Domestic Benchmarking of the Philippine Livestock, Dairy, and Poultry Industries

Production of livestock, poultry, and dairy are private sector-led industries contributing a third of the agricultural sector’s output, despite relative neglect in terms of government support. The dual outbreak of African Swine Fever in 2019 and COVID-19 pandemic in 2020 has renewed government's attention to these industries, with benchmarking of domestic performance against those of global players seen as key for designing immediate and long-term interventions. Production volume and value, inventory, and consumption of swine and poultry decreased in 2019. Dairy maintained its increasing production, but locally-consumed milk is almost entirely imported. The bulk of local production in these industries is largely sourced from backyard operations, despite the cost advantage of commercial-size operations owing to economies of scale. Recovery from the pandemic is an opportunity to transform the industries by a process of consolidation under farmer organizations. These organizations shall serve as the main conduit for capacity augmentation, technology transfer, and delivery of regulatory and other services. This setup promotes resilience to shocks, competitiveness against foreign-produced meat and milk, and the strengthening of local institutions while sustaining the role of the private sector in the long-term development of the industries. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph