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Economic Importance of

Livestock Production in the


Philippines
How much of your family’s
monthly income is spent on food?

How much of this budget is spent


on buying meat and other animal
products like eggs and milk?

Do you also raise animals to


provide some of your family’s
needs?

https://www.provisioneronline.com/articles/107059-
positioning-breakfast-meats-for-all-eating-occasions
◦ Livestock production plays an enormous and valuable role
in the life of farmers especially in developing countries
(Sugiyama et al, 2003). Livestock has been a food source
that contributes to an individual’s overall nutrition by
supplying the protein requirements in the diet. In the
previous lesson, you learned that animals can provide us
with benefits other than food; these may include fuel
(manure processed to produce biogas), fertilizer, clothing
(wool from sheep, hide from cattle, etc.), shelter (hides are
used in teepees), tools (primitive men made use of bones),
utensils, personal adornment items, and draft work.
Animals are also used in the health industry in medicine
development.
◦ Other benefits that animals provide are along recreation and
religion. Most of the above-mentioned benefits have a
corresponding monetary equivalent. These benefits can also
be regarded as resources or inputs for other industries
which can go scarce. For these reasons, we can say that
livestock production has an economic impact not only to a
certain group of individuals (e.g. farmers and consumers)
but to the entire country. Aside from its economic role,
livestock has also societal and cultural functions to rural
households. Family nutrition and income, food supply,
diversification of assets, productivity of soil, transport,
livelihood, agricultural traction and diversification, social
status, ritual purposes, and family and community
employment, are all affected by the livestock industry
(Moyo and Swanepoel, 2010).
◦ According to
Domingo & Olaguera
(2017), the Philippine
livestock and poultry
industry has been
consistently positively
contributing to the From PSA Website:
economy in the past Livestock and
decades even with Poultry Statistics of
lesser government the Philippines
support. The livestock (April to June 2020)
industry is projected
Source:
to expand and evolve
as the demand for https://psa.gov.ph/sy
livestock products stem/files/Q2%2020
continue to increase. 20%20L%26P%20I
This demand increase nfographics_0.pdf?
may be attributed to width=950&height=
the rapid growth of 700&iframe=true
the country’s
population and the
consumers’ increasing
purchasing power.
THE PHILIPPINE
AGRICULTURAL
ECONOMY
Production Performance in Agriculture
(Source: PSA, 2019)
◦ In 2018, Agriculture grew by 0.59 percent. Gains in production were observed in
poultry and livestock while a decrease in outputs were recorded in crops and
fisheries. In 2018, an increase of 1.90 percent was recorded in livestock
production. The dairy and hog industries stood out with output increments of 2.42
percent and 4.11 percent, respectively. On the other hand, a decrease in production
of 0.50 percent, 1.12 percent and 0.88 percent were tallied for goat, cattle and
carabao, respectively. Poultry production recorded a 5.75 increase. Chicken
production managed to retain its increasing trend of 5.20 percent. Duck production
continuously decreased by 0.92 percent. There is also an increasing trend in the
production of egg and chicken which recorded an increment of 8.43 percent and
2.60 percent, respectively.
◦ In 2018, there were 43.46 million
persons listed in the country’s labor
force, 41.12 million (94.7 percent)
Employment of which are employed. The
(Source: agricultural sector employed about
PSA, 2019)
10 million individuals, which was
24.30 percent of the national
employment rate for that year.
◦ An increase of 6.2 percent in the
country’s Gross Domestic
Product (GDP) was recorded in
2018 (see Table 1). In the same
Economic year, the Gross Value Added
Performance (GVA) for the agriculture
(Source: recorded a 0.8 percent increase
and contributed 8.1 percent of the
PSA, 2019) GDP. The livestock and poultry
industry recorded a GVA of 1.9
percent and 5.8 percent,
respectively.
Table 1.
Macroeconomics
growth indicators,
Philippines, 2014-
2018 (value at
constant 2000
prices)

Source: Selected Statistics on


Agriculture 2019, PSA
Table 2.
Performance of
agriculture by
subsector,
Philippines, 2014-
2018

