0% found this document useful (0 votes)
10 views

3. Input subsystem

The document discusses the various forces impacting the agribusiness environment, categorizing them into economic, social, and environmental factors that affect industry performance. It highlights the importance of agricultural inputs such as labor, seeds, fertilizers, and machinery in enhancing productivity and competitiveness, particularly in the Philippines. Additionally, it addresses the challenges faced in the input subsystem, including reliance on imports and the need for improved efficiency and sustainability in agricultural practices.

Uploaded by

compendiojoewen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
10 views

3. Input subsystem

The document discusses the various forces impacting the agribusiness environment, categorizing them into economic, social, and environmental factors that affect industry performance. It highlights the importance of agricultural inputs such as labor, seeds, fertilizers, and machinery in enhancing productivity and competitiveness, particularly in the Philippines. Additionally, it addresses the challenges faced in the input subsystem, including reliance on imports and the need for improved efficiency and sustainability in agricultural practices.

Uploaded by

compendiojoewen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 98

Agribusiness: Module 2

The Input Subsystem


Different forces in the agribusiness environment
affect the operation and performance of
agribusiness industries and commodity systems
❑ The agribusiness environment is complex and dynamic,
❑ shaped by various internal and external forces that affect the
operation and performance of agribusiness industries and
commodity systems.
❑ These forces can be broadly categorized into three main types:
economic, social, and environmental.
Different forces in the agribusiness environment
affect the operation and performance of
agribusiness industries and commodity systems
❑ Economic forces refer to factors that impact the
profitability and competitiveness of agribusiness
industries and commodity systems.
❑ the market conditions, policies, and regulations
❑ supply and demand dynamics,
❑ trade policies and agreements,
❑ subsidies and incentives, taxes and tariffs, and
❑ access to credit and financing.
❑ Changes in these economic forces can lead to:
❑ fluctuations in prices,
❑ production levels, and
❑ market access
Different forces in the agribusiness environment
affect the operation and performance of
agribusiness industries and commodity systems
❑ Social forces refer to factors that shape consumer preferences,
labor relations, and stakeholder engagement in the agribusiness
industry.
❑ cultural, demographic, and political factors

Examples:
❑ consumer attitudes toward food safety,
❑ animal welfare, and
❑ environmental sustainability,
❑ as well as labor laws and regulations,
❑ community relations, and
❑ corporate social responsibility.

❑ Social forces can have a significant impact on the reputation and


brand value of agribusiness companies, as well as their ability to
attract and retain employees, customers, and other stakeholders.
Different forces in the agribusiness environment
affect the operation and performance of
agribusiness industries and commodity systems
❑ Environmental forces refer to:
❑ the natural resources,
❑ climate conditions, and
❑ ecological impacts of agribusiness operations on the
surrounding environment.
Examples:
❑ These include soil fertility, water availability, and quality,
biodiversity, and the emissions of greenhouse gases and
other pollutants.
❑ Environmental forces can have significant impacts on the
productivity, resilience, and sustainability of agribusiness
operations, as well as on the health and well-being of local
communities and ecosystems.
Definition of terms:

❑ Productivity refers to the rate of output per unit of input. In


other words, it is the measure of how efficiently resources are
used to produce goods or services.
❑ Resilience refers to the ability of a system, organization, or
community to withstand and recover from external shocks or
stressors such as natural disasters, economic downturns, or
social upheavals.
❑ Sustainability refers to the ability of a system, organization, or
community to meet the needs of the present without
compromising the ability of future generations to meet their
own needs. This includes the responsible use of natural
resources, the protection of biodiversity, and the consideration
of social and economic factors in decision-making.
What are INPUTS?
What are Agricultural inputs???

