This bright forecast, amid a global recession and uncertain peace and order conditions, was raised by vice president by external affairs Ric Pinca of the Philippine Association of Feed Millers Inc. (PAFMI).
"The feed milling sector and the combined meat, poultry and fish sectors enjoy a symbiotic relationship that sustains each other as one grows," Pinca stressed.
Pinca, however, cautions that the industry has to brace itself for open competition from foreign feed millers, which is why the sooner it modernizes and improves its facility, the better it is able to stave off the competition.
To date, he said 7.7 percent of feed mills produce 51 percent of the industry’s total output. This represents a low 47-percent capacity utilization. Some 33.8 percent of the feedmills produce less than 20 metric tons per eight-hour shift.
He adds another advice: the industry has to dispose to the countryside to reach more customers and encourage commercial activities in the provinces. Todate, 74 percent of the feed Feedmill industry mills are concentrated in Manila and environs.
Pinca, who is also director for corporate affairs of General Milling Corp., the country’s oldest and biggest mill operator, said feed millers have every reason to keep expanding their output since market demand is continuously increasing with hiked consumption of poultry, hogs, fish and other endusers of processed animal feeds.
Commercial feedmillers produce feeds primarily for selling in the market although some like GMC, Universal Robina and Purefoods also use a part of their output for their farms. Many of them in fact are fully integrated with the integrators accounting for 18 million bags, he said.
GMC has a market share of six percent, placing fourth in the feedmilling sector. The to three are B-Meg of San Miguel Corp. (21 percent), Purina (of Purefoods with 12 percent) and Selecta (RFM with 10 percent).
There are 258 current commercial brands in the market with brands ranging from the most popular – B-Meg, Selecta, Mega Mix and Thunderbird (game cock feeds) to upcoming ones such as Kargado and Futura.
Another component of the industry, the home mix sector are basically millers that produce feeds for their own requirements. With 590 home mixers producing 38 million bags yearly, they represent the biggest sector in the industry, Pinca said.
Of the home mixers, he noted, 80 percent produce hog feeds which as of last tally numbered 570 home mixers that have sow levels exceeding 100 head each.
Given 75 million Filipinos consuming meat and fish, the big numbers in the feedmilling sector still has room enough for more players, Pinca said.
The most conservative estimate of the industry’s growth is seven yearly and each industry player – big or small and commercial or home mixer – can grab a share of the market with his own formula and mix.
GMC has the capacity to produce quality feeds at the most competitive costs because of its strategic location the right mix of possessing facilities and an aggressive raw material sourcing strategy.
Pinca added: GMC is also the only mill that has its own soybean (protein) processing plant, corn buying stations and feedmilling facilities with their own ports. Its modern ports and cargo handling facilities enables it to deliver a raw materials and transport feeds at competitive rates."
GMC’s plant in Lapu Lapu, Cebu, with a capacity of 720 metric tons per day enables the company to maintain a strong hold in the Visayas and Mindanao where it commands 50 percent share of the market.
It sources its corn from General Santos City (the country’s corn basket) and its soybean from Tabangao, Batangas where it operates the country’s biggest soybean crushing plant, which the company acquired from the Asset Privatization Trust in 1991. In Luzon, the company’s 350 tons per day feed milling facility is located in Ugong, Pasig City.