Philippines integrators
add milling capacity
Enterprises controlling up to 80% of all
broiler chicken production in the Philippines
are currently either establishing or expanding
their feed manufacturing interests, according to a new report on the country’s poultry
business.
‘Current and future prospects of the
Philippine poultry industry 2006’ has been
prepared at the US Embassy in Manila and
published as a GAIN report by the foreign
agricultural service of the US department
of agriculture (USDA). More can be seen
at website http://www.fas.usda.gov/gain-fi les/200612/146269818.pdf.
Poultry is big business in the Philippines,
it points out. In recent times the poultry
industry has made significant contributions
to the national agricultural economy despite
enduring repeated cycles of boom and bust
as production fluctuated between the extremes of under-supply and over-expansion
in response to the price levels of the moment.
Chicken represents the fastest growing source
of meat supply and demand nationally. Broiler
consumption has nearly doubled over the last
15 years in line with rapid population growth,
even though the amount eaten per person/
year has stayed low at around 8 kilograms
because of weak purchasing power.
Integrated producers organise themselves
under the Philippine Association of Broiler
Integrators (PABI), whose members include
the historically dominant integrators such
as San Miguel Foods, Swift Foods, Vitarich,
Universal Robina Corporation and Tyson
Bounty Agroventures. Of these, San Miguel
Foods is rated the leader in terms of domestic
market share at over 40%. The membership
together is considered to represent 75-80%
of the broiler meat supply.
The USDA report notes that San Miguel
Foods contributes to over one third of the total
commercial feed market. It says San Miguel
and some other integrators have incorporated
feed milling into their operations with the
intention of ensuring both cost-effectiveness
and consistent quality, while others have
expanded their feed milling operations to
produce mixed commercial feeds. There
are concerns over production costs relating
to feed efficiency at poultry production sites
and to the world prices of imported feed
ingredients, not the least corn.
Poultry production in the Philippines
is highly import-dependent. The cost of
Philippine broiler meat production is said to
dwarf those of its counterparts in East and
South East Asia as well as Latin America.
Recent changes in the sector’s environment
including high and volatile production costs,
along with the worries over highly pathogenic
avian influenza (HPAI) in neighbouring countries, are reported to have led to key changes
among the integrated producers. Some of
them have reacted by expanding their output,
whereas others have either closed down parts
of their operation or resorted to toll servicing
for various stages of the broiler production
and marketing process.
Rise in imports
This development will have important
implications for large and small producers
alike, the USDA report contends. Current
apprehensions on the part of producers have
led to lower industry-wide production levels
since 2005. This in turn has induced a rise in
imported broiler chicken meat.
Moreover, there has been a re-shuffling
of the roles of the integrators’ organisation
PABI, the United Broiler Raiser Association
(UBRA) representing non-integrated producers and other commercial producers who do
not belong to integrations. While some PABI
members remain fully integrated, others have
found it to be more profitable to halt operations
after the production of day-old chicks and to
contract-out the remaining production stages
to independent growers while maintaining the
mother company’s name. Simultaneously,
some UBRA members have found more profit
in using integrated production methods. As a
&- 2 ї &(!!#x9a!!);
&ISHMEAL REPLACER
&- 2 IS A ON SUBSTITUTE FOR lSH MEAL IS PROCESSED
VEGETABLE PROTEIN AND CAN BE USED IN PIGLET POULTRY AND AQUA
FEED
&- 2 IS BASED ON HIGH DIGESTIBLE PROTEIN HIGH QUALITY PROTEIN
CON TEN T AND BALANCED AMINO ACID COMPOSI TION /UR lSH MEAL
REPLACER HAS A SIMILAR FATTY ACID PROlLE AS lSH MEAL 4HE HIGH
CON TEN T OF OMEGA AND FA TTY ACIDS S TIMULATES THE ANIMAL S
IMMUNE S YS TEM AND HAS A MAJOR IMPAC T ON DEVELOPMEN T OF THE
INTESTINAL VILLI
&ROM A NUTRITIONAL AND ECONOMIC VIEWPOINT &- 2 IS A PERFECT
SUBSTITUTE FOR lSH MEAL
4HREE "ECOME /NE
0IGLET FEEDING CONCEPT
4HREE "ECOME /NE COMBINES THE ADVANTAGES OF THREE
HIGH QUALI TY SAFE AND BALANCED CONCEN TRATES TOGETHER WITH
YOUR LOCAL INGREDIENTS TO PROVIDE AN OPTIMAL BALANCED FEED
THAT MEETS CURRENT QUALITY AND FOOD SAFETY STANDARDS
4HIS PIGLET FEEDING CONCEPT ENABLES THE FEED INDUSTRY AND
HOME MIXERS TO FORMULATE A WELL BALANCED PIGLET FEED WITH
ALL THE REQUIRED NUTRIENTS TO STIMULATE THE IMMUNE SYSTEM
TO THE MAXIMUM TO PROMOTE HEALTHY DIGESTIVE ORGANS AND
TO GUIDE PIGLETS THROUGH THE MOS T DIFlCUL T PERIODS MORE
EASILY
0/ "OX !" 7EERT 4HE .ETHERLANDS 0HONE 7EBSITE WWW JOOSTEN NL
