A compact rice mill with improved capabilities can be a profitable investment for the countryside where small-scale rice farmers are found. One such rice mill is the LH 5001 model from Korea which can perform the functions of bigger mills that are found in rice processing complexes.
The compact rice mill, distributed by Fitcorea Trading Philippines headed by Philip Kim, can be a profitable investment for individual entrepreneurs or by cooperatives. It occupies small space and one man can operate it. It can be installed in 9 square meters (3mx3m).
LH 5001 can mill five to six cavans of palay in one hour. What is very important is that it is very efficient so that milling recovery is a high 68.1 percent. This means that for every 100 kilos of palay milled, 68.1 kilos of polished rice is recovered. This is much better than the usual 55 to 60 percent milling recovery in ordinary rice mills.
For farmers, it is more profitable to mill their harvest and sell the same as polished rice instead of selling the same as palay. Many small farmers are now selling their palay right after harvest because they need the cash. But if they can dry their palay and sell them as polished rice, they will make much more money.
Malou Bautista, a staff of Fitcorea, has cited one example of a farmer who has a one hectare farm. Let’s say the farmer harvests 120 cavans of palay from one hectare which is common these days. If he sells the 120 cavans of palay at P17 per kilo, he will get a gross of P102,000. However, if he mills his rice using LH 5001, he will get 3,900 kilos of polished rice worth P163,000.
The cost of electricity to mill 120 cavans of palay is about P1,248 at current electricity prices. Add to that expense the cost of labor which is often rendered by the farmer himself and it will not amount to much. Therefore the increase in income is at least more than P50,000 per hectare.
The compact rice mill may also be bought for the main purpose of milling rice of other farmers, meaning toll milling. Ideally, the machines should be operating for five hours a day, capable of milling 1,250 kilos of polished rice. The tolling fee is P2 per kilo so the gross income per day is P2,500. In one month, the operator can gross P75,000.
The cost of electricity and urethane used in milling is P21,500 so the net income is P53,500. That’s not a bad income in the countryside. By the way, the cost of one LH 5001 rice mill is only P210,000 so it can be recovered within a short time.
The compact rice mill is just one of the hundreds of farm machinery and equipment being carried by Fitcorea. Philip Kim is representing the KAMIKO which is the cooperative of agricultural machinery manufacturers in Korea.
The wide range of machines produced by more than 2,000 Korean manufacturers range from direct rice seeding machine, transplanters, tractors of various sizes and different capabilities, ridge forming machines, rotavators, stone collectors, nursery seeders, sprinklers, shredders, rice harvesters and many others.
The vision of Fitcorea, according to Philip Kim, is to help promote farm mechanization in the Philippines with Korean machinery. Those interested in Korean agricultural machinery and equipment may contact Philip Kim at 0917-547-8487 or Malou Bautista at 0927-946-6160.