PINOYAGRIBUSINESS

LIVESTOCKS => CATTLE, CARABAO, GOAT & SHEEP => Topic started by: mikey on March 25, 2008, 05:34:44 AM

Title: Cattle News:
Post by: mikey on March 25, 2008, 05:34:44 AM

The Cattle Industry of the Region
 

I.  Industry Structure
Scope of the Industry
Beef Cattle is under the Major Division A. Agriculture, Hunting and Forestry, Division 02. Farming of Animals, Group 022. Livestock Farming (Except Hogs), Class 0221. Beef Cattle Farming (Including Feedlot Fattening)

This group includes farming of domestic animals such as carabao, cattle, sheep, goats, horses, assess, mules or hinnies, including provision of feedlot services.

Source: Philippine Standard Industrial Classification (PSIC), NSO

Products and Linkages
Cattle and intake specifications
One most important factors in the cattle industry operation either feedlot fattening and ranching is the intake specification of cattle. The intake specification should fit the demand or market preference and most importantly the ability of the animal to perform under the Philippine conditions and these include, breed selection, brand, sex, age, weight and price.

     1.1.  Breed Selection

The breed of cattle, either for fattening or breeding, is one of the most important intake specifications as it affects the operation, management, market preferences and most of all the profitability of the industry

The availability of hybrid vigor and bloodline crosses should be taken advantage by the cattle raisers. A tropical born or raised cattle requires less management skill than the non-tropical raised cattle.

1.2   Brand 

The brand of cattle is likewise important. There are at least 195 breeds of different brands of cattle today. Most commonly raised in the country are Brahman, Brangus and Simbrah. Familiarity in raising these animals affects management and profitability.

1.3. Sex 

Sex of animals is selected on market suitability and contribution to profit. Heifer can grow and convert nearly as well as Steers, which have low buying price at source. Bulls can also be fed profitably. Cows are more difficult to feed and have low feed conversion rates and higher death rates.

       1.4. Age   

In cattle operations, while age of the animal is important, it is the weight for age that affects performance to a greater extent. This holds true most in feedlot operation. Age influences tenderness, fat deposition, feed conversion, and growth rates. Age of the animals is also market driven. 

1.5. Weight 

Cattle of lesser weight than what is supposedly standard upon entry require improved feeding performance. It means, feeding the animal longer. Feeding cattle that are too light on induction or entry has a profound effect on profits as it reduces the number of stock turns.

1.6.  Price   

Market forces set intake price per kilogram of live cattle but this has to be balanced with class and quality of cattle and its ability to perform under the Philippine condition. 

Other intake specification of varying degrees of commercial importance are color, butt shape or muscle score, muscle bone ration, bone shape, horns and appearances

2.      Ration 

Rations or feedstuff are animal food that are commonly used and source out or grown locally. Commonly used feedstuff are  the following : 

2.1. Forages and Farm By Product Roughage

Forages are grasses or legumes usually grown in the grazing areas or field. The factors that determine the feeding value of forages are the seasons of the year and geographical location. During rainy season, the water contents of forages run as high as 90 percent diminishing the nutrient contents. Tropical forages require intensive management to obtain maximum quantity and quality of digestible nutrients. One of the commonly used forages among ranchers today is Napier grass 

Corn as forage is not yet widely used and practiced in the country and the region as well. Some big companies like the Del Monte Philippines, Inc., used corn as forage on a limited scale only.

Generally, farm by-products have low feeding value and can only be fed to certain levels. Farm by-products that may be fed are corn stover, sugar cane tops, weeds from cropland, rice straw and ipil-ipil leaves, among others. 

2.2. Water 

The water needs of animals are influenced by several factors such as type of diet, feed intake. Environment temperature, rate and composition gain, pregnancy, lactation and activity. Mature cattle are provided with 40 liters of water daily. 

2.3. By Products Concentrates 

The by-products of industrial and cereal grains processed for human consumption constitute the bulk of concentrates for feeding cattle. These could serve as supplement to forage and roughage for well-balanced rations. The commonly by-products concentrates are rice bran, wheat pollard, corn bran, copra meal, corn gluten feeds, molasses, pineapple pulp, soya meal and cottonseeds.

