Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 11, 2020

VALUE CHAIN ANALYSIS OF ORGANIC RANGE CHICKEN IN REGION 2

Nilo E. Padilla1, Joe Ann G. Payne2, Visitacion S. Simbulan3,
Chenny M. Guzman4, Ralph John S. Lapastura5, Errol John A. Cadelina6
Isabela State University-Main Campus, San Fabian, 3309 Echague, Isabela, Philippines
1-6

Received: 08.03.2020 Revised: 17.04.2020 Accepted: 07.05.2020

Abstract
In Region 02 Philippines, this study evaluated awareness, issues and constraints, opportunities, challenges and policies on organic/range
chicken farmers. For all participants (farm input suppliers, producers, retailers, distributors, business providers and consumers) and
Focus Group Discussion (FGD), Issue Analysis, Main Informant Inter, data were collected using semi-structured questionnaires. Results
show that organic/range chicken are aware of the management practices, issues, concerns involving organic range-chicken farming, and
its economical, nutritional and environmental advantages. Although there is an increasing demand for organic chicken product, there is
low adoption of organic/range chicken farming due to limited knowledge on production conversion technologies on efficient organic
chicken production to limited access of funding agencies and lending institutions. There is an unequitable distribution of profit along the
value chain of organic chicken wherein the middlemen gets more profit. Chicken production enterprise was limited due to the
unsustainable supplies hence all actors in all segments of value chains should be accredited and organized to produce quality and
quantity of the product required in the market. Service providers’ such as Local Government Units, Department of Agriculture and State
Universities and Colleges (LGU’s, DA, SUCs)extend support such as trainings, seminars and limited financial support. However, these
farmers have limited access to these services due to lack of information and dissemination of the said funding agencies. Hence, this type
of farming is still in its infancy and needs more support from service providers.
Keywords: Mapping, organic/range chicken, value adding, value chain analysis.

© 2020 by Advance Scientific Research. This is an open-access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
DOI: http://dx.doi.org/10.31838/jcr.07.11.09

INTRODUCTION
Philippine economy is growing of about 4.4% per annum over
the past three years indicates that there are opportunity that can
be explored in terms of agriculture, entrepreneurship and
industry. Moreover, rapid growth of population will increase the
pool of future consumers of primary and staple farm products
such as rice, pork, and poultry. The growth of demand of these
products made the future development of organic farming very
promising, since the Department of Agriculture (DA) invest in
larger operations in organic farming related to economic, health,
and environment. However, organic industry in the Philippines is
still in its infancy or emergent stage.
Due to the increasing demand of health conscious and
environmental conscious consumers, free range chicken farming
in the Philippines is at its momentum despite the fact that
majority of chickens being sold in the market were still factory
farm produced. Free range farming also referred to as organic
farming is a way of growing livestock without the use of
chemicals such as antibiotics and growth hormones and without
subjecting animals in cramped and unsanitary conditions.
Further, free range chickens are known to have premium meat
with good health benefits. Also, it was beneficial to the
environment because the chicken’s droppings aids in fertilizing
soils allowing the plants to grow (Yan, 2019).
The Philippine Statistics Authority (PSA) reported that as of
January 2019, native chicken has the highest share in terms of
the total chicken inventory with 83.34 million birds compared to
layer and broiler chicken with 38.81 million and 35.57 million
birds respectively (PSA, 2019). Moreover, Yan (2019) mentioned
that this native chickens are healthier and are capable of
enduring harsh environment which makes them resistant to
diseases.
Recognizing and realizing the increasing demand for Organic
Production and to realize the sustainability of Organic
Agriculture, RA 10068 known as the Philippine Agriculture
Organic 2010 Act was promulgated to encourage, spread, further
establish and enforce the practice of organic farming in the
Philippines.
