics, while explicitly accounting for the existence of firm inefficiency.