This benchmarking study compares the performance of the Philippine livestock, poultry, and dairy (LPD) industries with other large LPD producers and consumers in Asia: China, Thailand, and Viet Nam, supplemented with figures from major global players. In the case of the Philippine swine industry, commercial farms’ unit cost of production is lower than that of backyard farms due to economies of scale. Moreover, the cost per unit of commercial farms in the Philippines is among the highest among the countries studied, primarily due to the higher feed and grower stock cost. As with swine, economies of scale also allow commercial broilers to reduce the cost per kilogram of their products. The cost per unit for Philippine commercial-scale broiler farms is among the lowest compared with China, Thailand, and Viet Nam. However, high tariffs on corn imports drive up the cost of livestock and poultry feed. Finally, this study finds that dairy cattle and buffalo milk at a semi-commercial scale can be profitable, though the business case for backyard dairy needs to be strengthened.
The Philippines has implemented regulatory and support policies for the LPD industries, covering regulations, support programs, and trade policies. To further strengthen the country’s LPD industries, this study recommends the following: (1) undertake a comprehensive review of trade policies affecting the value chain toward greater competitiveness of the LPD industries; (2)earmark the collections from tariffs on pork and chicken imports to fund regulatory services and production support; (3) invest in research and data collection as inputs to policy and program development; (4) improve the delivery of technical assistance, regulatory services, and production support; (5) reset the oversight system over the LPD industries in terms of regulatory compliance, zoning, imposition of grades and standards, food safety, and animal welfare; (6) focus on upgrading technology and business practices for backyard operators using a collaborative approach to extension; (7) strengthen farm operators to encompass most or all backyard operators to facilitate delivery of government assistance, technical and regulatory services, and realize gains from economies of scale and scope.
Comments to this paper are welcome within 60 days from the date of posting. Email [email protected]
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