1. CATTLE INDUSTRY DEVELOPMENT ROADMAP 2011 CIDR

2. Gearing up to compete in the World Market – Beef rib eye from Bukidnon is now selling P3,000 per kilo in Makati while the US branded Angus Beef is only selling P1,000 per kilo. The Brahman Registry has been established. Managed by the Philippine Brahman Breeders Association (PBAA) it has roughly 1,000 animals on the registry. In southern Mindanao, four (4) commercial operations include its own meat shops, one (1) fully integrated, and one (1) a backward integration in sourcing grower-finishers. Recent advances in the industry

3. Gearing up to compete in the World Market – A foreign outfit has started to finish cattle to be re-exported – if it can find an AAA Abattoir. Aside from producing their own dairy animals, a commercial operation has supplied NDA local F1 dairy animals, which have been proven as good milking animals comparable to the imported dairy cattle. And, importantly, Embryo Transfer (ET) technology from frozen embryos has been used successful. ET brings down the cost of genetics by as much as 40-70%. Recent advances in the industry

4. In spite the decline, undaunted by trade liberalization and global competition, the remaining commercial cattle operations as a whole continued to experiment and invest to become competitive in the world markets. In gearing up to compete, the country is now able to produce the world’s premium meat in terms of quality and traceability – and, thus, spearheading the cattle industry in the position of competitiveness. “Producing the Premium Meat”

5. VALUE OF LIVESTOCK & POULTRY at current prices (billion pesos) Source : DA-BAS Industry Situation

6. 2001-2010 CATTLE INVENTORY Source : DA-BAS Industry Situation Total inventory is roughly P50 Billion productive assets on the ground.

7. PHILIPPINE PER CAPITA CONSUMPTION Industry Situation Product Per Capita Consumption (kg) % Meat Protein Pork9.1541.10 Chicken7.9035.49 Chicken Egg3.1714.24 Beef1.255.62 Carabeef0.210.94 Goat0.050.02 Total22.26100.00 Source: BAS, 2009

8. COMPARATIVE PER CAPITA CONSUMPTION (KG) CountryBeefChickenPorkTotal Kgs% Total U S A28.363627.4621.1476.96 Australia35.164130.5620.3886.10 Phil.1.255.627.909.1518.30 Industry Situation Note: Phil. % includes other meats, e.g. goat & carabao.

9. INCOME OF SMALLHOLD 2010 ESTIMATE People involved 876,468 Average Income per Smallholder P 18,033 Total Income P 15,805,226,550 Source: DA-LDC Industry Situation

10. All over the world, beef will always remain the premium meat. As nations become more affluent, beef consumption shall be increasing. In the Philippines, aside from its core value of being a major source of livelihood in the rural and provincial areas, the domestic cattle industry is growing albeit slowly because of the Filipino family tradition – the Sunday treat and other important occasions of special recipes cooked from freshly slaughtered and cut beef that comes from the traditional wet market. “Producing the Premium Meat”

11. EXTRACTION AND OTHER PERFORMANCE INDICATORS Source : DA-BAS Production Performance

12. PERCENTAGE SHARE OF BACKYARD & COMMERCIAL CATTLE FARMS Source : DA-BAS * no breakdown for 1970-75 Production Performance

13. CATTELE FARMS GROWTH RATE Production Performance 2% Total Population Average Annual Growth DA-BAS/LDC

14. PERFORMANCE REGIONAL PERFORMANCE Source : DA-BAS Production Performance RegionPopulationProductionGrowth Top Regions **Prod. System Heads*RMT*R% Philippines 2,570,879245,1002.05 CAR 53,483145,50114(11.96)13886-14 Ilocos 317,073126,9482(10.65)12499-1 Cagayan Valley 197,5417 12,283 106.884791-9 Central Luzon 173,1448 17,296 65.807788-12 CALABARZON 255,2534 24,193 44.329698-2 MIMAROPA 87,14412 11,775 11(21.71)151389-11 Bicol 68,7591313,0439(17.42)141261-39 WV 225,3835 19,778 531.691199-1 CV 275,2073 24,344 35.168399-1 EV 15,34916 2,665 15(38.59)161474-26 Zamboanga 155,9949 14,207 8(9.03)119100-0 NM 281,4422 33,615 13.7910290-10 Davao 140,14410 10,200 136.395996-4 SOCSARGEN 203,1056 17,111 712.713585-15 CARAGA 18,09715 1,224 1629.5621196-4 ARM 103,76111 10,917 125.9161099-1 Notes: R- Rank and Prod. System is % Smallholders and Commercial.

