DYNAMICS OF THE PHILIPPINE FEEDMILL INDUSTRY:

AN ASSESSMENT1

ELMER R. ESPLANA
Bureau of Animal Industry
Visayas Avenue, Diliman, Quezon City
Telephone No. 925-9229
Email: el_esplana@yahoo.com.ph

CYRIL L. SOLIABAN
National Agricultural and Fishery Council
Apacible Hall, DA Compound, Elliptical Road
Diliman, Quezon City
Telephone No. 920-4309
Email: clsoliaban@yahoo.com

ABSTRACT

The Philippine feedmill industry plays a crucial role in agriculture and fisheries development and

in ensuring food security by providing inputs to the livestock, poultry and aquaculture sectors. Its

capability to produce high quality feeds at reasonable and stable prices will not only have a great

impact on their viability and profitability but more importantly on productivity and

competitiveness towards ensuring quality livestock, poultry and aquaculture products.

Using a supply chain management model, this study assessed the industry in terms of the major

suppliers, the core industry, the feedmilling process, and the feedmill cost structure and market

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This paper is a revised version of the study submitted to the University of Asia and the Pacific - Applied Business
Economics Programs Food Systems Management course entitled Introduction to Food Systems, dated December
8, 2004. This research paper won Third Prize Winner for the National Best R & D Paper Award under Socio-
Economics Category during the 17th National Research Symposium, October 5, 2005, held in RDMIC Bldg.,
Bureau of Agricultural Research, Philippine Department of Agriculture, Diliman, Quezon City. The earlier
version of this paper already won Best Paper Award under Completed Projects Category during the BAI-in-house
R & D Review, Animal Products Development Center, Marulas, Valenzuela City in July 21, 2005. This material can
also be downloaded online at http://www.smileyberks.com/cpr.
with the end view of determining what interventions and/or policies to recommend specifically

for oversight and coordinating bodies.

Using Porters five forces model, this paper analyzed the industry in terms of the dominant

economic traits, competition, suppliers, buyers, substitutes, and potential entrants, key success

factors, and potential competitive moves. This was aimed at determining relevant information for

stakeholders especially from the business sector to use for strategic decision making purposes.

Data and information were gathered basically through archival research, inquiries from

databanks of repository agencies and selected interviews with key informants from the industry.

At the end, recommendations to various stakeholders were provided.

Keywords: Philippine feedmill industry, poultry and livestock and aquaculture sectors, corn
industry, food security

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INTRODUCTION

Driven by the advancement in process technology and in animal nutrition researches geared

towards production efficiency and cost effectiveness and optimization, the Philippine feedmill

industry is slowly but surely evolving into a highly and globally competitive industry serving the

domestic livestock, poultry and, recently, aquaculture with mixed feed rations that are

comparable with the finest feeds in the world.

The Philippine feedmill industry today plays a crucial role in agriculture and fisheries

development and in ensuring food security by providing inputs to the livestock and poultry sector

(and lately to aquaculture production). Being an intermediary industry to these sectors and the

feed input suppliers, its capability to produce high quality feeds at reasonable and stable prices

will not only have a great impact on their viability and profitability but more importantly on

productivity and competitiveness towards ensuring quality livestock, poultry and aquaculture

products.

The feedmilling process is at the center of the farm-to-food supply chain or the integrated

from conception to consumption systems approach, notably the food systems management

model, as presented below (Please see Figure 1). It is an intermediary industry supplying the

livestock and poultry sector and lately in aquaculture operations, like prawns, bangus and

tilapia, with the major production input, the mixed feeds ration.

On the other hand, the industry uses big portion of the production outputs of the corn industry as

well as the minor products and by-products or residues of some agriculture and processing

sectors like rice bran, mollases, copra meal, pollard, tallow, fish meal, meat and bone meal

among others.

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 Figure 1. The Food Systems Management Model

Input Farm Processing Marketing Market:

Subsystem Production Subsystem Subsystem Domestic
Subsystem
Global
Feedmill
Industry
Corn
Rice
Sugar
The FOOD SYSTEMS
Coconut Livestock, MANAGEMENT MODEL
Poultry & from conception to
Aquaculture consumption
Industry

OBJECTIVES

In general, this paper aimed to analyze the dynamics of the Philippine feedmill industry using the

framework of supply chain management approach which is from conception to consumption

and Porters five competitive forces model.

Specifically, this study aimed to: a) describe and analyze the feedmill industry in terms of input

supply, production, market, the key players, the feedmill process, and feedmill cost structure

with end view of determining what interventions and/or policies to recommend specifically for

oversight and coordinating bodies; and b) assess the feedmill industry in terms of its dominant

economic traits, the competitors within the industry, the power of suppliers and buyers, possible

substitutes, and potential entrants, key success factors, and potential competitive moves in order

to determine relevant information for stakeholders especially from the business sector to use for

strategic decision making purposes.

METHODOLOGY

Data gathering was conducted basically through archival research and selected interviews with

key informants from the industry. In particular, representatives of the Philippine Association of

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Feedmillers, Inc. and the Bureau of Animal Industry were interviewed. In gathering statistical

data, industry situation and current updates, reports and presentation materials used during

meetings, conventions, and conferences from experts and focal persons of the feedmill industry

and the agriculture sector were used. Statistics were also taken from the Bureau of Agricultural

Statistics, Bureau of Animal Industry and Philippine Association of Feedmillers, Inc.

In analyzing the dynamics of the Philippine feedmill industry, this paper used two major models.

This includes a supply chain management model (presented earlier in Figure 1.) and the Porters

Five Competitive Forces Model (Figure 2) below.

Figure 2. Michael Porters Five Competitive Forces Model

RESULTS AND DISCUSSION

The Feedmill Industry

The use of formulated mixed feeds for domesticated animals started only about a century ago.

This led to major breakthroughs in technology, animal nutrition and feeding regime to attain

efficiency in animal production. In the Philippines, the feedmill industry is one of the agriculture

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sub-sectors that has evolved progressively for the last five decades and lately has been growing

strong with estimated expansion rate at an average of six to seven percent annually.

The industry is an intermediate operation supporting the livestock and poultry industry. It
produces 5 to 7 million metric tons (M MT) of feeds per year. In 2004, the industrys estimated
feed supply is about 5.475 M MT valued at P89.1 billion equal to about 109.5 million 50kg.-bags
(Mb). The industry is import dependent but is also closely linked with the feed grain sector
particularly corn or maize. It also utilizes big portion of indigenous or local raw materials. Corn
for feeds consumption is estimated at 70% of the total corn production. Corn usage for local
feeds average at 3.15 M MT coming from the corn production of about 4.48 M MT annually.
The Department of Agriculture is aiming to increase corn production in the next four years to 6.0
M MT to fill the gap in the seasonal shortage of corn, now covered through importation.
Importations of corn for animal feeds run to 0.485 M MT annually.