The IRR of RA 10068 states that, initially, 50 M pesos shall be
allocated for the first year of implementation of the Act and,
subsequently, at least 2% of the annual budget of the DA shall be
allocated to organic farming, programs and projects to ensure the
sustainable growth of organic farming by means of automatic
allocations from the annual budget of the DA for certain% of
organic farming. The creation of the IRR for RA 10068 is a clear
proof of the commitment of the new DA administration to cause a
transition from conventional to organic farming.
Additionally, DA is promoting organic chicken farming through
proper information dissemination to small scale or backyard
farmers via workshops to address their technical know−how’s
and for them to produce premium fowls. Organic production is
expected to grow with price premiums by 10 to 20 percent with
some chickens retailing for as much as 1,000 pesos (Yan, 2019).
The study thereby was conducted to determine and
analyzeawareness, issues and constraints, opportunities,
challenges, and policies on organic chicken farmers in Region 02.
It intended to measure the knowledge of organic range chicken
producers, traders and consumers; map the value chain of
organic range chicken identifying processes, actors and their
positions from inputs to product consumption, identify issues
affecting production and marketing, and suggest policy options
to boost production and distribution of organic range chicken
products in Region 2.

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 VALUE CHAIN ANALYSIS OF ORGANIC RANGE CHICKEN IN REGION 2
CONCEPTUAL FRAMEWORK OF THE STUDY
Especially in the Philippines today organic agriculture is still in
its embryonic stage. It is projected by some economies that in the
coming decade, due to increasing human needs and as
contributing factors for restoring our environment, there will be
a primary development in agriculture. Production and marketing
of organic chicken products are increasing continuously with a
rising trend not only in the Philippines but also on the
international market.
Organic development is influenced by outside and internal
conditions throughout the process. However, the quality and
quantity of internal factors are in the hands of the entrepreneurs
/ farmers who are also determined by the conditions of
accreditation of external factors such as economic, technical,
social / cultural , political / legal , environmental and organic
products surrounded by the producers. The efficiency of its
production depends on the conditions of internal factors such as
manpower, technological facilities, physical facilities, farm inputs
and producer ability to support the operation's required funds.
Issues of accreditation of organic chicken product would also be
considered in these industries in order to distinguish between
ordinary / conventional products and that can offer advantages
to producers / traders in selling their products on the market.
Value-adding activities are undertaken to further enhance the
potential for increased income especially during the over-
offering and low demand of these products.
At the end of the report, the following were realized: a) defined
level of knowledge among producers, traders and consumers; b)
mapped value chain of selected organic products; c) identified
marketing system; d) identified constraints and opportunities in
organic goods development and marketing; and e) implications
and recommendations. The conceptual framework of the study is
depicted in Figure 01.
METHODOLOGY
To enhance the promotion and production of organic products,
availability of organic products must be ensured through the
implementation of the following strategies:
Selection of Commodities. From among the organically grown
commodities in Cagayan Valley, chicken was selected as one
commodity for the project. This commodity has been produced in
the region where in some farmers had already started to shift
from heavily dependence on toxic/synthetic chemical based
poultry production to organic based. Moreover, this commodity
had been one of the commodity thrusts by the member agencies
of the CVARRD consortium and the priority commodities
approved by the Regional Development Council of NEDA, CV -
R02.
Time and Place of the Study. The study was conducted from
2014 to 2017, a three-years study of Value Chain Analysis of
Selected Products (in transition to organic) in Region 02.
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Respondents and Sampling.
Figure 02. Organic Chicken Practitioners in Region 02
The provincial geographic information system (GIS) map of the 5
provinces of Cagayan Valley in Region 2 shows that most
organic/range chicken practitioners were 1st and 2nd level
accredited. (First level of accreditation means that neighbors
testifying that they have been raising organic range chicken while
second level of practitioner have undergone training and had been
practicing organic farming for at least one year. They are working
for their third level of accreditation as organic chicken
practitioners. They are the potential organic chicken practitioners
in the future as they have initially worked for their level
accreditation, Figure 02)
Stratified sampling was used to determine the acceptability of
organic chicken by the consuming public for the commodities
under study, it was based on the following strata such as location
and level of income. The survey consumers in first class
municipalities with not less than 20,000 inhabitants were
situated in urban centers with household income of
Php15,000.00/month and above. For each study , the sample in
the area was calculated using Slovin 's formula with an error
margin of 4 percent for both categories (farmers and
consumers)..
