February 18, 2013

Philippine's livestock sector eyes competitiveness before integration
 

Prior to the economic integration with the Association of South East Asian Nations (ASEAN) region, the Philippine's livestock sector, which has consistently recorded positive growth, is eyed by the Department of Agriculture (DA) to be export-competitive.

Agriculture Department Secretary Proceso Alcala said the livestock sector is a bright spot for agricultural competitiveness amid tough competition that is expected to be brought about by the elimination of tariff on most farm good traded within the ASEAN region in 2015.

"We are preparing the livestock and poultry sector because these industries are free from foot-and-mouth disease and bird flu. We have the capability to export," said Alcala on the sidelines of the Philippine Economic briefing held in Pasay City Thursday (Feb 14).

In 2012, the poultry subsector, which comprised 14.3% of the full year farm output, grew by 4.5% with a gross value of PHP167.1 billion (US$4.1 billion). Chicken and egg production posted gains of 4.6% and 4.4% respectively. Production of duck meat and eggs rose by 2% and 5.5% respectively.

Livestock production, which comprised 16% of the full year farm output, rose by 1.1% with a gross value of PHP214.3 billion (US$5.3 billion). Hog production grew by 1.7% valued at PHP174.5 billion (US$4.3 billion).

The Philippines is waiting for the go signal from Korea to begin the exportation of chicken. Korea imports 93 million kilogrammes of chicken per year, mostly from Thailand. With the prevalence of bird flu there, the Philippines could corner a portion of the Korean market.

Tapped for export contracts are institutional growers such as San Miguel Foods and Bounty Fresh.

The DA is also negotiating for the exportation of duck to Singapore and Japan where there is a huge demand. Alcala said that to prepare poultry growers for these markets, the government is establishing triple dressing plants for ducks.

"We are negotiating a large export volume for Japan and Singapore," he said. "I think we can supply this if we have the proper technology."

The Philippines currently exports yakitori nuggets to Japan.