3.1 Status of the Feed Industry
3.2 Aquaculture Feeds
3.3 Feed Ingredient Resources
3.4 Marketing and Distribution
3.5 Nutrient Analysis of Feedstuffs
3.6 Directories of Manufacturers and Suppliers of Feeds, Feed Ingredients, Feed Additives, and Feed Manufacturing Equipment
3.1.1 Aquaculture feed production
3.1.2 Poultry and livestock feed production
The feed industry consists primarily of livestock, poultry, and aquaculture sub-sectors. There are five major feed markets, namely those for pig, chicken, duck, fish, and shrimp. Of the commercially important livestocks, all are ruminants except for pig; the pig industry is therefore responsible for the bulk of the feeds consumed for livestock. Cattle and goats though with large populations are raised primarily on roughages. Poultry feed production consists mainly of chicken and duck feeds. Chicken are raised for meat (broiler) or for eggs (layer), while ducks are farmed for their eggs. Until recently, aquaculture feeds have been considered a minor sub-sector of the feedmilling industry. However, today the production of fish feeds is the fastest growing feed market.
Table 23 shows the registered commercial and non-commercial mixed feed production volume in the Philippines from 1990-1994 based on data from the Bureau of Animal Industry (BAI). However, only commercial feed manufacturing operations are required to register at BAI; the registration of non-commercial operations being voluntary although necessary for the provision of import allocations for corn. As of 11 July 1995, a total of 248 commercial feedmillers were registered with BAI and had an aggregate capacity of 9,636 mt/day based on an 8-hour work shift (Table 24). Of these, 86.5% are geographically located in Luzon, while 8.1% are in the Visayas and 5.4% in Mindanao. A great majority of the feedmills can be found in the NCR and the surrounding provinces of Regions III and IV. These three regions account for 82.3% of national rated capacity.
Based on the size of registered operations, there are 15 large-scale (> 100 mt/8-h shift) feedmills, 22 medium-scale (50.1-100 mt/8-h shift) feedmills, and 210 small-scale operations (< 50 mt/8-h shift), respectively (Table 25). The top 10 establishments represent approximately half of the national commercial feed manufacturing capacity (Table 26).
As for the non-commercial operations, there were only 52 registered feedmills with a monthly aggregate capacity of 97,160 mt; 44 of these being located in Regions III and IV.
Total aquaculture feed production in 1995 was estimated to be approximately 148,000 mt, consisting mainly of milkfish, tilapia, and shrimp feeds (Table 27). At present, there are 23 commercial feedmills and four non-commercial feedmills involved in the manufacture of fish and shrimp feeds (for details of production capacities and product specifications (see Tables 30 and 31 in Section 3.2.2.).
Tilapia feeds constitute some 70,000 mt or just under half of the total feed produced in 1995; bulk of the tilapia feed demand coming from Luzon (87%), particularly from Taal Lake, Lake Bato, Lake Buhi, Magat Dam, Pantabangan Dam, and several small lakes in Laguna Province (Figure 12). All of these farming centres utilize cage culture techniques where the stocking densities are up to 30 times higher than those normally used in ponds. Milkfish farming utilized about 50,000 mt of feeds in 1995 with 44% of this being consumed in Luzon, mainly in Pangasinan and Bulacan. Although Laguna Lake is a major milkfish farming centre, farmers use very little feed due to the lakes euthrophic water. An estimated 38% of the milkfish feed demand comes from the Visayas, particularly in Negros Occidental, Iloilo, and Capiz. As for the shrimp feed market, this has shrunk considerably from over 60,000 mt in 1991 to around 25,000 mt in 1995; this is projected to drop further below 18,000 mt in 1996. An estimated 40% of the shrimp feeds is being used in the Visayas, particularly in the provinces of Bohol and Negros Occidental, while some 45% is consumed in Mindanao, mainly in Agusan del Norte and South Cotabato. Luzon accounts for only around 15% of the feed market. Due to the many disease problems plaguing shrimp farming industry, the majority of farmers have either ceased operation or have shifted production to intensive milkfish culture.