◦ Source: Selected
Statistics on
Agriculture 2019, PSA
Livestock and
Poultry
Statistics
◦ The overall livestock
volume production in
2018 has increased by
1.84% compared to the
volume produced in
2017. This is the
highest since 2014 (See
Table 3). Table 4 shows
the value of production
of each type of
livestock and poultry in
the Philippines from
2014 to 2018.
◦ Source: Selected Table 3. Livestock and poultry: production volume by type,
Statistics on Philippines, 2014-2018
Agriculture 2019, PSA
Table 4. Livestock and poultry:
◦ Source: Selected Statistics on Agriculture 2019, PSA
value of production by type,
Philippines, 2014-2018
Table 5. Livestock: percentage
distribution of production by region,
Philippines, 2014-2018

◦ For the years 2014-2018,


Mindanao held the most number
of carabaos in the country while
Luzon led in the production of
hogs, cattle and goats (See Table
5). As for poultry production
from 2014 up to 2018, Luzon was
the leading producer of chickens,
chicken eggs, ducks and duck
eggs (Table 6).
◦ Source: Selected Statistics on Agriculture 2019, PSA
TABLE 6. POULTRY:
PERCENTAGE
DISTRIBUTION OF
PRODUCTION BY
REGION,
PHILIPPINES, 2014-
2018
Agricultural
Support Services
(Source: PSA,
2019)
◦ The government
spent an amount of
142.74 billion
pesos for the
agricultural sector
in 2018 (Table 7).
Table 7. Government expenditures in agriculture from This was 26.97
2014-2018. percent higher than
the expenditures in
the previous year.

Source: Department of
Budget and Management
 In 2018, the Agriculture sector grew by 0.59
percent. Gains in production were observed in
poultry and livestock while a decrease in
outputs were recorded in crops and fisheries.
 The year 2018 recorded a 6.2 percent
increase in the country’s GDP, 8.1 percent of
which was contributed by the agriculture
Salient points: sector.
 In 2018, there were 43.46 million persons in
the country’s labor force. Of the 94.7 percent
employed. 24.30 percent were in the
agricultural industry.
 The government expenditures for
agriculture in 2018 amounted to 142.74 billion
- 26.97 percent higher than the previous year.
Issues and Concerns in
Livestock Production in the
Philippines
Picture
Analysis
◦ Livestock production is
not at all about the
advantages this industry
brings to the economy.
Certainly, it also has its
downsides. Study
carefully the picture
below and then answer
the questions that follow.
◦ Source: https://www.onegreenplanet.org (2014).
?

Can you cite some of


the negative impacts How do you think
of livestock could these problems
production on the be resolved?
environment?
Issues and Concerns…
◦ There are many issues and concerns associated with livestock production. These issues and concerns could be
ethical (relating to animal welfare and rights), environmental (relating to pollution and the degradation of the
environment), or health-related (e.g., residues of antibiotics and hormones in meat), among others.
◦ According to FAO (2006), livestock-related activities significantly impacts the components of the environment:
air, soil, water, biodiversity, and climate change. The increasing income of people, the rocketing world
population and urbanization continuously drive the demand for livestock products. While this demand is being
met, the impacts of livestock production to the environment become more significant and bigger. Livestock
activities affects a broad range of natural resources and must be managed carefully so as not to affect other
sectors and activities.
◦ Most emissions related to the livestock industry are carbon dioxide, nitrous oxide, methane,
Impacts of Livestock and ammonia (Russel, 2014 and Leytem et al., 2011 as cited by Dopelt, Radon & Davidovitch,
2019). The Food and Agriculture Organization (FAO) in 2019 reported that according to
Production on Climate, estimates, 18% of global greenhouse gas (GHG) emissions are contributed by the livestock
Water, Soil and Air industry. Water, air, and soil are the three elements that directly bear the problems of livestock
production mismanagement, and then ultimately, the living organisms that use these resources
also become affected.
◦ https://knoema.com/infographics/maodxhb/global-greenhouse-gas-emissions-from-livestock
◦ According to Sere and Steinfeld (1996) as
cited by FAO (n. d.), the storage and soil
application of manure has the greatest
impact on the environment. The nitrogen
in manure is responsible for the pollution.
Nitrogen, when exposed to the air,
evaporates into ammonia, which is toxic,
eutrophic and with acidifying effects on
the ecosystem. When the soil becomes
acidic, plant growth and development are
affected. An acidic soil limits the
availability of the micronutrients needed
by plants. Eutrophication occurs when
nitrogen is carried away by runoffs to
surface waters like artificial ponds,
marshes, and lakes. This phenomenon
poses hazards to the species populating
these surface water bodies, thereby,
destroying biodiversity. Of the world’s
total ammonia emissions, 64% comes
from the livestock sector.
Methane emissions of
livestock
◦ The livestock sector is also a significant producer
of methane emissions. About 35-40% of global
methane emissions come from the livestock
industry. The global warming potential of this
greenhouse gas is 23-fold greater than carbon
dioxide. Cattle emit methane when they burp.
Methane gas is produced during the anaerobic
decomposition of organic materials like the
grasses eaten by cattle.
◦ According to estimates, the amount of carbon
dioxide emissions from the livestock supply chain
alone is approximately 7.1 billion tons annually http://benisonmedia.com/a-discovery-to-lower-
(Gerber et al., 2013 as cited by Calub, et al., methane-emissions-from-livestock/
2016).
The total land occupied by the livestock
industry is equivalent to North - and
South America combined.