15. TOP COMMERCIAL CATTLE PROVINCES Source : DA-BAS Production Performance....Bukidnon16,16214,20212,96626,05925,500 …South Cotabato20,85024,08825,23824,54724,964....Masbate29,97829,82527,14524,96424,973....Nueva Ecija14,53612,63811,95010,1509,255....Cagayan2,6682,6942,8742,8096,459....Isabela4,7835,0114,6595,2615,960....Ifugao6,8316,2446,1695,9325,688....Tarlac6,3155,7135,9425,3144,848....Nueva Vizcayas3,8564,0454,2214,2694,522....Leyte5,9555,9745,5464,7263,970

16. 1997-1999 U.S. Importation PL480 Total – 3,325 heads Brahman – 2,628 heads 707 heads to FCRAP 1,921heads to Government Simbrah – 690 heads Senepol – 7 heads Production Performance

17. DA-BAI Stock Farms: 1,746 HDS DA-BAI Research Center Land Area (Has.) CowsHeifers Senior + Junior Bulls Total Breeders Cow Density Busuanga Breeding and Experimental Station (BBES) 40,000 352 Pure Brahman 49 (14%)41 +6=47 (8.5:1)448 1:57 285 Commercial 9 (3%)3 +49=51 (5.8:1)297 8 Native0512 Milagros Livestock Production Center (MLPC) 1,99321534(16%) 32 + 56=88 (2.8:1) 3371:8 Nueva Ecija Stock Farm (NESF) 1,50013471 (53%) 37 + 20=57 (3.6:1) 2421:7.3 National Center for Forage and Pasture (NCFP) 1,60017108351:59 National Artificial Breeding Center (NABC) 184442522 + 1 =232.66 Western Mindanao Livestock Development Center (WESMILDEC) 1,934392 + 2 =4 Production Performance

18. Source: Del Monte Philippines, Inc. on 100-140 feeding days (2004). Manso cattle gets only 0.25 kgs ADG on the feedlot. COMPARATIVE ADG OF FEEDER STOCKS Production Performance Source of Feeder Stocks Ave. Daily Gain (kg) % Difference Local Feeder Cattle0.70 Imported Feeder Cattle0.929

19. SLAUGHTER PERFORMANCE * DEALCO Farms (2004) ** BAI-APDC (2003) Production Performance Upgraded Local Cattle* Native Cattle**% Difference Ave. Slaughter Wt., (kg) 41531830.5 Ave Carcass Wt., (kg) 23016142.9 Dressing %55.4250.69.5

20. The extraction, mortality, retention and slaughter data however bring to the fore the urgent need for a systematic management of the national herd, including the impact of imports. The damaged national herd profile has to be corrected. The supply of breeding stocks should therefore highlight not just the new genetic infusion but, rather, the essence of genetic independence, retaining genetic value, establishment of genetic lines, even local breeds, pedigrees, and progeny testing. The old and new data on inventories, ADG and slaughter performance show distinct genotype applications “Producing the Premium Meat”

21. Volume of Local Production & Imports* Thousand Metric tons Source : DA-BAS * Thousand Metric tons Source : DA-BAS Market Supply Distribution

22. Source : DA-BAS Market Supply Distribution 2001-2009 Annual Supply Growth Beef0.06 Pork3.67 Dressed Chicken5.59

23. Market Supply Distribution Domestic Production and Imports Growth Rate (%) Source : DA-BAS 1.08(1.93) Annual Growth Rate

24. Market Supply Distribution Percent Sufficiency in Meat Products

25. Average Prices Source : BAS Market Supply Distribution

26. “Producing the Premium Meat” Marginalized over the years, the cattle industry has been most resilient, able to sustain itself competing with imports – and, importantly, without special trade protection. However, recent incursions of cheap imports in the local traditional wet markets have posed danger to its long-term development and higher growth rate.

27. Challenges  Achieving a national and local government policy of enhancing the competitiveness of the cattle industry.  The provision of a new leadership and coordination, government and private sector collaborative effort, that will allow the pursuit of collective industry goals, control of its own performance, and to fulfill its public duties.

