Toward Competitive Livestock, Poultry, and Dairy Industries: A Consolidated Benchmarking Study

This benchmarking study compares the performance of the livestock, poultry, and dairy (LPD) industries in the Philippines with other major producers and consumers in Asia, specifically China, Thailand, and Viet Nam. It also includes data from major global players. In the case of swine, commercial farms in the Philippines have a lower unit cost of production than backyard farms due to economies of scale. However, the cost per unit in commercial farms in the Philippines is among the highest of the countries studied, mainly because of elevated feed and grower stock costs. Similar to swine, commercial broilers benefit from economies of scale, resulting in a lower cost per kilogram compared to China, Thailand, and Viet Nam. The high tariffs on corn imports are driving up the cost of livestock and poultry feed. In terms of dairy, cattle and buffalo milk production at a semicommercial scale can be profitable, but the business case for backyard dairy operations needs to be strengthened. The Philippines has implemented regulatory and support policies for the LPD industries, covering regulations, support programs, and trade policies. Based on the findings of the study, the following policy recommendations are suggested: (1) conduct a comprehensive review of trade policies affecting the value chain to enhance the competitiveness of the LPD industries; (2) earmark the revenues generated from tariffs on pork and chicken imports to fund regulatory services and production support; (3) invest in research and data collection to inform policy and program development; (4) enhance the delivery of technical assistance, regulatory services, and production support; (5) improve the oversight system for the LPD industries in terms of regulatory compliance, zoning, enforcement of grades and standards, food safety, and animal welfare; (6) focus on upgrading technology and business practices for backyard operators through a collaborative extension approach; (7) strengthen farmer organizations to include most, if not all, backyard operators to facilitate the delivery of technical assistance and regulatory services and realize gains from economies of scale and scope.