The countrys feedmill industry is composed of commercial feed millers, integrated farm feed
millers, and home-mixer feed millers. Commercial feed millers are solely engaged in the feed
production business. Integrated farm feed millers are directly connected to and have fully
integrated with livestock and poultry production, and majority of them also sell feeds
commercially. Finally, the home-mixer feed millers uses their feed production in their own
farms and is also called the backyard feed millers. In 2002, their share in the aggregate feed
production is as follows:

Table 1. Percentage Share of Production of Different Feedmiller Groups, 2002

M 50kg.-
FEEDMILL GROUP M MT Share No. of Feedmills
bags
Commercial Feedmills 39.2 1.96 38%
Integrated Feedmills 23.0 1.15 22%
Registered Feedmills 62.2 3.11 60% 389
Home-mixer Feedmills 42.0 2.10 40% 590
TOTAL 104.2 5.21 100% 979

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The Feedmill Market

The feedmill industry is entirely dependent on the needs of the livestock and poultry industry.

Its total output is intended to provide for the feed requirements of livestock and poultry

operations. Similarly, feed cost accounts for the biggest component in any animal production

venture and this ranges from 50% to 70% of the total production cost depending on the density

of operation. For broiler operation, cost of feeds accounts for 80% of the total cost, composed of

65% during the broiler growing period and 15% as feed component of the cost of day-old-chicks

representing the feed cost of the breeders used. Same is true with hog industry operations.

Established and stable markets of the Feedmill Industry are the commercial hog and chicken

growers and the egg producers. Combined, they accounted for 78% of the total market in 2003.

Emerging markets include game fowl, duck, ostrich and aquaculture operations which require

high-value feeds. Presented below (Table 2) are the reported annual commercial feed production

of the registered feedmills in thousand 50kg -bags commercial and integrators for the years

2001, 2002 and 2003:

Table 2: Annual Commercial Production of Registered Mills, 2001-2003

FEEDS BY 2003 Ave. Growth

2001 2002 2003
TYPE OF ANIMAL SHARE (2001-2003)
Hogs 20,000 28,789 29,804 50.1% 22.1%
Chicken Broiler 7,934 8,854 8,943 15.0% 6.2%
Chicken Layer 5,411 7,551 7,448 12.5% 17.3%
Aqua 2,804 5,043 4,088 6.9% 20.7%
Game Fowl 2,913 4,132 4,173 7.0% 19.7%
Duck 1,334 2,806 2,337 3.9% 32.4%
Cattle 5 14 12 0.0% 59.3%
Horse 34 54 47 0.1% 17.5%
Others 1,186 1,787 2,676 4.5% 50.2%
TOTAL FEEDS 41,621 59,030 59,528 100.0% 19.6%
Source of Data: BAI-AFSD Consolidated Registered Feedmills Production Data
Philippine Association of Feed Millers, Inc. (PAFMI) Report

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The Philippine feedmill industry products are highly differentiated. General product distinctions
are basically based on feeds final form mash, pellets or crumbles - and on the different
production phase or age booster or pre-starter, starter, grower, or finisher. Presented in Table 3
below are the major classifications or feed types along with the market prices.

Table 3. Market Prices of Different Feed Types, As of December 2004

Product Types or Quantity per Mash Pellets or Crumbles

Classification Bag Per Bag Per Kilo Per Bag Per Kilo
A Poultry Feeds
Broiler Feeds
Chick Booster 25 kls. 675.00 27.00 695.00 27.80
Broiler Starter 50 kls. 917.00 18.34 937.00 18.74
Broiler Finisher 50 kls. 882.00 17.64 902.00 18.04
Layer Feeds
Chick Starter 50 kls. 867.00 17.34 887.00 17.74
Chick Grower 50 kls. 832.00 16.64 852.00 17.04
Pullet Developer 50 kls. 817.00 16.64 837.00 16.74
Laying I 50 kls. 867.00 17.34 887.00 17.74
Laying II 50 kls. 852.00 17.04 877.00 17.54

Product Types or Quantity per Mash Pellets or Crumbles

Classification Bag Per Bag Per Kilo Per Bag Per Kilo
B Hog Feeds
Pre Starter 50 kls. 754.00 30.16 784.00 31.36
Hog Starter 50 kls. 907.00 18.14 927.00 18.54
Hog Grower 50 kls. 792.00 15.84 812.00 16.24
Hog Finisher 50 kls. 757.00 15.14 777.00 15.54
Hog Brood Sow 50 kls. 747.00 14.94 767.00 15.34
Lactating 50 kls. 837.00 16.74 857.00 17.14
C Special Feeds
Duck Layer 50 kls. - - 755.00 15.10
Quail Layer 50 kls. 730.00 14.60 - -
Pigeon Pellet 50 kls. - - 645.00 12.90
D Fish Feeds
Starter 50 kls. - - 675.00 27.00
Grower 50 kls. - - 600.00 24.00
Finisher 50 kls. - - 580.00 23.20
Floater 50 kls. - - 650.00 26.00
Source of Data: PAFMI Price Monitoring Report

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This development provides measure for cost efficiency and effectiveness and is the result of
advancement in process technology and animal nutritional consideration and the wide array of
and specifications of different feedstuffs and substitutes. With the use of computer-aided least-
cost formulation and the marketing shift to customization process and the growing demand for
high value but sensitive aquaculture feeds, product qualities differed strongly.

There are 4,979 number of feed products registered to date from about 400 different brand names
of the 389 registered feedmillers nationwide. Market niching is notably feasible for the high
value emerging markets like the aquaculture, game fowl and ostrich operation.

The marketing and distribution channel of the feedmill industry passes through several market
intermediaries either via feedmiller-owned delivery trucks or private haulers or truckers. Feeds
are sold to poultry and livestock growers directly to growers but majority through this channel
(Please see Figure 4 in Appendix A). The distributor normally charged 2% to 3% of the market
price while the dealer or retailer charged a 5% to 10% margin.

The Feedmill Industry Key Players

The industry is dominantly led by a very active association called the PAFMI or the Philippine
Association of Feed Millers, Inc. The group started in 1951 and actively pursued the interest of
the industry and its members. PAFMI continuously do so including participation in government
consultation meetings, safety measures and advocacy activities and other initiatives affecting the
industry. Mr. B.G. Tope, PAFMI President in 2001 stressed that despite the ambient plight of
the poultry and livestock industry, feed milling in the country has remained stable. The feed
milling industry is one of the most vibrant sectors in agribusiness. Today, PAFMI is composed
of 22 members, mostly dominant and major industry players.

