AGRI 22 Introduction to Livestock and Poultry Production LECTURE MANUAL Authors/Contributors: Amado A. Angeles, PhD Christian V. Lualhati, MSc Kimberly I B. Turaja, PhD Jay Ronel V. Conejos, PhD John Kenneth T. Malilay, MSc 1st Semester 2021-2022 © 2021 Institute of Animal Science, College of Agriculture and Food Science, UPLB AGRI 22 Introduction to Livestock and Poultry Production STATEMENT OF ACADEMIC INTEGRITY As a student at the University of the Philippines Los Baños, I do hereby agree and promise to uphold high standard of integrity, honor, and excellence in the conduct of course activities and assessment tasks. I will independently perform to the best of my ability the tasks assigned by my instructors and will submit all the course requirements within the prescribed period. I may work with others only to the extent allowed by the Faculty in-charge. As a student, I acknowledge that it is my responsibility to learn and that I should have the necessary self-motivation to maximize my learning experience this semester. I understand that suspected misconduct on given assignments/tasks will be reported to the university authorities, and if established, will result in disciplinary action in accordance with university rules, policies and procedures. ________________________________ Signature over printed name of student Date Signed: Degree Program: Course Code/Title: Section: Semester: COPYRIGHT NOTICE This material has been developed, reproduced, and given to you by and on behalf of the University of the Philippines Los Baños as part of the course materials. It is protected under to Republic Act (RA) 8293 or the “Intellectual Property Code of the Philippines”. The University does not authorize you to reproduce and disseminate this material through any means of communication. This Material may contain works that are subject to copyright protection under RA 8293. Any violation may be subjected to copyright infringement and the copyright owner(s) have the right to take necessary legal action against such infringement. DO NOT REMOVE THIS NOTICE FROM THIS MATERIAL. © Institute of Animal Science. 2021. College of Agriculture and Food Science, UPLB, College, Laguna, Philippines 4031. AGRI 22 Introduction to Livestock and Poultry Production I. THE PHILIPPINE DAIRY INDUSTRY Industry overview The Philippine dairy industry consists of two distinct sectors: A huge importing and processing sector which imports, re-process and repacks milk and milk products and the small milk producing sector composed of formal and informal groups. In terms of the gross supply, 99% is coming from the importing and processing sector while the remaining 1% is accounted for by the milk producing sector. The formal sector under milk producers is made up of about three distinct groups: The smallholder producers with 1 to 10 head of milk animals; the smallholder producers with growing dairy herds numbering from over 20 to about 75 head of milk animals; and the producer-processors that maintain farms with about a hundred milk animals or more, operate a milk pasteurizing plant and undertake marketing of milk in urban centers. In all cases, the producer-processors also procure raw milk from smallholders. Hence, the Philippines’ milk producing sector may be characterized, on the whole, as a smallholderbased sector. Philippines' Dairy Industry Huge Importing and Processing Sector Small Milk Producing Sector Informal Group Formal Group Figure 3. Distinct sectors of the Philippine dairy industry Production 24.38 M kg Local production grew by 3% in 2019. It was 24.38 million kilograms in total and grossed more than P966.20 million. This resulted in 22% share of local milk production to the total liquid milk supply. In 2020, it is expected to hit 26 million kilograms due to increasing consumer preference for fresh milk and growing local dairying capabilities. The steady growing trends of dairy production is due to the increase in dairy animal inventory, increase number of animals in the milk line and higher farm gate prices offered by traders and processors. The average farm gate price of milk increased from P38.39/liter in 2018 to P39.63/liter in 2019. © 2021. Institute of Animal Science, College of Agriculture and Food Science, University of the Philippines Los Baños. Lecture Syllabus (Dairy Production) | 1 AGRI 22 Introduction to Livestock and Poultry Production There was an estimated dairy animal (herd) inventory of 63,437 head in 2019. Of this total, dairy cattle registered a number of 25,858 head. Dairy carabao and goat inventory corresponded to 18,886 and 18,693 head, respectively. 