Strategic Agribusiness Development Plan
 Findings of Livestock Situation Report
       A Collaborative Project of the
    ...
Outline of Presentation
1. Objectives of the Presentation
2. Situational Report
2. Strategic Agribusiness Systems Issues a...
Objectives of the Presentation
The objectives of this presentation include: 1) to
give strategic agribusiness system issue...
Top 20 with highest Hog and Chicken Inventory,
     2008 and Average Growth Rate Per Year
                 from 1998-2008
...
Top 20 with highest Cattle and Carabao Inventory, 2008
          and Average Growth Rate Per Year
                    from...
Top 20 with highest Goat and Duck Inventory,
      2008 and Average Growth Rate Per Year
                   from 1998-2008...
The regional ranking in terms of capabilities with processing facilities
 include NCR (1), Region III & IV-A (2), Region V...
Of the 23 meat cutting plants 22 are “AA” and one is “A”
Of the 47 accredited cold storage facilities, 6 are “AAA”, 41 are...
Marketing Channel* of Live Animal, Meat and Meat Products
                          in the Philippines




*Revised based ...
Distribution Channel of Hog Production

                               Live                                 Meat and Proce...
Local and International
 Market
The local producers as generally distributing
their product in the domestic market with
sm...
Strategic Agribusiness Systems Issues and
                    Constraints

     Input Supply Subsystem
1.   Genetic improv...
Strategic Agribusiness Systems Issues and
                   Constraints (cont)

     Production Subsystem
1.   Low produc...
Strategic Agribusiness Systems Issues and
                   Constraints (cont)
     Processing Subsystem
1.   Need to dev...
Strategic Agribusiness Systems Issues and
                   Constraints (cont)
     Marketing Subsystem
1.   Poor market ...
Strategic Agribusiness Systems Issues and
                   Constraints (cont)

     Support and Extension Support Subsys...
Strategic Agribusiness Systems Issues and
                   Constraints (cont)

   Support and Extension Support Subsyste...
Policy Implications and Recommendations
       For the private sector

   The new entrant/investor should develop their ow...
Policy Implications and Recommendations (cont)

   For the private sector
Improvements in the meat processing facilities a...
Policy Implications and Recommendations (cont)


  For the government
Continue to develop productivity enhancement program...
Policy Implications and Recommendations (cont)

  For the government
Establishment of grades and standards for livestock a...
Policy Implications and Recommendations (cont)

   For the government
Developing training system and modules for the DA-AT...
Policy Implications and Recommendations (cont)

For the industry associations/NGOs

Further strengthen the advocacy for th...
Thank you for Listening
SADP Livestock Report Findings, Davao City, June 10, 2009
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SADP Livestock Report Findings, Davao City, June 10, 2009

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Findings of the Livestock Report for the Strategic Agribusiness Development Plan for the Philippine Department of Agriculture. The presentation was done in Apo View Hotel, Davao City, June 10, 2009

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SADP Livestock Report Findings, Davao City, June 10, 2009