▪ Important factors in attaining


farm productivity and product
competitiveness
▪ Determine product cost and
quality
Major Input Considerations
▪ Quantity of Inputs optimal quantity required
▪ Quality of Inputs Impacts on productivity or efficiency
▪ Timeliness of Application Specific requirements at each stage
▪ Cost of inputs Affects farm profitability
▪ Combination of various inputs Important in attaining growth and
quality
Is the Philippines sufficient in many
farm inputs?
▪ Developing countries are almost always
not sufficient in farm inputs
▪ Inputs/ingredients are imported
▪ Mixed with local materials
▪ Cost and availability of inputs affected
The Philippine Input Subsystem
Scenario
Three product groups
• Crops
• Livestock; and
• Poultry
Crops
Crops
❑ Land-intensive farm products
❑ Crop production increased for centuries
by increasing land area; this is not true
today and it is not possible for other
countries with few arable land areas
❑ Using existing land more efficiently is the
alternative to increasing land area for
production
❑ Irrigation availability and efficiency and
use of new seeds were observed to have
achieved a productivity increase
Major inputs needed for crop production

❑ Labor
❑ Seeds and planting materials
❑ Fertilizers
❑ Crop protection products
❑ Farm machinery and equipment
❑ Building and structures; and
❑ Irrigation
1. Labor

• As of 2021, the agriculture sector employs 23% of the


country’s workforce
• AB labor is characterized by the seasonality of pattern
• Highly disorganized and fragmented
• Concentrated mainly on plantation-type agribusiness
2. Seeds and Planting Materials

• Quantity of seeds per hectare (technical


recommendation)
• Poor quality seeds and poor management
leads to poor germination rate and poor
product quality
• Hybrid seed utilization is still very low
among farmers
2. Seeds and Planting Materials

• Quantity of planting materials depends on


planting density
• Higher planting density will yield higher
output; but lower yield per plant
• For perennial crops, planting materials
should be properly selected
Selected Seed Producers/ Importers
in the Philippines

Vegetables
• East West Seeds Company
• B.M. Domingo and Sons
• Pilipinas Kaneko Seeds Corp.
• Allied Botanical Corp.
• Harveson Enterprises
• Ramgo International Corp
• Crop King Chemicals, Inc.
• Harbest Agribusiness Corp.
Selected Seed Producers/ Importers
in the Philippines

Hybrid Corn
▪ Pioneer Hybrid Agricultural Tech.
▪ Ayala Agricultural Development
Corp.
▪ Cargill Seeds
▪ Corn World
▪ Asian Hybrid
▪ Bioseed
▪ UPLB Institute of Plant Breeding
Seed/ Planting Material
Supply System
• Supply system of seeds is generally
underdeveloped
• Supply of planting materials is mixed and
highly variable
▪ Source from own farms
▪ DOLE and Del Monte
▪ Culture Laboratories
▪ Nestle Technical Assistance Program
▪ University of Southern Mindanao
Fertilizer industry in the Philippines
▪ (def) any substance, solid or liquid, inorganic or
organic, natural or synthetic, single or a
combination of materials that is applied to the
soil or on the plant to provide one or more of the
essential nutrients to improve plant nutrition,
growth, yield or quality, or for promoting a
chemical change that enhances plant nutrition
and growth.
▪ (def) a chemical or natural substance added to
soil or land to increase its fertility.
Fertilizer industry in the Philippines

▪ Plays a key role in increasing crop production.


▪ It contributed to the improvement in crop yields over
the last four decades, especially in the 1970’s when
the country became a net exporter of rice.
Fertilizer industry in the Philippines

Philippine Standard Classification of Fertilizer Products


▪ Inorganic Fertilizer
▪ Organic Fertilizer
▪ Biological Fertilizer
▪ Soil Conditioner/Soil Amendment
▪ Plant Growth Regulator (Promoter)
Fertilizer industry in the Philippines

• Provide nutrients needed to attain production quantity


and product quality
• Low fertilizer use – Low farm productivity
• Low organic content of the soil
• Inadequate knowledge on importance of micro-
nutrients in soil
Fertilizer industry in the Philippines