Major feedmill groups comprising the Feedmill Industry are presented earlier together with its
market share. Table 4 below summarizes their annual production volume from 2000 to 2003 in
million metric tons (M MT) with equivalent total quantity in million 50 kg.-bags.

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 Table 4. Summary of Annual Feed Production

Production in million metric tons (M MT)

FEEDMILL GROUP
2000 2001 2002 2003
Commercial Feedmills 1.55 1.24 1.96 2.00
Integrated Feedmills 0.90 0.86 1.15 1.17
Registered Feedmills 2.45 2.10 3.11 3.17
Home-mixer Feedmills 1.90 2.27 2.10 2.20
TOTAL PRODUCTION 4.35 4.37 5.21 5.37
Equivalent M 50kg.-bags 87.00 87.39 104.20 107.30
Source of Data: PAFMI Report and authors estimates

From the above table, it can be gleaned that progressive growth of the industrys major groups is

evidently noticeable for the past four years, despite the PAFMI report of underutilized capacity.

Table 5 below details the said capacity utilization in 2000.

Table 5. Capacity Utilization of Commercial and Home-Mixer Feedmills

2000 Production Rated Capacity Percent

FEEDMILL GROUP
Share M 50kg.-bags #of Feedmill Annually Utilization
Commercial and
Integrated Feedmills 56% 49.0 321 115.0 43%
Home-mixer Feedmills 44% 38.0 590 70.0 54%
TOTAL 100% 87.0 911 185.0 47%
Source of Data: PAFMI Report

As of August 2004, there are 389 total registered commercial and integrated feedmills with a

combined total daily capacity of 23,106 MT. Table 6 below comparatively summarizes the

feedmills according to plant sizes and its geographical location for 1997 to 2004.

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 Table 6. Registered Commercial and Integrated Feedmills by Plant Size and by Location
1997 versus 2004

1997 2004 Annual Growth

FEEDMILL GROUP # of # of # of
Capacity Capacity Capacity
Feedmill Feedmill Feedmill
A. Plant Size
Below 20MT 131 1,158 187 1,153 5.2% -0.1%
20Mt to <50MT 68 2,235 96 2,789 5.1% 3.2%
50MT & above 69 12,015 106 19,164 6.3% 6.9%
B. Location
Region 1 10 847 9 1,538 -1.4% 8.9%
Region 2 10 285 8 938 -3.1% 18.6%
Region 3 69 4,065 114 7,731 7.4% 9.6%
NCR 47 4,171 49 4,793 0.6% 2.0%
Region 4 66 2,795 95 3,877 5.3% 4.8%
Region 5 17 598 14 550 -2.7% -1.2%
Region 6 8 478 13 469 7.2% -0.3%
Region 7 17 1,292 31 1,458 9.0% 1.7%
Region 8 1 8 3 16 17.0% 10.4%
Region 9 3 15 6 96 10.5% 30.4%
Region 10 4 260 10 413 14.0% 6.8%
Region 11 12 437 18 936 6.0% 11.5%
Region 12 3 147 16 283 27.0% 9.8%
Region 13 1 10 3 8 17.0% -3.1%
TOTAL 268 15,408 389 23,106 5.5% 6.0%
Source of Basic Data: Animal Feed Standard Division of the Bureau of Animal Industry

Registered feedmills grew annually by 5.5% in number and by 6.0% by capacity from 1997 to
2004. By plant size, the growth is even but in capacity, the lesser than 20MT capacity recorded a
contraction while there is a strong growth performance in large plants. By location, the industry
is located mostly in the Mega Manila area where heavy demand for livestock and poultry is
present. Feedmill plants located in this area account for more than 70% of the registered
feedmill capacity nationwide.

The top ten (10) leading registered animal feed producers both commercial and integrated
feedmillers are outlined below in Table 7. These are presented together with their brand names
carried in the market, the daily production capacity including rented facilities, average business
volume or sales from 1996 to 2000, the plant location or area of operation, excluding sales

11
territories covered through private dealers or distributors and current name of contacts or
authorized representatives.

Table 7. Top 10 Registered Feedmillers Based on Capacity

Daily
Average Sale*
Name of Company Brand Name Capacity
(M PhP)
(MT)
SAN MIGUEL FOODS B-Meg Feeds 3,229 8,665.10
CARGILL PHILIPPINES Purina Feeds 1,760 2,673.30
SWIFT FOODS Blue Ribbon Feeds 1,612 7,973.30
GENERAL MILLING General Feeds and 1,520 5,481.50
Megamix
VITARICH CORPORATION Vitarich, Vitalux and 1,387 6,073.30
Bionic
TYSON AGRO-VENTURES Tyson Feeds 800 No available data
SUN JIN PHILIPPINES Sun Jin Meals 760 No available data
FOREMOST FARMS Famous and Rich 720 No available data
feeds
UNIVERSAL ROBINA Star Feeds 555 598 13,272.10
CORPORATION
GRAIN HANDLERS Mighty Feeds 450 No available data
Note: *CY 1996-2000
Source of Data: BAI-AFSD Regulatory Data with PAFMI Supplemental Data

The rated capacity of these ten (10) feed companies aggregating to 12,836 MT per 8-hour

operation accounted to 56% of the registered total capacity for commercial and integrated

feedmillers. It is also noted that one or two feed producers cover the whole country extensively

either through their own plant or under toll processing arrangement with other private

feedmillers.

Likewise, two to four of the listed feedmillers are purely in commercial operation and the rest

have an integrated poultry and livestock operation with one or two having full and complete

integrated operation. With the exemption of Foremost Farms and Tyson Agro-Ventures Inc., the

rest covered the whole country both through private dealership or distributorship and with ample

storage area for both raw materials and finished products. One or two companies follow the

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 niche marketing approach. Almost all in the list have diversified feed-product lines including

aquaculture feeds and other high-value feed products. Their feedmilling facilities are of latest

technology capable of producing all feed-forms and even the highly sensitive feed products, and

complete with basic laboratory support operation and farm-testing facilities for their finished

feed products. Some of these companies are capable of producing or mixing its own critical and

important vitamin-mineral premixes and feed-medication application.

The top 10 registered feedmilling are widely dispersed throughout the country as shown in Table

8, below. San Miguel Foods, Inc. has the biggest feedmilling capacity among the top ten and

their products are available nationwide.

Of the 389 registered feedmillers, the top 10 companies have been contributing 56% of the total

while the rest (379) have been contributing 44%. This suggests that the feedmilling industry is

highly dominated by big players in terms production capacity and output. This simply implies

that any potential entrant has to consider these strategic groups as competitors.