  1. 1. Strategic Agribusiness Development Plan Findings of Livestock Situation Report A Collaborative Project of the Department of Agriculture and Japan International Cooperation Agency By Elmer R. Esplana & Lary Nel B. Abao SADP Team Members Bureau of Animal Industry elmer.esplana@gmail.com Presented at Davao Region Stakeholders Consultative Workshop Apo View Hotel, Davao City June 10, 2009
  2. 2. Outline of Presentation 1. Objectives of the Presentation 2. Situational Report 2. Strategic Agribusiness Systems Issues and Constraints - Input Supply Subsystem - Production Subsystem - Processing Subsystem - Marketing Subsystem - Support and Extension Support Subsystem 3. Policy Implications and Recommendations
  3. 3. Objectives of the Presentation The objectives of this presentation include: 1) to give strategic agribusiness system issues and constraints, policy implications and recommendations, as a component of the livestock sector in the Strategic Agribusiness Development Plan, and 2) to validate and solicit regional and local inputs, suggestions and comments from the participants of the stakeholders consultation meetings, as to the relevance of the findings and recommendations at regional and local level.
  4. 4. Top 20 with highest Hog and Chicken Inventory, 2008 and Average Growth Rate Per Year from 1998-2008 Source of Basic Data: DA-BAS
  5. 5. Top 20 with highest Cattle and Carabao Inventory, 2008 and Average Growth Rate Per Year from 1998-2008 Source of Basic Data: DA-BAS
  6. 6. Top 20 with highest Goat and Duck Inventory, 2008 and Average Growth Rate Per Year from 1998-2008 Source of Basic Data: DA-BAS
  7. 7. The regional ranking in terms of capabilities with processing facilities include NCR (1), Region III & IV-A (2), Region VII (3), Region XI (4) and Regions I, X, XII (5). NMIS Accredited Slaughterhouses, Dressing Plants, and Meat Processing Plants, As of November 2007. Source of Basic Data: DA-NMIS
  8. 8. Of the 23 meat cutting plants 22 are “AA” and one is “A” Of the 47 accredited cold storage facilities, 6 are “AAA”, 41 are “AA.” NMIS Accredited Meat Cutting Plants and Cold Storages, as of November 2007 Source of Basic Data: DA-NMIS
  9. 9. Marketing Channel* of Live Animal, Meat and Meat Products in the Philippines *Revised based on BAI’s model
  10. 10. Distribution Channel of Hog Production Live Meat and Processed Pork Source: Interviews with industry players, Esplana, Elmer, 2008 Note: dotted line (---) represents the flow of dressiweight or carcass weight of pork passing in the slaughtering process.
  11. 11. Local and International Market The local producers as generally distributing their product in the domestic market with small initially started export market in the DOC PS breeders, processed and semi- processed pork and chicken, “balut” and salted eggs. The share in the export market is very small which needs to further strengthen, given the initially established markets.
  12. 12. Strategic Agribusiness Systems Issues and Constraints Input Supply Subsystem 1. Genetic improvement and instability of feed ingredients supply and their quality. 2. For cattle and carabao, there is no sufficient breeding animals. The diffusion rate of artificial insemination is still low at four percent. 3. For goats, duck and cattle, the genetics is still a problem, particularly the backyard raisers. 4. High tariff of imported materials (corn and soya bean, etc.). 5. Corn supply, in terms of quality and quantity, is still a problem for the livestock and poultry industry producers. 6. There is high cost of feed ingredients (corn, feed wheat, soya bean meal, etc.) which contribute in the pricing of livestock and poultry products. 7. Need to develop a low cost alternative inputs to feed production.
  13. 13. Strategic Agribusiness Systems Issues and Constraints (cont) Production Subsystem 1. Low production and negative effect of animal diseases on the production and productivity. 2. For cattle, the production is still low compared to perceived demand. 3. There is a disease problem like hemorrhagic septicemia for both cattle and carabao; PRRS, TGE, and cholera for hogs; diarrhea for goats; and new castle disease for poultry. 4. For carabao, the production is low which is not sufficient to meet the local demand. 5. There are emerging diseases and late response of BAI on the problem of producers. 6. Inadequate imported good genetic material for dairy buffaloes and dairy cattle and ducks for meat and egg production.
  14. 14. Strategic Agribusiness Systems Issues and Constraints (cont) Processing Subsystem 1. Need to develop meat processing infrastructure and improvement of capabilities. 2. For hogs, there is lack of integrated slaughterhouses facilities in some producing areas, especially in Pampanga, Batangas, Rizal province and Cagayan de Oro. 3. For goat, there is no slaughterhouse facility, hence, slaughtering is done at the backyard. 4. For chicken, there is no integrated dressing plants in some producing areas, especially in Batangas and Rizal. 5. Meat processors are paying in longer terms to meat producers and traders.
  15. 15. Strategic Agribusiness Systems Issues and Constraints (cont) Marketing Subsystem 1. Poor market infrastructure development, limited market access and market matching activities. 2. There are some livestock “oksyon” markets in selected provinces which need to rehabilitated. 3. There is a need to establish stockyards to key cities in the Philippines like Batangas City, Iloilo City and General Santos City. 4. There is a need to establish regional/city/municipal weighing scale center for hogs in producing areas. 5. There is a need to improve the marketing/business intelligence and replicate best practices from the national to regional to local government level. 6. There is a need to improve the marketing research and socio-economic and impact evaluation researches done by the government from supply- driven to demand-driven approach.
