Philippine pork, chicken production among most expensive in Asia – PIDS
High feed costs drive up production expenses for hogs and poultry
PHILIPPINES – Pork and chicken production in the Philippines ranks among the highest in Asia, with feed expenses cited as the main contributor, according to a report by the Philippine Institute for Development Studies (PIDS).
The government think tank’s study on the livestock, poultry, and dairy sectors found that hog farms in the Philippines consistently operate at higher costs compared with farms in China, Thailand, and Vietnam.
Data from 2017 to 2020 indicate that backyard hog farms in the Philippines incur operating costs of about US$2.51 per kilogram, while commercial farms benefit from economies of scale, reducing costs to around US$1.90 per kilogram.
In comparison, Chinese commercial farms produce pork at approximately US$1.81 per kilogram, Thai farms at US$1.65, and Vietnamese farms at US$2.04 per kilogram, while major exporters such as Spain and Denmark manage costs near US$1.47 per kilogram.
A more recent Department of Agriculture estimate places hog production costs in the Philippines between US$2.80 and US$3.05 per kilogram, reflecting ongoing pressure on farm expenses.
PIDS highlighted that feed accounts for roughly 57 percent of hog farming operating costs, offsetting any savings farmers achieve from paying lower prices for grower stock.
Chicken production faces similar challenges, with commercial broiler farms estimated at around US$1.20 per kilogram on a live-weight basis, and backyard operations reaching up to US$1.32 per kilogram based on 2018 data.
When measured by dressed weight, large-scale broiler farms in the Philippines record average costs of US$1.57 per kilogram, exceeding China’s US$1.47, Vietnam’s US$1.30, and Thailand’s US$1.13 per kilogram, making local production less competitive in the region.
The PIDS report attributed high feed costs largely to elevated corn prices, a primary ingredient in animal feed, which remain higher in the Philippines than in neighboring countries due to tariffs and other trade policies.
Wholesale corn prices in the Philippines range from US$0.42 to US$0.44 per kilogram, compared with US$0.28 to US$0.38 in China, US$0.22 to US$0.29 in Vietnam, and US$0.19 to US$0.24 in Thailand, directly influencing feed costs and overall meat production expenses.
The study recommends a comprehensive review of trade and production policies, suggesting that adjustments to corn tariffs and other regulations could lower feed costs and improve competitiveness across the livestock and poultry sectors.
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