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Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain
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Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain

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Presentation presented by Mr. Elmer R. Esplana, an economist and interdisciplinary researcher currently working as a government agriculturist at the Marketing Development Division, Bureau of Animal …

Presentation presented by Mr. Elmer R. Esplana, an economist and interdisciplinary researcher currently working as a government agriculturist at the Marketing Development Division, Bureau of Animal Industry. This presentation was an offshoot the earlier study conducted by the author and his fellow researchers in the Bureau of Animal Industry entitled "Development in the Supply Chain of the Philippine Goat Industry: An Assessment" which won a Grand Prize Award at the National Research Symposium in 2007, a yearly, national research contest, being organized by the DA-Bureau of Agricultural Research. This presentation was presented at the participants of the Goat Raising Agribusiness Seminar during the 79th Foundation Anniversary of the Bureau of Animal Industry in February 25, 2009 .

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  • 1. Current Situation and Development in the Small Ruminant (Goat) Industry Supply Chain Prepared by: Elmer R. Esplana National Secretariat Coordinator, National Task Force on Price and Volume Watch, Bureau of Animal Industry, Department of Agriculture, Quezon City Prepared for: The participants of the Goat Raising Agribusiness Seminar, 79th Foundation Anniversary, Bureau of Animal Industry February 25, 2009Copyright © 2007 Esplana, Elmer, Lary Nel Abao, Roland Vasquez
  • 2. Outline of Presentation1. Supply Chain and Supply Chain Management and Current Situation of the Philippine Small Ruminant (Goat) Industry2. Example of Supply-Value Chain of Goat from Pangasinan to Manila3. Price Competitiveness of Chevon with US, Canada and Australia4. Conclusion and Recommendations 2
  • 3. Supply Chain and Supply ChainManagement and Current Situation ofthe Philippine Small Ruminant (Goat) Industry 3
  • 4. Introduction• Supply chain as applied to the goat industry is a new concept in the Philippines. The application of supply chain in the goat industry was popularized in the Philippines by the team of researchers from the Bureau of Animal Industry when the research entitled “Development in the Supply Chain in the Philippine Goat Industry: An Assessment “ won the Grand Prize Award in Socio- economics Research at the agriculture national research contest or the National Research Symposium, Bureau of Agricultural Research, Department of Agriculture in October 2007. 4
  • 5. IntroductionSupply chain is the core business process in any organization that creates and delivers a product or service, from concept through development and manufacturing or conversion, and into a market for consumption.It is called as the “seed to shelf” or “breed to plate” or “farm to fork” approach. 5
  • 6. Supply Chain Framework 6
  • 7. •According to Price Water Coopers “Nowadays, it is supply chains that compete in supply chains.” Supply chain is driven by consumers demand. 7
  • 8. • Supply Chain Management (SCM) involves the flows between and among stages in a supply chain to maximize total profitability – Chopra and Meindl, 2001.• SCM coordinates and integrates supply chain activities to deliver customer value – Tony Hines, 2004.• As a management concept, SCM integrates the management of supply chain process – Jerry Rosenberg, 2004. 8