The computed sample was apportioned to provinces and
qualified municipalities based on its number of farmer and
consumer populations. The farmer and consumer samples were
drawn at random using draw lots or in random numbers.
Information of organic farmers and traders of chicken was
gathered from the Department of Agriculture and other agencies
in each province. From the lists of organic farmers provided by
the DA, total numeration was used to analyse data gathered from
the farmers and traders who engaged in production and
marketing of the organic chicken.
Gathering of Data
Through FGD, Problem Analysis, Key Informant Interviews (KII),
Environmental Scanning and Strength, Weaknesses ,
Opportunities and Threats (SWOT) analysis, two sets of data
collected using semi-structured questionnaires floated to all
actors (farm input suppliers, producers, traders, processors,
business providers and consumers).
Focus Group Discussion. The project team initiated the conduct
of FGD with the organic chicken farmers, farm input suppliers,
processors, traders and other officials of the government
responsible in pushing organic programs in Region 02. The FGD
provided the project team a vivid picture of the opinions,
perspectives, views and insights of the stakeholders and the
chance of on-the-spot validation of information and details as to
the needs and problems in the organic production and
marketing.
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 VALUE CHAIN ANALYSIS OF ORGANIC RANGE CHICKEN IN REGION 2
Groupings were made to facilitate discussion. Facilitators from
the project team were assigned for each group to moderate and
synthesize ideas and views of the participants.
Questions were asked related to the organic products under
study. Answers were recorded, processed and validated with the
outputs of the other methods employed.
Problem Analysis. The problem analysis was implemented to
identify the problems persisting in the organic chicken
production and marketing relating to the areas where they are
operating. This was implemented by asking the group members
to write their perceived problems in a meta-card in the contexts
of the organic rice. Each participants wrote their problems using
the language they were comfortable with after which, they
posted their problems in the board and ranked them according to
urgency.
Key Informant Interviews. The KII was used as a strategy to
validate the information and details gathered through the
problem analysis and FGD. The group identified key informants
as to the length of years in engaging organic farming, years as
members in the organization, and position in the organization.
Environmental Scanning. It was a walk through in the area which
was implemented through a transect walk to scan physical
resources available in the community not identified during the
interviews and other data gathering tools which might help in
the project implementation.
Strength, Weaknesses, Opportunities and Threats. Together with
the FGD and KII as methods of identifying problems, the project
team also analyzed the data gathered through SWOT analysis,
triangulated with the data reflected from the
cooperative/organization profiles of the communities.
Other information relevant to organic chicken farming published
by concerned government agencies, NGO’s, research agencies,
gazette papers, etc. were considered as sources of secondary
data.
Data Analysis and Treatment
Descriptive statistics such as frequency, percentages, ranking,
graphical, arithmetical mean, etc. were used to analyze the
gathered data. Likert scale and Chi-square analyses were
employed to analyze the awareness of farmers, consumers,
processors and DA personnel who were dealing with production,
marketing and promotion on organic rice.
Incremental cost analysis was used to track the value added from
farm inputs to the sale of the goods in each point in the value
chain of organic chicken. This is shown in diagram that shows the
channel or network in each product handler in the value chain.
For each point the cost and return analysis and a comparative
analysis were also carried out (Figures 2 & 3).
RESULTS AND DISCUSSIONS
General Awareness on Organic Farming
Table 1. Awareness of the respondents on Organic Chicken
production in Region 02
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In Cagayan Valley, R02, majority of range chicken raisers were
aware of what is organically grown chicken is (58%); that
organic chicken raising requires organic inputs (80%), and that
organic chicken integrated with management of infectious
disease (12%) and requires biosecurity measures (10%).