Table 8. Top 10 Feedmills Rated Capacity per Region and Share in Total Capacity
(per 8-hour Shift) (in MT)
%
COMPANY 1 2I 3 4 NCR 5 6 7 8 9 10 11 12 13 Total
Share
San Miguel
840 795 480 443 160 50 193 5 171 92 3,229 14.0
Foods
Cargill Phils. 640 880 240 1,760 7.6
Swift Foods 108 324 800 40 60 40 80 160 1,612 7.0
General
800 720 1,520 6.6
Milling
Vitarich Corp. 1,123 80 120 64 1,387 6.0
Tyson Agro-
800 800 3.5
Ventures
Sun Jin Phils. 760 760 3.3
Foremost
720 720 3.1
Farms
Universal
450 40 108 598 2.6
Robina
Grain
450 450 1.9
Handlers

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 Table 8. continuation
Rated Capa-
city of Top 10 1,480 903 4,367 443 3,220 160 170 1,013 5 40 371 664 - - 12,836 55.6
Feedmillings
Regional %
Share of Top 96 96 56 11 67 29 36 69 31 42 90 71 - - 50
10 to Total
Rated Capa-
city of other 53 35 3,364 3,434 1,573 390 299 445 11 56 42 272 282 8 10,264 44.4
feedmillings
Other Feed-
mill % Share 3 4 44 89 33 71 64 31 69 58 10 29 100 100 50
to Total
Total Rated
Capacity per 1 ,538 938 7,731 3,877 4,793 550 469 1,458 16 96 413 936 282 8 23,106
Region
Source: BAI-AFSD Regulatory Data

The Feedmilling Process

Development in the process technology and in the nutritional research aspect of both animal

feedstuffs, and feed ingredients and material had greatly influenced the existing condition of the

countrys Feedmill Industry. It is now dominated by the big integrated operators equipped with

the latest technology model for feedmilling facilities together with bulk materials handling

systems. Diagram of the Feedmill Process is presented below followed by brief description of

each phase.

Figure 3. The Feedmilling Process

RM FG Bagging
Grinding Conditioning
Storage &
Receiving & and RM Mixing Pelleting
Storage Delivery
Preparation Extrusion

The Feedmill Process

Feedmilling is the process of choosing and preparing raw materials (RM) to be mixed
homogenously in proportion following or accurately translating a feed formulation into a form

14
acceptable to the intended animal species. It is basically a size reducing, weighing and mixing
process which may be described in the following steps:

Raw Materials Preparation and Grinding. Raw materials like corn grains are carefully tested
and weighed for size reduction. These are fed into a hammerhill and/or granulator to produce
milled and ground grains for storage prior to batch weighing and proportioning. Similarly, corn
gluten feed lumps, corn germ cakes and other large pieces are separately fed into crushers where
they are reduced to fine meals. Other fine meal ingredients such as wheat, pollard, meat and bone
meal, soybean meal, and fish meal are individually stored in sacks piled on pallets. Various
micro-ingredients such as antibiotics, vitamins and additives are premixed and temporarily
stored. Proper grinding will create a particle size and surface area that will permit the most and
the best use of the energy and nutrients in the feed materials.

Weighing and Proportioning. The different materials are then discharged and weighed
automatically in the batching scale or mechanically in small plants. Weighing is done according
to sequence and required production of the RM.

Feed Formulation and Mixing. After weighing, the materials are brought to the master mixer
where small quantities of other materials like limestone and salt are introduced and thoroughly
mixed with other ingredients and pre-mixed materials. The mixture is then discharged as a mash
into the molasses admixer where it is introduced at a regulated flow and continuously mixed with
the mash. Although this process seems quite simple, it is actually the most critical process and
takes into consideration the specifications based on feed formulation and nutritional
requirements as predetermined by a nutritionist. Factors like quality, availability and prices of
different raw materials, balanced nutritional requirement of a specific animal, farm management
practices, environmental challenges, feed format and milling process are considered.

Cooking or Conditioning either Pelleting or Extrusion. After mixing, the mixture is then
heated then transferred into the pelletizing or extrusion machine. Pellets or extruded format
(crumble form) is important so that feeds do not disintegrate before consumption. For aquatic
feeds, pelleting is necessary to avoid wastages and pond pollution for unconsumed feeds.

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Bagging, Storage and Delivery. Finally, feeds are weighed into bags and closed by a bag closer

and conveyed for transport to the finished goods (FG) warehouses or sales outlets.

The objective of the feedmilling is to optimize derivation of the nutritional value of the raw
materials towards maximum conversion into meat, egg or milk. In attaining this, feed finished
goods are produced in different final forms which include mash, pelleted, crumble and extruded.
For highly sensitive aquaculture feeds, the feeds are in palletized form to attain maximum level
of water stability not only for efficiency but also reducing the risk of bottom contamination or
pollution resulting from unconsumed feeds.

Feeds are manufactured in four forms, namely: Mash Feeds, Pelleted Feeds, Crumbled Feeds,
Extruded Feeds

The raw materials (RM) for feeds production are classified into protein source, energy source
and others. They are either sourced locally or imported. About 75% of the feed costs are
imported especially when yellow corn or wheat is used as the main source of energy. In cases of
a good supply of corn, cost of imported raw materials in the ration drops to about 50% of the
feed costs.

Energy-source materials. Energy constitutes by far the largest component of feed rations.
Carbohydrate is the most abundant form of energy in plant materials. It is also the most widely
available source of energy for feeds. Fats and oils from plants and animals are the most
concentrated form of energy available (about 2.25 times as many calories per unit weight as
carbohydrates but the supply is limited). Protein is the third basic source of energy, but it is too
valuable for use as protein for meeting vital body function to be depended on as a major energy
source. Common energy source materials for feeds include: Common Corn or Maize, Corn Bran,
Corn Grits or Hominy Grits, Sorghum, Wheat Bran, Coconut Meat, Cane Molasses, Cane Sugar, Tallow
or Animal Fat, and Vegetable Fat or Oil.

Protein-source materials. All grains and grain by-products are deficient in both amount and
quality of protein, hence it is necessary to supplement animal feed ration from protein source
which are either animal-source protein (AP) or plant-source protein (PP). The following are
common protein sources for animal feeds: Blood Meal, Dried buttermilk, Dried Whey, Fish Meal ,

16
Shrimp Meal, Skimmilk Powder, Alfala Leaf Meal, Brewers Dried Yeast, Copra or Coconut Oil Meal,
Corn By-products, Ipil-ipil Leaf Meal, Soybean Meal.

Aside from energy and protein sources, other animal feed supplements are used in the
manufacture of feeds. This includes the following: Mineral Supplements, Vitamin Supplements,
Synthetic Amino Acids, Non-Protein Nitrogeneous (NPN) compound, Unidentified Growth Factors
(UGF).