  • 9. • The different goals of SCM include: 1) to cut costs, 2) to increase profits, 3) to improve performance in relationships with customers and suppliers and 4) to develop value-added services that gives a company/firm the competitive edge.• For an industry focus (e.g. goat industry, hog industry, chicken industry, etc), supply chain management covers an integrated behavior, mutual sharing of information, mutual sharing of risks and rewards, cooperation, same goal and same focus on serving and satisfying customers, integration of processes and partners, to build and maintain long-term relationships. 9
  • 10. ObjectivesThe objectives of this presentation include: 1) To provide an overview of the goat supply chain in the Philippines from input supply, production, processing, marketing and consumption; 2) To provide an overview of the supply chain management and how it could be applied to the goat agribusiness in the individual firm/farm level in the Philippines. 3) To identify the best practices along the supply chain; 4) To analyze profitability and competitiveness of chevon vis-à-vis Australia, Canada, and U.S.A.; 5) To identify the inefficiencies, gaps and problems encountered by the industry along the supply chain; and 6) To identify strategic directions/recommendation for the DA, BAI, Local Government Unit and the goat industry stakeholders. 10
  • 11. Input Supply Table 1. GOAT: Inventory by Farm Type, Philippines, January 1, 2003-2007 (in heads) 2003 2004 2005 2006 2007 Farm Type (Jan. 1) (Jan. 1) (Jan. 1) (Jan. 1) (Jan. 1)Backyard 3,255,189 3,340,670 3,514,371 3,708,014 4,007,004Commercial 15,252 16,954 20,824 26,171 30,570Total 3,270,441 3,357,624 3,535,195 3,734,185 4,037,574Source: BAS• Goat inventory is increasing by six percent per year (BAS). 11
  • 12. Figure 2. Goat Inventory in Top Producing Regions, 2007 13% 8% 15% 13% 9% 12
  • 13. Input Supply• Improved genetics as a result of imported breeds mostly from Australia• The Federation of Goat & Sheep Producers & Associations of the Philippines, Inc. (FGASPAPI) has been helping the industry since 2001. It assists in improving the genetic and breeding practices of the goat players by regularly conducting national congresses and trainings to support their members. The Bureau of Animal Industry and Livestock Development Council and other institutions are supporting the goat industry in these activities. 13
  • 14. Table 2. Importation of Breeder Goats, 2002 to 2006 (No.)Origin 2002 2003 2004 2005 2006 TotalAustralia 0 223 467 1304 865 2859New Zealand 0 0 0 4 0 4USA 126 82 23 22 50 303Total 126 305 490 1330 915 3166Source of Basic Data:BAI-NVQSThere was 2,027 heads of breeder goats importation in2007. Total breeder goats importation increased by 68percent from 2003 to 2007. 90% of imports came from Australia. 14
  • 15. • According to a major goat breeder interviewed (Neo Abalos, FGASPAPI Secretary), he almost perfected his pure breeding, crossbreeding, and upgrading operations to meet clients’ weight specifications.• The goat industry is a beneficiary of the development in other livestock commodities, including production and processing technologies. 16
  • 16. Neo Abalos Goat Farm in PangasinanNeo Abalos Goat Farm in Pangasinan 17
  • 17. Goat Farmers Organization•Major key players have organized themselves into a national federation (FGASPAPI) to have a stronger voice in the livestock industry.• Mr. Ben Rara is the current President of the Federation. 18
