MLBA8: April / May 2009
The Philippine cattle sector: A sunset industry?
"People in the cattle industry are not there because of the money, they are still in the business for the love of cattle. We're still trying to look for the best answer for the industry," confesses Virgilio Badilla, president of the Federation of Cattle Raisers Association of the Philippines (FCRAP). Nevertheless, he tells that the last two years have been good for the industry because of beef's good prices in the market. "It has been a sellers' market, as prices have doubled from two to three years ago. It used to be PHP40 to PHP45 a kilo, now it's between PHP85 to PHP88 a kilo. The local producers are now in command with the price."
However, Badilla admits that trade players should enjoy the somewhat short-lived days of good prices once the reality of beef being a secondary meat choice along with the industry's meager assets may well spell an untimely demise for the cattle business.
According to the Ruminant Information Network (RIN), the Philippine beef cattle industry is predominantly of the small-hold or backyard type and traditionally led by the private sector.
Huge demand for meat and meat products has proliferated commercial feedlot fattening operation in the country. Increasing population, changing food preferences and import liberalization have spurred demand for cattle meat.
Figures from the Bureau of Agricultural Statistics show that cattle production inched up by 0.97 percent in 2008 at 239.16 thousand tons from 238.27 thousand tons in 2007. This is due to an increase in the number of slaughtered animals in CALABARZON in Luzon (Cavite, Laguna, Batangas, Rizal and Quezon), Northern Mindanao and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City) during the last three quarters of the year.
Highly dependent on imports, cattle ranchers have heavily sourced steers from Australia at an average of 300,000 to 375,000 steers annually.
The above are excerpts, full versions are only available in MEAT & LIVESTOCK Business Asia. For subscription enquiries, email membership@efeedlink.com