Total registered commercial and non-commercial mixed feed production in 1993 was 1,565,093 mt and 250,700 mt, respectively (Villacorte, 1994). Based on 1992 data, which was the latest year that BAI provided a breakdown of the commercial mixed feed production, poultry and livestock feeds accounted for 96% of the total commercial feeds produced (including aquaculture feeds). Of this, pig, poultry, and duck constituted 46.9%, 41.9%, and 8.5%, respectively. The remainder were feeds for fighting cock, pigeon, cattle, horse, and pet animals.
There are a total of 237 commercial feedmills and 52 non-commercial feedmills manufacturing feeds for poultry and livestock (BAI registration as of 11 July, 1995; Figure 13). A directory of commercial and non-commercial livestock and poultry feed manufacturers is given in Section 3.6.
The regional inventory of poultry and livestock presented in Table 20 and the major chicken growing provinces shown in Figure 13 provide an idea of the feed market distribution. Chicken feeds are mainly consumed in the provinces of Batangas, Bulacan, Pampanga, Nueva Ecija, and Cavite, while pig feeds are in greatest demand in Bulacan, Leyte, Cebu, Negros Occidental, and Batangas.
3.2.1 Hatchery feeds
3.2.2 Growout feeds
3.2.3 Unprocessed feeds
All processed hatchery feeds and enrichment additives are currently imported into the Philippines (Table 28). The most widely used hatchery feeds are brine shrimp eggs and microencapsulated larval diets, with the shrimp industry consuming the bulk of hatchery feeds. In the early 1990s there were some 461 shrimp hatcheries (Woiwoodie et al., 1993) although the present number is less than 100. To date, the hatchery feed demand of the marine finfish sector has been minimal. Brine shrimp is also consumed in freshwater catfish and carp hatcheries, mainly in Luzon, and also by the aquarium fish industry. The total volume of brine shrimp eggs imported into the Philippines in 1994 was 86,209 kg. In the 1980s attempts were made to produce brine shrimp eggs locally in salt ponds in Iloilo, Mindoro, and Negros Oriental, but these ventures did not prove to be commercially viable.
For the weaning of fry during the first few days of culture milkfish fry traders and tilapia hatchery operators have traditionally used the yolk from hard boiled chicken egg, wheat flour (pan roasted), or bread crumbs. Although various brands of fry mash are now available from local feedmillers, many farmers are not satisfied with their performance. This can probably be explained by the fact that these are not complete feeds and should be used in the presence of natural food. Some commercial fry mash are actually the fines produced during the processing of crumbled feed for juveniles, or consist of a compounded mixture that has not undergone any form of processing so as to improve its digestibility, hydrostability, or shelf life. With a growing number of farmers adopting higher stocking densities in the nursery to accommodate increasing growout fingerling requirements, there is the immediate need to improve the quality of commercial fry diets for use in milkfish and tilapia nurseries.
It is also important to mention that processed larval feeds are normally also fed in combination with cultured natural live food organisms such as Skeletonema, Chaetoceros, Chlorella, Spirulina, and Brachionus. Starters for desirable strains of phytoplankton and zooplankton are available from the Southeast Asian Fisheries Development Center (SEAFDEC) in Tigbauan, Iloilo and Binangonan, Rizal. In some tilapia hatcheries, sex reversal feeds (containing methyltestosterone) are used for producing all-male tilapia. Suppliers of the hormone-treated feeds are listed in Tables 51 and 28, respectively. A directory of hatchery feed suppliers is given in Table 49 in Section 3.6.
