Reviving the Philippine Hog Industry: A Roadmap for Recovery and Growth

The Philippine hog industry has stood as a pillar of the nation’s economy, contributing significantly to the agriculture sector’s vitality. With a noteworthy output in volume and value of production, this privately-led industry has long driven economic progress. However, recent challenges have tested its resilience, necessitating a comprehensive roadmap for recovery and advancement.

Industry Background

Through the years, the Philippine hog industry has flourished, cementing its role as a pivotal player in the livestock and poultry sector. It has been a driving force in the local economy, outperforming other livestock and poultry endeavors. An evident trend towards commercialization is noted, as commercial farms grew from 18% in 1994 to 29% in 2021 (PSA Swine Situation Report, 01 July 2021).

Challenges and Setbacks

Notwithstanding its accomplishments, the industry faced a critical blow in 2019 when the African Swine Fever (ASF) outbreak took root. The ASF crisis prompted farm closures, large-scale culling to contain the disease, and a substantial decline in hog inventory. This supply reduction led to pork price escalation, particularly impactful during the backdrop of the COVID-19 pandemic and its economic reverberations.

Pork Importation Trends

Further compounding the hurdles faced by the Philippine hog industry is the trend of pork importation. In response to the ASF-induced supply deficit, the nation turned to pork imports to bridge the gap in consumer demand. Although a short-term imperative, such import reliance raises questions about the long-term implications for local producers.

While importation addresses immediate supply shortages, it can potentially undermine domestic producers’ competitive position. The influx of imported pork may introduce heightened competition for local products, thereby influencing prices. Moreover, it underscores the industry’s susceptibility to external shocks, underscoring the urgency of bolstering domestic production.

Current Swine Situation

The latest Swine Situation Report from January to March 2023 offers insights into the industry’s status. By March 31, 2023, the country’s total swine inventory reached an estimated 10.18 million heads. This reflects a 4.2% increase compared to the same period in the previous year, which saw an inventory of 9.77 million heads. Notably, smallhold farms contributed around 76.5% of the nation’s swine population, while commercial and semi-commercial farms constituted 22.3% and 1.2%, respectively (Figure 2).

Regional Highlights

In terms of regional distribution, CALABARZON led the way with the highest swine population, totaling 1.31 million heads by March 31, 2023. Following suit were Central Visayas and Northern Mindanao, with swine inventories of 1.13 million and 1.09 million heads, respectively. These three regions collectively accounted for a significant 34.7% share of the country’s total swine population during the specified period.

Roadmap for Recovery

Addressing the current challenges necessitates strategic intervention from the Philippine government. A comprehensive roadmap has been crafted to provide a comprehensive assessment of the industry’s present state and delineate the steps essential for rejuvenation.

The roadmap delves into a situational analysis, offering insights into the industry’s economic contributions, production, trade, and value chain dynamics. A SWOT analysis pinpoints key challenges and gaps, serving as the bedrock for subsequent action.

Key Result Areas (KRAs)

Guided by eight Key Result Areas (KRAs), the roadmap charts the course for recovery and growth. These KRAs serve as beacons, steering the industry toward past glories and sustainable expansion. The identified KRAs encompass:

1. Increased hog inventory.
2. Improved agricultural data systems.
3. Enhanced farm productivity.
4. Reduced input costs.
5. Modernized post-production and marketing systems.
6. Improved information access for smallhold farmers.
7. Adoption of food safety regulations and standards.
8. Enhanced animal health status.

Action Plan and Budget Allocation

The roadmap’s action plan outlines specific strategies and tactics for KRA achievement. While the private sector has already pledged PhP6.64 billion in investment, the government’s role is pivotal. The Integrated National Swine Production Interventions for Recovery and Expansion (INSPIRE) Program, central to recovery efforts, necessitates substantial government funding. The roadmap suggests allocating PhP26.65 billion for repopulation and nucleus/multiplier farm establishment. The entire 5-year program requires an estimated PhP48.18 billion.

Looking Ahead

As this roadmap was conceived during President Duterte’s tenure, its trajectory under President Ferdinand Marcos Jr.’s administration remains uncertain. Nevertheless, the roadmap offers valuable guidance to backyard hog raisers, illuminating the path forward for the next three years.

Empowered by this roadmap, the Philippine hog industry aims to regain its pre-ASF stature, fostering sustainability and global competitiveness by 2026. Through synchronized efforts between the private sector and government, and with the roadmap as the lodestar, the industry is poised to surmount challenges, embrace growth, and secure a promising future. Reconfiguring the pork importation landscape also stands central to this aspiration, ensuring the industry’s resilience and self-sufficiency.