◦ Livestock production also demands a


◦ The total land occupied by the livestock
huge portion of our land resources. Over
industry is equivalent to North - and South
one-third of the earth’s total landmass
America combined.
and more than the two-thirds of
Source: Our World in Data
agricultural lands are occupied by farms
rearing livestock (FAO, 2006). These ◦ , https://bit.ly/2YpZEpr
figures might change drastically if the
demand for meat products soar
necessitating the conversion of some
more agricultural lands for livestock
production. The livestock industry is
regarded to be the main cause of cutting
and clearing of forests turning them to
pasturelands (Hammond, 1997).
◦ Source: Our World in Data,
https://bit.ly/2YpZEpr
Aside from the clearing of forests for the
construction of livestock production
facilities, the production of feed for
animals is also a reason for this. Soybean,
wheat, barley, and other grains are grown
in plantations occupying very large areas.
These crops are grown using laboratory-
produced pesticides and fertilizers which
destruct the soil’s biological, chemical, and
physical components and even destroying
ecosystem balance and biodiversity.

http://www.bauer-technics.com/en/construction-and-
Metal residues on
feed concentrates
◦ Feed concentrates given to animals are added with
essential minerals like zinc, copper, and the heavy
metal cadmium. However, only 5 to 15 percent of
these metals are absorbed by the animals and the
remainder ends up in their manure. Pig and poultry
manure, when continuously applied on the soil,
likewise becomes a problem. The metal residues
contaminate the soil, gets absorbed by the crops, and
then find their way in human bodies upon
consumption of these crops.
◦ http://www.feedandgrain.com/news/cargill-donates-
500k-to-ffa-chapters
Improving feed utilization to reduce excreted
nitrogen and phosphate. This can be done in several
Improvin ways:
g • Introducing a multi-phase feeding scheme to match feed
To minimize or reduce the composition to individual animal class needs.
• Increasing feed digestibility by adding the enzyme phytase to
impacts of greenhouse gas catalyze the digestion of phosphates in feeds.
emissions from animal • Promoting a feeding system that reduces intake and
abandoning the ad-libitum system of feeding.
manure, the following
principles, strategies, or
technologies are
recommended: Reducing manure storage emissions persisting in
storage and during application.
Reducing • Employing a tank system to hold and store feces and urine.
• Covering storage tanks.
Impacts of Livestock Production on
Biodiversity
Biodiversity
◦ Biodiversity refers to the variety of genes, species and ecosystems that can be found in the environment. The
term encompasses the entire expression of life on the planet. Agriculture, fisheries, forestry, and livestock exert
pressure on biodiversity while providing essential goods for economic growth and development (Nell, 1998).
Habitat change (e.g., land use change, physical modifications of rivers or withdrawal of waters from rivers, loss
of coral reefs, and damage to sea floors), climate change, invasive alien species (IAS), overexploitation, and
pollution are the leading reasons for the loss of biodiversity (MEA report, 2005 as cited in FAO, 2006).
◦ Livestock contributes directly and indirectly to biodiversity loss at a local and global scale. Livestock activities
change land use that, in turn, destroys ecosystems. Aquatic and terrestrial ecosystems are affected by emissions
(e.g., eutrophication, acid rain, ammonia emissions, and pathogenic discharge). In the Philippines, the Laguna
Lake Development Authority (LLDA) reported in 2008 that various industries discharge harmful substances to
the lake. Livestock and poultry farms are the third largest contributors of organic load in terms of BOD. The