3.      Transportation 

Transportation is also vital to the cattle industry. There are two types of transportation used in transporting the animals. Prime mover vehicle mounted with cattle holding pens where cattle are keep in place while on travel are used primarily to transport animals in mass or in numbers. Cargo ships are also used in transporting live animals from one port to another port in the country. The feedlot operator for the transport of their product charters the ships.

4.      Breeding Supplies, Materials and Equipment 

Availability of the breeding supplies, materials and equipment are most important for the success of cattle farming, especially in breeding and production. These should be made readily available as this defines the success and failure of the industry. The following is the list of breeding supplies, materials and equipment. 

      List of Breeding Supplies, Materials and Equipment

Breeding Practice
 Supplies, Materials and Equipment
 
Natural Breeding
 Breeding Bulls
Cows or Heifers
Breeding Chutes or Pens
 
Artificial Insemination
 Cows or Heifers
Liquid Nitrogen Plant
Mother LN Tanks
Field LN Tanks
AI Guns
Semen
Breeding Chutes or Pens
 
Embryo Transfer
 Recipient Cows or Heifers
Frozen Embryo
ET Equipment and Supplies
 

5.      Operation

There are two major components in cattle raising, namely, ranching and cattle fattening;           

5.1.  Ranching 

Ranching operation is characterized by raising cattle in extensive, native or sown pasture for the purpose of producing breeder and feeder stocks. Breeding and production is done in open field or pasture area. It is also known as cow-calf operation that includes calving, weaning, branding, de-horning, and castrating. Breeding is done either by artificial insemination or by natural method. 

5.2.  Fattening 

In cattle fattening, animals are raised or fattened in close and confine quarters. Rations are given right through its quarter. Fattening operation takes four to six months and finished cattle for marketing approximately weights between 450-550 kilos.

 

6.      Slaughterhouse and other support facilities 

The bulk of the animals in the region are slaughtered in government-run or operated abattoirs. These are located mostly in the municipalities and cater primarily to the needs of the locality. Most of these slaughterhouses are non-accredited and have inadequate facilities. Some private firms, however, have its own slaughterhouses to serve its own purposes. 

The absence of triple A slaughterhouse, cold storage and blast freezing facilities in the region prevented the industry to embark into high value production and processing. More so, the absence of these much-needed facilities negates the investment of the cattle raisers in genetics and nutrition.

7.      Outbound Logistics 

      7.1.  Product 

The product is a live cattle at an average weight between 450-480 kilograms for feedlot-finished cattle.

      7.2.  Supply 

Supply of cattle in the country for the year 2000 remained almost the same due to insignificant increment in calf-drop and large reduction in live imports. Total supply stood at 3.33 million heads, up by only 0.41 percent from last year’s head count of 3.32 million. 

About 24 percent of the total supplies were slaughtered for meat purpose while 0.8 percent was due to death and losses. Total cattle sold and slaughtered grew by 0.12 percent while death and losses declined by 11.15 percent compared to previous years. Despite large reduction in deaths, low calf drop resulted to low level of ending stocks, which recorded an increment of only 0.65 percent. Table I. 

Table I. Supply and Disposition, Live Cattle, Philippines, 1999-2000, In Thousand Heads.

Items 1999 2000 Percent Change

Total Supply 3,321.06 3,334.63 0.41

Beginning Inventory 2,425.90 2,478.70 2.18

Born Alive 658.28 659.15 0.13

Imports* 236.88 196.78 -16.93

Disposition 842.36 839.73 -0.31

Slaughtered/Sold 810.16 811.12 0.12

Death/Losses 32.20 28.61 -11.15

Ending Inventory 2,478.70 2,494.90 0.65

       Source: Bureau of Agricultural Statistics                * Bureau of Animal Industry

In Region 10, total number of live cattle sold had increased for the past four years. It reached to 97, 244 heads in 1999 from 75,628 in 1998 or 28.58 percent change from the previous year. Of the total number of cattle sold in 1999, 45.73 percent or 44,473 heads were shipped out or sold to other regions. Table 2.

       Table 2.  Number of Cattle Sold, Region 10, 1996-1999.