Synthetic Energy Sources. Government R&D program are continuously being pursed in
identifying indigenous feed ingredients substitutes practically due to the prohibiting cost of
mixed feed ration in the livestock and poultry industry. Among the materials being considered
by local scientists as substitutes for costly imported feedstuffs for energy-source, protein-source
and non-conventional (less costly) supplements follows: Arrowroot (Maranta arundinacea), Camote
Meal, Cassava Meal, Coffee, Coco Residue, Gabi, Rice Middlings, Rice Meal, African Snail, Algae,
Earthworm Meal, Giant Toad Meal, Anabiong, Azolla, Banana Leaf Meal, Banana Rejects and Peelings,
Mulberry Leaves

Supplier Industry

The corn industry is essentially the only major supplier to feed millers. The other major feed
ingredients are basically imported and small amounts are locally produced and are obtained from
varied sources mostly in the form of by-products from among small producers to the feed millers
themselves.

Corn (specifically yellow corn) accounts for about 70 percent of local feed requirements. No
matter how big in terms of size and regardless of their financial capability, feed millers use
yellow corn in the production of feeds. The availability and affordability of this input has a great
impact on feed millers operations.

Corn production in the Philippines is undertaken mostly by small farmers numbering just about
more than a million with an average size of 1.7 hectares. It represents around 20% of our arable
land and more than 20% of our agricultural labor force. The bulk of production is concentrated in
five regions namely - Cagayan Valley which accounts for 22% of production, Central Mindanao
which produces 16%, Southern Mindanao which contributes 15%, ARMM which shares another

17
15% and Northern Mindanao which provides 12%. The rest are scattered in different parts of the
country like Ilocos Region, Central Luzon and Central Visayas.

On a national average, corn production in the Philippines is inefficient. Our corn producers have
not attained the efficiency and self-sufficiency to compete against imported corn and corn
substitutes. They can only supply about 80% of our national requirements. Demand for corn is
around 5.5 to 6 million MT of which 4.0 million MT is yellow corn while national production
only reaches around 4.5 million MT, of which 3.0 million MT is yellow corn. Shortfall in supply
is mostly addressed by importation of yellow corn of about 200,000 MT per year and wheat of
about 600,000 MT per year. The balance is addressed by other local corn substitutes mainly
cassava and other imported corn substitutes. Our corn producers have not attained the efficiency
and self-sufficiency to compete against imported corn and corn substitutes.

The volume of production of corn, the main ingredients in the production of feeds, during the
past-seven years has been growing slowly by 1-percent (Please see Table 9 below). With the
effort of the government to increase the production due to the big requirement of the livestock
and poultry industry players on feeds, the production of corn in 2003 increased by 7 percent at
4.6 million MT. The slow growth in the production of corn in the country is due to the low
profitability due to high cost of production, lack of post-harvest infrastructure, and high logistic
costs to handle and maintain the quality of their produce in larger scale. The National Food
Authority has existing program for the corn farmers, and yet the impact to the producers is
hardly felt. In addition to the problem of low profitability, and post harvest infrastructure, the
production of corn is perceived as a secondary product to rice and high-value crops.

Table 9. Volume of Production of Corn and others with Average Growth Rate

Average
2003 Production Growth Rate
Raw Materials Growth Rate
('000 MT) (2003/2002)
(1999-03 and 1997-03*)
Corn 4,616 6.86% 1.06%*
Cassava 1,622 14.29% -3.75%
Camote 547 1.61% -0.45%
Source of Basic Data: BAS

Table 9 shows the 2003 production of two major local RM substitutes, the cassava and camote.
Cassava posted -3.75% and camote at -0.45% growth rate during the past five years, these two

18
feed substitutes are not increasing in terms of production, though in 2003, they grew by 14% and
2%, respectively. The decreasing trend in the past five years in the production of these two
commodities could be attributed to the lack of specific government program, as substitute feed
ingredients to support the producers of these two commodities to increase their production.

In 2003, the volume of importation of feed wheat and soybean meal decreased by 0.24% and
9.21%, respectively, compared to 2002 level of 1,151 thousand MT and 1,457 thousand MT.
During the past four years, feed wheat has been increasing by an average of 36.07%, while
8.43%, for soybean meal. Although, the volume of Philippine imports for soybean meal is bigger
than feed wheat, the growth of feed wheat has been increasing by more than four-times at 36%
compared to soybean meal of 8% because feed wheat is a direct substitute of corn, while
soybean is a feed major protein source.

Table 10. Volume of Importation - Feed Wheat & Soybean Meal and Average
Growth Rate

2003 Importation Growth Rate Ave. Growth Rate

Raw materials
('000 MT) (2003/2002) (2000-03)
Feed Wheat 1,149 -0.24% 36.07%
Soybean Meal 1,323 -9.21% 8.43%
Source of Basic Data: PAFMI

Among four major type of imported raw materials used as substitute ingredients for the
processing of feeds, soybean meal has been contributing 49% on the average yearly while feed
wheat has been contributing 35% with fish meal at 4% and corn meal at 13%. Table 11 below
details the average annual importation of these materials.

Table 11. Average Yearly Importation of Imported Raw Materials and Percent Share

Average importation
Imported Raw Materials % Share
(In '000 MT)
Feed Wheat (for 2000-2003) 880 34.51%
Soybean Meal (for 2000-2003) 1,250 49.04%
Corn Meal (for1995-2000) 328 12.87%
Fish Meal (for1994-1999) 91 3.58%
Total 2,550 100.00%
Source of Data: PAFMI

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ANALYSIS OF THE FEEDMILL INDUSTRY

A. Dominant Economic Traits

Market size and growth rate. The total estimated value of the feedmill industry production in
2003 reached P84 billion inclusive of the commercial, integrated and home-mixer feedmills. This
registered a combined 14.0% growth; 21.0% for commercial and integrated feedmills and 4.0%
for home-mixer feedmills. Table 12 below presents the annual value of feedmill industry
production for 2001 to 2003 in million pesos. Duck and aqua feeds are the emerging and
promising source of growth in the animal feeds production and can be considered the sunrise
sector of the feedmill industry.

Table 12. Annual Value of Production, 2001 to 2003

Average
FEEDMILL GROUP 2001 2002 2003 GROWTH
(2001-2003)
Commercial and Integrated 36,956.1 52,155.9 53,982.1 20.86
Feedmills
Home-mixer Feedmills 27,430.0 27,531.0 29,588.6 3.86

Total Estimated Value of 64,386.1 79,686.9 83,570.7 13.93

Production
Source of Data: Based on BAI and PAFMI reports

Hypothetical volume for commercial feeds for the three major products - hogs, broilers and

chicken layers are computed on the historical production data from the year 2000 to 2003. These

define the estimated total market of the Feedmill Industry, running at 8.7 M MT in 2003. Details

are presented in Table 13 below.

