Philippine pork and chicken farmers are battling a harsh reality: they face some of the highest production costs in Southeast Asia. This isn't a matter of inefficiency, but a direct consequence of soaring feed prices that consistently outpace those of regional competitors.
Recent analysis reveals a stark comparison. From 2017 to 2020, even before the latest price surges, backyard hog farms operated at around P148.26 per kilo after slaughter, while commercial farms managed P112.40. This already exceeded costs in China, Thailand, and Vietnam.
The disparity is even more pronounced when looking at major exporters. Spain and Denmark, powerhouses in the pork industry, produce hogs for the equivalent of just P86.50 per kilo. This cost advantage allows them to dominate international markets.
A significant 57% of operating expenses for hog farms is directly attributable to feed. While Filipino growers may find slight savings on initial stock, these are quickly erased by the expense of nourishing their animals. The core problem isn’t the animals themselves, but what they eat.
The challenges extend to chicken production as well. Broiler farms, even on a large scale, face production costs of around P92.36 per kilo once dressed. Neighboring countries like Vietnam and Thailand consistently produce chicken at a lower cost, around P76.55 and P66.88 per kilo respectively.
The primary culprit? Corn. As a key ingredient in animal feed, the price of corn in the Philippines remains stubbornly high compared to regional neighbors. This inflated cost ripples through the entire supply chain, impacting the price of both pork and chicken.
Consider the numbers: wholesale corn prices in the Philippines range from $0.42 to $0.44 per kilo. In contrast, China pays $0.28 to $0.38, Vietnam $0.22 to $0.29, and Thailand a mere $0.19 to $0.24. This price difference is a critical factor in the competitiveness gap.
The situation demands a strategic reassessment of trade policies. Experts suggest a comprehensive review is needed to bolster the livestock, poultry, and dairy industries. Protecting domestic corn production, while seemingly beneficial, ultimately drives up feed costs and hinders the growth of these vital sectors.
A delicate balance must be struck. Recalibrating trade policies alongside targeted production support measures is essential to improve efficiency and ensure affordability for consumers, while simultaneously supporting the livelihoods of Filipino farmers.