Two subindustries
• Inorganic
• any fertilizer product whose major nutrients (NPK) are
supplied by inorganic/mineral or synthetic/chemical
compounds
• Bio-fertilizer
• Organic in origin
• generally driven by government policies
Fertilizer industry in the Philippines
❑ Fairly established fertilizer marketing
❑ Few government regulations
❑ Low import duties
❑ Fertilizer market is very competitive
❑ There are many players
Fertilizer industry in the Philippines

❑ Chemical fertilizers: importers and/or


manufacturers
❑ Fertilizer distribution:
❑ Traditional: Supplier-Wholesaler-Retailer
❑ Direct sale to large-scale users
❑ Tight competition among players
Fig. 1. Distribution channels of fertilizer in the
Philippines

31% 69%
Philippine Status: Inorganic Fertilizers

▪ Fertilizer suppliers of farmers are limited to local


dealers or cooperatives.
▪ Key players for the domestic production of
fertilizers involve 5 major fertilizer producers
manufacturing nitrogen-phosphorus-potassium
(npk) grades, namely:
(1) Philphos (Isabel, Leyte)
(2) AFC Fertilizer & Chemical Inc. (AFC)- Toledo City, Cebu
(3) International Chemical Corp. (INCHEM)- Bulacan
(4) Farmix Fertilizer Corp.- Batangas
(5) Soiltech Agricultural Products Corp.- La Union
Philippine Status: Inorganic
Fertilizers
▪ In 2016, there were 218 registered fertilizer distributors in
the Philippines.
▪ Majority (80%) of these distributors were located in
Luzon, of which 44% were located in the National Capital
Region (NCR). The other distributors were located in the
Visayas (16%), while a very small number of distributors
can be found in Mindanao (5%).
Supply of Inorganic Fertilizers
6 major inorganic fertilizer grades are available in the market:
▪ Urea (46-0-0); Ammonium Sulfate (21-0-0); Ammonium
Phosphate (16-20-0); Diammonium Phosphate (18-46-0);
Complete (14-14-14), and Muriate of Potash (0-0-60).
▪ Imported 69%; domestic production 31%

▪ In general, total supply increased at an annual growth rate


of 4.68%. Fluctuations were observed in both domestic
supply and imports.
Fertilizer Cost

The cost of fertilizers to farmers is relatively high


• High transport and handling cost

• Poor rural infrastructure and inefficient port service

• Small purchases of small farmers


Fertilizers - biofertilizer

❑ Policy- makers have been pushing for balanced fertilization


and the adoption of organic farming.
❑ Bio-fertilizer sub-industry is not well developed
❑ Still formative stage of organic farming in the
Philippines
❑ Planted in less than one percent of the total agricultural
land in the country
❑ Marketing and distribution of biofertilizers are simple
❑ The manufacturers or producers, in most cases, are
also the traders who distribute organic fertilizers
directly to customers such as other
traders/distributors and farmers
Fertilizers - biofertilizer

❑ Increasing loss of soil fertility


❑ Increasing use of by-products for organic fertilizer
manufacturing
❑ Increasing awareness of balanced fertilization
Major Fertilizer Markets
❑ Rice
❑ Corn
❑ Sugarcane
❑ Vegetables
❑ Cavendish banana
❑ Pineapple
On average, rice and corn used
about 38% and 21% of the total
fertilizer supply in the country,
respectively (How, 2015)
Crop Protection Products

• (def). Plant protection product means a pesticide


product intended for preventing, destroying, or
controlling any pest causing harm during or otherwise
interfering with the production, processing, storage,
transport, or marketing of food, agricultural
commodities, wood, and wood products (FAO, 2006).
Crop Protection Products
• Include insecticides, fungicides, and herbicides.
• Without crop protection, farm yield will be significantly
reduced, thereby reducing profit.
• The crop protection industry is dominated by foreign
brands.
• Sold by subsidiaries of multinationals or their agents
Major Users of Crop Protection
Products

