FOOD SECURITY IN THE LIVESTOCK SECTOR

FOOD SECURITY IN THE LIVESTOCK SECTOR

1The General Goals for AgricultureSustained food security at stable and affordable prices

Increasing farmer incomes

Creating more jobs in the countrysideLet me start my presentation by understanding the general goals of Agriculture.

2Agricultural SectorsCrops

Livestock Poultry Fisheries

When we talk on agriculture in the Philippines, we are referring to 4 sub-sectors, the biggest of which is of course crops.3 Agriculture grossed P1.4 trillion at current prices, representing 11.52 percent increase from last year.

In terms of volume of production, crops, livestock and poultry subsectors expanded by 4.82 percent, 1.99 percent and 4.34 percent respectively.

Fisheries production declined by 4.0 percent

Performance of Philippine Agriculture in the year 2011

4RankCommodity% Share1Palay18.152Hogs12.03Coconut8.634Chicken Meat8.445Banana7.306Corn6.257Aquaculture6.138Commercial Fishery4.219Municipal Fishery5.7110Chicken Eggs2.5111Rubber2.1812Cattle1.5313Sugarcane04.1Major Contributors to Philippine Agriculture (2011)Total value in 2011: 1.4 trillion pesos

Among the Agricultural commodities, the top five major contributors includes: Palay, Hogs, Coconut, Chicken Meat and Banana.

Two livestock and poultry commodities more specifically hog and chicken meat is 2nd and 4th respectively.52011 LIVESTOCK AND POULTRY INDUSTRY PerformanceAGRICULTURE PRODUCTION = P 1.40 Trillion at current prices (11.52% growth) Billion P% Growth Agricultural Crops804.0119.45 Fisheries225.141.85 Livestock & Poultry363.036.30% Share to Total AgricultureSource : BASLivestock & Poultry ProductionCommodity000 MT%Growth Carabao148.025.05 Cattle251.752.71 Hog1,898.161.11 Goat78.451.38 Dairy15.708.95 Chicken1,353.134.01 Duck32.98-8.24 Chicken Egg387.345.12 Duck Egg36.68-7.44Livestock & Poultry accounts for 29.01% share in terms of current value of agricultural production with a growth rate of 6.3 percent.

Among the livestock and poultry commodities, swine has consistently dominated other livestock industries in terms of volume value of production.

In 2010, 1.90 million metric tons (liveweight) of hog valued at P172.54 Billion was produced. This is followed by chicken with a total production of 1.3 MT valued at 112.51 billion. The fastest growing industry is dairy with the highest growth rate of 8.95 percent.6Sub-sector200920102011Growth RateIn Million Pesos09-1010-11Hog97,790.6498,875.15101,072.831.112.22Cattle11,652.5311,968.2012,182.602.711.79Carabao5,274.265,540.395,521.675.05-0.34Goat3,635.313,685.583,673.841.38-0.32Dairy195.50217.28225.3711.143.72Livestock118,548.24120,286.60122,676.311.471.99Chicken73,422.8076,370.6679,823.094.014.52Duck1,938.241,778.611,787.78-8.240.52Chicken Egg20,173.1921,206.8722,088.345.124.16Ducks Egg1,731.831,602.921,640.50-7.442.34Poultry97,266.06100959.05105339.713.804.34Value of Production in Livestock and Poultry at Constant Prices (2009-2011)Livestock and poultry production grossed P122.67 billion and P105.88 billion at constant prices, respectively. Hog production went up from 97.79 billion in the year 2009, 98.89 billion in 2010 and 101.072 billion in 2011 representing 1.11percent growth in 2010 and 2.22 percent growth in 2011.

Cattle and dairy outputs increased by 1.79% and 3.72% respectively. Production increases were noted for chicken at 4.52% and chicken eggs at 4.16 percent.

7HOG INVENTORY Hog inventory as of 2010 is at 13.4 Million head. About 71% of the swine population are raised in backyard farms while 29% are in commercial farms as compared to 77% backyard and 23 % commercial a decade ago.

Thus, through the years, the share of the backyard farms is declining while that of commercial farms is increasing.

8

RegionPopulation (%)CALABARZON13.1Western Visayas 11.6Central Luzon 10.7Bicol Region 7.8Eastern Visayas 7.3Top Five Regions in the Philippines in terms of Swine Population (2010)

Top five regions in the Philippines in terms of swine population (2010) are CALABARZON with 13.1%, Western Visayas with 11.6%, Central Luzon with 10.7%, Bicol Region with 7.8% and Eastern Visayas with 7.3%.