  • 18. Current membership of FGASPAPI are:1. Goat and Sheep Producers of Tarlac (GASPAT) - President: Jeff Lim2. Region 4 Small Ruminants Raisers Association (R4SRRA) - President: Elmer Rivera3. Misamis Oriental Goat and Sheep Raisers Association (MOGSRA) - President: Benjamin Uy4. Zamboanga Peninsula Small Ruminant Council - President: Art Grino5. Cebu Goat and Sheep Raisers Association - President: Luis Sanchez6. Eastern Visayas Small Ruminants Raisers Association (EVSRRA) – President: Lito Rodriguez7. Masbate Small Ruminants Organization (MASRO) - President: Jose Ataat8. Socsksargen Goat and Sheep Raisers Cooperative - President: Gauvain Benzonan9. Philippine Boer Breeders Association (PBBA) - President: Sixto Villaluz10. Goat Industries Development Council (GIDC) - President: Darwin Tinasas 19
  • 19. Current membership of FGASPAPI are:11. Goat Gadgets Inc. - President: Neo Abalos12. Bukidnon Goat and Sheep Raisers Association (BUGSRA) - President: Don Mulligan13. Palawan Goats Raisers Association - President: Mike Decena14. Pangasinan Goat and Sheep Raisers Association (PAGSRA) - President: Ed Paningbatan15. Cagayan Small Ruminants Raisers Association, MPC - President: Josue Balderama16. Northland Goat Producers Cooperative - President: Dr. Rudolfo De Guzaman17. Nueva Viscaya Sheep and Goat Raisers Association - President: Stanley Maranon18. Association of Sheep and Goat Raisers in Isabela (ASGRI) - President: Mon Valle19. United Bulacan Goat and Sheep Raisers Association - President: Nards Cuevas20. United Small Ruminants Raisers Association (USRRA) - President: Dave Villacarlos 20
  • 20. Production• Goat Production Performance: Second to the most stable positive growth from 2001 to 2006, although very minimal. 21
  • 21. Table 4. Livestock Volume of ProductionTable 4. Comparison of Livestock Volume of Production (In Thousand Tons), And Growth Rates from 1995 to 2006 (1995-1998) (1999-2002) (2003-2006) Volume of Production 2005 2006 % Change Average GR Average GR Average GRTotal Volume of Production 5.35 3.37 1.41 2,241.18 2,296.74 2.48carabao (1.18) 3.36 (0.78) 133.52 130.41 -2.33cattle 8.77 (1.53) (2.77) 246.75 238.27 -3.44hog 5.74 4.38 2.18 1,771.28 1,840.37 3.90goat 0.91 0.28 0.71 77.29 74.82 -3.20dairy (9.28) 3.95 4.76 12.34 12.87 4.29Source of Basic Data: BASAverage GR- Growth rate per year 22
  • 22. Table 5. Volume of Goat Production, by Quarter, Philippines, 2004 - 2006Source: BAS 23
  • 23. Table 6. Average yearly growth rate of livestock and poultry production from 1998-2007 Commodity GR (98-07) GR (98-02) GR (03-07) Livestock 2.48 3.49 1.69 Carabao 1.86 3.74 0.11 Cattle (1.42) (0.36) (2.50) Hog 3.23 4.27 2.42 Goat 0.47 0.87 0.78 Dairy 3.86 4.51 4.30 Poultry 3.44 5.75 0.79 Chicken 3.49 6.78 0.20 Duck (1.66) 1.52 (6.18) Chicken eggs 4.98 3.54 5.17 Duck eggs (0.80) 0.44 (3.95) Source of Basic Data: BAS 24
  • 24. Table 7. Goat industry Volume of Production and Average Growth Rate per Year, 1998 to 2007 (In Thousand Tons) Volume of Production 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 GR (98-07) Goat Industry 71.95 73.9 75.19 74.6 74.79 73.58 74.98 77.28 74.82 76.56 0.47Source of Basic Data: BAS 25
  • 25. Livestock Value of ProductionTable 8. Comparison of Livestock Value of Production (In Constant Prices), And Growth Rates/or P million from 1995 to 2006 (1995-1998) (1999-2002) (2003-2006) Value of Production 2005 2006 % Change Average GR Average GR Average GR Total Value of Production 5.67 3.35 1.39 39,384.58 40,396.74 2.57 carabao (1.20) 3.36 (0.81) 1,611.59 1,574.05 -2.33 cattle 8.75 (1.53) (2.76) 4,804.22 4,639.12 -3.44 hog 5.74 4.38 2.16 31,900.75 33,145.06 3.90 goat 0.92 0.26 0.62 1,006.32 974.16 -3.20 dairy (9.32) 3.95 4.76 61.70 64.35 4.29 Source of Basic Data: BAS 26 Average GR- Growth rate per year
  • 26. Table 9. Goat Industry Value of Production and Average Growth Per Year from 1998 to 2007 (In P Billion) Goat Value of Production 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 GR (98-07)Value of Production (at constant prices) 943.98 968.83 984.99 977.26 979.75 965.70 976.24 1,004.77 972.66 995.15 0.35Value of Production (at current prices) 2,935.56 3,324.76 3,321.14 4,034.37 4,182.60 4,441.61 4,986.92 5,090.32 5,220.94 5,364.62 7.16Source of Basic Data: BAS 27
