INVESTING in new technologies is necessary to boost the country's livestock, poultry and dairy production, according to two studies released by state-run think tank Philippine Institute for Development Studies (PIDS).
The study conducted by PIDS senior research fellow Domingo Sonny, former supervising research specialist Maureen Ane Rosellon, senior research specialist Pauline Joy Lorenzo and research specialist Arvie Joy Manejar assessed the country's livestock, poultry and dairy industries through domestic benchmarking.
"Many investments must be poured into production and process improvements, including technology, equipment, animal inventory and manpower capacity upgrades for the agriculture industry to be more competitive," the study published by PIDS said.
According to the study, support services provided by the government, private sector and nongovernment organizations allow various roles in the value chain to function.
It noted that the country still relies on imports despite the livestock, poultry and dairy products contributing to one-third of the agriculture's total output based on the data from the Philippine Statistics Authority.
"Pork import dependency showed an increasing trend in value from 2012 to 2018. Dressed chicken imports are significantly higher than exports and local milk production constitutes only 5 percent of the total milk demand," the PIDS said.
"Processing consolidation of backyard operators under farmer organizations can be an opportunity to transform the livestock, poultry and dairy industries, as these organizations serve as the main conduit for capacity augmentation, technology transfer and delivery of regulatory and other services," the authors added.
Another study conducted by PIDS senior research fellow Roehlano Briones and research analyst Isabel Espineli released similar recommendations.
"The technical assistance provided to farmers' organizations should also focus on business development and adoption of digital technologies, especially in e-commerce, supply chain traceability, animal health monitoring, and so forth," Briones and Espineli said.
Both researchers underscored the need to undertake a comprehensive review of trade policies affecting the value chain of the livestock, poultry and dairy sectors.
"Trade policies should be carefully recalibrated toward greater efficiency and equitable treatment of stakeholders," they said.
Both studies noted the Philippines' failure to take advantage of export-driven industrialization.
They pointed out the country missed a phase in the structural transformation process by quickly shifting from an economy-based agriculture to one that is driven by services.
The sector's inability to move up the value chain was caused by policy inconsistencies that encouraged import substitution as well as foreign exchange, the studies added.
"For example, corn accounts for 50 percent of swine and poultry feed but local corn is more expensive than imported corn, prompting commercial producers to prefer importation. While high tariffs on corn seek to protect local producers, they raise feed cost which is the highest among all operating expenses, thereby increasing the overhead cost," the researchers noted.
The studies added that opportunities in the sector may increase if the government pursues connectivity initiatives like strategic farm-to-market roads while expanding investment in agriculture-related infrastructure projects, such as improved biosecurity measures, production and postharvest facilities; and processing and marketing outlets.
They also emphasized the need to strengthen the institutional oversight of regulatory compliance, food safety and standards, and animal welfare at the national and industry levels.
