1. Feed Demands around the World

World’s human population is constantly growing, so the food requirements to feed these people is also on the rise. Besides more and more people possesses improved affluence, which also leads to higher needs for animal products, such as eggs, milk, meat, etc. It is estimated that majority of world’s population–10 billion or so will be living in cities and towns by 2050. Compared with the food produced today, feeding these people will need a 70-100 percent increase in the amount. Apart form this, an estimated additional 1,305 million tonnes of grain will also be required, among which 40% will be used for feeding livestock. The reason to this increase is the estimated substantial increases in poultry production. This phenomenon is proved to be true in many countries in the Asia-Pacific region, including the Philippines. Just like other countries, the demands for those feed crops are constantly expanding, the reason why for this can be interpreted to the rising incomes, rapid urbanization and changes in consumer preferences.
2. Increase of Livestock Production
Philippines’ livestock and fishery production increases fastly during the past decade for the growing requirement for quality and safe food products. Livestock production is one important part of Philippines’ agricultural economy. Livestock are referred as a walking bank for many farmers because the sales of livestock and its products could increase cash income. The output of carabeef, beef, chevon, goat, chicken, duck and fishery products all increased steadily, which can be seen from the figure below.

volume_of_production_of_livestock_and_poultry

Agriculture output in Philippines in 2013 increased 1.2% to P1.5 trillion and gains were distributed in the livestock, fisheries and poultry sub-sectors. According to Agriculture-Bureau of Agricultural Statistics(DA-BAS), value of agricultural output was 3.5% higher than in 2012. For the increase of cattle and hog production, livestock subsector increased by almost 2%, which represents 16% of total output. While poultry grew by 5% on account of higher chicken output, chicken eggs and duck eggs, which represents 15% of agriculture. Owe to the risen milkfish production and tilapia output, fisheries subsector grew by 3.4%. Value of the fisheries sector increased by 2.8% from 2012, which earns P239.1 billion.

growth_of_chicken_eggs__milk_and_aquaculture

3.Structural Changes in the Livestock Sector
3.1 Pig Sector
As the second largest commercial agrifood industry in the Philippines, pig farming generated approximately 16% of agriculture and forestry sales in 2006. Considered as the most referred animal product in Philippines, pork keeps as a popular livestock commodity. Pork has constantly accounted for over 55% of total daily animal meat consumption of Filipinos during the past decade. One significant structural change in pig sector is the growing intensification of pig production in urban and peri-urban areas, the reason is owing to the constantly growing requirement for animal proteins in general and pork in particular. As of July 1, 2013, the country’s total swine inventory is estimated at 11.88 million head. Hog output reached 956.25 thousand metric tons liveweight during the first half of 2013, which is 2.4% higher than last year’s level– 934.19 thousand metric tons liveweight. According to estimates, almost 64% of pig inventories were raised by backyard farms while 36% were by commercial farms.
3.2 Poultry Sector
Poultry industry witnessed a steady increase over the past years and made great contribution to agriculture production, which makes it one of the most vibrant animal industries in Philippines.
3.2.1 Broiler
Because of the increasing household consumption, the requirement of industrial buyers like fast-food chain owners as well as its potential prospect as a export product for chicken meat expands rapidly. Poultry sector had showed strong growth both in value and volume from 2000 to 2013. Poultry is often defined as chicken production, providing meat and eggs. As the source of meat and eggs, chicken ranks first in terms of economic importance. From2004 to 2011, share of broiler sector output increased from 46% to 59%.
3.2.2 Ducks
In terms of as sourcing of eggs and meat, duck ranks second in Philippines. Total duck population reached 10.06 million birds as of July 1, 2013. In 2013, annual volume of duck output was 34.46 metric tons. Egg production increased form 39.7 metric tons in 2012 to 41.07 metric tons in 2013.
3.3 Aquaculture Production Sector
As for the majority of Filipino, fish and seafood represent a significant source of protein, which occupies 41% of animal protein intake. According to the Country STAT Philippines, The total output value of aquaculture production in 2013 increased to 93,949mill pesos, accounting for over 0.74 percent of GDP. Aquaculture sector,s contribution to GDP can be seen below. In 2014, total volume of aquaculture output was 2,337,604.94 metric tons, among which 66.29% is seaweed and the rest is mainly fish and shrimp. The most important finfish and crustacean species cultured are milkfish, tilapia, carp, prawn, oyster and mussel which represented 16.69%, 11.09%, 0.72%, 2.17%, 0.96% and 0.8% of total aquaculture production respectively.

Contribution_of_aquaculture_production_to_Gross_Domestic_Product_and_Agricultural_Gross_Domestic_Product

4. Feed Milling Industry
The beginning of local feed milling industry can be dated back to the early fifties when foreign breeds of poultry and livestock were imported to Philippines, which makes the importation of mixed feeds became an necessity. Later the establishment of feed mills ends the feed importation. Small feed mills first were built up in the vicinity of Metro Manila. At that time feed mills mix import feed concentrates with local feed grains. With the growing demands of mixed feeds, feed millers found methods to improve technology and limit importation to some feed ingredients that were not locally available, such as protein meals.
561 feed mills were registered with the Bureau of Animal Industry (BAI) to the date of December 31, 2012. Among which 493 were mixed-feed manufacturers while the rest were feed ingredient manufacturers.

registered_feed_establishments_in_Philippines

In 2012, total output of registered feed millers was estimated at 1,482,801 metric tons. But industry sources considered that combined capacity of all feed mills in Philippines at 26,674.58 metric tons per year.

Related Equipment: Dry Type Fish Feed Pellet Making Machine

Wet Type Fish Feed Pellet Making Machine