Majority (68%) of the respondents were aware that organic
farming uses indigenous knowledge in farming, and some of
them (30.5%) even have high level of awareness regarding this
practices.
Most farmer-respondents (62.7%) believed that there was a
market niche of organic chicken and more profit can be derived
from it, since it requires low-investment. Since most suppliers of
organic chicken are small farmers, Consumers of organic chicken
also help to develop rural economy and smallholder income
potential (Genki, 2008).
Figure 03. Range Chicken Distribution in Cagayan
Valley
Among the provinces in Cagayan Valley Region 2, out of the 59
range chicken practitioners, Cagayan reported 41.3%, Isabela
28.1%, Nueva Vizcaya 17.4%, Quirino 10.70%, and Batanes
2.50%. (Figure 03)
Most 37 or 62.7% farmer-respondents believed that there was a
market niche of organic chicken and more profit derived as
mentioned by 37 or 63 farmer-respondents. Aside from low-
investment (25 or 42% farmer-respondents) it was also safe food
in the market (21 or 36%). There were only 2 or 3.4% farmer-
respondents who believed that organic chicken production will
rehabilitate their farm (Table 2).
Table 2. Reasons of the Respondents to shift to Organic Chicken
Production
Organic chicken is really beneficial to an individual’s health due
to its high content of Omega-3 Fatty Acids and Vitamin A.
Therefore, eating organic chicken not only provides health
benefits but can also provide a healthier climate. It can also keep
the environment safe by capturing insects that can damage the
plants, scavenging crop residues and fertilizing the soil with its
organic manure. Furthermore, organic growing chicken does not
generate air pollution typical in poultry farms (Genki, 2008).
Map of the Value Chain of Organic Free-Range Chicken
Value Chain Mapping of Organic Chicken
The middleman/wholesalers/assemblers have their preferred
distribution channels which include retailers at the public, city
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 VALUE CHAIN ANALYSIS OF ORGANIC RANGE CHICKEN IN REGION 2
markets, local restaurants, food stalls in the market, and grilled
and roasted chicken street sellers.
For the retailers in the public market, they sell live or dressed
chicken and chicken finished products (e.g. tinola or fried
chicken) to their customers for household consumption. Most of
the buyers are the farmers, government employees, household
consumers, coop members, restaurants, who themselves were
the main stakeholders of the value chain map.
The business service providers (e.g. DA, SUCs, NGO’s, etc.) mostly
provide hands-on training, lecture, seminar and assistance
including consultancy, and other form of services on native
chicken production and processing.
The organic chicken farmers transport live or dressed chicken
and chicken finished products through motorbikes, tricycles,
jeeps, vans, and delivery trucks. The logistic arrangement except
for the delivery truck is most often unethical or unprofessional
since they do not use cage or separate transport facilities for the
transported live chicken. The chicken therefore becomes stressed
and its meat quality is affected when slaughtered. Moreover, to
gain weight, middlemen usually provide a large amount of food
and water in order to obtain heavier weight of the chicken,
thereby gaining more profit.
Figure 04. Value Chain Mapping of Organic Chicken
Analysis of the Process Flow in the Cost and Price involved
in the Value Chain
To find out the production cost or farm gate cost, the
researchers and study leaders coordinated and discussed with
the Municipal Agricultural Office, Provincial Agricultural Office,
Municipal, Provincial, and Regional Organic focal persons,
technicians and DA field staff and representatives of
Cooperatives, NGOs, SUCs, and others who were present during
the FGD, validation workshop and field visitations related to the
value chain of Philippine native chicken (in transition to
organic) from production, processing up to marketing of the
dressed chicken to the consumers in the target areas where this
study was conducted. The organic pricing scheme is based
from the chicken’s estimated live weight by producers who
usually deal with wholesaler/middlemen/integrator and
processors. Most producers do not have knowledge about
market price and rarely pay attention to market information.