  • 27. ProductionBreeder Raised• Different goat breeds (e.g. purebreed, upgraded) are raised in government and selected private sector farms nationwide.• The most prevalent breed in these farms is Boer. 28
  • 28. Table 10. Goat Breeds Raised in Selected Private Farms in Provinces/Cities No. of Breed/s Available Region Province/City Farm PbB PbAn BxAn UpB UpAn UpS PbS xAl xTo N xSNCR QC 1 x x xI Pangasinan 2 x x x x xII Isabela 1 x xIII Tarlac 12 x x x x x x Nueva Ecija 2 x x x x x x Bulacan 1 x x x x x Pampanga 2 x x x x xIV Rizal 1 x x x x x x Batangas 1 x x x x x Quezon 1 x x x x xVI Bacolod City 1 xVIII Ormoc City 3 x x x x Mandaue City* 1 Leyte 7 x x x x xX Malaybalay City* 1 x x Valencia City* 1XI Gen. Santos City 2 x x x Sultan Kudarat 1 x x Davao del Sur 1 x x Davao City 1XII Cotabato 1 x x x x Total 44Source of Basic Data: BAILegend: PbB –purebred Boer; PbAn – purebred Anglo Nubian; BxAn – crossbreeding of Boer and Anglo Nubian;UpB – upgraded Boer; UpAn -Upgraded Anglo Nubian; UpS – Upgraded Saanen;PbS- Purebred Saanen; xS-crossbreed Saanen; N- native* Not identified 29
  • 29. Table 11. Goat Breeds Raised in Selected Government Farms in Provinces/Cities No. of Breed/s Available Region Province/City Farm PbB PbAn BxAn UpB UpAn UpS PbS xAl xTo N xSCAR Baguio City 1 x xI Pangasinan 1 xII Tuguegarao City 1 x Nueva Vizcaya 1 x x Isabela* 1III Pampanga 1 x Nueva Ecija 3 x x x x xIV Laguna 1 xV Masbate 1 xVI Negros Occidental 1 xVII Negros Oriental* 1 Bohol 1 x xVIII Leyte 2 xIX Zamboanga del Sur 1 x x Basilan 1 xX Misamis Oriental* 1 Bukidnon 1 xXII North Cotabato 1 x x Total 21Source of Basic Data: BAILegend: PbB –purebred Boer; PbAn – purebred Anglo Nubian; BxAn – crossbreeding of Boer and Anglo Nubian;UpB – upgraded Boer; UpAn -Upgraded Anglo Nubian; UpS – Upgraded Saanen;PbS- Purebred Saanen; xS-crossbreed Saanen; N- native* Not identified 30
  • 30. Processing• Manufacturing of goat milk soap with variant such as whitening goat milk, regular goat milk soap, premium goat milk, and sensitive skin goat milk soap with “Kalpana” brand. This product has been exported to Dubai, Caribbean, United States by Kalpana International Trading. 31
  • 31. Yolly Raca’s Goat’sMilk Soap “Kalpana” Brand 32
  • 32. Processing• Pasteurization of Goat Milk “Star Milk” is an emerging new brand of goat milk currently produced by Alaminos Goat Farm in Laguna• St. Elmo’s Dairy is also another brand of goat’s milk produced in Nasugbu, Batangas. There is also one in Tarlac, Lim Dairy Milk.• Processed canned chevon such as Chevon Strew, Chevon in Offals Soup. Fortress Food Manufacturing Corp. has been pioneering this chevon canning project. 33
  • 33. Alaminos Boer Goat Farm with their “Milk Star” Brand of Goat’s Milk, Alaminos, Laguna 34
  • 34. Jeffrey Lim’s JSJFarm,Tarlac 35
  • 35. Table 12. Goat: Supply and Disposition, Philippines, 2003-2005 ( in heads)ITEMS 2003 2004 2005 %Change 05/04TOTAL SUPPLY 5,354,842 5,563,242 5,951,759 6.98Beginning Inventory 3,270,441 3,357,624 3,535,195 5.29Born Alive 2,084,090 2,205,128 2,415,244 9.53Imports 311 490 1,320 169.39Disposition 1,997,218 2,028,047 2,217,574 9.35Slaughtered 1,892,548 1,922,072 2,062,290 7.3Death/Losses 104,670 105,975 155,284 46.53Ending Inventory 3,357,624 3,535,195 3,734,185 5.63Source: BAS 36
  • 36. Marketing•Role of livestock “oksyon” markets (LOMs) in goat marketing is vital. About 90%-95% of them are being used for goat trading. 37