Table 13. Estimated Total Market Volume of the Feedmill Industry

TOTAL FEED DEMAND 2000 2001 2002 2003 Growth

HOG Production
Total Liveweight (000 MT) 1,517.8 1,584.5 1,667.8 1,733.1 4.8%
Feed Requirements (000 MT) 4,705.2 4,912.0 5,170.1 5,372.6
(Liveweight @ 3.1 FCR)

20
 Table 13. continuation
BROILER Production
Total Liveweight (000 MT) 997.8 1,098.8 1,173.8 1,188.8 6.1%
Feed Requirements (000 MT) 2,195.2 2,417.4 2,582.3 2,615.3
(Liveweight @ 2.2 FCR)
CHICKEN EGGS Production
Total 000 MT 243.4 246.7 260.8 274.8 4.2%
Feed Requirements (000 MT) 547.6 554.0 586.8 618.3
(@18pcs/kg@1.5FCR/dozen)
TOTAL FEEDS REQUIREMENT
In 000 MT 7,448.0 7,883.4 8,339.2 8,606.2 5.1%
In million 50 kgs.-bags 149.0 157.7 166.8 172.1
Source of Data: BAS Annual Industry Performance Report

Aquaculture production in the Philippines is an emerging users and niche market of animal
feeds. During the past 7-year period, average yearly growth rate in the total aquaculture industry
has been increasing by six percent (Please see the aquaculture type by fish species in Table 14
below). The bulk of aquaculture feeds users are milkfish and tilapia farmers. The Philippines is
recognized as one of the major producers of tilapia in the Asia Pacific region with internationally
recognized production technology. In 2003, total aquaculture production posted at 466 thousand
MT. Some of the major feed industry players that are engaged in aquaculture feeds production
are San Miguel, Gargill, Philippines, Swift Foods, Sateh Feeds Corporation, Sun Jin Philippines,
to name some.

Table 14. Volume of Production and Average Growth of Aquaculture Fish (000 MT)

2003 Growth Rate Average Growth Rate

Aquaculture Type
Production (2003/2002) (1997-03)
Total Aquaculture 465.80 5.03 6.07
Milkfish 246.60 6.20 7.65
Tilapia 136.00 11.11 6.77
Shrimp 35.00 -1.41 -2.24
Others 48.20 -9.74 4.65
Source of Data: BAS

Scope of Competitiveness. Animal feeds produced by the feedmill industry are sold 100%
domestically. According to PAFMI members, the industry is not yet capable of exporting feed
products due to high cost of production. Within the local feedmillling companies, San Miguel

21
Foods, Inc. has the highest no. of feedmilling establishments (25) either company-owned or
using other feedmilling facilities under tool processing arrangement. Cargill Philippines has four
feedmilling facilities, Swift Foods Inc., 9; Vitarich, 4; Universal Robina, 3; Sun Jin Phils, 2;
General Milling, 3; and the rest of the top 10 feedmillers have only one feedmilling
establishments.

Number of rivals and relative sizes. There are 389 feedmillers in the country. Twenty-two
feedmillers are members of Philippine Association of Feed Millers, Inc. These feedmillers are
the major key players of the industry contributing 40-percent of the total feedmilling industry
production and 60-percent of the commercial feedmilling output. Most of the top 10 feedmillers
are members of PAFMI. These feedmilling companies own multibillion businesses in the
Philippines, some of which are into backward and forward integration. This includes San Miguel
Foods Inc., Swift Foods, Universal Robina, Foremost Farms, General Milling Corporation and
Vitarich Corporation. Cargill Phils, and Sun Jin Phils. are feedmilling companies with
international affiliations.

Prevalence of backward and forward integration. Backward and forward integration exist in
the feedmilling industry, particularly the integrator players. Not all of them are into backward
integration though San Miguel, Vitarich, Foremost Farms, Universal Robina, and Cargill Phils,
to some extent, are into backward and forward integration.

Ease of entry and exit. Basically, there are low entry barriers for small-scale operation but very
high for large-scale operation. A 25-MT capacity plant requires P34 million investment
equivalent to medium-size feedmilling plant. In addition, there is low but stable returns derived
from the sale of differentiated, and customized type of feeds.

Degree of product differentiation. Animal feeds are highly differentiated and customized as
demonstrated by 4,979 number of registered feedmill products and 400 different brands of feeds
produced by 389 feedmillers locally throughout the country. Some feedmillers have more than
two brands of animal feed products while other still stick to one brand name only.

Capacity Utilization. Most feedmilling companies are under-utilized which at the industry level
was estimated by the Philippine Association of Feed Millers, Inc. at 47% in 2000. However,

22
based on our hypothetical demand computation, their utilization rate in 2000 could reach to
about 58% while 55% in 2001. Utilization rate of feedmilling establishments increased as much
as 62% in years 2002 to 2003.

Essentially, there is strong indication that reported production volume of the whole industry is

understated. If only, individual industry stakeholders would improve their transparency in

declaring their volume of production to the government and the general public as a whole,

demand gap could only be at 25% or equivalent to 75-percent utilization rate. This is because of

the fact that feedmilling establishments, in general, are still surviving, and have maintained their

operations when their utilization rate is even below 50-percent as they claimed.

B. Five Competitive Forces (Porters Model)

Intensity of rivalry among existing firms. There is a high level of competition among the
existing feedmilling companies due to high product differentiation. As revealed earlier, a total of
4,979 were registered feedmill products and 400 different brands of feeds were produced by 389
feedmillers local throughout the country. About 590 home mixers with combined output of 5.21
million MT were produced for 62% utilization rate. There are ten (10) companies competing
with persistent and dynamic reprisal. However, despite the high product differentiation, there are
low switching costs on the part of the small/backyard buyers (consumers) because the price
difference among brands/types is insignificant. The consumers can easily change brands
depending the availability of products in their respective areas.

Moreover, the intensity of rivalry among existing firms is high due to high R & D capability and
latest infrastructure facilities for high capacity operations. Another consideration for the intensity
of rivalry among existing firms, particularly the integrators and big commercial feedmillers are
in getting higher volume share of imported raw materials, particularly soybean meal, fish meal,
wheat meal, highly sensitive and critical mineral and vitamin premixes, and corn from time-to-
time. In some cases, the government intervenes in the importation of raw materials (i.e. corn,
soybean meal) by reducing further the tariff rates to lower the landed cost of substitute feed

23
ingredients, for the requirement livestock and poultry industry. The intensity of rivalry has been
tremendously high, in some cases, when political considerations are taken into the picture.