Table 29 presents the feed lines and processing capacities of the countrys 22 commercial aquafeed manufacturers. Eleven of these companies manufacture fish feeds and shrimp feeds, eight produce only fish feeds, while three produce exclusively shrimp feeds. Finally, one company is engaged in the production of mudcrab feeds (Santeh Feeds). It is interesting to note that most of the shrimp feed manufacturers in the Philippines have had at one time or another some form of partnership with Taiwanese aquafeed companies. There are currently only four non-commercial feed manufacturers which were originally built to manufacture farm-made shrimp feeds, but are now producing fish feeds (some with tolling arrangement with commercial feed companies). Figure 14 shows the geographical locations of aquaculture feedmills in the Philippines and Table 50 (Section 3.6) presents a complete listing of commercial and non-commercial aquaculture feed manufacturers.
For information on the manufacturers and suppliers of feedmilling equipment, the reader is referred to Appendix 1,
At present 15 different brands of locally produced fish feed are available on the market (Table 30). Of these, over 95% are used for tilapia and milkfish culture, and the remainder used for catfish and carp culture. Unlike the development of the shrimp feed manufacturing industry which depended heavily on imported technology, fish feed manufacturing grew to a large extent from local expertise and experience.
The largest fish feed manufacturers are Santeh Feeds, Vitarich, Universal Robina, and Feedmix. Only two fish feed manufacturers (i.e. Vitarich and Feedmix) utilize extrusion processing to produce floating feeds; the remainder are manufactured by pelleting and are of the sinking type. Moreover, there are no commercial moist feed manufacturers on the market. Most companies offer a single feed formulation for the culture of milkfish, tilapia, catfish, and carp, conceivably to reduce inventory cost and simplify stock management. Only seven feedmillers manufacture diets for specific fish species.
There are 1 5 commercial feed brands for intensive shrimp culture available on the market, of which 14 are produced locally. Only one shrimp feed brand was imported in 1995 as compared to about twelve during the early 1990s (i.e. mainly from Taiwan). Shrimp feed importation in 1994 amounted to only 365 mt as compared to 1,250 mt in 1990 (BAI, unpublished data). The countrys largest and pioneering shrimp feed manufacturer, San Miguel Foods, supplies 45-55% of the market; other major shrimp feed manufacturing companies include Interfeeds Philippines, Hoc Po Feeds, and Oversea Feeds.
All shrimp feeds are produced by pelleting; the only one feed plant in the country that originally utilized extrusion processing already being inactive. The major feed types, proximate analysis, and ingredient composition of locally produced shrimp feeds are described in Table 31.
Recently, the rampant outbreak of diseases and low survival obtained in shrimp ponds have led feed companies to develop special feed formulations in addition to their regular product lines. Among the important changes made in these new diets are the use of better quality ingredients (e.g. white fishmeal), higher dose of vitamin C, and incorporation of astaxanthin and immuno-enhancers (e.g. 1,3-D glucan, gluco-mannan compounds). These special feeds generally cost US$ 0.10-0.20/kg higher than regular shrimp feeds.
Single ingredient feeds have long been in use in extensive milkfish and tilapia culture. These are energy diets and are supplemented only when the natural food is exhausted. Among the most frequently used are rice bran (D1 and D2), bakery waste, and rejects of processed cereals for human food (such as biscuits and extruded snacks). Also used to a limited extent are corn bran, copra meal, and grated coconut meat. Suppliers of rice bran, corn bran, and copra meal are listed in Table 35. Bakery and snack food waste and by-products are especially desirable as supplemental feeds since they float and are not as polluting as rice bran and corn bran. At US$ 0.04-0.1/kg, they are also cost efficient. An average bakery is estimated to produce some 5-8% waste, including stale bread. Sources of these by-products are too numerous to include in this Atlas. However, for a listing of bakeries as well as snack food manufacturers readers should refer to the provincial offices of the Department of Trade and Industry or the Philippine Federation of Bakers Association, Inc. located in Manila.
