Federation of Hog Producers News Update:

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Pork supply tight as hog 
raisers face high corn prices
 
By Jennifer A. Ng
Reporter
 
Consumers, particularly those in the Visayas and Mindanao, should brace themselves for higher prices of pork products due to the tightness in local supply.

The National Federation of Hog Farmers Inc. (NFHFI) disclosed that at least 20 percent of backyard raisers have already “gone out of business” in the Visayas and Mindanao because of the high cost of corn—the major ingredient used in making feeds.

The majority of the country’s pork requirements, or around 60 percent, are supplied by backyard raisers.

NFHFI president Albert Lim Jr. said the farmgate price of hogs is now at P102 to P105 a kilo, almost P20 more than the average price of P88 registered during the last quarter of the year.

“There really is a tight supply because of the increasing cost of feeds,” said Lim at the sidelines of the celebration of the Bureau of Animal Industry’s (BAI) 78th anniversary held in Quezon City yesterday.

Based on the price monitor of the Bureau of Agricultural Statistics as of February 26, the price of pork liempo per kilogram is now at an average of P160 a kilo in major wet markets all over Metro Manila. This is P15 more than the P145-per-kilo level registered on January 31.

Lim, however, does not favor price control or any intervention by the government to reduce pork prices.

“Any move to meddle with market forces will be disastrous,” he said.

 Meanwhile, BAI disclosed that a laboratory to test for drug residues in pork products from Mindanao will soon be operational.

BAI director Davinio Catbagan disclosed that the laboratory is already nearing completion. The laboratory, he said, will increase the confidence of foreign markets in the pork products exported by the Philippines.

Catbagan said he also expects the Philippines to start exporting to Singapore “soon.”
 
 

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Filipinos assured of stable pork supply
[3 March 2008] The Philippines may expect tight pork supply this year, but the National Federation of Hog Farmers Inc (NFHFI) said they will be able to meet market demand. NFHFI President Albert RT Lim Jr said that while the industry is “hard pressed” and “supply is tight” they can assure the Filipinos that “there is definitely no pork shortage.” About 20% of the backyard raisers have gone out of business due to high production costs and animal diseases. Mr Lim said production costs grew to as much as PHP 100 (USD 2.47)/kg, while retail prices in wet markets have hovered between PHP 140-160 (USD 3.46-3.96)/kg. He expressed optimism that the industry will begin to normalize by mid-year. Meanwhile, Bureau of Animal Director Davinio Catbagan said prices of pork will not reach PHP 180 (USD 4.45)/kg, saying they expect prices to stablise once supply normalises.

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[5 February 2008] Supply of frozen pork meat to Metro Manila, the Philippines’ biggest urban center, is projected to double this year, said the South Cotabato Swine Producers Association (Socospa). In a report to Agriculture Secretary Arthur Yap, Socospa President Dr Emilio Escobillo Jr said that frozen pork meat shipped from Mindanao to Metro Manila through the pork-in-a-box program reached 4435 tonnes in 2007, up more than 160% from 2005’s 1700 tonnes. He also said that shipments of live hog fell by almost 70% from 283,000 heads in 2005 to 167,278 heads last year. Mr Yap said Mindanao supplies about 6-7% of pork in Metro Manila.

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Hog producers agree to increase produce for shipping accommodation
Hog producers from South Cotabato said they are willing to increase production of hog meat to meet the requirements of the shipping company that has temporarily stopped the livestock transport business due to unprofitable shipment volume.

Emilio V. Escobillo, Jr., president of the South Cotabato Swine Producers Association said they can particularly double the shipment volume of "pork-in-a-box" within this year.

Mr. Yap noted that although live hog shipments have been decreasing, shipment of boxed pork from the port of General Santos have increased 158% to 4.4 million kilos in 2007 from 1.7 million kilos in 2005.

Solid Shipping Lines, which transports 70% of all livestock shipment from South Cotabato, last week stopped shipping hogs from General Santos to Manila. Solid Shipping Lines President Emilio C. Tiu told BusinessWorld on Wednesday that the company was losing in the hog shipment aspect of its business.

