INVESTMENTS in new technologies are needed to boost the country’s livestock, poultry and dairy production, according to two studies released by government think tank Philippine Institute for Development Studies (PIDS).
The study, conducted by PIDS Senior Research Fellow Domingo Sonny, former Supervisor Research Specialist Maureen Ane Rosellon, Senior Research Specialist Pauline Joy Lorenzo and Research Specialist Arvie Joy Manejar, evaluated the country’s livestock, poultry and dairy industries through domestic benchmarking.
‘Many investments need to be made in production and process improvements, including technology, equipment, livestock and upgrading of human capacity, to make the agricultural industry more competitive,’ reads the study published by PIDS.
According to the study, support services provided by government, private sector and non-governmental organizations enable different roles in the value chain to be fulfilled.
It noted that the country still relies on imports, even though livestock, poultry and dairy contribute to a third of total agricultural output, according to the Philippines’ statistics agency.
“The dependency on pork imports showed an increasing value trend from 2012 to 2018. Imports of prepared chicken are significantly higher than exports, and local milk production accounts for only 5 percent of total milk demand,” the PIDS said.
“Bringing backyard operators together among farmer organizations can be an opportunity to transform the livestock, poultry and dairy industries, as these organizations serve as the primary conduit for capacity expansion, technology transfer, and delivery of regulatory and other services,” the authors added.
Another study conducted by PIDS Senior Research Fellow Roehlano Briones and Research Analyst Isabel Espineli published similar recommendations.
“Technical support to farmers’ organizations should also focus on business development and the adoption of digital technologies, especially in the areas of e-commerce, supply chain traceability, animal health surveillance and so on,” said Briones and Espineli.
Both researchers underscored the need for a comprehensive review of trade policies affecting the value chain of the livestock, poultry and dairy sectors.
“Trade policy should be carefully recalibrated for greater efficiency and fair treatment of stakeholders,” they said.
Both studies found that the Philippines failed to reap the benefits of export-driven industrialization.
They pointed out that the country had missed a phase of structural change due to the rapid change from an economy-based to a service-driven agriculture.
The sector’s inability to move up the value chain was caused by political inconsistencies that favored both import substitution and foreign exchange, the studies added.
“For example, corn makes up 50 percent of pig and poultry feed, but local corn is more expensive than imported corn, leading commercial producers to prefer importing. While high tariffs on corn try to protect local producers, they increase feed costs, which are the highest of any farm expense, increasing overheads,” the researchers noted.
The studies added that opportunities in the sector could increase if the government pursues connectivity initiatives such as strategic farm-to-market roads while expanding investment in farm infrastructure projects such as improved biosecurity measures, production and post-harvest facilities; and processing and marketing points.
They also stressed the need to strengthen institutional oversight of regulatory compliance, food safety and standards, and animal welfare at the national and industry levels.
