Increasing livestock population and demand for meat products
The production of livestock and fishery production Philippines’ has increased immensely over the past decade owing to the growth in the requirement for quality and safe food products. Livestock production is a significant sector of the agricultural economy in the Philippines. It can be understood clearly by the fact that animals are referred to as the walking bank for several farmers due to the sales of livestock and their products could increase cash income. Population growth, rising incomes in developing nations and urbanization has led to a surge in livestock production of the nation. The level of income and consumption of animal protein are directly related to the consumption of milk, meat and eggs which are increasing at the expense of staple foods. Due to the decline in prices of meat and meat products, Philippines is embarking on high quantity meat consumption at much lower levels of gross domestic product than the industrialized countries did 2-3 decades back. In addition, urbanization has led to the increased demand for meat and milk products. When compared with the diet in rural areas, cities have varied diets that are rich in animal proteins and fats.
Thereby the output of carabeef, beef, chevon, goat, chicken, duck and fishery products have all increased steadily. The agriculture output in Philippines in 2016 has recorded an increase by 1.2% to USD 81 billion and the gains were distributed majorly in the sub-sectors of livestock, fisheries and poultry. According to the survey of Agriculture-Bureau of Agricultural Statistics, the revenue of livestock output was 3.5% higher than in 2015. For the increase in production of cattle and hog, representing 16% of the total output. As of November 2016, the country’s total swine inventory is estimated at 16.78 million head. Poultry sector has showed strong growth both in terms of revenue and volume from 2011 to 2016. Poultry is defined as chicken production, providing meat and eggs. As the source of meat and eggs, chicken ranks first in terms of economic importance. From 2011 to 2016, the share of broiler sector output increased from 46% to 59% during the tenure. The rise in production of milkfish and output of tilapia, had eased the in 3.4% growth in fisheries subsector earning USD 11.86 billion. Due to the increase in household consumption, the growth in requirement of industrial buyers such as fast-food chain owners along with its potential prospect as an export product for chicken meat expands rapidly.
Structural Changes in the Livestock Sector
Pig farming sector is the second largest commercial agri-food industry in the Philippines accounting for over 56% of the entire daily animal meat consumption of Filipinos in the past decade. Within the livestock industry, the pig production has achieved the highest CAGR of 5.25% to achieve an output of approximately 2.32 million metric tons in 2016 from around 2.12 million metric tons in 2015. Overall, in terms of the local currency at constant prices, the livestock industry of Philippines has expanded by about 4.6% in 2016 compared to that of the previous year. Except goat meat, where a marginal reduction in output could be seen in 2016, all the other segments contributed well to the overall growth of the livestock industry. The entire poultry segment grew by 7.6% owing to the higher chicken output, chicken eggs and duck eggs, representing 15.8% of the livestock output. While the average prices for hogs at the farm gates had fell by almost 3.0% over last year to average USD 1.90 per kilo, the average chicken meat prices having fallen by 4.7% in 2015 recorded a rise of 1.6 % at USD 1.80 per kilo in 2016. The significant structural change that can be witnessed in both the sectors especially pigs is the growth in intensification of the production in urban as well as peri-urban areas. The primary reason for this being the constantly growing requirement for the animal proteins, particularly in pork. It is estimated, that almost 64% of the total pig inventories were raised by backyard farms whereas 36% were raised by commercial farms. This growth is all because of the changed organizational structure of poultry in the nation. Here it can be clearly observed that the Philippines livestock industry is directing towards industrial meat production and that the agriculture practices are changing from conventional ones to technological advancements in the sector.
- December 2017: Cargill opens animal nutrition premix plant in the Philippines
- September 2017: ADM's feed product registered in the Philippines, Vietnam.
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1.1 Study Deliverables
1.2 General Study Assumptions
2. RESEARCH METHODOLOGY
2.2 Analysis Methodology
2.3 Study Assumptions
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW AND TECHNOLOGY TRENDS
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Threat of Substitutes
4.3.3 Bargaining Power of Suppliers
4.3.4 Bargaining Power of Buyers
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
6. FEED PREMIX RAW MATERIAL PRICE ANALYSIS
7. MARKET ENTRY PARAMETERS
7.1 Industry Policies & Government Regulations
7.1.1 Govt. policies related to foreign investments
7.1.2 View on Govt. policies
8. COMPETITIVE ANALYSIS
8.1.1 Domestic competitive environment
8.1.2 Domestic Players Profiles
8.1.3 Major Products
8.1.4 SWOT Analysis of Major Domestic PlayerS
8.1.5 Upcoming Domestic Companies
8.1.6 Recent dvelopments
8.2.1 Foreign players Profiles and Their Market Share
8.2.2 Major Products
8.2.3 SWOT analysis of Major Foreign Players
8.2.4 Upcoming Foreign Companies
8.2.5 Recent dvelopments
9. CONSUMER BEHAVIOR PATTERNS
9.1 Segmentation -Socio/Economic
9.2 Spending Pattern
9.3 Target market
9.5 Demographic Strength/Weakness
10. SUPPLY CHAIN ANALYSIS
10.1 Raw Material Suppliers
11. RISK ANALYSIS
11.1 Weather/ Natural Risk
11.2 Systemic Risk
11.3 Sovereign Risk
11.4 Liquidity Risk
11.5 Legal Risk
11.6 Foreign-Exchange Risk
12. MARKET ENTRY STRATEGY
12.1 Target Market Identification
12.2 Identify Target Offering
12.3 Pricing Strategy
12.4 Product Adaptation Strategy
12.5 Technical Innovation Strategy
12.6 Marketing Collateral