Effect of Urbanization to the Rice Dealer

Progressively in profoundly thick urban areas, the greater part of the total population currently lives in urban regions. Anyway urban settings are a generally new marvel in mankind's history (Ritchie and Roser,2018).

Urbanization takes place when there is an overall development of a particular region. It consists of rapid population development, decrease in the proportion of agricultural workforce, and changes in land use from agricultural to nonagricultural design. The process of urbanization is continuous one and is generally influenced by various economic activities such as industrial activities, commerce and transportation. It gives rise to an urban region- location having high level of concentration and accumulation of economic activities; and is complex spatial structures that are supported by various services and infrastructures (Girma, 2004; UNHabitat 2006; Tetty, 2005).

In this process of urbanization, new industries are set up and turn helps to create huge scale employment which is very essential in growing countries. The per capita income of the people increases and the region achieves an increase in prosperity due to employment. Urbanization provides better infrastructure facilities, medical and educational opportunities to millions of people. It also helps to create a scientific attitude among mankind. The overall standard of living of the people increases considerably because of urbanization. It helps the region to prosper, to grow and cater to the needs of a bigger population. It offers plenty of chances for people from all sections of society to excel and achieve their goals (Cohen, 2007).

The rapid growth in the world economy and in the proportion of gross world product and of workers in industrial and service enterprises have underpinned urbanization. Globally, agriculture has met the demands from this quickly developing urban population, including food that is more vitality, land, water and ozone harming substances. So with regard to agriculture and urbanization, the main issues are whether the increasing and changing demands for agricultural products from developing urban populations can be sustained while at the same time underpinning agricultural prosperity and reducing poverty in urban and rural areas (Satterthwaite,2010).

As per the Sustainable Urbanization Policy Brief, right now, under 5% of the world’s landmass is made out of urban centers. As densities decline, city zones quickly grow than populations in the city itself and influence environmental supportability at a local, regional and worldwide scale. How we deal with this remarkable urban development in the next years is probably going to decide the result of our maintainability attempts.

Based on the POPCEN 2015 by the Philippine Statistics Authority (PSA), a total population of 132, 940 in Urdaneta City had been posted. The city ranked third as the most populous local government unit in Region I. In 2015 an urbanization level of 68% is manifested in the city, the same rate in 2010. In 2017 a total of 73 Infrastructure Projects amounting to 56,045,964.89 pesos were completed.

With an increasing population leading to an increase in demand, the main drivers which determine rice production need to be identified in order to sustain the needs of the society (Vladimir and Lubos,2017). International Food Policy Research Institute predicts a 12–14 % decline in the production of rice by 2050 compared to 2000 level, with South Asia being most affected (IFPRI, 2015; Maitah et al., 2016).

Rice is the staple food of the Filipinos. It accounts for 46% and 35% of their caloric intake protein consumption (FAO 2008). As a major part of food spending, rice comprised 16% of the total expenditures of the poorest 30% of the overall population (World Bank 2007). Rice is also the most broadly developed yield in the nationoliiu, planted in about 30% of the all-out agricultural area harvested (Dawe 2003). For two million families, rice farming is the source of over half of the household income. Philippine rice production tripled from 5 million tons in 1970 to more than 16 million tons in 2008, with a 44% increase in the area harvested. Production gains fed the rapidly growing population and its increasing per-capita rice consumption (Bordey,2010).

During the last three decades of the twentieth century, record increases in rice production occurred. A typical rice supply chain in a given country is an intricate network of public and private entities that connects the rice producers, such as farmers, rice millers, rice collectors and traders, wholesale traders, retailers, and food processors, to the final consumers. Numerous nations, including the Philippines, import significant quantities of rice. A large portion of the rice devoured in the Asian nations is also imported, with the trade being managed by a handful of importing companies (Muthayya et al,2017).

Unfortunately, the future of Philippine rice production has threatened by several factors. Urbanization, industrial land-use, and competing agricultural uses have declined the physical area devoted to rice production. From 3.4 million hectares in 1991, the actual rice area decreased to 2.8 million hectares in 2001. Moreover, the declining nature of land and water assets aggravates the diminishing amount of physical resources as a result of years of mono-cropping practices (Cassman and Pingali 1995; Flinn and De Datta 1984).

It is for this concern that the researchers come up with this study. The purpose of this research is to find out the effect of urbanization to the local rice dealers in Urdaneta City, Pangasinan in terms of profit, availability of supply, and pricing. It also intends to find out whether urbanization has a positive or negative externality on agriculture and influences on food and farming of an increasingly urbanized world and a declining ratio of food producers to food consumers. This study will be significant because it addresses a very crucial part of a developing country, specifically, industrialization. It tries to find consequences of industrializing a developing country that started being agricultural in nature. Results from this study might affect the economic decision making of policy makers in the country. Lastly, it will also provide added literature to the agricultural literature of the Philippines.   

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