The supply of trash fish for the culture of carnivorous species such as shrimp, grouper, seabass, and crabs, is usually seasonal and available only in certain areas. Figure 15 shows the major fish landing centres around the archipelago where trash fish can be readily sourced. The success of farming ventures that require trash fish depends to a large extent on its price, freshness, and year-round availability. Marine bivalves (e.g. green mussel, oyster, clam), molluscs (e.g. squid), crustaceans (e.g. Acetes, shrimp), and annelids are also used as fresh feeds for hatchery and growout culture. Typical nutrient analysis of fresh feeds are presented in Table 45c. Other important fresh feed resources for aquaculture include abattoirs, meat processors, poultry dressing plants, and fish processors (see Section 3.6).
3.3.1 Major feedstuffs
3.3.2 Other feedstuffs
3.3.3 Non-conventional feedstuffs
3.3.4 Fats and oils
3.3.5 Vitamins and minerals
3.3.6 Feed additives
The primary feedstuffs available for the aquafeed milling industry are rice bran, yellow corn and corn bran, wheat and by-products (pollard and bran), copra meal, soybean oil meal, fish meal, and meat and bone meal. The description and nutrient specifications of these feedstuffs are provided in Table 32.
Rice bran and copra meal are sourced exclusively in the country. Yellow corn is produced locally in large quantities although some importation has been necessary in recent years due to shortages in farm production. By contrast, all the soybean oil meal is imported, whilst limited amounts of fish meal and meat and bone meal are produced locally. Wheat and its by-products on the other hand are produced by local flour mills from imported grains. Table 33 compares the imports and exports of major feedstuff resources in the Philippines.
The major feedstuffs used within aquaculture feeds in the country are limited to about seven to ten basic feed ingredients, the majority of which are imported. Aquaculture feeds currently utilize about 45-75% imported raw materials for fish feeds and 85-95% imported raw materials for shrimp feeds, as compared to only 20-30% for livestock and poultry feeds. The major local and imported feedstuffs shared between the formulation of fish and shrimp feeds and that for pig and chicken feeds are presented in Table 34. Four ingredients can be said to be of serious competing use, these being soybean oil meal, rice bran, fishmeal, and wheat by-products. A brief description of the supply and availability of the major feedstuffs available in the Philippines is given below. Tables 35 and 51 show the major feedstuff suppliers and directory listings, respectively.
Soybean oil meal
Soybean oil meal is the most widely used high protein plant feedstuff; the Philippines being dependent upon foreign supply with imports in 1994 totalling 655,066 mt. The country also imported 61,690 mt of unprocessed soybeans in the same year with the oil being extracted for the food industry and the meal sold locally. Soybean oil meal is sourced mainly from the US and India, with other major suppliers including China, Australia, and Brazil; this is currently taxed at 10%. The extent of utilization of soybean in feeds is affected by world market prices. Between 1990 and 1995, importation has fluctuated from a low of 593,054 mt in 1991 to a high of 822,633 mt in 1993 (Figure 16).
In 1994, some 4,050 mt of soybean were produced locally although these were used as human food. In the early 1970s and again in the early 1980s, various government institutions with the cooperation of private firms, attempted but failed to interest farmers to propagate soybeans (Baconawa, 1990). Soybean however remains a priority crop in the Key Commercial Crop Development Program of the MTADP. Although the Philippines has vast tracts of land ideal for producing soybean, production and transport costs are relatively high, making local production presently uncompetitive.
The Philippines produced an average of 9.7 million mt/y of paddy from 1992 to 1994, with production coming mainly from the provinces of Nueva Ecija, Isabela, Pangasinan, Tarlac, Bulacan, and Camarines Sur in Luzon, Iloilo and Negros Occidental in the Visayas, and Zamboanga del Sur and Bukidnon in Mindanao (Figure 17). In terms of rice bran, this amounted to 970,000 mt annually (at 10% of the paddy weight). Figure 18 presents the regional availability of rice bran; the top five producers being Regions III (18.0%), VI (14.3), IV (11.2%), II (11.1%) and V (7.1%). Luzon accounts for 58.1% or the total supply, followed by the Visayas (20.2%) and Mindanao (21.8%).
