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CSPPS Policy Brief College of Public Affairs and Development (CPAf)
2023
Outlook For The Organic Chicken Industry In The Philippines Outlook For The Organic Chicken Industry In The Philippines
Blanquta R. Pantoja
College of Public Affairs and Development, University of the Philippines Los Baños Agnes R. Chupungco
College of Public Affairs and Development, University of the Philippines Los Baños Miriam R. Nguyen
College of Public Affairs and Development, University of the Philippines Los Baños Jaine C. Reyes
College of Public Affairs and Development, University of the Philippines Los Baños Macrina G. Umali
College of Public Affairs and Development, University of the Philippines Los Baños
See next page for additional authors
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Recommended Citation Recommended Citation
Pantoja, Blanquta R.; Chupungco, Agnes R.; Nguyen, Miriam R.; Reyes, Jaine C.; Umali, Macrina G.; Olviga, Therese R.; Lavarnez, Princess Diane M. College of Public Affairs and Development, University of the Philippines Los Baños; and Cosep, Johnnelda P., "Outlook For The Organic Chicken Industry In The Philippines" (2023). CSPPS Policy Brief. 9.
https://www.ukdr.uplb.edu.ph/cspps_policy_brief/9
Authors Authors
Blanquta R. Pantoja; Agnes R. Chupungco; Miriam R. Nguyen; Jaine C. Reyes; Macrina G. Umali; Therese R. Olviga; Princess Diane M. Lavarnez College of Public Affairs and Development, University of the Philippines Los Baños; and Johnnelda P. Cosep
This book is available at University Knowledge Digital Repository: https://www.ukdr.uplb.edu.ph/cspps_policy_brief/9
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Center for Strategic Planning and Policy Studies ISSN 2704 - 2928
Outlook For The Organic Chicken Industry In The Philippines
Written by Blanquita R. Pantoja, MSc.; Agnes R. Chupungco, MSc.; Miriam R. Nguyen, Ph.D.;
Jaine C. Reyes, Ph.D.; Macrina G. Umali, MM; Therese R. Olviga, Princess Diane M. Lavarnez, and Johnnelda P. Cosep
College of Public Affairs and Development, University of the Philippines Los Baños
CPAf 25th Anniversary Special Release | Issue No. 2 | 2023 | Agricultural Policy and Sustainability
CENTER FOR STRATEGIC PLANNING AND POLICY STUDIES
SPECIAL RELEASE POLICY BRIEF
The demand for organic chicken has been relatively rising; however, supply of organic chicken remains low primarily due to the small number of organic chicken producers. As of February 15, 2021, there were only two (2) chicken growers in the Philippines who had been granted certification as adopters of organic practices in producing chicken. As one of the livelihood options currently being promoted to farmers, it is imperative to investigate the status and reach of organic chicken production in the country. Moreover, to accelerate the organic chicken industry, it is important to identify the factors that hinder or facilitate its adoption.
This policy brief highlights the findings of the Department of Agriculture – Bureau of Agricultural Research (DA-BAR) – funded project entitled Policy Support to the Organic Chicken and Organic Swine Industry in Selected Areas, Philippines about the production, marketing, and consumption of organic chicken in Iloilo, Bohol, Cebu, and Negros Occidental. This policy brief likewise aims to guide the formulation of policies and other promotional activities to improve the organic chicken industry.
Surveys, key informant interviews, and roundtable discussions were conducted for the “Policy Support to the Organic Chicken and Organic Swine Industry in Selected Areas, Philippines” project. The study on production had a total of 210 respondents consisting of organic, in transition, and conventional farming practitioners. The marketing component had a total of 70 respondents made up of grower-sellers and non- grower traders, while the consumption component had a total of 310 respondents which were categorized as either consumers of organically raised chicken (CORCs) or non-consumers of organically raised chicken (NCORCs).
The stakeholders interviewed/ surveyed were: 1) Organic practitioners who raise chicken in compliance to the Philippine National Standards (PNS) even if they are not certified yet; 2) In Transition farmers who practiced mixed feeding by adhering to both organic practices and conventional ways of raising chicken; and 3) Conventional raisers who use synthetic feeds, medicines, and other inputs. Also included were Grower-sellers who produce and sell their produce; and Non-grower traders who are involved in the marketing of chicken but do not raise their own chicken. The project did not confine itself to producers and traders, it also covered the CORCs who regularly eat organic chicken as well as the NCORCs who consume meat from conventionally raised chicken.
55.4 19.6
15.2
9.8
Good health benefits Others (adaptability, high demand, etc. )
Low production cost Profitability
Figure 1. Reasons for adoption of organic practices (in percent)
CURRENT SITUATION OF ORGANIC CHICKEN PRODUCTION IN THE COUNTRY
Majority of Filipino farmers are still drawn to the conventional way of farming. Project findings showed that out of 210 respondents, only 5%
had fully adopted organic practices. Many of them were in-transition farmers (73%), and some were conventional farmers (22%).