total amount of discharged wastewater from poultry and livestock peaks at 2,500 cubic meter per day while the
total BOD loading is estimated to be 153,000 kg/year (Gaccho et al., 2010 as cited in Calub & Saludes, 2016).
Other Issues and
Concerns in Livestock
Production
1. Animal Welfare and Animal Rights
◦ In the Philippines, there are organizations that look after animal
welfare - one of which is the Philippine Animal Welfare Society
(PAWS). PAWS is a non-profit organization registered in the
Philippines that works for the protection and promotion of
humane treatment of animals. There are also laws passed to
ensure that entities involved in livestock production are penalized
when animal welfare and rights are violated. Republic Act (RA)
No. 8485 or “The Animal Welfare Act of 1998” is just one of
these laws. The function of this law is to safeguard and enhance
animal welfare in the Philippines which includes the supervision
and regulation of the establishment as well as the operations of
facilities for keeping, maintaining, breeding, training or treating
animals for trade or pets. Poultry animals are part of the coverage
of this act (www.paws.gov.ph).
◦ . To mention a few, these are overstocking and removal/partial removal of
Some “inhumane” practices in
certain parts of the body (docking, dehorning, castration, and hot
industrial livestock farming are
branding). They argue that these practices are often done without
what animal welfare activists
anesthesia which cause animals to experience excruciating pain and
object.
unnecessary suffering.
Social media outlets have been chattering about a recent in
vitro study conducted in Australia regarding the antiviral
effects of ivermectin on the virus (SARS-CoV-2) that causes
2. Antibiotic Resistance, COVID-19. However, people should not buy animal
ivermectin products to self-medicate.
Hormones and Food Source: Ivermectin Unproven as Treatment for COVID-19.
Safety https://www.aces.edu/blog/topics/farming/ivermectin-unproven-as-tre
atment-for-covid-19/
. April 7, 2020

◦ Animals are given medications to prevent and cure


diseases and to ward off parasites. Associated with this is
the risk that residues of these medicines might go with
the products ready for human consumption. Hormones
are also given to animals to aid in feed consumption
efficiency, growth, and development. Consumers are
concerned with the hormone residues that come up in
milk, meat, eggs, or other products. Hormones
administered to animals are being linked to early puberty
in humans and may increase the levels of other hormones
like insulin-like growth factor (IGF). High IGF levels in
blood have been corelated to increased risks of prostate,
breast and other cancers found in humans. Antibiotics are
of primary concern as well because they could eventually
result in the buildup of resistance in humans and create
intolerance to medications.
Animals in cramped
spaces…
◦ Animals grown in large numbers are
usually confined in cramped spaces. The
overstocking of animals in cages and pens
makes spread of disease easy which can
cause other food safety risks. For
example, manure that sticks to slaughtered
animals may transfer bacteria (e.g.,
Salmonella species) to humans.
◦ https://www.vox.com/future-perfect/
2020/4/22/21228158/coronavirus-
pandemic-risk-factory-farming-meat
◦ Methane, carbon dioxide, and
ammonia are the major greenhouse
gas emissions related to livestock
production. These gases contribute
Salient to the increase in global
temperature known as global
points: warming. Global warming is linked
to climate change.
◦ Soil, water, and air are the three
environmental components affected
by livestock production waste.
Salient ◦ Heavy metals from feed materials end up in animals
feces. When animal manure is applied on the soil, these
heavy metals can have impacts on the soil and the crops