• Cavendish banana
• Mango
• Onion
• Cabbage
• Asparagus
Crop Protection Products
• Based on the most recent data gathered, the utilization
of crop protection chemical products continues to
become more prevalent among Filipinos. The most
extensively used pesticides in the Philippines now
include insecticides, which account for 51% of the total
market: 21% herbicide, 14% fungicide, and the remaining
14% are others.
http://www.spik
ph.org/index.php?SID=&content=2&article=6#
Crop Protection Products
• Agricultural chemicals are used in crops such as rice, which
constitutes 3.3 million hectares of plantation area; corn
which constitutes 3.2 million hectares; pineapple which
constitutes 67,000 hectares of plantation area; and banana,
which constitutes 25,000 hectares of plantation area.

http://www.spik-ph.org/index.php?SID=&content=2&article=6#
Industry Key Players and
Distribution System
▪ Bayer Philippines
▪ Novartis
▪ Jardine
• Traditional system (Supplier-Wholesaler-Retailer)
• Direct sales to large-scale users
Farm Machineries and Equipment
• Generally include
▪ two-wheel or hand tractors

▪ four-wheel tractors

▪ Rice thresher

▪ Corn shellers

▪ Pumps

• Market for farm machineries is


highly influenced by farm
profitability
Sources Of Agricultural
Machinery Supply
• Agricultural machinery and equipment come from local
production and importation.
• Unfortunately, local manufacturers can only make small
machinery and equipment like power tillers, hand tractors,
palay threshers, husker-sheller, corn sheller, harvester, flash
dryer, rice mill, pumps, disc plows, disc harrows, poultry
and livestock equipment.
• These are manufactured in Bulacan, Pampanga, Tarlac, Los
Baños and Manila.
Sources Of Agricultural Machinery
Supply
• About 56% of these enterprises are in Luzon
(mostly are based in the National Capital Region),
8% in the Visayas, and 36% in Mindanao.
• The larger and more sophisticated machinery like
feed mill equipment, irrigation systems,
recirculating dryers, sugarcane equipment,
incubator, grain silo, tractors, etc. are imported.
Sources Of Agricultural Machinery
Supply
Local importers/distributors of agricultural machinery supply
Abomar Corporation Faires Machines (Phils), Inc.,
Alpha Machinery Ford Tractor Parts Supply
Century Ventures Corporation G.A. Manufacturing Co., Inc.
Chia Tung Phils., Inc. Golden Harvest Global Corporation
Kubota Agro-Industrial Machinery Phil. In L.A. Agro Industrial Technik

Magco, Inc. Manila Machinery


Netafim Philippines SEA Commercial Co., Inc.
Sime Darby Pilipinas, Inc. Uptown Industrial Sales
Zinvenco Industrial Sales Corporation
Key Players in the Ph Agricultural
Machinery and Equipment Industry

• Honda Philippines, Inc


• Jardine Agchem
• Kato International
• Kubota Agro-Industrial
Machinery Philippines, Inc.
• Kawasaki Motors Philippines,
Inc.
Farm Machineries and
Equipment

• Agricultural mechanization aims at


sustaining agricultural production by
bringing in more lands under
cultivation, saving energy and
resources, protecting the
environment, and increasing the
overall economic welfare of farmers.
• The use and application of these
inputs to farm production is one of
the management tools to maximize
farm production and profit.
Farm Machineries and Equipment

• During peak planting and harvesting seasons, labor


demand is very high.
• By mechanizing selected farm operations like land
preparation, family labor mostly employed in most farms
in the country may engage in other income-generating
activities on- and off-farm.
• Labor shortage during peak seasons of land preparation
and harvesting will also be addressed and timeliness of
cropping schedule will be achieved.
Problems, Issues and Concerns re
Farm Mechanization

1. Small Farm Size


2. Decreasing Supply of Hired Labor in the Farm
3. Innovative Machines vs. Market-Driven Machines.
4. other marketing issues
Problems, Issues and Concerns

Small Farm Size

This could be accounted to the partitioning of farms/holdings


from one generation of agricultural holders/operators to their
succeeding generation.
Small farm size is a big issue in agricultural mechanization
because it is against the principle of “economies of scale.” In land
preparation and harvesting operations, mechanizing small and
non-contiguous parcels of land might be inefficient.
Problems, Issues and Concerns

Decreasing Supply of Hired Labor in the Farm.