Primarily, organic and in-transition farmers decided to follow organic practices due to the health benefits brought about by the consumption of organic chicken (Figure 1).
Another notable reason for the adoption of organic practices was the high profitability associated with organic farming. Respondents also viewed organically grown chicken as adaptable to the respondents’ environment and more marketable than those conventionally raised.
On the other hand, the major reason for
conventional raisers’ non-adoption was lack of awareness about organic chicken production (Figure 2). For those who knew about the production system, they find it to be labor intensive and time consuming. Their decision to veer away from adopting organic practices was further intensified by their observation that organically grown chicken grow slower, sources of organic feeds is limited, and the relatively longer production cycle of raising organic chicken results to higher production costs. The same reasons were given by the in-transition
Meanwhile, in-transition farmers shared that they have not fully adhered to the adoption of organic practices due to three major reasons:
organic farming is labor intensive; chickens grow fast when there is a combination of organic and conventional practices followed; and there is an inadequate source of organic feeds, inputs, technologies, and equipment (Figure 3).
farmers and organic practitioners when they were asked about the factors why other farmers do not adopt organic practices.
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Center for Strategic Planning and Policy Studies
0.9
21.6 21.6
10.8 7.2
7.2 4.5
1.8
7.2
0.90.9 Labor intensive
Production and growth of chicken is faster with combined organic and commercial feeds
Financial constraints/Lack of capital Lack of knowledge on production and marketing of organic chicken High mortality rate increases for chicks if not given commercial feeds
Inefficiency of pure organic treatment on diseases
Lack of information on the advantages and disadvantages of organic chicken
Return on investment takes a long time They have easier access to
commercial feeds
Less market outlet for organic chicken Inadequate source of organic feeds, input, technologies, and equipment
Figure 3. Reasons for not fully-shifting to organic practices of in-transition farmers (in percent)
With regards to consumers of chicken, both consumers (CORCs) and non-consumers of organically-raised chicken (NCORCs) claim to know the difference between organic and conventionally-raised chicken. They believe that organic chicken is juicier, tastier, smaller/lighter in weight, and has relatively longer legs than
No idea about OA production Personal preference Slow growth
No source of organic inputs Time consuming Labor intensive Figure 2. Reasons for non-adoption of organic
practices (in percent) 60.5 11.6
9.3
7.0
7.0 4.7
conventionally grown ones. Others defined it as leaner, tougher, more nutritious, and is fed with rice. Some CORCs claim that consumption of organic chicken makes them fuller for a longer time. The taste and benefits to health are mainly the reasons why the CORCs prefer organic chicken. Other reasons mentioned include its price, availability in the market, and meat quality.
When asked about their willingness to buy and consume organic chicken, 80% of NCORCs expressed willingness because of its appetizing and delicious taste, juiciness of the meat, and its nutritive value/ health benefits. However, some respondents claimed that it is not readily available in the market. In terms of pricing, both CORCs and NCORCs agreed that the price of organic chicken should be the same or only 10%
higher than the price of convezntional ones.
Upon ranking of factors, product effects, eating experience, label or quality assurance, visual or product appearance and price were listed as the top determinants of purchase decision.
Other factors include availability, access and convenience on purchase, brand, and packaging.
For packaging and labelling, CORCs and NCORCs propose to include date of slaughter, antibiotics given to chicken and their residue, shelf life, and place of production.
While labelling and certification was found important in the consumer survey, none of the respondents in the production survey had any certification due to lack of awareness of the process, low production level, and tedious and costly process associated with the application for certification.
CHALLENGES IN ORGANIC CHICKEN PRODUCTION
Although the demand for organic products including organic chicken have been rising through time, the industry has not yet achieved its full potential. When it comes to numbers, there are only a few farmers venturing into organic farming due to the problems and constraints related to the process of shifting to the adoption of organic practices, the high costs of certification, the many documentary requirements, and the lack of awareness of where the demand really is.
It is difficult to enter the organic chicken industry, but it is easy to exit. Certification requirements along with the limited supply of organic feeds and labor-intensiveness of going organic makes it harder for farmers to venture and stick to organic farming. Since there is not that much difference between the price that farmers receive from selling organic and conventionally raised chicken, most prefer to practice the latter.
The amendment of R.A. 10068 (Organic
Agriculture Act of 2010) can be a breakthrough, but besides the PGS, other aspects of the law should be improved. Convincing conventional farmers to shift to organic farming, and for the in-transition farmers to fully convert to organic may take longer time without proper incentives and supportive environment. From the production study’s findings, there were producers who are unwilling to fully convert to organic farming because it is labor intensive and conventionally grown chicken grows faster.