9CHICKEN SECTOR PRODUCTION PERFORMANCE 1.53% Average Growth Rate (Volume)In 2010, total volume of chicken production was estimated at 1.35 million metric tons, valued at 112.97 Billion which grew by 4.39% compared to preceding year.

The average growth rate (volume) for the last 10 years is 1.53%.

10Source: RAIRMRegionPopulation (%)Central Luzon 32.79Northern Mindanao22.67Bicol Region 10.69Top Three Regions in terms of Broiler Population (2010)

As of January 1, 2010, broiler population was estimated at 52.18 million birds. Central Luzon shared around 32.79 % of the total inventory. Northern Mindanao and Bicol accounted for 22.67% and 10.69% respectively.

These three (3) regions contributed 66.15% to the countrys broiler inventory.

11CHICKEN EGG SECTOR PRODUCTION PERFORMANCE 5.04% Average Growth Rate (Volume)Total egg production in 2010 was estimated 387.34 thousand metric tons, which is 5.12% higher than previous year, valued at P33.71 Billion.

The average growth rate for the last 10 years is 5.04%.

12RegionPopulation (%)CALABARZON38.81Central Luzon 20.01Northern Mindanao10.78Total Inventory: 78.64 Million Birds

Top Three Regions in the Philippines in terms of Chicken layers Population (2010)Total inventory of chicken layers (all ages) was estimated at 28.64 million birds. The top three (3) producing regions with bigger contributions in the total inventory were CALABARZON with 38.81%, Central Luzon with 20.01% Northern Mindanao with 10.78%.

13Ruminant Industry CommodityBackyardCommercialhead%Sharehead%ShareCarabao3,313,28999.797,0130..21Cattle2,432,47593.70163,5566.30Goat4,162,43199.0241,2760.98The ruminants subsector is basically of a small-holder nature highlighting the huge problem of genetic improvement for local stocks:

Inventory has been either increasing slowly or on a declining trend as compared to the continuously increasing human population at the rate of 2.04%/yr;

14RUMINANT ANIMALS PRODUCTION PERFORMANCEVolume of Production The beef and carabeef production in 2010 aggregated to 399.77 thousand metric tons. Production of cattle and carabao increased to 2.71% and 5.05%, respectively;

Goat production in 2010 increased by 1.38% from 77.38 thousand metric tons to 78.45 thousand metric tons.

15SELF SUFFICIENCY OF LIVESTOCK AND POULTRY COMMODITIES2007 - 2011Commodity20072008200920102011Carabeef 63.9561.4368.4066.7670.27Beef79.9178.7282.0280.8781.19Pork96.8795.0894.9194.9894.86Chevon100.00100.0099.97100.00100.00Chicken (dressed)95.5595.2593.5693.8794.27Duck (dressed)99.8899.4399.4299.8199.84Chicken Egg99.9399.9399.62100.00100.00Now finally here comes the self-sufficiency of livestock and poultry in 2011.

For the two major commodities, we are 94.7 %self-sufficient for pork and 94.3% self-sufficient for dressed chicken.

We have attained 100% self-sufficiency for egg, chevon and dressed ducks.

Our lowest self-sufficiency level are beef and carabeef with 81.2% and 70.3%, respectively.

16SELF SUFFICIENCY OF LIVESTOCK AND POULTRY COMMODITIES2012 2016; Forecast Commodity20122013201420152016Carabeef 73.6680.0981.1484.2188.87Beef79.8280.0679.0779.3179.64Pork94.5994.2293.9794.1194.08Chevon100.00100.00100.00100.00100.00Chicken (dressed)94.4794.8794.6895.4495.44Duck (dressed)98.9199.1699.4099.7999.82Chicken Egg100.00100.00100.00100.00100.00In terms of self-sufficiency forecast by 2016, there is not much difference compared to 2011 levels. For the two major industries, there is a slight increase in dressed chicken but there is a slight decrease in pork.

A 100% self-sufficiency levels will be sustained in chicken eggs, chevon and dressed ducks.

