Globalization seen as threat to smallholder livestock sector

LOS BAÑOS, Laguna — Globalization continues to pose a real threat to the country’s smallhold livestock sector, it was stressed by a research administrator here.

"As a result of our membership in the World Trade Organization (WTO), we have been vulnerable to the dumping of low-priced beef, buffalo meat, poultry meat and dairy products from well-subsidized developed countries," said Executive Director Patricio S. Faylon of the Department of Science and Technology-Philippines Council for Agriculture, Forestry and Natural Resources Research and Development (DOST-PCARRD).

Thus, Dr, Faylon asserted, there is an urgent need to strengthen the competitiveness of Filipino livestock smallholders in the global meat market.

The PCARRD official’s forum was the second Regional Seminar and Annual Convention of the Philippine Society of Animal Science (PSAS) — Bicol chapter held recently at the Bicol University-Farmers’ Training Center in Guinobatan, Albay.

Dr. Faylon, a noted animal scientist, said smallholder livestock production contributes significantly to household incomes among the country’s poor.

"So we might as well put our efforts into helping this subsector of the livestock and poultry industry," he stressed.

He said that globalization has generally been favorable to large-scale growers as these enjoy the latest genetics and cutting-edge technologies, allowing them to meet the stringent sanitary and phytosanitary, as well as quality standards.

The establishment of large-scale (1,000-120,000 sows) integrated pig farms by foreign investors in free-port zones using imported breeder stocks, technology, and other production inputs is an indirect importation with minimal or no tariff at all, Dr. Faylon pointed out.

The smallholder farmers have less of these and they have been facing low returns on investment, inability to compete even in the local hog markets, among other things," he noted. "Nevertheless, they are fighting back, although much still needs to be done."

Dr. Faylon expressed optimism that the smallholder growers can rise to the challenge.

He cited a study done by the Kenya-based International Livestock Research Institute (ILRI) which found that smallholder pig producers, given enabling conditions, could be competitive with the commercial growers and would likely remain so for the long haul.

Moreover, another study showed that local beef, pork, and poultry could compete with imports.

"Therefore," Dr. Faylon said, "we may be in the right direction in light of the Medium-term Philippine Development Plan (MTPDP), which is keen on supporting micro, small, and medium enterprises (MSMEs) to decentralize development, curb unemployment, and ease out rural poverty."

The country’s comparative advantage is in swine production, he said.

Smallholder swine raisers keep 76.8 percent of the production, he said. (12.56 million as of 2004) in the country. The top-producing regions are Central Luzon, Southern Tagalog, Western and Eastern Visayas, and Southern Mindanao.

Besides, local meat will always have a market because Filipinos prefer warm or chilled pork over frozen, imported ones.

Another thing, although the large-scale livestock producers can easily provide for the optimum physiological and biological requirements of their animals, smallholders have the edge in terms of personalized care and management, resulting in better animal production performance.

Dr. Faylon then asked: "What can we realistically do to cushion the impact of globalization on smallholder raisers?

"I believe," he asserted, "that our issues in the Philippines can be solved alongside the priorities in the international arena, particularly on conserving and utilizing local animal genetic resources; improving livestock health to meet international trade requirements; and enhancing resource-efficient and equitable livestock sector."