• Hired labor in the farm is decreasing owing to preference
of labor to employment opportunities in the urban centers
and abroad and high level of education and literacy in the
labor force.
• In rice production, labor costs represents around 60% of
the total input costs in rice production. Farmers therefore
have to mechanize in order to lessen costs and
dependence to the unreliable supply of hired labor in the
countryside while increasing crop productivity at the
optimum.
Problems, Issues and Concerns

Innovative Machines vs. Market-Driven


Machines.
- The overriding issue in developing
commercially successful machines is meeting
the market demands within acceptable price
levels.
Problems, Issues and Concerns

Innovative Machines vs. Market-Driven


Machines.
- The industry must be able to come up with
marketable machines, which could meet farmers’
operational needs at an affordable price.
• farmers need a variety of machines or mechanized
services, which may be beyond their purchasing
power. Research institutions have a tendency to be
preoccupied with innovations rather than be propelled
by a clearly perceived market demands.
Problems, Issues and Concerns

Other marketing constraints are:


▪ Seasonality of demand
▪ Prohibitive trucking and shipping rates
▪ Keen competition from imported products
▪ Irrational taxes, duties for raw materials and
fabrication machines;
▪ Lack of volume of demand
Problems, Issues and Concerns

Inadequate Technology Transfer Mechanisms.


▪ According to Khan (1991), efforts to mechanize
agriculture in many developing countries have been
directed towards introducing a variety of imported farm
machines.
▪ This import-based technology transfer strategy has not
been successful to small farm holdings.
▪ One reason could be the inappropriateness of the
technology to local farming conditions as most of these
machines were developed in countries with large farm
holdings.
Problems, Issues and Concerns

Extension workers are the key persons in


technology transfer.
• They need not only interpersonal communication
skills, but technical qualifications as well.
• With a very limited number of extension staff for a big
number of client-farmers, the result would likely end-
up in non-adoption of some technologies.
Problems, Issues and Concerns

Extension workers are the key persons in technology


transfer.
• Besides, these workers might be lacking the capability to
integrate the mechanization technology in the total
farming system.
• They too, might be lacking in trainings particularly dealing
with agricultural mechanization (Paras, 2005).
Problems, Issues and Concerns

The only means available for farmers to access machineries:


• credit facilities, common ownerships through cooperatives and
associations, and custom-hire arrangements with private
entrepreneurs.
However, employing these means continue to be minimal because of
the limited cooperativism and small number of entrepreneurs who
engage in the business (AMMDA, 2003).
Problems, Issues and Concerns

Policy Constraints
• One of the reasons for the proliferation of
imported equipment in the Philippines is the
adoption of liberal import policies and lack of
import restrictions on agricultural machinery.
• This is in addition to unstructured tariff and
taxation systems, which had negative effects on
the viability of the local agricultural machinery
manufacturing industry.
Research and Development Gaps
Lack of Appropriate Machinery.
• The mismatch between available
mechanization technologies and farmers’
need and farm conditions stems from
inadequate need assessment.
• Failure to identify the actual needs of the
farmers results in non utilization of machines.
Research and Development Gaps

• The influx of second hand imported machinery in the country is


becoming attractive to farmers due to its low initial cost.
• But repair and maintenance becomes a problem especially
when replacement parts are hard to find.
• Because these are imported, conditions for which the
machinery was designed may not be suitable to local
conditions.
Research and Development Gaps
• R&D has a bias against the development of appropriate
machinery for small farms.
• Scientists and engineers tend to create something that is
novel, without much regard to small farm applications.
• Development of appropriate machinery for small farm
applications is not as well recognized and rewarding as
creating a bigger, more complex machine (Paras, 2005).
Research and Development Gaps

Low level of Manufacturing Technology.


• According to Tramat Mercantile Inc. (Ong, 1993),
one of the constraints in manufacturing
equipment is lack of capital to produce
fabrication machines and quality products and
procure raw materials.
• Hence, most manufacturers are still in the “cut
and weld” system.
Research and Development Gaps

Low level of Manufacturing Technology.