Bargaining power of suppliers. Suppliers of yellow corn wield a strong bargaining power
primarily because of three reasons. First, yellow corn is a very important raw material input to
feed millers accounting for about 50 to 70% of their total requirements, depending on the density
of operation. Second, small producers and commercial growers are now starting to solidify their
stand as far as the industry is concerned. Majority of corn growers are now members of the
Philippine Maize Federation, Inc. which is an alliance of corn producers with the primary
objective of ensuring the development of the industry and protection of corn farmers. It has
become a strong lobby group advocating for the promotion of safety nets for the industry in line
with the liberalization of trade and other concerns. Third, corn is a major political crop and the
government, despite existing laws regulating and protecting the industry, particularly in terms of
trade and production, is still and often times intervening for their cause.

This strong bargaining power, however is balanced by some other factors which tend to negate
the above mentioned strengths. First, feedmillers as backward integrators of the livestock and
poultry industry are further backward integrating as corn producers themselves. This is usually
done through contract growing to ensure that their supply of corn is always and readily available.
Second, the constant search for corn substitutes has always been a major research and
development strategy of the feedmilling industry. Aside from wheat, cassava and other root
crops, e.g. sweet potato, have been considered and tested for viability as corn substitutes.
Third, although corn is a major political crop which commands strong government regulation to
protect corn producers, feedmillers especially the integrated livestock and poultry raisers are
equally becoming powerful in lobbying for their cause. Their stand is basically anchored by the
fact that meat in its various forms is also a basic commodity and the industry is actually
contributing more to the economy compared to the corn sector.

As such, the bargaining power of the corn industry as major supplier of raw material to

feedmillers ultimately depends on government policies and balancing acts and other factors such

as presence or absence of viable substitutes.

24
Bargaining power of buyers. The bargaining power of buyers is strong among the big
integrators because of the following reasons. First, 21 percent of the production of the industry
are being dominated by the integrated feedmillers engaged in forward integration market.
Second, there are high switching costs because of differentiation of animal feeds as demonstrated
by 4,979 number of registered and sometimes customized feedmill products with a total of 400
different kinds of brand names which needs high capital investment.

However, there is a low bargaining power for small and backyard raisers because they are price
takers. They come from the grassroots level which normally makes backyard livestock and
poultry production a piggy bank. From time to time, though in smaller quantity of purchase,
they also buy animal feeds that are being retailed in the livestock and poultry supply stores
located within their vicinity or nearby locality. Backyard raisers are numerous particularly in
hog raising which accounted to 79%, on the average, from 1994 to 2004 of total hog industry
players. Due to lack of competitiveness, they are normally marginalized by the existence of big
players in the livestock and poultry industry, and in effect are always losers in market price
fluctuations. As a result, they cannot influence market prices of feeds, including their produce
animal, thereby always at the losing end of the supply chain. In some cases, the commercial
feeds accounts for 50 to 70% of the total production cost of backyard raisers, depending on the
density of operation.

Threat of feeds substitutes. Forty six percent (46%) of the livestock and poultry industry uses
substitutes. Many backyard livestock growers are still using the food-leftovers and range feeding
method. Current research and development is also presently prioritizing the improvement of
indigenous materials and agriculture by products for feeds and feedstuffs substitutes. Among the
raw materials being eyed by local scientists as substitutes for highly expensive imported
feedstuffs are the following: 1) arrowroot (Maranta arundinacea; 2) sweet potato (Ipomea
batatas); 3) cassava (Manihot esculanta Crantz) meal; 4) gabi; 5) giant toad meal; 6) Anabiong
(Trema orientalis); and 7) banana rejects and peelings, to name some.

Threat of entry. The entry barriers for small-scale operation are low but very high for large-
scale operations. This is because establishing feedmills requires a large capital investment
which is approximately Php 34 million for a 25MT medium size capacity plant (Please see Table

25
15). Likewise, there is a very high product differentiation attached to technology and animal
nutrition advancement, particularly for high value aqua feeds. Nowadays, major players of the
feedmill industry with integration capability have covered many urbanized high demand areas.

Feedmilling Cost Structure

The feedmiller cost structure varies widely depending largely on density of operation. There is
big cost difference between the small to medium to large scale operation particularly in the level
of investment cost required. For a typical one-toner per day operation, investment ranges to
about P0.3 million to P0.5 million inclusive of the working capital requirements. For large
feedmill plant operation say 50MT per 8-hour shift capacity and with complete storage, bulk or
in sack, facilities and distribution and delivery fleet, total investment will run to hundred of
million of pesos. This is the main reason for big industry player to play really big with
integration, diversification, consolidation and the like strategy to gain economy of scale and
economy of scope.

For an average medium size plant of 25MT per 8-hour shift capacity, total investment required is

about P34.0 million composed of the following: (Please see Table 15):

Table 15. Feedmill Cost Structure for Average Medium Size Plant

PROJECT COST (In 000 Pesos)

A Investment Cost
Land and improvement 1,500.0
Building and facilities 10,000.0
Machineries and equipment 7,500.0
Delivery equipment and vehicles 3,300.0
Furnitures and office equipment 200.0
Total Investment Cost 22,500.0
B Working Capital Requirement
Raw materials & finished goods (3 months) 7,500.0
Direct labor 500.0
Manufacturing overhead & operating expenses 2,500.0
5% Contingency provision 1,000.0

26
 Total Working Capital Requirement 11,500.0
TOTAL PROJECT COST 34,000.0
PROJECTED INCOME AND LOSS (In 000 Pesos)
Projected Sales 115,700.0
Less: Cost of Sales 102,200.0
Gross Profit 13,500.0
Less: Selling and administrative expenses 9,250.0
Projected Net Income before Other Charges 4,250.0

The projected cost and financial projection presented in the preceding page is for a 25MT per 8-
hour shift feedmill capacity will provide a 12.5% ROI (Return on Investment), 8 years Payback
period and a P80.0 million Break Even Sales.

Key success factors

Some of the key success factors that contributed to the growth of the feedmilling industry are due

to the adoption of the following strategies:

Backward and forward integration.

Intensive advertising promotion of some big players that include B-Meg, Purina, to
name some, which are regularly seen on TV program.
Adoption of new feedmilling technology, particularly those commercial feedmillers.
Adherence to quality standard procedures.
Product differentiation, diversification, innovation and market niching.
Provision of credit terms by feedmilling companies to their distributors, including
discounts to wholesalers, and some regular customers in the livestock, poultry, and
aquaculture industries.

Strong participation of the government, private sector, and industry associations in

the conduct of regular International Animal Feed and Veterinary Drug Congress that
serves as a venue of interaction, market matching, and exchange of ideas, plans and
strategies among major feed industry players and alliances in the livestock and
poultry industry.