25,858 18,886 18,693 head head head Figure 4. Animal Inventory by Type The average milk production per animal is 12 liters/day in cattle, 4.5 liters/day in carabao and 1 to 2 liters/day in goat. Around 60% of total milk produced was cow’s milk while the rest was carabao’s (36%) and goat’s milk (4%). In 2019, the dairy sector accounted for 0.06% and 0.32 of the total agricultural and livestock production value of Php 1,741.92 billion and Php 298.74 billion, respectively. Consumption ≈22 kg Annual per capita Milk consumption The annual per capita milk consumption in the Philippines increased from ≈17 kg in 2011 to around 22 kg in 2018. The Philippines, with a fairly stable economy, an expanding middle class and a growing population of roughly 108 million, has become an attractive and fastgrowing market for milk and dairy products. Other factors contributing to the long-term trend of strong growth in dairy consumption are expanding cold chain capacity, increasing number of supermarkets and food processing industry. According to National Dairy Authority, one out of every four glasses of fresh liquid milk (not reconstituted from powder) consumed in the Philippines is produced locally. A Filipino family can now afford to spend more than P4, 000 per year on dairy products. The price of fresh fluid milk in a mid-range Manila supermarket is usually in the range of P90 to 120 per liter. © 2021. Institute of Animal Science, College of Agriculture and Food Science, University of the Philippines Los Baños. Lecture Syllabus (Dairy Production) | 2 AGRI 22 Introduction to Livestock and Poultry Production Imports The Philippines relies heavily on imports to meet the country’s annual dairy demand. In 2019, dairy products remained the country’s third largest agricultural import after wheat and soybean meal. Data from National Dairy Authority showed that the total value of dairy products imported in 2019 reached $1.129.32 billion, $141.44 million over the $987.88 million recorded in 2018. The major suppliers to the Philippines are New Zealand with a 37% share of total imports by volume, followed by the United States with 20%, the Netherlands (5%) and Australia (5%). Figure 5. Countries of origin of imported dairy products (NDA) About 55% of the Philippines’ total milk and dairy products imports in 2019 was milk powder. Of this total, skimmed milk powder constituted the bulk of milk powder import at 32%. Whey, whole milk, and buttermilk powder comprised the total milk powder imports with a share of 11%, 5% and 7%, respectively (NDA, 2020). Exports The export of milk and dairy products grew by 15% in 2019. The total volume of dairy products exported by the Philippines in 2019 reached 34.93 million kilograms, 4.6 million kilograms over the 30.33 million kilograms recorded in 2018. The top Philippine dairy export items in 2019 were cream, ice drops and evaporated milk. Singapore and United Arab Emirates were the top market of the Philippines, accounting for 21% and 14% of the entire dairy export value, respectively. This was followed by Malaysia (12%), Vietnam (11%) and USA (8%). © 2021. Institute of Animal Science, College of Agriculture and Food Science, University of the Philippines Los Baños. Lecture Syllabus (Dairy Production) | 3 AGRI 22 Introduction to Livestock and Poultry Production REFERENCES ANG, P., AND VERZANI, W. (2018). Philippines Dairy and Products Annual Situation and Outlook. USDA Foreign Agriculture Service, Washington DC. BOARD OF INVESTMENTS-INDUSTRY STUDIES DEPARTMENT. (2011). Philippine Dairy Industry. Retrieved at http://www.philexport.ph/c/document_library/get_file?uuid=bf79c25b-ea6f-4b3f-a3f1332f93eb00ea&groupId=127524 on 17 July 2020. NATIONAL DAIRY AUTHORITY (NDA). (2019). Dairy Industry Development Program 2019 Accomplishments. Retrieved at https://drive.google.com/file/d/1MVaYDVWMpQJY3qefOwiWi516c2i3ocFM/view on 17 July 2020. NATIONAL DAIRY AUTHORITY (NDA). (2020). Philippine Dairy Update (January-December 2019). Retrieved at http://nda.da.gov.ph/index.php/en/industry-data/dairy-update on 7 July 2020. PHILIPPINE STATISTICS AUTHORITY (PSA). (2012). Dairy Industry Performance Report (January-December 2012). Retrieved at https://psa.gov.ph/sites/default/files/dairy_ipr_jan_dec2011.pdf on 17 July 2020. © 2021. Institute of Animal Science, College of Agriculture and Food Science, University of the Philippines Los Baños. Lecture Syllabus (Dairy Production) | 4 AGRI 22 Introduction to Livestock and Poultry Production 4 © Institute of Animal Science. 2021. College of Agriculture and Food Science, UPLB, College, Laguna, Philippines 4031.
