Philippines government invests in 2 feed mills

Philippines government invests in 2 feed mills

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In the Western Visayas region, the first local government-operated feed mill is ready to start production. Meanwhile, plans have been announced for the construction of another new facility in Mindanao.

A new feed mill constructed in the Philippines town of Sibalom has started commercial milling operations.

According to the Philippine News Agency (PNA), the facility is milling corn, soybean and rice bran for a fee of PHP2 (US$0.04) per kilo. Expectations are that it will produce complete feeds for sale to poultry and livestock owners in the near future.

At a cost of PHP7.5 million, the facility has been funded by the Department of Agriculture’s Bureau of Animal Industry. It will be managed jointly by the local government and the town’s farming organization, the Sibalom Livestock and Poultry Raisers Association. In time, its 500 members and non-members will be able to purchase quality feeds at similar prices to commercially available products on the market. So far, purchase of the necessary raw feed ingredients is not covered by the available funding, reports PNA.

A province in the region of Mindanao, Lanao del Norte is also set to benefit from a new feed production facility. PHP1.4 million has been committed by the Department of Science and Technology for the construction of mill in Kauswagen, according to PNA last month. The sum will cover the costs of a grinder, mixer, pellet press, and quality control equipment. Main raw materials will include soy as well as local yellow corn, coconut oil, copra and byproducts. Scheduled for completion at the end of next year, around 200 local farmers are expected to benefit from its output.

Recent trends in the Philippines feed industry

Latest analysis from the report from the U.S. Department of Agriculture (USDA) Foreign Agricultural Service (FAS) points to two diseases holding back demand to livestock feeds in the Philippines. The coronavirus (COVID-19) pandemic and African swine fever (ASF) are constraining the expansion of the sector in the Southeast Asian state, according to FAS.

With strong growth forecast in local production of key ingredients corn and rice, FAS forecasts significantly lower requirements for imports of these materials into the Philippines, as well as for wheat this year. Although final figures will depend on favorable weather conditions in the country through the harvest, planted areas and yields are expected at or near record levels.

On the other hand, demand for corn will be “under pressure,” forecasts FAS. Corn is a key ingredient in the country’s poultry feeds. As a result of lower demand during the pandemic, the nation’s broiler production in 2020 was as much as 10% below the year-earlier level. A recovery of only around 2% is forecast for this year.

Meanwhile, the impacts of ASF on the Philippines hog population will likely continue to the end of 2022, according to FAS. Initially hitting key pig producing regions of Luzon, the infection subsequently spread widely to Mindanao and the Visayas. As the main grain in pig feeds in the Philippines, FAS foresees the country’s wheat demand for this application impacted until the end of the marketing year (to June 2022).

To meet demand, a subsequent FAS report revised its estimates of pork imports by the Philippines upwards. On the other hand, it has recently lowered its chicken meat import forecasts for this calendar year.

Top feed company in the Philippines

According to the Feed Strategy Top Feed Companies database, the largest feed company in the Philippines is San Miguel Foods Inc. Its total annual production from its 41 feed mills in 2020 was estimated at 3.15 million metric tons, putting the company into 38th position in the latest edition of the world rankings by output volume.

Recently, the company announced an investment program of US$628,000. This will be used to upgrade four of its feed mills in the Philippines. Already, construction has begun of seven new feed production facilities around the country. Each one will cost around US$50 million.

San Miguel’s feed brands include B-Meg, B-Meg Premium, Integra, Expert, Dynamix, Essential, Pureblend, Bonanza and Jumbo.

As well as feed production, San Miguel Foods says on its website that its products and services span the value chain. A vertically integrated company, this includes fresh chicken, pork and beef, processed meats, ready-to-eat products, as well as a range of other staple foods.