• This system limits the capability of our machinery
manufacturers in designing and fabricating
machines, thereby affecting quality workmanship for
locally manufactured machines.
• Inadequate shop equipment, use of substandard
materials, lack of skilled workers and lack of training
on machine fabrication further limit the attainment
of a high level of manufacturing system.
Research and Development Gaps

Low adoption of improved postharvest


technologies.
• Several efforts have been exerted to design and develop
postharvest machineries specifically mechanical dryers
appropriate to local conditions and requirements.
• Mechanical dryers are available in the country, both
imported and locally fabricated, and suitable to a wide
range of capacities and systems.
• These have been developed to increase labor productivity
and efficiency in certain postharvest activities but have not
been adopted extensively.
LIVESTOCK PRODUCTION
• Comprises the following:
▪ Hog

▪ Cattle

▪ Carabao

▪ Goat
HOG PRODUCTION

• Inputs to swine production


include:
▪ Breeds
▪ Feeds
▪ Animal health products
▪ Farm structures and
equipment
BREEDS

▪ Most of the pigs in the Philippines are


descendants of various foreign brands
- Duroc, Landrace, and Yorkshire.
▪ Most philippine commercial farms are sow-
fattener operations
▪ They maintain sows that will produce the
piglets for fattening.
▪ Small backyard farms obtain their piglet from
commercial farms or local sources.
BREEDS

• Breeding farms require high


investments
• Breed selection is important
• good breeds deliver good production
performance in terms of daily weight
gains, feed conversion ratio, and fat-
lean meat ratio.
FEEDS

• Account for up to 80% of the cost of production


• Feed ingredients are a mixture of many products
▪ mainly corn, soybean meal, full fat soybean, fishmeal,
rice bran, wheat pollard, and other feed substitutes
▪ the proportion of which depends on the availability, the
price, and growth stage of the animal.
• Feeds can be in form of pellets, mash or crumble
FEEDS
• Major users of feeds:
▪ Hogs, followed by chicken broilers
• Feed purchase practices in Ph:
▪ Large farms mixing their own feeds
▪ Small scale raisers combine practices

▪ Use of food scraps and biomass

• Marketing system of feeds involved manufacturers,


wholesalers and retailers
FEEDS

• Feed industry is highly competitive


• trading margins are thin
• Price differences arise from product
differentiation and product quality
• Feed milling industry is well established
• Some millers are also integrators
• Involved in contract breeding and growing of
chickens
Some of the feed millers in the
PH
▪ San Miguel Foods B-Meg Division
▪ Swifts Food Corporation
▪ Purefoods Corporation
▪ Vitarich Corporation
▪ Universal Robina Corporation
▪ Purina Philippines
▪ Superfeeds Corporation
▪ Selecta Feeds
Animal Health Products
• Include the following
▪ Biologicals, pharmaceuticals and
feed additives
• Most are imported
▪ Among the established brands
are the multinational firms
• Marketing is similar to other
inputs
• Major players belong to the
Philippine Veterinary Drug
Association
Key players in the animal health
industry
▪ Bayer Philippines, Inc.
▪ Novartis
▪ Agri-Specialists, Inc.
▪ Agri-Bio Philippines, Inc.
▪ Pfizer, Inc.
▪ Univet Agricultural Products
▪ Inphilco, inc.
▪ Cordline Veterinary Product
Farm Machineries- Hogs
Production
▪ For commercial hog business,
includes feeding equipment:
▪ Hammer mills, mixers, water
servers and laboratory
equipment
▪ They are sourced either from
direct imports, local fabricators
or other suppliers
Building and Structures- Hogs
Production
• Design and specifications
suited to the growth stage of
the pig
▪ Sow
▪ Nursery
▪ Grow-out areas
▪ Ventilation systems
▪ Water systems
▪ Waste disposal systems; and
▪ Waste treatment plans
Major Inputs to Cattle Feedlot