28. Challenges  Achieving higher sustainable growth, by breaking the impact of “boom and bust” prices and solving the “farm problem” or “crux of agriculture” through an optional new market distribution system.  Supporting the commercial sector gear up for competitiveness and integrating the smallholders while maintaining its core value as source of livelihood in the rural and provincial areas.

29. Challenges  Advancing the private sector breeder farms for genetic improvement and supply of superior breeding stocks.  Achieving market access through competitive genetics, product quality and traceability through research, modern production systems and technologies. And, at the same time, maintaining the traditional wet market.

30. Local Cattle Industry: Producing the Premium Meat Vision

31.  DA Special Order: Cattle Industry TWG (CIT) and Mindanao Cattle Development Centre (MCDC) MOA  Finalize the Cattle Industry Development Road Map (CIDR) and approval of the Medium-Term Plan  CIT, MCDC & FCRAP providing leadership and coordination:  Review of PL480, NABC/NESF, and UNAIP  Clustering key cattle production areas: (1) Cow-calf, feedlot and abattoir; (2) High-value animals; and (3) WV, CV and Ilocos Situational Analysis  Crafting the National GIP Plan - Immediate Concerns: 2011 Targets

32.  Funding the 2011 Action Plan  CIT, MCDC & FCRAP providing leadership and coordination:  MCDC to proceed with its research on the Native Cattle and gain know-how on retaining genetic value as in line breeding or establishing a breed.  Crafting a policy of maintaining agricultural lands and increasing the cattle production base  Establishing more CDCs, RFU & LGU collaborations. Immediate Concerns: 2011 Targets

33. Medium-Term TARGETS  A New Market Distribution System: Post Harvest Facility Facility  Auction Markets, Stockyards & “Hotels”  Feedlots - finishing local cattle to increase weights at slaughter - at least 350 for native cattle, 420 for upgrades slaughter - at least 350 for native cattle, 420 for upgrades and 450 for imported live imports. and 450 for imported live imports.  Abattoir: AA & AAA Abattoir up to packaging.  A New Genetic Improvement Program: The supply of pedigreed bulls augmented by artificial insemination. pedigreed bulls augmented by artificial insemination.  Breeder Bulls Production - 59,715 heads for the 1,492,892 breeder base. 1,492,892 breeder base.

34. Medium-Term TARGETS  Breeder Infusion – As the Government can only produce so much, depending on the crafted National GIP Plan, existing ranches should be converted into stud breeders.  Progeny Testing – For certain a large number of the bulls required will be native. Thus, Progeny Testing Facility has to be established in WV, CV and Ilocos, etc...  Grazing Land - The existing cow population, requires at least total of 572,235 hectares of grazing land. The current land under cattle should be preserved for this purpose.

35. Medium-Term TARGETS.  Sustaining the overall population growth and arrest the decline of the commercial and arrest the decline of the commercial sector. sector.  Achieving a total system of production and marketing. marketing.  A national policy enhancing industry competitiveness: Ensuring continued land use for agriculture, including cattle, and the maintenance of the production base for the national herd; the conservation of natural grassland for its “high nature value”; and the maintenance of viable provincial and rural communities.

36. STRATEGIES New market supply distribution New technologies Access to policy, programmes and services Government and private sector collaborative effort Mainstreaming the Cattle Industry

37. STRATEGIES New Products and Markets –  Live Cattle: F1 Dairy Animals for NDA  Carcass, Meat Cuts and Consumers Products – o High-end meat cuts o Raw food processors materials o Exports Farmers Post-Harvest Facilities Hub Projects –  Stockyards and “Livestock Hotels”  Feedlots  AAA Abattoirs and AA Slaughterhouses  New market supply distribution

38. Production Traders:Livestock Oksyon Mkt Traders: Stockyard Hotel Feedlot/ Fattening Slaughter Cutting Floors Institutional Buyer MITA Special Cuts PAMPI Mfg Grade Wet Mkt Processing A New Market and Distribution System BAI- Marketing Division Cold Storage – Outlets

39. NEW MARKETS & DISTRIBUTION Development of Grades and Standards Meat Importers, Processors & Wholesalers Cold Chain & Transport System Livestock Hotels & Stockyard Complex Slaughterhouse & Cutting Floors Market Information System E- CommerceSTRATEGIES  Provision for PHF: Stockholdings, manufacture and food safety, including traceability – and allow new market access as well as exports.

