Cheap feed ingredient facilities to rise in PH by Q4 | Inquirer Business

Cheap feed ingredient facilities to rise in PH by Q4

supply chain


MANILA  -The Department of Agriculture (DA) is planning to complete by the fourth quarter of this year two facilities worth P100 million that will manufacture protein-enriched copra meal (PECM), which is being touted as a cheaper animal feed ingredient.

DA’s National Livestock Program (NLP) director Ruth Miclat-Sonaco said the agency has earmarked P50 million each for the two plants: one in Batangas province and another in North Cotabato.


Two more projects, also with a budget of P50 million each, were lined up for next year, Sonaco said.


“The facility, the equipment … [the co-ops] have to put up. That is what we are after, that we can help farmers reduce the feed cost,” she said. “We have to produce by the fourth quarter the PECM, the product.”

According to the official, the DA is looking for feed alternatives to alleviate the impact of soaring prices of raw materials for feeds which, as a result, had jacked up retail prices of pork and chicken products.

The NLP is implementing the project to accelerate the commercialization of the PECM as a locally available feed ingredient to replace imported soybean, a feed ingredient for livestock and poultry.

Soya is currently around 20 to 40 percent of the feed mix ratio, according to Sonaco.

PECM, as stated by the DA in a previous memorandum circular, can be 30 percent cheaper than soybean meal, making it more affordable for animal raisers.

The agency issued the directive last year as the pandemic, exacerbated by Russia’s invasion of Ukraine, made it more difficult for countries worldwide to import feed ingredients such as soybean meal, feed wheat and corn.


Combined, Russia and Ukraine account for 30 percent of the global supply of feed grains.

“Moreover, the damage to the loading facilities in the US due to the cyclone has resulted in a shortage in the supply of soybean meal which resulted in the unprecedented spike in prices,” the memo read.

In a related development, Sonaco said the poultry sector was recovering despite the challenges caused by the higher cost of farm inputs, such as feeds and fuel, and the bird flu outbreak.

“Even if they cull, their recovery is fast. The culprit now is really … feeds. Our feeds are quite expensive,” she said.

In a report submitted to President Marcos, who is also Agriculture Secretary, the DA said poultry production was projected to reach 2.08 million metric tons (MT) this year, an increase of 5 percent from 1.97 million MT last year.

Total supply is estimated at 2.15 million, while demand is seen at 1.60 million. INQ


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TAGS: Department of Agriculture, facilities, feeds

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