The demand and supply are being dictated by sellers/retailers.
Some middlemen were also processors themselves of the
organic/range chicken. They have the purchase bargaining
power than producers since they can dictate the price hence
they get better profit in shorter period of time.
The estimated cost of raising a chicken until it reaches a
marketable weight of 1 kg is approximately ₱175.00. The
farmers sell live organic/range chicken at a farm gate price of
about ₱250.00 per kg to the middlemen. In turn, the middlemen
sell the produced dressed chicken at about ₱300.00 a kilo to its
processor in public or cities markets. In turn, the processor
sells it to public market/consumers and realizes a net margin of
approximately ₱30.00 to ₱50.00 per kilo.
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To be able to sell the chicken meat and products, starting from
the producers to the middleman/processors, the producers
spend a greater amount of time in raising the chicken before it
was sold to the middleman. The middleman, usually spend time
in the coordination, transportation, reaching out the processors
and setting the selling prices to its distribution channels in
order to maintain their customers. It is noted that the
middlemen along the chain acquire more profit than the other
actors.
Furthermore, some middleman/processors, slaughters the
chicken sold as dressed, at about ₱350.00 per kilo to wedding
party organizers, birthdays, and other social gatherings. The
similar approach of pricing has been applied for Many Channels
of Supply. The burden of having much higher prices is on the
final consumers, particularly the dressed chicken and
processed products such as the deep fried, grilled and roasted
chickens. One kilogram of deep fried or roasted chicken, for
example, can be priced to anywhere between 300.00 and
350.00 per kilo. The analysis of the process flow in the cost and
price involved in the value chain is depicted in Figure 05.
Figure 05. Analysis of the Process Flow in the Cost and Price
involved in the Value Chain
Opportunities and Challenges:
In Cagayan Valley R02, organic range chicken provided greater
opportunity for employment and economic well-being of key
actors in the Value Chain especially the marginalized farmers
who comprised the bulk of underemployed and un-employed
due to the following: a) the huge demand for certified organic
chicken products by the foreign and domestic markets; b) high
profit and income derived from the enterprise; c) the growing
health consciousness of consumers; d) awareness of majority of
the farmers on the national and local organic programs, and e)
assistance that were being provided by business development
service providers.
Statistics shows that there is an increasing demand in naturally
produce organic products as they perceive them as safe,
nutritious and with good flavour. (Compendium of BAR-Funded
Projects under the NOAP (2011-2016))
Policy Making Aspects
There has been a sincere commitment of government (Local
and National) to support the key players of the value chain
development of free range chicken productions as can be seen
in the policy directions contained in its medium term
development program and the creation of NOAB under the
“Organic Act 2010 “which promulgated policies and regulations
that tend to create a business environment conducive for the
promotion, growth and development of free range chicken
enterprise.
Local Government Units and Non-Government offices including
all stakeholders who were responsible in organic chicken
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 VALUE CHAIN ANALYSIS OF ORGANIC RANGE CHICKEN IN REGION 2
production had been working together to address all the issues
and concerns especially on the challenges confronting the
production of certified organic chicken.
Socio-economic
Results shows that range chicken production has been most
preferred by the backyard raisers and small enterprise in
Cagayan Valley, R02 because of its economic advantages; low
capital investment, minimal labour, and low cost of production
required.
Most range chicken practitioners in CV-R02 were aware that
organically grown chicken promotes healthier well-being,
(more nutritious) and with distinct flavour/taste.
Furthermore,range chicken products were most preferred in
most social gatherings because they are cheap and available at
all times.
The existence of a well-organized associations/organization that
provide support and guidance that promotes safe food and health
security like the Quirino Livelihood Farmers Enterprise (QLIFE),
and PAYOGA cooperative, Gamu, Isabela, could serve as a model
and can be replicated to facilitate farm needs, and to address
issues and problems that confront their members.
Free range chicken production have been the source of
employment and additional income in almost all backyards of
small farmers in Cagayan Valley, R02.