As rice is a seasonal crop, then so is the availability of rice bran. Figures 1 9a-c illustrate the quarterly supply of rice bran per region, with Luzon, Visayas, and Mindanao showing a peak in supply during the fourth quarter. This trend is closely associated with the supply of irrigation water from the monsoon rains which favour harvesting during the late third quarter and the last quarter of the year. The lean months are observed between the first and third quarters when it is dry in many provinces. Luzon experiences a marked drop in supply during the third quarter while Visayas is low in supply during the second and third quarters. For most of Mindanao, planting is allowed during most parts of the year with only a moderate drop in production during the second quarter. The peak and lean months do not necessarily coincide between regions and island groups due to the differences in climate pattern.
Based on data from 1992-1994, the country experiences a low supply of rice bran during the first quarter (19.2%) and second quarter (13.8%), a moderate supply during the third quarter (29.2%), and a year end peak during the fourth quarter (37.8%). This seasonality affects the pricing of ricebran which ranges from a low US$ 76.9/t usually during the fourth quarter, to a high US$ 153.8/t typically during the second quarter.
Corn is the second most important agricultural crop in the Philippines with a total production of 4,519,246 mt in 1994 (Table 36). The major corn growing provinces are Isabela in Luzon, Bukidnon, North Cotabato, Lanao del Sur, and Maguindanao in Mindanao (Figure 20). There are two major corn types, yellow and white. Yellow corn is used as a major raw material for poultry feeds and pig feeds while white corn is produced mainly for human food (it is the staple cereal in several provinces in Central and Eastern Visayas, and in parts of Mindanao) although it is also sometimes used as a feedstuff for pigs and poultry. In fish feeds, yellow corn is rarely used and if so only in small quantities.
During recent years the production of yellow corn compared to white corn has steadily increased from only 35.4% of the total corn production in 1989 to 54% of the total production in 1994. Yellow corn is grown heavily in Mindanao, particularly in Regions II, X, XI and XII (Figure 21). Local yellow corn is most available during the third quarter where around 40% of the annual supply is harvested. The supply is leanest during the second quarter which yields only 10% of total production. Luzon exhibits the widest fluctuation in corn supply while the Visayas and Mindanao show less pronounced seasonality (Figures 22a-c).
The countrys rainfall pattern tends to cause a first semester deficit in corn production against demand. When yellow corn production is low, the industry resorts to importation but this is regulated by the Government through the National Food Authority (NFA) and a high 50% tariff rate is applied to protect local farmers. NFA solely imports yellow corn based on the requirement of the feedmillers and poultry and livestock growers and sells this at a fixed price (Villacorte, 1991). If the importation cost is high, the NFA shoulders the difference via a subsidy fund. At times when the import cost is low, NFA is allowed the profit. During 1995 the Philippines imported about 200,000 mt of yellow corn. Importation is expected to increase in the coming years since corn production has been only growing at 2-3% per year as compared to 6-8% per year for the case of livestock and poultry. Figure 23 summarizes the supply of local and imported yellow corn in the Philippines during the period 1 989-1 994.
In processing white corn to corn grits (or hominy grits) for human food, only 60-65% is recovered as grits. Large amounts of by-products are produced in the form of corn bran (27-32%) and fines (4-6%; locally referred to as tiki-tiki), while about 3-8% end up as losses or waste.
The Philippines is the worlds largest coconut producer and supplies much of the demand of copra meal around the globe. For example, copra meal exports totalled 586,173 mt in 1994 (Figure 24) with 96% being exported to Europe, mainly to the Netherlands, Germany, United Kingdom, and Italy. An additional 23,700 mt of unmilled copra (equivalent to around 7,347 mt of copra meal) was also exported mainly to Korea. The volume of copra meal utilized locally for feeds is estimated to be at least 600,000 mt per year (Table 75).