points:
cultivated, and eventually on humans.
◦ Climate change, invasive alien species,
overexploitation, and pollution are the most important
drivers of biodiversity loss. Livestock production
contributes directly and indirectly to these drivers.
◦ Animals, like humans, are also protected in the
Philippines through RA No. 8485 known as ‘The
Animal Welfare Act of 1998.’Animal rights activists
believe that it is unjust to kill animals just as killing
humans is. Animal welfare activists, on the other hand,
believe that it is just right/moral to raise animals for
human use, but they should in no way be abused or
mistreated.
New Directions
in Livestock
Production:
Organic Livestock Production
Have you already
visited an organic
farm?
Have you been to an organic farm?
What have you observed?
Was livestock production combined with crops production?
Organic farming has been
trending and becoming a
household term recently.
Consumers nowadays
prefer to buy and consume
organically-grown food.
But what exactly does
“organic” mean?
RA 10068 (ORGANIC
AGRICULTURE ACT OF 2010)
◦ According to RA 10068 (Organic Agriculture Act of 2010), organic
agriculture “includes all agricultural systems that promote the
ecologically sound, socially acceptable, economically viable and
technically feasible production of food and fiber” and that it
“dramatically reduces external inputs by refraining from the use of
chemical fertilizers, pesticides and pharmaceuticals”. Organic
agriculture “also covers areas such as, but not limited to, soil fertility
management, varietal breeding and selection under chemical and
pesticide-free conditions, the use of biotechnology and other cultural
practices that are consistent with the principles and policies of RA
10068, and enhance productivity without destroying the soil and harming
farmers, consumers and the environment as defined by the International
Federation of Organic Agriculture Movement”.
The challenge we all face today is
how we can sustain high
productivity while we reduce or
ultimately eliminate our dependency
on using chemicals in farming.
One of the potential and
promising alternatives is
organic farming.
Importance of
Organic Farming:
◦ Organic farming replicates the natural environment
where crops and livestock are reared together and
builds soil organic matter content (Blanco & Lal,
2010). Maintaining a diverse and active ecosystem of
soil organisms for replenishing nutrients,
improving/maintaining soil properties, and
promoting biodiversity while ensuring a sustained
crop production is the main goal of organic farming.
Organic gardeners adopt
methods that use cultural and
natural biological processes
to do the following
(Whitman & DeJohn, 2009):
 Improve soil health and fertility
 Decrease erosion
 Reduce pests and diseases
 Encourage plant and animal
diversity
◦ Conventional farming produce
abundant and cheap food at the
expense of soil deterioration and
environmental pollution. In totality,
conventional farming has lesser
benefits to offer compared to organic
farming (see Table 1). Organic
farming system becomes more
economically viable with the
increase of demand for organically-
grown food.
Organic Livestock Farming
◦ Organic livestock farming has something to do with rearing
animals in the most humane and healthful ways (Fossel,
2014). Animals should have access to high quality organic
pastures, shelter from adverse weather conditions, and
complete independence from antibiotics, artificial hormones,
parasiticides (chemicals used to kill parasites), or other
compounds commonly used in conventional livestock farming.
Just like crop farming, organic livestock starts with the soil.
Pastures must be built up organically, making use of compost,
green manuring, planting of cover crops, and rotational
grazing. Pasture seeds, feed vitamins and minerals must be
certified organic.
Summary:
◦ Organic farming is important as it mimics the natural environment wherein crops and livestock are raised. This
farming system enhances interaction of crops, livestock, and other wild flora and fauna. Organic farming also
builds up the organic matter content of soil. This makes the soil favorable for beneficial organisms. In addition,