27
Potential Competitive Moves

The potential competitive moves of existing players in industry are the following:

Determining and obtaining low cost but efficient ration for the optimum growth of
livestock, poultry, and aquaculture crops.
Construction of more storage facilities of feeds to provide quality products to
customers.
More aggressive advertising strategies for other top players who have not yet exposed
their company in the mass media advertisement.
Continued adoption of technology that would decrease production costs and increase
profitability and productivity.

CONCLUSION AND RECOMMENDATIONS

Analysis showed that the Philippine feedmill industry, because of its strategic position and
importance as a link between the raw material feed input suppliers, and the livestock and
poultry and aquaculture sectors, has its share of a lot of issues and problems to settle. First, the
feedmilling capacity in the country has the tendency to be under utilized, to some extent, due to
the non-availability of corn and other local and imported raw materials. This does not include the
intentional wrong declaration of utilization rate by some feedmilling companies to the
government for the reason that they maybe doing away from the right taxes to be collected by the
national revenue-generating agencies. Given this situation, feed requirements of the countrys
animal population are not always fully addressed, in terms of correct volume
declaration/disclosure, and thus, affecting the correct reading of the situation of the industry,
from time to time. As a result of this problem, the high prices of commercial feeds, consequently
increase the prices of livestock, poultry and aquaculture products.

Second, there is also a high cost of production due to quantitative restrictions on importation and
high cost of raw materials. Moreover, despite the availability of numerous potential local
substitutes for raw materials, their supply reliability and acceptance by feed manufacturers and

28
the livestock sector as a whole are still far-fetched. This is actually one of the major problems of
the industry which translates to higher input production cost and a profound impact on
feedmillers operations, engendering a wide gap between the available supply and demand for
feeds. Resolving these problems will surely give a great impact on the governments drive
towards achieving food security in the country, specifically on the affordability of livestock,
poultry, and aquaculture products.

Foremost among related causes of such gap is the shortfall in corn production which affects the
feed supply since it comprises 50 to 70% of the cost of feeds. The country is importing corn and
its substitutes because the current domestic supply cannot meet the increasing demand.

With the foregoing, the following are recommended:

For the government and other coordinating bodies to:

Support continued research on possible lower cost substitutes especially for corn and for the
vegetable-based protein to minimize the industrys dependence on imported soybean meal
and other high cost protein sources.

Assist in increasing productivity of corn through proper technology and help in the provision
of infrastructure support to improve delivery system (logistics) of raw materials and feeds in
the entire country. This includes construction of farm-to-market roads, ports and cargo space
on board inter-island vessels, as well as storage facilities.

Support an on-going development and promotion of alternative sources of raw material

ingredients to ensure their availability, supply reliability and ease up dependence on
expensive feed ingredients.

Provide government support on promotional activities by launching programs on livestock

and poultry production on the use of commercial feeds.

Conduct study on benchmarking and competitiveness analysis to establish reference points

for the industry in modernizing its facilities and capabilities.

29
For potential entrants to:

Venture into feed production especially on technologies involving aquaculture feeds which
promises higher return of investments and less competition among existing players.

Study and consider venturing into offering locally manufactured feeds to the export market
and even into export of products of forward industries like meat and poultry products.

For existing firms to:

Improve the key business governance values of the feedmill industry in terms of the level of
transparency, accountability, social equity and responsibility, responsiveness, and
participation, to name some.

Conduct marketing and promotional drive for the use of quality feeds in producing quality
livestock and poultry products in order to beef up demand for commercial feeds and to
address the gap especially among backyard raisers.

Maximize utilization of indigenous raw materials for feeds including agricultural wastes and
by-products through backward integration either through direct production or contract
growing in order to minimize input costs.

30
REFERENCES

University of Asia and the Pacific. Food and Agri Business Yearbook and Directory.
Millenium Edition. 2000.
University of Asia and the Pacific. Food and Agriculture Centennial Book: 100 Years of
Philippine Agriculture. 1998.
Corpuz, Perfecto G. Philippine Grain and Feed Annual 2003. GAIN Report. USDA. Foreign
Agricultural Service. February 13. 2003.
Alvarez, Ramiro C. Lifeblood of Animal Industry. GreenFields Magazine. November 2001. pp.
12-16.
Caros, Cherrie Annie. Local Feed millers see growth amid challenges. Livestock and Meat
Business Magazine. Maiden Issue. Vol. 1. No. 1. pp. 8-10.
Esplana, Elmer R. Chicken Tightness Seen in the Second Quarter. Livestock and Meat
Business Magazine. Vol. 1. No. 2. p. 42.
Abella Sison Jaime Abella, DVM. The Philippine Feedmilling and Technology Resource
Handbook.
Oldfiles M.E. J.E and W.W. Heinemann. Feeds and Nutrition by Ensminger,
Proceedings of the PSAS 38th Annual convention, 18-19 October 2001, Manila.
Estacio, Mina, OIC of Animal Feeds Standard Division, BAI. Presentation material to the
National Task Force on Price and Volume Watch meeting. November 12, 2004.
Bureau of Animal Industry. Animal Feeds and Standard Division. Statistics of Feedmilling
Industry in the Philippines.
An Outlook for the Philippine Feedmilling Industry in the Philippines Today and Beyond
2003. n.d.
Industry Project Analysis Paper on the Feed Milling. n.d. Material taken from PAFMI.
Villacorta, Zenaida, DVM. The Feedmilling Industry in the Philippines. 1997.
Chen, Edwin, President, Bounty Farms, Inc.. Presentation Material for the Layer Sector. Food
and Agriculture: Trials and Truimphs. A Year- End Food and Agri Business Conference.
University of Asia and the Pacific. 24 November 2004.
Macaraig, Ramon. Head, Technical Services Dept., Alsons Aquaculture Corp. Presentation
Material for the Aquaculture Sector. Food and Agriculture: Trials and Truimphs. A
Year- End Food and Agri Business Conference. University of Asia and the Pacific. 24
November 2004.
Dy, Rolando T., Executive Director. Center for Food and Agribusiness, UA&P. Presentation
Material for the Agriculture Scenarios in 2004-2005. Food and Agriculture: Trials and
Truimphs. A Year- End Food and Agri Business Conference. University of Asia and the
Pacific. 24 November 2004.
Yap, Arthur C., Secretary, Department of Agriculture. Presentation Material entitled Building
on Grains. Pagkain Sapat at Abot Kaya! Food and Agriculture: Trials and Truimphs.
A Year- End Food and Agri Business Conference. University of Asia and the Pacific. 24
November 2004.
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Pasture Researcher, Research Division. BAI.

31
 Appendix A

Figure 4. Feedmill Marketing and Distribution Channel

Feedmill Processor or
Manufacturer

Distributor

Dealers Retailers

Livestock & Poultry The Marketing and

Farmers or Growers Distribution Channel

32