Live hogs shipped from General Santos make up 6% of Metro Manila’s supply, at 16,000 heads per month.

Albert R. Lim, Jr., president of the National Federation of Hog Farmers, Inc., said the target is possible as the meat packing plant in Mt. Matutum, South Cotabato is only at 25% production capacity at 200 heads per hour.

Mr. Escobillo described the reverse trend in live hog shipments. He said that in 2005, live hog shipments from General Santos were recorded at 283,684 heads, decreasing to just 169,278 in 2007, or a 40% decline.

Mr. Yap said Mr. Tiu has agreed to a three-month period at which Solid Shipping Lines will not yet impose volume quotas, while immediately resuming its operations.

Solid Shipping Lines is the only livestock carrier that plies the General Santos-Manila route directly.

Hog shipments per container costs P42,000, with each container having as much as 90 heads. Mr. Tiu said they can take as much as 200 containers, but these are not getting filled up.

Mr. Yap said the government encourages the shift of public demand to boxed pork, which is not currently the case, with buyers still preferring slaughtered live hog.

Mr. Yap said that with the "pork-in-a-box" system, waste, health, and animal transport cost concerns are diminished.

The government, however, did not commit to any direct assistance to the livestock logistics in case the target production is not met.

"If we must assist, we must do so in the farm-gate level. The hog industry will grow," Mr. Yap said.

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The National Federation of Hog Farmers, Inc. (NFHFI) is a non-stock and non-profit organization established in 1990 and is one of the Philippines’ livestock commodity organizations. It has members-associations from Luzon, Visayas, and Mindanao, totaling 48 member organizations. The NFHFI is privately funded through membership dues, donations and grants.

The NFHFI is assisting its members to cope up with and to adapt with the situations and most of all to continue to be viable and profitable.
 
The NFHFI is involve in a wide range of industry and public issues and was primarily responsible for the exemption of the livestock industry, particularly the hog farming and poultry sectors from the Comprehensive Agrarian Reform Program. The NFHFI is very much in the forefront fight against the smuggling of pork and pork products.

Under the leadership of the National Chairman, Nemesio G. Co, and President, Albert R.T. Lim, Jr., the NFHFI endorses the Agriculture and Fisheries Modernization Act of 1997 and the four guiding principles of growth, efficiency, equity and sustainability. The hog industry consistently posted a positive growth over the last 10 years and is now a 120 billion peso industry.   
 

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Export Focus for Mandaue Convention
PHILIPPINES - Enhancing Pork Production for Export will be the theme of The National Federation of Hog Farmers Convention from 24 to 26 April Mandaue City, Cebu.



The 17th Annual event will be held at the Cebu International Convention Centre and include a conference and trade exhibition. It will be hosted by the Cebu Association of Meat and Poultry Products Multi-Purpose Cooperative.

Its aim is to gather commercial and backyard hog farmers across the country, and will also feature a Backyard Hog Farmers Congress sponsored by B-Meg and San Miguel Foods Inc.

There will be more than 100 trade exhibits including a showcase of some of the latest veterinary products and equipment. A series of seminars on swine management and production and the eradication of common swine diseases, is also planned.

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Vol. XXI, No. 126
Monday, January 28, 2008 | MANILA, PHILIPPINES

The Economy
Farm dep’t meets feed millers, swine, poultry sectors to discuss corn supply
THE AGRICULTURE department brought together last Friday feed millers, as well as poultry and swine producers in a bid to thresh out corn supply issues.

The dialogue was called by the department to assuage feed millers’ concerns over corn availability. The feed-milling industry, through the Philippine Association of Feed Millers, Inc., has particularly been calling for such dialogue.

The country has an average of 1.2 million metric tons of corn supply shortage each year, although this gap is growing yearly, according to the National Corn Competitiveness Board (NCCB).

This year, the Agriculture department has projected a gap of 1.5 million MT of corn.

"The problem is not just that poultry and swine raisers are finding feed prices too high. It’s the plain absence of corn. We need to produce more, more, more," NCCB Executive Director Salvador D. Umengan said.

Mr. Umengan said the government’s program for corn production, importation and distribution must be closely coordinated with feed producers’ demand.