In recent years, the Government has undertaken a coconut revitalization programme to replace old and unproductive trees with higher yielding varieties from the Ivory Coast (Baconawa, 1990). Most of these new varieties are already at the fruiting stage. In line with this programme, more copra is now being processed locally for oil extraction rather than exported raw. This is evident from the steady decline in the volume of copra exports and the corresponding increase in the export of copra meal (Figure 24). With this development, local feedmillers are now ensured of a continuous supply of the feedstuff.
Regions XI, IV, IX, X, V, and VIII yield 80% of the countrys coconut production, with approximately 46% of the milling capacity being situated in Mindanao. There are a total of 118 coconut oil mills with an aggregate copra milling capacity of 5,320,500 mt/y (Figure 25). Among the biggest copra processing mills are Lu Do and Lu Ym, Legaspi Oil, Granexport Manufacturing, Iligan Oil Mill, and Primofina Oleochemicals.
Wheat and by-products
All of the wheat supply into the Philippines is imported. For example, a total of 2,146,889 mt of unmilled wheat (including spelt) and meslin was imported from the USA, Canada, and Australia in 1994, with the USA supplying 91% of the volume (Table 33). From 1990 to 1994 the volume has increased by 40.3% (Figure 26). Approximately 80-85% of the wheat imports are used for flour production and 15% milled for use in animal feeds. Feedwheat is being taxed at 30% as this competes with local corn, while breadwheat is taxed only at 10%. There are presently plans by the government to raise the tariff rate for feedwheat to 50%.
Wheat by-products are generally produced from the milling of wheat for flour production. Assuming that 85% of the wheat imported in 1994 was milled for flour production, this would be equivalent to the supply of about 218,983 mt of wheat pollard (at 12% of grain weight) and 182,486 mt of wheat bran (at 10% of grain weight). It is important to note that in the Philippine condition of feedmilling, pollard and bran are normally not separated; when referring to local wheat pollard, this includes the bran component of the grain.
Wheat by-products are mostly consumed locally with exports amounting to only 3,879, mt in 1994. The Philippines currently has a total of 12 flour companies with 14 flour mills; ten of the mills located in Luzon (with seven situated within Metro Manila; Figure 27), and two each in the Visayas and Mindanao. Although the propagation of wheat was successfully pilot tested in Luzon during the mid-1980s, to date no commercial industry is in sight due to the absence of large-scale ventures that would interest local flour millers.
The animal feedmilling industry, despite the countrys vast natural fishery resources, depends heavily upon imported fishmeal; total fishmeal imports in 1994 being 111,147 mt mainly form Peru (Table 33). In fact, fishmeal imports have increased by 88% since 1990, with Peruvian fishmeal being the most commonly used fishmeal for livestock, poultry, and fish feeds. The other types of imported fish meal, which are typically used for shrimp diets, include Chilean, USA, Alaskan, Canadian, Japanese, brown, and white fish meal. Compared to other major feedstuffs, fish meal is applied the lowest tariff at only 3%.
Unfortunately, there is no record of local fishmeal production which depends mainly upon the use of tuna cannery rejects and by-products. The bulk of the tuna fishmeal is produced in General Santos in South Cotabato which has the five largest tuna canning plants in the country; General Santos having an estimated aggregate capacity of almost 20,000 mt of tuna fish meal per year (this capacity though is underutilized due to the declining and erratic tuna catch). Sardine canneries also generate large quantities of fish by-products but only a small portion of this is processed into fish meal due to its high oil content. The bulk of these fish waste end up in the production of local fish sauces. Sardine canneries are mainly located in Metro Manila, although some can be found in Cebu and Zamboanga. There are a total of nine tuna canneries and at least ten major sardine canneries throughout the country (Figure 28).