  • 37. Table 13. Operational and Non-operational Livestock “Oksyon Market” in the Philippines, As of December 2006 No. of Accredited Livestock Markets Total Percent Share of Accredited Region Operational Non-operational to total by Region CAR 1 0 1 0.64 Ilocos 9 7 16 10.26 Cagayan Valley 4 2 6 3.85 Central Luzon 1 6 7 4.49 Southern Tagalog 12 4 16 10.25 Calabarzon 10 2 12 7.69 Mimaropa 2 2 4 2.56 Bicol 4 3 7 4.49 Western Visayas 33 4 37 23.72 Central Visayas 26 3 29 18.59 Eastern Visayas 11 1 12 7.69 Western Mindanao 1 4 5 3.21 Northern Mindanao 3 3 6 3.85 Southern Mindanao 1 2 3 1.92 Central Mindanao 9 1 10 6.41 Caraga 1 0 1 0.64 ARMM 0 0 0 - Total 116 40 156 100.00 Percent Share 74.36 25.64 100 Source of Basic Data: BAISome livestock auction markets in some part of the countrywhere used as a venue to sold the goats. 38
  • 38. Table 14. Goat: Monthly Farm Gate Price, Philippines (P/kg. Live weight) FARMGATE PRICE (Live MONTH Percent Change weight) PHILIPPINES 2003 2004 2005P 04/03 05/04 Pesos/ Kg. January 58.05 55.51 64.42 (4.38) 16.05 February 57.97 57.34 64.50 (1.09) 12.49 March 58.50 55.38 65.00 (5.33) 17.37 April 58.93 64.55 65.17 9.54 0.96 May 58.74 65.46 65.91 11.44 0.69 June 58.81 65.93 65.44 12.11 (0.74) July 58.46 69.35 66.22 18.63 (4.51) August 57.57 69.43 66.60 20.60 (4.08) September 58.49 70.00 67.61 19.68 (3.41) October 60.18 70.71 66.98 17.50 (5.28) November 58.55 71.16 67.71 20.92 (4.85) December 62.58 72.41 57.60 15.71 (20.45) Annual Ave. 58.85 65.68 65.43 11.61 (0.38)The national annual average farm gate price of goat in 2005 was P65.43 per kilogram 39
  • 39. Marketing (con’t)• Live goats are retailed in selected areas in Metro Manila. Retail price is P220-250/kg.• BAI has been conducting live goat, chevon, and by-products price monitoring in Metro Manila since 1979. Regular consultation meeting with the different stakeholders at national level is regularly being done on a monthly basis. 40
  • 40. Figure 3. Average Monthly Prices of Chevon in Metro Manila (P/Kg.) 220.00 210.00 200.00 190.00 2003 2004(P/Kg.) 180.00 2005 170.00 2006 160.00 2007 150.00 140.00 130.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month 41
  • 41. • Trading of Goats. Mejia Family (Manuel, father, and sons Junar and Philip) is trading 1,200 goats per week or 4,800 heads per month with P300 to P400 net profit per head for slaughtering goats and P500-P1000 net profit per head for breeding goats. They have an estimated yearly income of 4.8 million per year from goat trading, excluding vegetable trading. 43
  • 42. • Popularly Known Livestock Market used in Trading Goats Some of the popularly known livestock market used in goat trading include Padre Garcia Livestock “Oksyon” Market, Batangas; Urdaneta City Livestock Market, Pangasinan; and Uson Livestock Market, Masbate.• Trading of Imported Breeding Goats. Jonnie and Jeff Valencia are also trading imported breeder goats from Australia. 44
  • 43. Jonie (father) and Jeff (son) Valencia’s Ebenezer Goat Farm, Capas, Tarlac. They are in Trading Imported Goats and Breeding Goat 45
  • 44. Figure 4. Supply-Value Chain of Goat from Pangasinan to Metro Manila P154.00/kg P120.00/kg P5.20/kg GOAT --- FARM • P28.80 P14.00/kg Provincial Trader’s Margin P188.00kg P222.00/kg •P20.00/kg P13.00 Wholesaler’s Slaughter house Margin • P21.00 Wet market’s margin Source: BAI-MDD, Esplana, Abao, Vasquez, et. al. 2008
  • 45. Competitiveness AnalysisThe Philippines is price competitive with United States, Canada and Australia where import parity/domestic wholesale price is greater than 1. 47