  16. 16. Strategic Agribusiness Systems Issues and Constraints (cont) Support and Extension Support Subsystem 1. There is a need to develop support and extension services and improve the implementation and enforcement of quality standard and food safety policies. 2. There is a need to establish an animal diagnostic/modern feed/drug assay laboratory in General Santos City and Iloilo City to support hog export initiatives (for traceability and exports purposes). 3. There is a need to establish a meat laboratory in Iloilo (for traceability and export purposes). 4. No extension support for supply chain management. 5. Lack of early warning system/ forecasting tools for eggs, duck, goat, cattle, and carabao production.
  17. 17. Strategic Agribusiness Systems Issues and Constraints (cont) Support and Extension Support Subsystem 6. There is a need for the enforcement of traceability system for the export market of meat and processed products. 7. There are only few beneficiaries of government loans which are religiously paying their loan particularly the ACEF. There are tendencies that government-managed loans are sometimes perceived by the beneficiaries as dole-out. 8. There is need to develop loan program facility that is accessible to farmers but with improved level of accountability for the other borrowers to also avail the benefits of the loan opportunity co-equal with other borrowers.
  18. 18. Policy Implications and Recommendations For the private sector The new entrant/investor should develop their own firm/company’s business model for their agribusiness chain. The livestock sector should be able to attain a sustained competitiveness (both local and international level) and profitability, given the dynamic trade regime. Cases could possibly be studied that include the integrated operation for the hogs, broiler and cattle in the case of San Miguel Corporation (group of companies) and Bounty Fresh Foods (group of companies) for the broiler and partly in hogs, and other successful business models within the different industries.
  19. 19. Policy Implications and Recommendations (cont) For the private sector Improvements in the meat processing facilities and processing support infrastructure (weighting scale center, cold storage facilities, meat cutting plants) Identifying integrated meat processing zone in the Visayas and Mindanao area (Iloilo, Cagayan de Oro and Davao) that would target the export market potentials of the meat products. Exploring the potential of investing for either backward or forward integration, along the different segment of the supply chain through the existing stakeholders in the industry to support employment generation. For the cooperative type of structure, the model of LIMCOMA and SIDC are the two good examples for the feeds-hog-processing-retailing model to benchmark by other cooperatives.
  20. 20. Policy Implications and Recommendations (cont) For the government Continue to develop productivity enhancement programs that would support to improve the competitiveness and profitability of the livestock and poultry industry. Improvement in the budgeting process for the different projects/programs, monitoring of projects and programs at the national, regional and local level. Development of cluster models for the different livestock and poultry industries. There is a need for more collaborative projects/partnership between the different levels in the government (national, regional, local), the private sector and associations using a clustering approach. Documentation of more best practices along the supply chain. Pursue more researches along the supply chain that are market-driven and customer-focused.
  21. 21. Policy Implications and Recommendations (cont) For the government Establishment of grades and standards for livestock and poultry and meat products for local and international markets. The government should further intervene to improve the genetics of goat, cattle, buffalo and duck industries, particularly at the backyard level. Further improve the participatory governance with other stakeholders in the livestock and poultry subsectors, such as the carabao, dairy, goat and duck industries and allied industries. Improve and develop loan program which are accessible to farmers but with higher level of accountability to borrowers for sustainability purposes.
  22. 22. Policy Implications and Recommendations (cont) For the government Developing training system and modules for the DA-ATI that would support in enhancing entrepreneurial skills and supply chain management for the new investors in the livestock agribusiness sector. Government (DA-NMIS) should support in upgrading “AA” accredited slaughterhouses, dressing plants and meat processing plants to become “AAA” accreditation via loan facility of ACEF or government bank and financial institution, to contribute in increasing the export market of local meat and meat products. Government should support in developing more meat cutting plants and cold storages in strategic producing areas in the different regions.
  23. 23. Policy Implications and Recommendations (cont) For the industry associations/NGOs Further strengthen the advocacy for the improvement of different industries in the livestock sector. Support and participation in the development of strategic program/project for the industry competitiveness. Participation in the research, development and extension activities along with the private sector and government (DA livestock agencies, academe and other research institutions). Support in the implementation of good agriculture practice, good manufacturing practice, food safety standards and traceability system in the livestock and poultry agribusiness supply chain.
  24. 24. Thank you for Listening

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