State-run think tank Philippine Institute for Development Studies (PIDS) has urged structural reforms, stronger government support, and improved regulatory enforcement to enhance the competitiveness and resilience of the country’s livestock, poultry, and dairy (LPD) industries.

In a research paper titled “Toward Competitive Livestock, Poultry, and Dairy Industries: A Consolidated Benchmarking Study,” PIDS senior research fellow Roehlano M. Briones and former research specialist Isabel B. Espineli outlined several policy recommendations aimed at bolstering the LPD industries. The paper was published on Monday, Oct. 27.

The think tank emphasized the importance of a comprehensive review of trade policies affecting the value chain to enhance the competitiveness of the LPD industries.

It added that while industry supporters often emphasize the benefits of current protection policies, the associated costs receive less attention. PIDS noted that corn protection measures raise the price of locally produced animal feed, which in turn increases the cost of livestock and poultry farming, including expenses for growers and day-old chicks.

“The protection policy for livestock and poultry production penalizes consumers,” the think tank said, stressing the need to improve efficiency and ensure equitable treatment of all stakeholders. It highlighted that trade policies should be carefully recalibrated alongside production support measures.

“One measure that can be explored is a gradual phaseout of industry protection,” the think tank said.

PIDS also emphasized the need to earmark collections from tariffs on pork and chicken imports to fund regulatory services and production support.

“Reducing indirect support through trade policy should be accompanied by increased production support through expenditure programs,” the think tank added.

The think tank highlighted the importance of investing in research and data collection to inform policy and program development, noting that increased funding is crucial for research and development (R&D) in breeding, nutrition, disease control, and production management.

It added that the industry’s statistics and monitoring system need to be strengthened to fill gaps in key data, including the profile of backyard farms, current information on the dairy sector, feed inventories and prices, animal health and disease tracking, and a comprehensive registry of backyard operators in the LPD industries.

The think tank also underscored the need to strengthen government institutional capacity at both the national and local levels to improve the delivery of technical assistance, regulatory services, and production support.

While dairy and carabao farming have dedicated oversight under the Department of Agriculture (DA), the livestock and poultry industries do not. The think tank suggested consolidating related government units into a single LPD-focused entity for better coordination.

“Once national agencies have been consolidated, the national government (NG) can initiate a capacity-building program for local government units (LGUs) on land use planning, monitoring and enforcement, extension services, and community organizing,” PIDS said.

It added that stronger coordination between national and local governments is needed to balance local autonomy with accountability.

The think tank further recommended overhauling the oversight system for the LPD industries to improve regulatory compliance, zoning, grading and standards, food safety, and animal welfare, noting that the African swine fever (ASF) crisis offers a rare opportunity for a major overhaul of the swine, poultry, and dairy sectors.

“A reinvigorated political will may be asserted to institutionalize biosecurity measures, geographic consolidation, a system of food safety, and product grading, particularly for packaged and processed meat and dairy,” PIDS added.

The think tank also called for upgrading technology and business practices for backyard operators through a collaborative extension approach, highlighting that backyard industries could become more efficient and profitable by adopting proper technology and improved animal husbandry practices.

“While extension work is now the mandate of LGUs,” PIDS noted the need for collaborative efforts with state universities and colleges (SUCs), national agencies, and the private sector, which are actively involved in contract growing and supplying inputs.

“Technical assistance should also focus on business development and the adoption of digital technologies, particularly in e-commerce, supply chain traceability, animal health monitoring, and other related areas,” PIDS added.

Finally, PIDS recommended empowering farmer organizations (FOs) to include most, if not all, backyard operators to streamline government assistance, technical and regulatory services, and to maximize the benefits from economies of scale and scope.

(Ricardo M. Austria)