this helps reduce erosion as organic matter improves infiltration and lessens runoffs which carry soil particles
downstream. Organic farming aims to maintain a diverse and active ecosystem of soil organisms for
replenishing nutrients, improving/maintaining soil properties, and promoting biodiversity while ensuring a
sustained crop production.
◦ In an organic farm the following must be implemented/present: animals should have access to high quality
organic pastures; shelter from adverse weather conditions; independence from antibiotics, artificial hormones,
parasiticides, or other compounds commonly used in conventional livestock farming; pastures must be built up
organically, making use of compost, green manuring, planting of cover crops and rotational grazing; pasture
seeds, feed vitamins and minerals must be certified organic; and established buffer zones to protect the farm
from chemical drift.
References:
◦ Bettencourt, E M V., Tilman, M., Henriques, P D S., Narciso, V. & Carvalho, M L S. (2003). The Livestock
Roles in the Wellbeing of Rural Communities of Timor-Leste. retrieved from https://www.scielo.br/scielo.php?
script=sci_arttext&pid=S0103-20032015000600063
◦ Domingo, S.N. & Olaguer, M.D. (2017). Review of High-Value Agriculture in the Philippines with
Comprehensive Subsectoral Focus: Livestock Industries. Discussion Paper Series 2017-51 retrieved from
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1751.pdf
◦ Moyo, S. and Swanepoel, F. J. C. Multifunctionality of livestock in developing communities. In: The Role of
Livestock in Developing Communities: Enhancing Multifunctionality, edited by Frans Swanepoel, Aldo Stroebel
and Siboniso Moyo, Co-published by The Technical Centre for Agricultural and Rural Cooperation (CTA) and
University of the Free State, 2010
◦ Sugiyama, M., Iddamalgoda, A., Oguri, K. & Kamiya, N. (2003). Development of Livestock Sector in Asia: An
Analysis of Present Situation of Livestock and its Importance for future development. Retrieved from
http://www.gifu cwc.ac.jp/tosyo/kiyo/52/zenbun52/Development_sugiyama.pdf
◦ Philippine Statistics Authority. (2019). 2019 Selected Statistics on Agriculture. Philippines: Mapa
References:
◦ Browna A. (2008). Understanding Food, Principles and Preparation, Third Edition. Thomson Wadsworth. 10 Davis Drive Belmont, CA
94002-3098 USA
◦ Calub, A.D., R.B. Saludes, and E.V.P. Tabing. 2016. An Overview of Agricultural Pollution in the Philippines: The Livestock Sector. Prepared
for the World Bank. Washington, D.C.
◦ Dopelt, K., Radon, P & Davidovitch, N. (2019). Environmental Effects of the Livestock Industry: The Relationship between Knowledge,
Attitudes, and Behavior among Students in Israel. Retrieved from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6518108/
◦ Herren, R, V. (2012). The Science of Animal Agriculture, 4th Edition. Delmar, Cengage Learning. 5 Maxwell Drive Clifton Park, NY 12065-
2919, USA
◦ Hormones in Food: Should You Worry? (2020). Retrieved 4 August 2020, from, https://www.health.com/food/hormones-in-food-should-you-
worry
◦ Nell, J. A (Editor). (1998). Proceedings of the International Conference on Livestock and the Environment. Livestock and the Environment,
International Conference. Wegeningen, the Netherlands. International Agricultural Centre
◦ FAO (2006). Livestock’s Long Shadow, Environmental Issues and Options. FAO. Viale delle Terme di Caracalla, 00100 Rome, Italy. Retrieved
from http://www.fao.org/3/a0701e/a0701e.pdf
◦ FAO (nd). Chapter 4. Industrial livestock system and the environment. Retrieved from http://www.fao.org/3/X5303E/x5303e0c.htm
◦ Philippine Animal welfare Society retrieved from www.paws.org.ph
References:
◦ Blanco, H. & Lal, R. (2010). Principles of Soil Conservation and Management. Springer. Dordrecht Heidelberg
London `
◦ Fossel, P V. (2014). Organic Farming; How to Raise, Certify and Market Organic Crops and Livestock. Voyageur
Press. 400 First Avenue North, Suite 400, Minneapolis, MN 55401 USA
◦ RA 10068 retreived from www.officialgazette.gov.ph
◦ Whitman, A. & DeJohn, S. (2009). Organic Gardening for Dummies. Wiley Publishing, Inc. Indianapolis, Indiana USA

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