There is going to be a significant increase for carabeef (70.3% vs. 88.9%) and a noticeable decrease in beef (81.2% vs. 79.6%) sufficiency levels.17Share in Meat Supply (Local production vs. Imports)Commodity2007200820092010Pork - Local Prodn (MT) - Imports (MT)Total Supply 1,616,71552,3841,669,0991,605,80783,0141,688,8211,628,83987,2841,716,123000Dressed chicken -Local Prodn (MT) - Imports (MT)Total Supply745,39538,336783,731812,32443,758856,082826,29461,444887,738867,02398,004965,027Beef -Local Prodn (MT) - Imports (MT)Total Supply178,04144,821222,862184,36349,837234,200189,4804,1541231,021194,74950,062244,811Carabeef -Local Prodn (MT) - Imports (MT)Total Supply110,20262,128172,330101,61663,439165,05598,65345,864144,517105,23948,995154,23418Factors affecting animal production:

Competition with alternative land uses and with the use of cereals (and some roots and tubers) as animal feed or for human consumption.

Competition for carbohydrate and protein sources.

Only a few large investments in livestock development projects have been marginally successful in increasing productivity and these have had a limited impact on agriculture.

Resource degradation and environmental damage caused by deforestation, overgrazing and pollution.

There are identified factors that we think would constraint or limit animal production in the future. These include the following:19Factors affecting animal production:

Inadequate demonstration of how livestock can play a key role in the development of sustainable agriculture in different agro-ecosystems, and the failure to transfer appropriate technologies. In particular, most of the increase in animal products has come from an increase in animal numbers rather than from an increase in individual-animal productivity.

Contribution to global warming (methane from ruminants represents 2.5 percent of total greenhouse gases).

Pollution from concentrations of intensive animal production enterprises

20Factors that would ensure sustainable animal agricultural development

political support for fair commodity prices and proposed strategies;

increased efficiency of use and management of natural resources;

linking of production and post-production components to efficient infrastructure, services and marketing schemes;

more appropriate policies for the use of common land and rangelands;

improved capacity and commitment of national and international agricultural centers and non-governmental organizations (NGOs) to implement strategies that contribute to the development of livestock production within specific agro-ecosystems/ecoregionsHowever, on the other hand, there are also factors identified that must be put in place to ensure sustainable animal agriculture:

These includes:21LIVESTOCK AND POULTRY ROADMAPPrograms and StrategiesGenetic ImprovementDisease Control and EradicationResearch, Extension Support and TrainingPost Harvest and Infrastructure DevelopmentMarket Development Assistance and Export InitiativesDairy Development and ExpansionMeat Safety and Quality

23GENETIC IMPROVEMENT PROGRAMStock Infusion/Breeder Base ExpansionCattleGoat Swine RestockingNucleus Farms RehabillitationUnified Artificial Insemination ProgramMultiplier Farm Assistance to LGUsSwine Breeder Accreditation ProgramGene Pool for Carabaos

24Disease Control & Eradication Border Protection Against Avian InfluenzaFMD-free Philippines without vaccinationIntensified Hog Cholera and Newcastle Disease Prevention and ControlEbola Reston Virus Preventive MeasuresRabies Control and PreventionRehabilitation and Improvement of Diagnostic Laboratories25Research, Extension & TrainingCapability BuildingFarmersTechniciansCooperativism and Community DevelopmentEnterprise DevelopmentTechnology TransferR & D (Policy, Production & Technology Devt.)Livestock and Poultry Information & Early Warning System GIS mapping of production areas, livestock infrastuctures and related data

26Post harvest & infrastructure developmentMeat Trading CentersEgg Processing PlantMeat LaboratoriesAA Slaughterhouse Cold Chain Livestock Auction MarketsDairy infrastructures

27MARKET DEVELOPMENT ASSISTANCEMarket Matching/Linkages Trade Fairs and Missions (Domestic and International)Assistance to Export InitiativesSupply Chain AnalysisDialogues and Consultations

28Dairy Development ProgramInfusion of Dairy AnimalsCarabaoCattleGoatDairy ZonesArtificial InseminationBull LoanMilk Feeding ProgramDairy Infrastructure DevelopmentDairy Enterprise Development

29MEAT QUALITY & SAFETY:domestic & internationalGMP and HACCP in meat establishments Monitoring and inspection of meat plants for compliance to health and administrative rulesAccreditation of meat plant-importersPreparing for exports: meat plant exporters

30Priority Support Services Needed from Government

Access to financing for facilities and equipmentIncrease local feed productivityIncentives for local manufacturersStrengthen anti-smuggling campaignSound regulatory environment for integrators and importers Access to reliable and quality information and data

31Bureau of Animal Industry (BAI) National Dairy Authority (NDA) National Meat Inspection Service (NMIS) Philippine Carabao Center (PCC) Livestock Development Council (LDC) Regional Field Units (RFUs) Local Government Units (LGUs)State Universities and Colleges (SUCs)Implementing agencies:32