Corn, the country’s second most important grains crop, is hampered by difficulties in logistics, or delivery to feed millers. The country’s top corn producing regions, namely: Northern Mindanao, Davao, South Cotabato-Sultan Kudarat-Sarangani-General Santos, and Autonomous Region in Muslim Mindanao are all in the southern Philippines. However, feed millers and commercial and backyard hog raisers are largely located in Luzon.

Corn producers also need post-harvest facilities such as dryers. Corn’s moisture content has to be reduced to 14% after harvesting to slow deterioration. After drying, it must be brought to dry storage facilities.

Agriculture Secretary Arthur C. Yap said that the National Agribusiness Corporation will build 50 corn-drying centers nationwide by the midyear. He said the project, with each center costing P30 million, will be one of the government’s largest post-harvest programs.

A private firm, Zamboanga Development and Management Corporation, is also building corn handling facilities in Batangas and silos in Zamboanga del Norte with a capacity of 600 metric tons, with funding from the Development Bank of the Philippines.

Feed millers use up to 80% of total local corn production and 99% of corn imports because the grain makes up 60% of pigs’ and chickens’ feeds.

"Bring us the corn. Make sure the corn is there," Norman R. Ramos, president of the Philippine Association of Feed Millers, Inc. (PAFMI), said.

Mr. Yap asked the representatives from each business sector for their targets, to be the basis for the direction of the Agriculture department’s own corn program.

Mr. Yap said the government is targeting production of 7.3-7.5 million metric tons (MT) of corn this year, or at least 8% growth from last year’s 6.74 million MT.

"The bigger production support will be in non-typhoon areas," Mr. Yap said.

Representatives of the swine and poultry industries, however, asserted that their growth rates will be determined by the availability of corn.

"If we have enough corn and additional markets, that will encourage us to increase production. We can assure you that depending on the availability of corn, we will have no problem with production," Albert R. Lim, president of the National Federation of Hog Farmers, Inc., said.

Gregorio A. San Diego, president of the United Broiler Raisers’ Association, said they are eyeing at least 15% growth this year, or 500 million heads.

Feed millers, however, complained of the worldwide rise in costs of raw materials for producing feeds, apart from logistics concerns. "The basic indicator is that raw material prices are really going up," Mr. Ramos said.

Mr. Ramos said that soy beans, a feed ingredient, has increased to P23 from P13. He also said prices of vitamins imported from China have risen considerably.

"Today, for the feed milling industry to survive is very difficult. We are hurting badly," Mr. Ramos said.

Mr. Lim noted in return that despite the 52% increase in soy bean prices from 2000-2007, hog farmgate prices increased by just 30%. "We will just grow with the [poultry industries]. We will not be able to produce anything more that what they require," Mr. Ramos said.

Mr. Ramos said PAFMI will not write an importation request to the Agriculture department within the first quarter of the year.

"We are anticipating the harvests for the first quarter this April," he said. — Eric B. Dorente


 

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Saturday, February 23, 2008
Hog farmers to meet in April, talk about export of products

The National Federation of Hog Farmers, Inc. (NFHFI) will hold its 17th Annual Hog Convention and Trade Exhibits on April 24-26, 2008 at the Cebu International Convention Center.

The theme of the convention is “Enhancing Pork Production for the Export Market.” It will be hosted by the Cebu Association of Meat & Poultry Products Multi-Purpose Cooperative (CAMMP) headed by their Chairman, Pluy Ong.

The convention will be a gathering of hog farmers (commercial and backyard) from all over Luzon, Visayas and Mindanao. It will feature a backyard hog farmers congress, which will be sponsored by B-Meg and San Miguel Foods, Inc.

The trade exhibits will have 125 booths and will showcase the latest veterinary products and innovative equipments. It will also feature a live hog exhibits. Another highlight of the event is the series of seminars on swine management and production and the eradication of common swine diseases.

The event is part of NFHFI’s mission to protect and promote the interest of the hog farmers as well as to enhance the opportunities for growth, efficiency, equity and sustainability of the 120–billion pesos hog industry.

The hog convention and trade exhibits are open to the public with no registration fee. (PR)