40. STRATEGIES Genetic Improvement Anchor Projects –  Selection, progeny testing and propagation – Breed registry, Genetic reconstruction, Cow-cal technology, F1 dairy animals from native cattle  Application of biotechnology: Intensifying artificial insemination and strategic application of embryo transfer  Animal Health and Food Safety Accreditation Facility – Feeds and Feeding Technology, Abattoir, AA Slaughterhouse and Meats Technology, Producers, Middlemen and Vendors Accreditation  Technical research and management study  New technologies

41. GENETIC IMPROVEMENT PROGRAM Purebreeding/Conservation: Private Sector Seedstock and Government Stock Farms as Nucleus Operations Crossbreeding: Ranchers/Commercial Raisers as Multiplier Farms Terminal Crossbreeding: Backyard Production/OperationsSTRATEGIES  Genetic Improvement: Progeny testing, live animal infusion, artificial insemination and embryo transfer for genetic improvement, product quality and competitiveness in the World Market.

42. STRATEGIES  Government Research Stations and Stock Farms  National Artificial Breeding Center (NABC)  Unified National Artificial Insemination Program (UNAIP)  Philippine Animal Health Center and Regional Animal Diagnostic Laboratory  Academe, PCARRD, BAR  DA-RFU and Local Government Units  Unified policies, programmes and services

43. HERD BUILD-UP PROGRAM Multi-Livestock Development Loan Program (MLDLP) Save the Herd Program Animal Infusion FINANCING PROGRAM Quedancor, LBP, DBP & ACEF PL 480STRATEGIES Revisit the existing government programs

44. Provision for New Financing/Policy MLDLP - The Multi-Livestock Development Loan  MLDLP - The Multi-Livestock Development Loan Program (MLDLP) streamlined and pursued more Program (MLDLP) streamlined and pursued more vigorously and expanded for the HBUP – to include the vigorously and expanded for the HBUP – to include the ranchers. ranchers.  Quedancor - Tapped to provide credit financing for the backyard GIP and HBUP programs: backyard GIP and HBUP programs: 1. Bull Exchange – 1:25-30 2. Herd Increase – 1:25  ACEF, LBP & DBP - GFIs enjoined to finance the stockyards, “hotels,” slaughterhouses, cutting floors stockyards, “hotels,” slaughterhouses, cutting floors and cold chains. and cold chains.  PL 480 - Make use of the commodity loan for animal & semen infusion. semen infusion.

45. STRATEGIES Private-sector led national Cattle Industry TWG (CIT) providing the basic structure for leadership and collaboration through an Executive Committee manned by an Executive Director and Staff. The Cattle Development Centres (CDCs) shall oversee the various hub and anchor projects at the local level. In addition to the DA agencies (BAS, BAI, NMIS and LDC, RFUs, etc.), the CIT shall coordinate with the DENR-Grazing Range, DAR-Smallholder Farmers, DOST-PCCARD, CHED- Agricultural Schools, etc.  CIDR: Government and private sector collaborative effort

46.  Importers sourcing their growth locally;  Post-harvest facilities allowing separation at slaughter to cut, box, process, pack and at slaughter to cut, box, process, pack and freeze – and facilitate transport; freeze – and facilitate transport;  Wholesalers buying directly from producers;  “Oksyon” Markets & Livestock “Hotels” for culls, growers/finishers, and breeders. growers/finishers, and breeders. A Total Market and Distribution System 2004 STRATEGIES

47. 2004 POLICIES  Promote local sourcing;  “Commercialization” of the smallhold;  Strengthening of support services;  animal health, standards, environment  Coordination (DENR, DAR, NCIP, DILG) & Linkages (LGUs & Private sector) & Linkages (LGUs & Private sector)  Structural Provision:  Breeder Accreditation Board  Beef Cattle Development Center

48. CATTLE SECTOR First Draft Dr. Bal Mateo Mr. Rene de Guzman Dr. Paul Limson Ms. Rona Dacillo Mr. Jimmy Gamil 2011 CONVERGENCE STRATEGIES

49. THE ROLE OF GOVERNMENT STOCK FARMS: A POLICY STUDY [LDC] 2011 CONVERGENCE STRATEGIES

51. Goals  The Cattle Industry TWG (CIT): Provision of an organization that allows the cattle industry to pursue its own collective goals, control its own performance, and fulfil its public duty.  National policy enhancing industry competitiveness: Ensuring continued land use for agriculture, including cattle, and the maintenance of the production base for the national herd; the conservation of natural grassland for its “high nature value”; and the maintenance of viable provincial and rural communities.