Item 1996 1997 1998 1999

Shipped-out  20,431  33,941  36,461  44,473

Slaughtered  34,855  38,900  39,167  52,771

Total Sold  55,266  72,841  75,628  97,244

       Source: Bureau of Quarantine, Department of Agriculture, Region 10.     National Meat Inspection Commission

7.3. Farmgate Price as of CY 2000

     The annual average farmgate price of live cattle in year 2000 was P 47.89 up by 9.94 percent from the previous year of P 43.56.

      7.4. Sales

Total sales of live cattle of the country in year 2000 amounted to P 38,844,536 million. It is P 3 million higher over last year’s sale of P 35,290,569 million. Region 10, on the hand, had a total sale of live cattle in 1999 in the amount P 4.2 million.

C. Number and Size of Firms

The Federation of Cattle Raisers Association of the Philippines in its 1999 of June report (The Beef Cattle Industry, Situation, Challenges, Opportunities and Strategic Direction) had 536 member-ranchers all over the country. However, reports on their status, performance or operation are presently not available.

In 1999, the region had a total of 88 commercial cattle raisers (feedlot and ranch operators). Today the number has reduced to 25. Table 3.

Table 3. Number of Commercial Cattle Raisers, Region 10, 2001.

Province  1999*  2001**

Bukidnon  73  18

Misamis Oriental  15   7

Total  88  25

Source: * Department of Agriculture 10   ** Federation of Cattle Raisers Association of the Philippines, Cagayan de Oro City

 As of 2001, the region had a total of only 47 active pasture leaseholders or 17 percent from the total of 281 leaseholders. Twenty-nine of these had expired permits which are still subject for renewal while the majority of the holders, 72.95 percent or 205 had cancelled permits. Reasons as to the cancellation of permits were not made available in the report. Table 4. 

Table 4. Status of Pasture Leaseholders, Region 10, 2001.

Status
 Number
 
Active leaseholders
 47
 
With expired permits*
 29
 
With cancelled permits
 205
 
Total leaseholders
 281
 

Source: Department of Environment and Natural Resources, Region 10           * Subject for renewal

 Bukidnon, which has the largest cattle population in the region, has 26 pasture leaseholders; Misamis Oriental has 12 and Misamis Occidental 9 holders to a total of 47. Table 5.

 Table 5.  Number of Pasture Leaseholders, Region 10, By Province, 2001.

Province
 Number
 
Bukidnon
 26
 
Misamis Oriental
 12
 
Misamis Occidental
 9
 
Total
 47
 

Source: Department of Environment and Natural Resources, Region 10

The number of commercial firms, which are into cattle breeding and production remarkably, went down in the last decade. Some had limited their scale of operation while others temporarily closed their operation. The decline in their numbers would indicate a corresponding decrease in the breeding base and a subsequent drop in domestic sources for fattening calves. The feedlot operators suffered also the same fate, as there was less supply of fattening calves coming from the domestic sources or the ranchers.

D. Key Players in the Sector

The key players in the sector are: 

·        The Federation of Cattle Raisers Association of the Philippines (FRACP) is the main umbrella or group of cattle raisers who are into cattle breeding and production.

·        The Cattle Feedlot Association of the Philippines (CFAP) is also the main group of cattle raisers who are into cattle fattening.

·        Local Government Units Support of the Local Government Units to projects such as outgrows and customized feeding program is necessary for its success.

·        National Government Agencies, Agricultural State Colleges and Universities,

·        Research Institutions and

·        Government Financial Institutions

E.  Entry Barriers

Capital Requirement
Cattle breeding and fattening requires a big capital outlay. The lack of capital prompted some cattle raisers to close down.  Others limit their scale of operation. 

There is only one government financial institutions in the region 10 today, which have special window for cattle breeding and production. Low collateral value of agricultural land prohibits cattle raisers from securing additional or fresh capital from the financial institution.

 

Access to Necessary Inputs
Access to inputs especially on breeding stocks of hybrid vigor or bloodlines crosses are difficult and expensive to obtain. Most backyard raisers, which comprises 92 percent of the total cattle inventory estimates in the country today, have difficulty or have little access to breeding bulls.

Breeding supplies, materials and equipment on one hand are limited. Facilities such as liquid nitrogen plant, research laboratory and testing centers needs improvement

Government Policy
The government policy on ancestral domain, the comprehensive agrarian reform law, the management of pasture leased lands and the increase in pasture lease rentals, among others, are some government policies that affects the development of the industry.

