Relationship of feed raw material cost to pig farm gate price
2023
Pamulaklakin, D.R. | Navales, R.A.S. | Lontoc-Junsay, C.A. | Dominguez, M.D. | Strella, C.A.S. | Agbisit, E.M. Jr
In 2020, the Philippine swine industry was devastated by the combined effects also CoViD-19 pandemic and the African Swine Fever outbreak. Unabated feed cost also contributed largely to the profitability and sustainability of swine farms. This study was conducted to determine the relationship between raw feed material cost with farm gate prices provided by participating breeder farms, Philippine Statistical Authority (PSA), and Philippine Association of Feed Millers Inc. (PAFMI) from 2020 to 2022. Data was analyzed using multiple linear regression. Among the raw materials, Hard Pollard, Soft Pollard and Crude Palm Oil had the highest price fluctuation. Participating breeder farms reflect increases in raw material costs in farm gate prices one month after. Commercial and backyard farms, on the other hand, reflect the increase in raw material cost in farm gate prices two months after. In participating breeder farms, 90% of the farm gate price fluctuation can be explained by the cost of Fish Meal, Rice Bran, Hard Pollard, Coconut Oil, and Molasses. In terms of the diet, Booster, Pre-starter 1, and Grower explained the 85% fluctuation in farm gate price. In commercial farms, 93% of the farm gate price fluctuation can be explained by the cost of Yellow Corn, Argentinian Soybean Meal, Soft Pollard, and Coconut Oil. On the other hand, in backyard farms, 94% of the farm gate price fluctuation can be explained by the cost of Argentinian Soybean Meal, Fish Meal, Soft Pollard, and Crude Palm Oil. Fish Meal and coconut oil are two prominent farm gate price drivers. Despite the fact that these basic resources are produced locally, they have been severely limited by pandemic restrictions. As a result, they had a significant impact on the farm gate price.
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