  • 46. Table 14. Competitiveness of Locally Produced Goat Meat and Imported Goat Meat In Canada, 2007 Carcasss, half- Carcasss, half- Carcasss, half- Carcasss, half- carcasses, and frozen carcasses, and frozen carcasses, and frozen carcasses, and frozen At Different Price Quotation (FOB), Tariff Price/Kilo Price/Kilo Price/Kilo Price/Kilo Rates and Same Exchange Rates at 30% in-quota tariff at 30% in-quota tariff at 35% in-quota tariff at 35% in-quota tariff (Per MT) (Per Kg) (Per MT) (Per Kg)FOB Price (US$ per MT)* 4,000.00 4.00 5,000.00 5.00 4,000.00 4.00 5,000.00 5.00Feight and Insurance (US$) 450.00 0.45 450.00 0.45 450.00 0.45 450.00 0.45CIF Manila ($) 4,450.00 4.45 5,450.00 5.45 4,450.00 4.45 5,450.00 5.45 Times Foreign Exchange rate 45.00 45.00 45.00 45.00CIF Manila (PhP) 200,250.00 200.25 245,250.00 245.25 200,250.00 200.25 245,250.00 245.25 Plus Tariff Rate % 0.30 0.30 0.35 0.35 Tariff Cost (PhP) 60,075.00 60.08 73,575.00 73.58 70,087.50 70.09 85,837.50 85.84 Plus Handling Distribution Cost (HDC) 750.00 0.75 750.00 0.75 750.00 0.75 750.00 0.75Total Landed Cost (PhP) 261,075.00 261.08 319,575.00 319.58 271,087.50 271.09 331,837.50 331.84 Plus Trading Cost/Margins (TC/M) at 5% 13,053.75 13.05 15,978.75 15.98 13,554.38 13.55 16,591.88 16.59Domestic Wholesale Import Parity Price (PhP) 274,128.75 274.13 335,553.75 335.55 284,641.88 284.64 348,429.38 348.43Domestic Wholesale Price (PhP)^ 200,000.00 200 200,000.00 200 200,000.00 200 200,000.00 200Import Parity/Domestic Wholesale Price 1.37 1.68 1.42 1.74* FOB price quotation, as of May 2007^ as of May 2007Note: Competitiveness exists if import parity/domestic wholesale price is greater than 1. 48
  • 47. Table 15. Competitiveness of Locally Produced Goat Meat and Imported US Goat Meat, 2007 Carcasss, half- Carcasss, half- Carcasss, half- Carcasss, half- carcasses, and frozen carcasses, and frozen carcasses, and frozen carcasses, and frozen At Different Price Quotation (FOB), Tariff Price/Kilo Price/Kilo Price/Kilo Price/Kilo Rates and Exchange Rates at 30% in-quota tariff at 30% in-quota tariff at 35% in-quota tariff at 35% in-quota tariff (Per MT) (Per Kg) (Per MT) (Per Kg) (Per MT) (Per Kg) (Per MT) (Per Kg)FOB Price (US$ per MT)* 6,580.00 6.58 7,678.00 7.68 6,580.00 6.58 7,678.00 7.68Feight and Insurance (US$) 500.00 0.50 500.00 0.50 500.00 0.50 500.00 0.50CIF Manila ($) 7,080.00 7.08 8,178.00 8.18 7,080.00 7.08 8,178.00 8.18 Times Foreign Exchange rate 45.00 45.00 45.00 45.00CIF Manila (PhP) 318,600.00 318.60 368,010.00 368.01 318,600.00 318.60 368,010.00 368.01 Plus Tariff Rate % 0.30 0.30 0.35 0.35 Tariff Cost (PhP) 95,580.00 95.58 110,403.00 110.40 111,510.00 111.51 128,803.50 128.80 Plus Handling Distribution Cost (HDC) 750.00 0.75 750.00 0.75 750.00 0.75 750.00 0.75Total Landed Cost (PhP) 414,930.00 414.93 479,163.00 479.16 430,860.00 430.86 497,563.50 497.56 Plus Trading Cost/Margins (TC/M) at 5% 20,746.50 20.75 23,958.15 23.96 21,543.00 21.54 24,878.18 24.88Domestic Wholesale Import Parity Price (PhP) 435,676.50 435.68 503,121.15 503.12 452,403.00 452.40 522,441.68 522.44Domestic Wholesale Price (PhP)^ 200,000.00 200 200,000.00 200 200,000.00 200 200,000.00 200Import Parity/Domestic Wholesale Price 2.18 2.52 2.26 2.61* FOB price quotation, as of May 2007^ as of May 2007Note: Competitiveness exists if import parity/domestic wholesale price is greater than 1. 49
  • 48. Table 16. Competitiveness of Locally Produced Goat Meat and Australian Imported Goat Meat, 2007 Carcasss, half- Carcasss, half- Carcasss, half- Carcasss, half- carcasses, and frozen carcasses, and frozen carcasses, and frozen carcasses, and frozen At Different Price Quotation (FOB), Tariff Price/Kilo Price/Kilo Price/Kilo Price/Kilo Rates and Exchange Rates at 30% in-quota tariff at 30% in-quota tariff at 35% in-quota tariff at 35% in-quota tariff (Per MT) (Per Kg) (Per MT) (Per Kg) (Per MT) (Per Kg) (Per MT) (Per Kg)FOB Price (US$ per MT)* 3,000.00 3.00 