 

Title: Re: Cattle News:
Post by: mikey on March 27, 2008, 07:05:26 AM

Sec. Schafer Addresses Cattlemen On Global Trade, Farm Bill, Ethanol Policy




Reno, Nev. (Feb. 8, 2008) - Newly confirmed Agriculture Secretary Ed Schafer addressed the Cattle Industry Annual convention today in Reno, Nev. While there is less than a year left in President Bush's term, Schafer made it clear he has no plans to be a "caretaker" at USDA.

 

“When I visited with the President,” said Schafer, “and we had the conversation about me becoming the Secretary of Agriculture, he said, ‘Ed, I want you to weigh in on trade issues – this is important.’  He asked me to get involved, and I certainly will.”

 

Schafer reported that while there is still much work left to do, U.S. beef is regaining global market share thanks in part to the World Organization for Animal Health (OIE) “controlled risk” designation for BSE.

 

“With that rating in hand, we’ve been able to open markets for American beef that have been previously closed to us,” said Schafer.  “Once those markets are open, we see that our export sales grow rapidly as consumers respond to the quality of American beef.  In fact, we expect our exports of American beef for 2007 to total more than $2.6 billion – up over 30 percent.”

 

Schafer named several promising markets that recently opened, including Russia. 

 

“Just in the last couple of months, Indonesia, Barbados, and the Philippines have all agreed to open their markets to U.S. beef under OIE guidelines.  And we have resumed beef shipments to Russia,” said Schafer.  “And we expect to see continued growth in that market.”

 

The Secretary was also optimistic that progress will be made with Korea and Japan.

 

“We’re also very interactive with Korea, and I believe we have reasons to be optimistic. We look forward to working with the incoming (Korean) administration to achieve full reopening of this important market as soon as possible,” he said.  “And we will continue working with the government of Japan at the highest levels to bring their market into full OIE compliance as well.”

 

On the topic of the 2007 Farm Bill, Schafer addressed the Administration’s ongoing concerns. He said without fixing, the new Farm Bill could be vetoed.

 

“The administration has serious concerns about both the House and Senate versions the bill.  We simply don’t believe that programs in the Farm Bill should be funded by tax increases on the rest of our country."

 

But Schafer acknowledged that there are many good things in the Farm Bill, including increased conservation funding.

 

“One good thing is increased funding for conservation programs that both the House and Senate would provide,” he said.  “Programs that help farmers and ranchers in non trade-distorting ways - while bringing environmental benefits to the broader community - are important.”

 

On the subject of Country of Origin Labeling (COOL) for meat, Schafer agreed that the Farm Bill makes COOL more workable.

 

“Both the House and Senate versions of the Farm Bill include language that would make it easier to comply with the country-of-origin labeling requirements, and I know that’s something you all have worked very hard to bring about.”

 

The Secretary recognized the growing frustration among cattlemen with the nation's energy policy, and especially its impact on grain prices. But he says development of cellulosic ethanol sources shows great promise. 

 

“For today and tomorrow, the growing demand for ethanol is likely going to mean that corn prices are going to stay higher than what you want them to be,” Schafer acknowledged.  “As we move to non-feed sources to generate our energy, it will stop distorting the prices of your feed.”

 

About 5000 cattlemen from across the nation are attending the Cattle Industry Annual Convention, which runs through Saturday. Further news updates from the convention are available at

Title: Re: Cattle News:
Post by: mikey on March 27, 2008, 07:20:27 AM

IMPACT OF PSYLLID IN THE PHILIPPINES

The psyllid has affected the more intensive smallholder beef producer, where Leucaena is the most valuable component of the animal feeding system. A survey in Malimatoc, a village in the town of Mabini, Batan-gas province, where cattle raising is the primary enterprise in the villages and with Leucaena as the main crop for animal feeding showed the following results (Moog and Sison, 1986).

The foremost problems caused by the infestation were stunted growth and death of plants and feed shortage. The infestation resulted in reduced feed supply so farmers resorted to feeding other plant materials such as banana leaves and trunks, corn stover, coconut fronds, etc. However, with the lower feeding value of these substitute materials, most of the animals became weak and susceptible to diseases. About 74% of farmers reported that their animals became sick and four of them reported death of animals. The majority of the farmers (83.9%) reported loss of profit (Table 2).