There was a greater demand of certified organic chicken
products by the supermarkets both in Region 02 and outside the
region especially Metro Manila. Hence, there should be available
supply to sustain the growing demand and existence of well-
organized group to coordinate with each other to gain
access/leverage to DA, DTI and other institution’s support to
sustain the supply chain.
Technological
There were established and adoptable organic chicken
technologies which were available in the DA, SUCs, LGU’s and
NGO’s in the region. Moreover, backyard raisers should benefit
on the advancement of technology and access to important
resources such as; commercial organic feeds, high quality
stock, biologics, credit ,and extension services.
Chicken raiser must have the skills and capabilities in
production conversion technology protocol set by the certifying
body of the DA that guided farmers in shifting to organic
methods of chicken production.
Environmental
Most organic/range chicken raisers especially in the remote
marginalized communities are aware of t h e impacts of
chemicals on health and ecological balance.
The DA, provided subsidies to LGU’s in the construction of
slaughter house, to improve the environment and sanitation in
the community, and to promote food safety. Moreover farm to
market road had been also constructed with the cooperation of
DA and LGU.
Legal
The RA 10068, Organic Agriculture Act of 2010 established the
PNOAB which supported the implementation of the Philippine
National Organic Standards and Certification and the BAI
Livestock Development Program of the DA and other LGU
policies in support of Organic Agriculture in the Cagayan Valley
in particular and in the Philippines in general.
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Issues and Constrains
Profitability
The level of profitability of organic range chicken production is
low for small scale production and only reaches reasonable levels
of income for large scale production since there is a relatively
high labor and capital costs for production. The primary
determinants of profitability of all evaluated systems at the gross
margin level are total feed costs (reflecting size, feed conversion,
productivity and final age) and selling value. Feed expenditures
constituted a large portion of the overall variable cost of organic
/ range chickens rearing.
The high sales price is the main constraints of increased demand
for organic products, hence the focus must be to lower
production cost by adopting alternative cheap[ but quality
sustainable feed resources and lower selling price.
Financial Appraisal
Most small producers are operating at too small return over fixed
cost and it likely that only viable expenses of organic production
will occur on larger units(economic scale).
Marketing and Production Cost
Practitioners do not have develop packing/processing facilities
(automation) to minimize cost of production together with the
development of outlets. There is no larger production units
develop for the labor cost to be reduced through increased
automation. There is no provision of low cost quality poultry
feeds to maintain productivity and attain acceptable price. There
is no maintenance of standard quality of products. There is no
consumer education to patronize quality organic products.
Practitioners are not aware of the problems on small scale units
to provide an adequate level of return on investment. No
certified market for organic chicken due to high accreditation
fees. It was suggested by the respondents that if accreditation
cannot be provided free, then it should be subsidized to become
acceptable to the actors along the VC of organic products.
Generally, the low adoption of organic chicken farming is caused
by the farmer’s limited knowledge on production conversion
technologies and limited understanding on the impacts of
chemicals on the health and environment, therefore they practice
conventional type of farming. Thus, this finding implies that
these farmers, together with someof the stakeholders and
poultry owners, need to be guided and assisted by the
knowledgeable individuals or institutions especially on shifting
to organic farm inputs and its benefits. One way of addressing
this is to conduct trainings and seminars. Proper information
dissemination would also help. In terms of the limited technical
know-how of implementing the standard protocols in the organic
production as set by the certifying body of the DA, the DA must
prioritized the conduct of hands-on training and seminars to all
interested actors along the Value Chain of organic chicken
business.
Moreover, the price of organic chicken is quite expensive for the
small-hold consumers of the organic chicken produced. The law
of supply and demand applies to the selling price of the products.
Hence, to encourage more players to engage on Organic chicken
production, a provision of capital and incentives must be
provided by the DA and other concerned agencies.