3,500.00 3.50 3,000.00 3.00 3,500.00 3.50Feight and Insurance (US$) 450.00 0.45 450.00 0.45 450.00 0.45 450.00 0.45CIF Manila ($) 3,450.00 3.45 3,950.00 3.95 3,450.00 3.45 3,950.00 3.95 Times Foreign Exchange rate 45.00 45.00 45.00 45.00CIF Manila (PhP) 155,250.00 155.25 177,750.00 177.75 155,250.00 155.25 177,750.00 177.75 Plus Tariff Rate % 0.30 0.30 0.35 0.35 Tariff Cost (PhP) 46,575.00 46.58 53,325.00 53.33 54,337.50 54.34 62,212.50 62.21 Plus Handling Distribution Cost (HDC) 750.00 0.75 750.00 0.75 750.00 0.75 750.00 0.75Total Landed Cost (PhP) 202,575.00 202.58 231,825.00 231.83 210,337.50 210.34 240,712.50 240.71 Plus Trading Cost/Margins (TC/M) at 5% 10,128.75 10.13 11,591.25 11.59 10,516.88 10.52 12,035.63 12.04Domestic Wholesale Import Parity Price (PhP) 212,703.75 212.70 243,416.25 243.42 220,854.38 220.85 252,748.13 252.75Domestic Wholesale Price (PhP)^ 200,000.00 200 200,000.00 200 200,000.00 200 200,000.00 200Import Parity/Domestic Wholesale Price 1.06 1.22 1.10 1.26* FOB price quotation, as of May 2007^ as of May 2007Note: Competitiveness exists if import parity/domestic wholesale price is greater than 1. 50
  • 49. Conclusion•The future of the goat industry is very promising for prospective investors here and abroad.•Credit issues for existing players (constrains them to expand their operations).•Philippine chevon is price competitive vis-à- vis Australia, Canada, and U.S.A. chevon.•Although the study covered important areas along the supply chain, there is still a need to further document other success stories. 51
  • 50. Recommendations and Strategic Directions• Development of local goat genetics for the international market.• Revive non-operational livestock auction markets for goats.• Continuous partnership of all stakeholders.• Support of government in packaging investment opportunities along the supply chain (utilization of ACEF funds).• Promote the potential export market of Philippine goat meat, goat processed meat and goat by-products.• Pursue more researches along the supply chain which are market-driven and customer-focused. 52
  • 51. This material could be downloaded athttp://www.smileyberks.com/cpr andhttp://cprstudies2038.multiply.com 53
  • 52. ReferencesEsplana, Elmer R. Lary Nel B. Abao and Rolando M. Vasquez. (October 2007). Development in the Supply Chain of the Philippine Goat Industry: An Assessment. Club of Professional Researchers and Bureau of Animal Industry. Received Grand Prize Award in Socio-economic Research. National Research Symposium. Bureau of Agricultural Research. Department of Agriculture.Esplana, Elmer R. Lary Nel B Abao, Rolando M. Vasquez, Manolita Z. Gaerlan and Rolando R. Promentilla. (August 2008). Best Practices within the Supply Chain of the Philippine Goat Industry for Policy-Makers and Prospective Investors. Bureau of Animal Industry .Esplana, Elmer R (January 30, 2009). Goat Supply Chain Management and Agribusiness Opportunities in the Philippine Goat Industry. Powerpoint presentation presented at the Goat Agribusiness Seminar, Santa Cruz, Marinduque.FGASPAPI Website: http://www.fgaspapi.com 54
  • 53. Acknowledgement is given to the following people:OIC-Director Dr. Davinio P. Catbagan, Bureau of Animal Industry.Rolando R. Promentilla, Chief, Marketing Development Division, BAI.Fellow goat researchers in BAI, Lary Abao and Rolando Vasquez andMarketing Intelligence and Special Project Chief Manolita Z. Gaerlan.All members of the Seminar, Exhibit and Tiangge Committee of the 79thBAI Foundation Anniversary and the organizing committee of this year’sanniversary.All BAI staffmembers, particularly, my fellow employees in the MarketingDevelopment Division. 55

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