September 7, 2007

"Philippines can be a global livestock player" - Alltech president

The Philippines has what it takes to become a major player in the global livestock industry but it needs to build a solid foundation for agriculture, according to Dr Pearse Lyons, president of Alltech International Biotechnology, during a brief press conference held September 4 in Manila.

Lyons stressed that the country needs to address its priorities and agriculture, particularly livestock and aquaculture, is one of them. "China needs milk, why can't we produce milk here? We should have dairy cows here. In the United States, 100 dairy cows can give five jobs. With your population, imagine the number of jobs it can create for at least a hundred thousand dairy cows, we should just need to invest. The US imports US$1 billion every month of aquaculture, particularly shrimp? Why is the Philippines not the leading exporter of shrimp? You have the labour, you have the raw materials but do you have the desire to seize the opportunities?"

Before the Philippines can lift its livestock sector to another level, Lyons cited two serious challenges that the country needs to hurdle: 1) animal health and 2) raw feed material sources. "The country needs sort of a traceability programme to easily track down diseases and identify the animal's origin. If the country wants to be a major name in poultry and pork exports, we should put animal health as a top priority. As for raw materials, since corn is now at US$4 a bushel, the country should also explore for alternatives that are high in fibre such as tapioca (manioc) and copra meal so as not to be heavily dependent on corn."

In the light of food versus fuel debate, Alltech has applied a US$50 million research grant from the US Department of Energy for cellulose for ethanol. Cellulose is tapped as an alternative for corn wherein the US has allocated a vast portion of the grain for ethanol. "By 2014, the US targets to have 35 billion gallons of ethanol and every tonne of corn gives a hundred gallons. So for 35 billion gallons of ethanol, we need to have 350 billion tonnes of corn. Theoretically, every single of corn will go into ethanol. And yes there is a competition between food and fuel and unless we do something, the food sector will lose the competition and grain prices will go higher," Lyons said. In an anticipated tussle for corn, the US government has also prepped up for an immediate alternative and Alltech is all set to get into an in-depth study for cellulose.

Lyons is also proud to claim that Alltech is already at the point where they have converted 30 percent of cellulose into ethanol, something that any US government agency has never done before. He also said Alltech's SSF programme (solid state fermentation) will be very significant in converting cellulose materials into ethanol.

Though DDGS (dried distillers grains solubles), copra meal and cassava were deemed feasible alternatives to corn, Lyons admits that there are still factors that should be addressed. First is the breakability/digestibility of these raw materials and second, the presence of mycotoxins from these items. "How do you break these materials down? And what are you going to do with the mycotoxins which are present there? Because if you take the husks and the hull, that's where the mycotoxins come. We've got to find out how to properly digest these materials, their sources and how to get rid of mycotoxins."

In conclusion, Lyons is upbeat on the Philippines will emerge as a powerhouse in global livestock industry. "The Philippines has an incredible asset particularly on the people on the rural community. We need to develop agriculture back where it started, on the rural community. We just need transparency and determination to implement programmes that will further develop our farmlands because this is where the future of the Philippines lies".

From left, Cemlyn Martin, manager Alltech Southeast
Asia; Dr Pearse Lyons, Alltech president and Dr Noel Cuyno, Alltech Philippines general
manager.