Agriculture Secretary Francisco P. Tiu Laurel Jr. is advocating for the continued expansion of Rice Processing Systems (RPS) across the country, even as the Department of Agriculture (DA), through the Philippine Center for Postharvest Development and Mechanization (PHilMech), rolls out large-scale milling infrastructure. He downplayed concerns that this growth could lead to overcapacity in the rice milling sector.

“Rated capacity isn’t the issue—it’s how much of that capacity is actually used,” Tiu Laurel explained. “To break even, mill operators need to reach at least 63% utilization. Anything lower means losses.”

He added that operating at full capacity—approaching 100%—can signal monopolistic conditions. Instead, the DA is targeting an optimal utilization rate of 80–85%, where efficiency peaks, costs drop, and benefits are shared across the value chain—from millers to farmers to consumers.

Once mill usage stabilizes within this ideal range, PHilMech may shift its focus toward production-side investments, such as tractors and seeders, rather than postharvest infrastructure like mills and dryers. This pivot would also support the National Food Authority (NFA), whose milling and drying capacity has been significantly reduced since the Rice Tariffication Law (RTL) of 2019 curtailed its operational role.

Since RTL’s implementation and the rollout of the Rice Competitiveness Enhancement Fund (RCEF), PHilMech has built 122 RPS units equipped with advanced multi-stage rice mills and recirculating dryers—116 of which were completed under the Marcos administration. For RCEF Phase 1, the agency aims to complete 151 units, with the remaining 29 scheduled for delivery before year-end.

In addition, PHilMech has distributed over 1,000 single-pass and village-type rice mills, along with more than 500 stand-alone recirculating dryers, to smaller organizations to support decentralized rice processing.

Secretary Tiu Laurel’s strategy centers on maximizing the efficiency of each facility, avoiding idle infrastructure, and ensuring that investments translate into real value. By prioritizing smart utilization over unchecked expansion, the DA seeks to stabilize rice prices, balance supply, and safeguard farmer incomes.

Ultimately, this approach reflects a more thoughtful and sustainable vision for Philippine agriculture—one that favors productivity and resource stewardship over sheer scale.