▪ Feeder cattle
▪ Roughage and forages
▪ Feed concentrates
▪ Animal health products
▪ Farm machineries
▪ Building and structures
Feeder Cattle
• Feeder Cattle
• Sourced from cattle ranchers and imports
• Cattle ranching have been a challenging
venture because of unfavorable factors:
• Lack of security in pasture leases
• Squatting in pasture lands
• Peace and order
Roughage and
Forages
• Comprise the bulk of the cattle
ration
• Many buy from farmers, some grow
their own
• Most common roughage:
• Sugarcane tops, Napier grass and
corn plant
• Either fed fresh or stored for silage
• Important: supply is not too far from
the feedlot
Feed Concentrates
▪ Provide vitamins and minerals to animals
▪ Generally either imported or mixed locally by suppliers.
▪ Purchased through direct imports, arrangements or from
distributors
Animal Health Products
• In the swine industry
▪ Biologicals
▪ Pharmaceuticals
▪ Feed additives
• Increasing use of growth hormones
• Claimed to increase daily weight gain
Farm Machineries and Equipment-
Cattle Feedlot
• Include water supply equipment
• Tractors for manure disposal
• Weighing scales
▪ Are bought from suppliers and distributors, or
imported
▪ Structures are fairly simple and open buildings
Poultry
• Domesticated birds kept
for eggs or meat.
Poultry Input System
• Breeds, feeds, animal health products,
farm machineries, structures/
housings and runs
Contract growing arrangement
• The company supplies the day-old
chicks and provides other needed
inputs as well as technical assistance
• The grower provides the housing,
labor, medication, equipment and
utilities
Poultry Input System
Species and Breeds Species and Breeds
• The most important species
– In the last 50 years, there
in the tropics are: has been a great advance in
• Chicken
the development of hybrid
• Guinea fowl
breeds for intensive
• Ducks
commercial poultry
• Pigeons
production.
• Turkeys and geese
– The hybrids have been
carefully selected and
specialised solely for the
production of either meat or
eggs.
Poultry Input System
Feeds
Poultry diets are formulated from a mixture of ingredients, including:
▪ Cereals and cereal by products (millets, sorghum, maize, rice,
dehulled rice grain
▪ Fats
▪ Plant protein sources (legumes- soybean, cowpea)
▪ Animal by-products (blood meal, termites, maggots, earthworms)
▪ Vitamin and mineral supplements
▪ Crystalline amino acids and
▪ Feed additives
Poultry Input System
In terms of cost, feed is the most important
input for poultry production and the
availability of low-priced, high quality feed
is critical for the expansion of the poultry
industry.
Poultry Input System
Housing and runs
▪ If poultry are to achieve their genetic potential for meat
or egg production, they need and environment that
meets their physiological requirements. This includes:
▪ A suitable physical environment in terms of temperature,
humidity air movement and the surfaces on which they
live
▪ Adequate food and water
▪ Minimal exposure to disease organisms and avoidance
of exposure to stress resulting from the physical and
social environment.
Poultry Integrators in the
Philippines
▪ San Miguel Foods
▪ Swift Foods
▪ Vitarich Corporation
▪ Purefoods Corporation
▪ RFM Corporation
▪ San Miguel Corporation
▪ Ayala Group
▪ Bounty Fresh Chicken
▪ Foster Foods Inc
End of topic
• DOI: 10.12719/KSIA.2017.29.3.242

• Problems and Issues and Constraints


• Reference:
• DOI: 10.12719/KSIA.2017.29.3.242

• http://scinet.dost.gov.ph/union/Downloads/BS%2
0Agricultural%20Mechanization%20in%20the%20P
hilippines_beta_361500.pdf
Quiz- March 13, 2023

FOR BOTH SETS (A&B)


1. (5 pts) Discuss the different forces in the
agribusiness environment affecting the operation
and performance of agribusiness industries and
commodity systems
2. (5 pts) discuss the Philippine Input Subsystem
Scenario based on our discussions.

You might also like