Philippine producer focuses on small pig farm

The many outbreaks of African swine fever in the Philippines have reduced the pig herd by more than a third. The Philippine Ministry of Agriculture knows that this involves a loss of approximately 431.000 animals, but the sector does not believe that. She expects this number to be many times higher. A group of private sector pig breeders therefore assumes a loss of 4,7 million animals. It is 36% of the total pig herd. Operating losses have already reached $1,2 billion in some cases.

A large number of pork producers are forced to limit their production figures to prevent losses from increasing further. The animal disease therefore poses a threat to food security in the country. Significant shortages of pork are reported, even though it is one of the most important parts of the average Filipino's diet. Consumption amounts to 15,2 kilos per capita, which is higher than the world average of 11,1 kilos.

High food prices
As a result of these shortages, pork prices have skyrocketed. In January, the price for pork amounted to €6,70 per kilo, an increase of about 60% compared to the €4,20 paid 6 months earlier. Considering that the minimum daily wage in the capital Manila amounts to €9,10, this is a considerable amount. There are also concerns about the domino effect of this price increase. For example, the prices of chicken and vegetables have also risen.

The situation is now considered critical, as the country's economy has also suffered a significant economic blow due to the corona crisis. That is why Philippine President Rodrigo Duterte imposed a price ceiling on pork and chicken at the beginning of the month. This ceiling applies from February 1 for a period of 60 days and is intended to prevent prices from rising even further.

There is a future for small pig farms
A few weeks ago, the government therefore stated that it would ban the import of pork by approximately 200% want to increase. Today, the Philippines is the seventh largest importer in the world. The country mainly imports pork from Canada, the United States, Spain, France and the Netherlands. Several analysts expect the country to become one of the most important pork importers in Asia in the coming years.

However, that option is not being considered by major pork producers in the country as it will further push the country's small farmers into a corner. They see these small companies as their next suppliers. This is to stabilize the supply of affordable pork. It is also a solution for the transport ban. Some producers in the Philippines cannot go to their regular suppliers due to the pork transport ban, but may be able to switch to small companies in the region.