The limited access to funding support due to the limited
information dissemination on available funds support that have
been provided by concerned agencies like the DA, DTI service
providers and lending institution like DBP and LB had been
providing loan windows preferably to big commercial raisers
who have collaterals. Concerned agencies must provide
information on what support/incentives they could provide to
the native chicken raisers; there must be massive information
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dissemination on gov’t. Assistance, standard requirements and
support and existing loan windows to be provided by the said
financial lending institutions. Cooperative or association must
come up with a resolution requesting the Sec. of DA representing
them in discussing an acceptable loan window for micro, small
and medium scale organic chicken enterprise. Implementing
Rules and Regulations must be translated into local vernaculars
so that the clients of the organic chicken sector could easily
understand what the organic policy is all about.
A well-organized association and cooperative of all key players
along the Value Chain Analysis (VCA) of Organic Philippine
chicken products are none existent due to limited support and
guidance provided by concerned agencies. Thus, an unequitable
distribution of profit along the Value Chain of chicken such as;
input supplier, producers, processors until the products reach
the market. Also, the market for small and micro chicken
production enterprise was limited due to the unsustainable
supply. This can only be solved when actors in all segments of
value chain were accredited and organized to enable them to
produce the quality and quantity of the products that is required
in the market. – This is one way of establishing strong bargaining
power and market linkages when a well-organized group could
produce products that are high of quality and quantity.
But market for Organic Chicken is limited only for big
commercial raisers but not to small-hold backyard raisers. Small
producers must be given free accreditation fees or must be made
affordable. The Department of Agriculture (DA) must continue
providing technical advice and training to small producers until
they will become independent and can stand at their own. In
addition, there was no loan available for small scale organic
chicken producer. However, if they are well-organized into
association/ federation, then they can easily meet the lending
institutions’ requirement.
The Provincial Veterinarian office should also be actively
involved in the campaign for organic chicken production.
Moreover, their office must be also provided with stocks of
organic/range chicken by the DA, for them to grow and to be
multiplied so they can use it for chicken dispersal program.
Moreover, massive info-dissemination on the benefits and
advantages of organic on our health must be conducted.
Policy Options
Based from the results of the study, the following are hereby
recommended: Native chicken raisers must organize themselves
into cooperative or Federation to enable them to produce the
required volume and quality standard preferred by the
consumers. Once they are well-organized, they must work and
coordinate closely with all the players/actor in at all levels, in the
native chicken value chain so that the farmer's market power and
profitability can be enhanced.
Manpower. It is recommended that to sustain and to encourage
more free range chicken raisers, seminar workshops or lectures
from knowledgeable technicians or extension workers must be
conducted in every Barangay and Municipality of the five
provinces of CV, R02. A monthly seminar series regarding the
whole management system of free organic/range chicken maybe
conducted for the benefit of those farmers who lack technical
know-how regarding the management system in improving their
practices in range chicken production and handling of the
produced.
Transportation and Communication Extension. Workers should
be provided with vehicles to monitor the management practices
and to conduct seminars/workshop and lectures in the remote
areas. Communication and road system should also be improved.
It should be the main concern of the government to address the
native chicken raisers’ problem on transporting their produced.
The national government should also look into the construction
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of barangay roads for easy access of the technicians in
performing their job.
Veterinary Services. There should be at least one knowledgeable
veterinarian in every clustered communities to assist the farmers
especially on the health management of the organic/free range
chickens. The provincial Veterinarian Office should be
appropriated budgets intended mainly for the promotion of
organic chicken farming.
Conduct R&D Studies. Research and Development should focus
on low-cost environmental friendly production technologies.
Promoting organic chicken production by putting up organic
stocks to be ―dispersed or given to those who would like to go
into organic farming should be considered. Moreover, they
should also be given financial assistance so that they could
intensify the campaign towards the organic chicken farming and
to formulate/ promulgate and execute policies that would benefit
the organic chicken raisers.
Market studies and innovative low-cost packaging of free range
chicken products must also be conducted.
