Hog Industry

IntroductionSwine raising in the Philippines has been a profitable business for Filipinos through the decades. Its popularity is evidently seen among backyard of rural families. An average Filipino family usually raises a small number of pigs to augment their daily needs. While both parents are busy with their work, children may help in raising a few piglets until they reach their marketable age. No wonder, more hogs are produced in backyards compared to commercial piggeries.

Even as the sub-sector contributes significantly to the gross national product, hog production still lags behind our rapidly growing population of 80 million Filipinos. The increase in hog production has been derived from improvements in production efficiency among commercial raisers. Despite the crises facing the swine industry, still many people are venturing in this enterprise.

With the advent of trade liberalization, the local hog industry taps and adopts the latest trends in management, health, technology and genetic improvement. Safeguards were also placed to counter unfair competition. Local hog raisers are expected to face tough times ahead. Both the government and private sectors should vigilant and responsive to the developments of the pig industry throughout the world. Product Service

Piggery

Fatteners, backyard operation about 20 sowTechnology* Slotted pen floors – use to make waste collection easy * Located under the slotted floors to hold the waste of the pigs. * Septic-tank – use for water storage.* Automatic nipple waterer – a simple tube located at each cage. * When the pig touches the nipple, automatically the water flows out. Intended market environment* Target market* Slaughter house* Vendors* Neighbours* Benefits* Assurance that the pig is clean and healthy.* The pig is in the right weight and age.* Accredited by national meat inspection service (NMSI), department of trade and industry (DTI) * Opportunities* The total supply of swine in the country dropped by 0.65 percent from 40.23 million head in 2008 to 39.97 million head in 2009. This was attributed to the decline in inventory and number of births. Figure #1 : supply and disposition, Philippines, 2007-2009

(Number of live animals)* Business to business market* Agricultural swine industry* Key players1. Swine breeders/producers – produce quality pigs for breeding purposes 2. Raisers/trader/butchers – raise and grow hogs for slaughter. 3. Retailers/processor – convert fresh pork into consumable pork cuts. * Frequency purchase

* Minimum of 5 – maximum of 15 pigs* Business to customerWe offer our product ages 5 years old and above

* Frequency purchase* Per kiloCompetition* Other swine producers* Backyard* Commercial* Exports (foreign swine raisers)* Market share* This year’s total inventory of fatteners stood at 3.24 million head, down by 0.17mpercent from previous year’s level of 3.25 million head.Fattener shared 24.2 percent in the total swine stock. Figure #3 : distribution of inventory by classification, Philippines, as of January 1, 2010 * Key barriers

* Highly competitive* Resources* DiseasesIndustry* Profits from swine production may fluctuate but the enterprise is generally profitable as shown in the experiences of small- and large-scale swine raisers. In fact, many Filipino professionals have earned college/university degrees through income generated from the pigs raised in their backyard. Due to growing consumer demand and a result of both greater market orientation and production efficiency, hog production increased from about 8 million heads in 1990 to 10.76 million in 2000. Of the total inventory, 77,2% were produced by backyard raisers while 22.8% were produced by commercial raisers. Business model

Marketing sale strategies* Print advertisement* Website (www.3jade’spiggery.com.ph)* Sales representativePricing strategy* Farm gate price of live jogs was P85.00 per kilogram* Wholesale price per kilogram of live hogs P100.00* Retail price per kilogram of pork was P163.00Figure #4 : annual average prices by market level, Philippines, 2008-2009 Payment* Cash basisProduction operating requirementsManagement and personnel

Owner/managerErlinda Bermudez

Sales SupervisorVeterinaryJunnlyn De Leon Jihan Cayabyab Sales Agent CaretakersJennilynn BasaAllan LakandulaEmiliano CrisostomoPedroJuanResponsibilities* Manager/owner – responsible for over-all supervision and management of the piggery * Sales supervisor – supervise the over-all piggery sales. * Sales agent – the one who deals and create sales.

* Veterinary – the one who assure the health condition of pigs. * Caretaker – in charge in sanitation of the cage and pigs. * Responsible for feeding the pigs.Intellectual property