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)

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)

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 farming rice

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 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.
Figure 1
THEORETICAL FRAMEWORK
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
MILLING CENTER in
Canjulao, Jagna, Bohol.
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 Milling” 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. As an advantage compare to other competitors

“Jagna Milling Center” provides 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 MILLING

CENTER in Larapan, Jagna,
Bohol.

Figure II

CONCEPTUAL FRAMEWORK
 THE PROBLEM

Statement of the Problem

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.

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

suited to its target market.

 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 Larapan, Jagna, Bohol. To achieve this, a careful

compilation of data was conducted.

A distribution of questionnaires was being conducted into the

municipalities of Jagna, 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 surveys 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

This study focused on the individuals residing in the town of

Jagna. The subjects were the 300 individuals wish to avail the Milling

Services. 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 pre-

informed 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.

The information on the extent to which the needs of the

farmers/customers have been met and tallied and tabulated. The

following weights were assigned to the scales with their corresponding

equivalents.

Weight Scale Equivalent

5 Always Highly Satisfied

4 Often Satisfied

3 Occasionally Uncertain

2 Seldom Dissatisfied

1 Never Highly Dissatisfied

The weighted mean was computed with the following formula:

u = E (f * X) / N
where: u = weighted mean

E = “sum of”

F = frequency of responses under each scale

N = the number of respondents

A hypothetical mean range was set for each scale with the

corresponding interpretation guide and equivalents:

Range Interpretation Equivalent

4.21-5.00 Always Highly Satisfied

3.41-4.20 Often Satisfied

2.61-3.40 Occasionally Uncertain

1.81-2.60 Seldom Dissatisfied

1.00-1.80 Never Highly Dissatisfied

The data on quality of performance questionnaire were also

tallied and tabulated. The following weights were assigned to the scales

with their corresponding equivalents:

Weight Scale Equivalent

5 Outstanding Outstanding

4 Very Satisfactory Very Satisfactory

3 Satisfactory Satisfactory

2 Unsatisfactory Unsatisfactory

1 Poor Poor

The weighted mean was computed with the following formula:

u = E (f * X) / N

Where: u = weighted mean

E = “sum of”

f = frequency of responses under each scale

N = the number of respondents

To arrive at a definite interpretation of the results for each item,

a hypothetical mean range was assigned for each scale, thus:

 Range Interpretation Equivalent

4.21-5.00 Outstanding Outstanding

3.21-4.20 Very Satisfactory Very Satisfactory

2.61-3.40 Satisfactory Satisfactory

1.81-2.60 Unsatisfactory Unsatisfactory

1.00-1.80 Poor Poor

The grand mean for each factor was computed by adding the

weighted mean of the item under each factor and dividing the sum of

the number of the item.

The chi-square test was used for testing the hypothesis of

correlation. The following formula was applied:

X2 = (fo-fe)2

Fe

Where:

fo is the obtained frequencies

fe is the expected frequencies

 DEFINITION OF TERMS

Bran layers- also known as miller’s bran, is the hard outer layers or

cereal grain.

Broken rice – is 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.

Husk- Rice husks or “rice hulls” are the hard protecting coverings of

grains of rice.

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 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- refers to a body of statistical

analysis techniques used to estimate production or costs

functions in economics, while explicitly accounting for the

existence of firm inefficiency.