CONCLUSION AND RECOMMENDATION
The findings of the study imply that in Cagayan Valley, R02,
farmers are aware and knowledgeable about organic farming
management, as well as its nutritional and environmental
benefits. However, results show that these farmers have limited
access to the funding support due to the lack of information
dissemination of some funding institutions. Thus, organic raising
of free range chicken in the region is still in its emergent stage
and yet to be developed.
There is a need to improve organic chicken production especially
in increasing competitiveness and increasing shares of the sector
in the domestic and international markets
Native chicken raisers must organize themselves into
cooperative or federation to enable them to produce the required
volume and quality of the specific good prepared by the
consumers. Once they are well-organized, they must work and
coordinate closely with all the players/actors of the native
chicken value chain so that the farmer's market power and
profitability can be enhanced.
There should be a price standard set by the government to
safeguard the interest of the actors in the value chain of
organic/range chicken production.
There should be more incentive to be given to organic/range
chicken raisers to encourage more organic chicken raisers
adopters.
Follow-up studies on the management systems of organic/range
chicken production in the region should be encouraged. This
would benefit the free range chicken industry in the country.
More research must be undertaken to identify not only the
constraints/problems to subsistence backyard production but
also on the means of effective extension and technical assistance,
and other policies that would benefit the organic chicken raiser’s
supported by the government and other funding agencies.
Practitioners must develop their packing/processing facilities to
minimize cost of production together with the development of
outlets. They should develop larger production units so that
labor cost can be reduced through increased automation.
Provision of low cost quality poultry feeds to maintain
productivity and attain acceptable price. The supply of affordable
and quality products. Standard quality of products should be
maintained. Consumer education to patronize quality organic
products may be undertaken. Practitioners must be aware of the
problem of small scale units to provide an adequate level of
return on investment. Smaller units require less investments
however, housing and labor cost per birds are generally higher
65
 VALUE CHAIN ANALYSIS OF ORGANIC RANGE CHICKEN IN REGION 2

than in the case of larger units where economic of scale is

significant. The success of organic production is dependent upon
the productivity and cost of stock, scale of production, quality,
cost and marketing success. A standard price should be set by the
government.

Accreditation fees for organic chicken practitioners must be

subsidize by the government or must be made affordable to the
practitioners of organic/range chicken.

ACKNOWLEDGEMENT
This study is made possible through the assistance of the funding
agency, the Department of Agriculture – Bureau of Agricultural
Research (DA-BAR),Visayas Avenue, Quezon City.

REFERENCES
1. Briones, R.M. (2014) Compilation and Synthesis of Major
Agricultural Value Chain Analysis in the Philippines,
DISCUSSION PAPER SERIES NO. 2014-35, Philippine
Institute for Development Studies, Surian sa mga Pag-aaral
Pangkaunlaran ng Pilipinas. August 2014.
http://dirp3.pids.gov.ph/webportal/CDN/PUBLICATIONS
/pidsdps1435.pdf
2. IFOAM. International Federation of Organic Agriculture
Movements: Comprehensive information, principles and
standards, member directory, list of professionals,
publications, media, training platform etc. www.ifoam.org
(Date accessed: October 2014).
3. Bureau of Agricultural Statistics.
http://www.bas.gov.ph(Date accessed October 2014)
4. PSA, 2016. CountrySTAT Philippines (Livestock and
Poultry: Volume and value of Production) Retrieved from
http://www.countrystat.psa.gov.ph Accessed 18 March
2016
5. Research and Development, and Extension Agenda and
Programs (RDEAP 2016-2022)
6. Compendium of BAR-Funded Projects under the National
Organic Agriculture Program (2011-2016)
7. Yan, G. (2019). Why free−range is booming in the
Philippines (On −Line), The Poultry Site. Accessed
April 23, 2020 at http://theoultrysite.com.
8. PSA. (2019). Chicken Situation Report (On −Line),
Philippine Statistics Authority. Accessed April 23,
2020 at http://www.psa.gov.ph.

Journal of critical reviews 66