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Publication Detail
CLSU 2005-06: Legumes Industry Analysis and Policy Assessment

This study assessed the legumes industry (mungbean, peanut and soybeans) and the policy environment to help boost the industry. Review and analysis of secondary data was done to understand the status, problems and prospects of the legumes industry. An inventory of government related policies/programs was undertaken and assessed on the basis of major elements/components, enabling institutions and outcomes. Based on the findings, low productivity was exhibited with the average yield per hectare remaining low in mungbean production (0.7 mt); peanut (1.17 mt) and soybean (1.06 mt). The average yield per hectare for the three commodities is way below the potential yield at 1.5 mt to a high of 2.0-2.5 mt in key production areas. In terms of supply and utilization, legumes were generally used for food processing, seeds, feeds and wastes and export in limited quantity. Per capita consumption for legumes generally increased from 1978 to 2003. For mungbean, the increase was from 1.37 g/day or 0.5 kg/yr in 1978 to 2.26 g/day or 0.82 kg/yr in 2003 and averaged 1.72 gm per day or 0.63 kg/year. For peanut, the increase was from 1.14 g/day or 0.41 kg/yr in 1978 to 1.94 g/day or 0.71 kg/yr in 2003 and averaged 2.39 gm per day or 0.87 kg/yr. For soybeans, the increase was from 0.24 g/day or 0.09 kg/yr in 1978 to 2.6 g/day or 0.95 kg/yr in 2003 and averaged 0.99 gm per day or 0.36 kg/year. The general pattern of domestic legumes prices is characterized by positive change and low levels of fluctuations as mungbean, peanut and soybeans can be stored thus minimizing price changes. As domestic production has not kept pace with the growing demand for legumes, the country becomes a consistent net importer of legumes-based products indicating a drain to the country’s dollar reserves. As the country heavily imports legumes, the country also exports though minimally. Figures show that from 1990-2003, the country exported an average of 89.89 mt of dried mungbean and vermicelli valued at US$ 195,600; 296 mt of roasted peanut and peanut butter valued at US$ 769,000; and 4620 mt soybean products valued US$ 2.3M. The generally reduced tariff rates for legumes-based products indicate diminishing protection to local of produce problems include: lack of storage facilities; inadequate supply of quality seeds; lack of established markets and credit facilities; and entry of lower priced imported legumes-based products. Appropriate policy environment that will establish a sustaining national program for legumes and with provisions for adequate R and D support on production, processing and utilization is highly recommended. Improvements on government credit-marketing support services that will promote productivity, link and expand markets are also needed. Development of stronger linkage between producers and processors and enabling mechanisms for the establishment of rural-based legumes enterprises with the government providing market and price incentives is further recommended.

Central Luzon State University
Authors Keywords
Abon, Carlos Jr., C.; Aganon, Clarita P.; Antalan, Rodolfo Jr., V.; Domingo, Luzviminda L.; Orden, Maria Excelsis M.; Porciuncula, Fe L.; Trimor, Belen P.; farming; farming systems; legume production;
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