In the National Organic Action Plan (NOAP) FY 2012-2016, the National Organic Agriculture Board (NOAB) mentioned that the promotion of OA in the country also faces many challenges
in the forms of policy gaps, lack of production support, finding edge with conventional farming systems, inadequate research development, insufficient extension and capability building activities, and poor market systems.
Key informants opined that they were
constrained with insufficient participation from NOAP members and its implementing agencies, absence of police power to enforce violators of RA 10068, and lack of personnel and workspace to effectively promote organic agriculture (OA).
Part of the Organic Agriculture Act is the promotion of OA through nonformal and formal education across levels. SUCs initiated the inclusion of OA in their curriculum but coverage is more of organic crops than organic livestock. In the LGUs of the study sites, planned IEC activities were not observed. Regional, provincial, and municipal offices rely on IEC materials provided by the central office. The Agricultural Extension Workers (AEWs) at the forefront of OA promotion and other extension activities are already overloaded with multiple commodity assignments. Despite numerous training courses for them to become effective catalysts in promoting OA in their respective municipalities, AEWs are often hindered with simultaneous tasks and insufficient allowance to conduct promotion activities. Besides additional plantilla positions dedicated to OA, additional budget for OA is demanded to help the industry achieve its full potential. The OA fund, however, has been decreasing over time. In Section 4 of RA 10068, there are mentions on the promotion and encouragement of the establishment of facilities, equipment, and processing of plants that would accelerate the production and commercialization of organic fertilizers, bio- control agents, organic soil amendments and other appropriate farm inputs. There are also mentions on the delivery of support services although the specific services that will be provided was not mentioned. To start the transition, not only is the DA called to conduct more training and to produce more IECs but also to provide more assistance in the provision of inputs such as organic feeds and financial assistance for poultry. The LGUs, on the other hand, are expected to allot a portion of their internal revenue allotment (IRA) to agriculture
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Center for Strategic Planning and Policy Studies
CALL FOR ACTION
Chicken producers will be encouraged to shift to organic farming given an assured market, a stable supply of organic inputs together with constant provision of support services which include training and financial assistance. With these conditions, the following are some recommendations:
1. Craft a deliberate transition plan from conventional method to organic agriculture that farmers can follow;
2. Revisit and improve the National Organic Action Plan (NOAP);
3. Allocate funds for the establishment of shared facilities, conduct of extension and training, animal distribution and feeds, socialized credit, research and development, and marketing and promotion;
4. Establish partnerships among the municipal and provincial local government, regional and national line agencies, as well as the academe and private organizations;
5. Create an organic hub that can serve as market hub for chicken and organic inputs;
6. Craft local ordinances that complement with national government initiatives on organic agriculture;
7. Promote agriculture in all levels of education and provide funding for deserving students to enhance the pool of agricultural technologists in the country;
8. Allocate budget for additional plantilla items in local agriculture/veterinary offices;
9. Form and strengthen local association of organic chicken producers;
10. Create a database of raisers and associations; and
11. Popularize the benefits of practicing organic agriculture and consuming organically-produced products.
and organic farming. Staff augmentation under the multi-tasking scheme is necessary, in particular, hiring of personnel who will focus on OA promotion and implementation. In the OA promotion, the process of transition must be cleared so that organic farming can be sustained.
Aside from lowering production costs and ensuring that enough organic inputs are available, certification must also be made easier and less costly, and market matching must be done. It is a good step that PGS was adopted in the amendment of RA 10068. The way forward now, therefore, is to encourage
more farmers to fully commit to OA and have their farms certified. While some producers do not really see the need for certification and labelling, many consumers believe that it is needed. Therefore, for the organic chicken industry to prosper, venturing into certification is deemed to be helpful in gaining customers.
To sustain the demand for organic chicken and to prevent intense price fluctuations, it should be ensured that there is an adequate supply of organic chicken in the market. The movement to establish trading posts/stalls/outlets that are strategically located is also beneficial in the facilitation of market matching activities.
This policy brief highlights the findings of the Department of Agriculture – Bureau of Agricultural Research (DA-BAR) – funded project titled Policy Support to the Organic Chicken and Organic Swine Industry in Selected Areas, Philippines. It is intended to promote policy relevant ideas amond key decision makers. This
paper has been internally reviewed, but not peer reviewed.
Published by the Center for Strategic Planning and Policy Studies, in celebration of the 25th Founding Anniversary of the College of Public Affairs and Development, University of the Philippines Los Baños.
For queries, suggestions, and more information, contact the CSPPS Editorial Team at:
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No part of this policy brief may be reproduced or used in any manner without written permission of the copyright owner or the authors.
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