During the 1950s and 1970s attempts were made to develop the local fish meal manufacturing industry using whole fish, but due to the spiralling prices of raw materials this was not economically feasible (Baconawa, 1990). The prospects of a fish meal manufacturing industry is even more uncertain today with increasingly limiting fish resources. For example, in order to sell fish meal from whole fish comparable to the present Peruvian fishmeal wholesale price of US$ 0.50-0.60/kg, local fish meal manufacturers should be able to procure their raw material at less than US$ 0.15/kg (at 25-35% recovery) so as to gain a reasonable margin. However, throughout the countrys fish landing sites (Figure 15, Table 55) it is now difficult to obtain raw material for fish meal manufacturing at a price lower than US$ 0.1 8/kg.
Other imported feedstuffs commonly used within aquaculture feeds include meat and bone meal/greaves/offals, crustacean meal/flour, squid liver meal, fish solubles, and brewers yeast (Table 33). With the exception of squid liver meal and fish soluble, all these feedstuffs are also produced locally although the volume of production is small.
Minor local feedstuffs that have found commercial use in fish and shrimp feeds are cassava meal (Manihot esculenta) and ipil-ipil leaf meal (Leucaena leucocephala). The meal or flour of cassava is desired for its excellent binding properties and its high energy content, but its use is limited to less than 10% due to the presence of the toxic glycoside linamarin and its low protein content. At present, most of the local production of cassava chips in the provinces from which the meal is derived is exported for food use. On the other hand, ipil-ipil leaf meal has been found to be an economical protein feedstuff for use in fish feeds. Like cassava, however, it too contains an anti-nutritional factor (i.e. toxic amino acid mimosine), and consequently inclusion rate is generally kept below 5%.
There are at least 12 cassava flour/starch manufacturing plants (see Table 35 - RN: 175, 233, 238, 277, 303, 305, 307, 350, 371, 373, 374, 375) in the Philippines with a total capacity of about 130,000 mt/y, and several small cassava chip mills with an annual rated capacity of 3,216,296 mt (Lapitan, 1986). Figure 29 shows the major cassava growing provinces and the geographical location of the cassava processing plants.
Various government programmes have encouraged the planting of cassava and ipil-ipil throughout the 1980s specifically for use within animal feeds, and at present both feedstuffs are widely available. From 1985 to 1986, the availability of ipil-ipil leaf meal was temporarily but severely curtailed due to the occurrence of the jumping lice infestation.
Brewers yeast is also now commonly used within aquaculture feeds although only in limited quantities. These are sourced from local breweries (RN: 13, 193, 272, 305, 364) and from foreign suppliers.
Table 37 describes some of the non-conventional feedstuffs available in the Philippines that may find application in aquaculture. Many of these feedstuffs are suitable for use within farm-made aquafeeds for semi-intensive culture where quality is not as critical and volume requirements are not large. To date, only cassava meal, ipil-ipil leaf meal, and brewers yeast have graduated to conventional use in aquaculture feeds.
Slaughterhouse and meat processing by-products and rejects are among the most valuable feed resources that have yet to be adequately tapped (Tables 52, 53, 54). For example, a study conducted by the Animal Products Development Center (APDC-BAI) in 121 small- and medium-sized abbatoirs in eight regions concluded that various wastes generated from slaughtering operations (e.g. blood, stomach contents, and fat trimmings) starting from lairaging up to meat inspection before the dispatch of carcasses are generally discarded as waste (Tenorio et al., 1995). There are now some large poultry processors that are investing in the production of meal from chicken by-products. Animal processing by-products and rejects not fit for human consumption are usually sold on site for less than US$ 0.20/kg, or in some cases just given away at no cost.
Other candidate high-protein non-conventional feedstuff resources that abound in farmlands are golden apple snails (Pomacea canaliculata), edible frogs from rice paddies, and earthworms. For a detailed discussion of the availability and utilization of non-conventional feed resources in Asia and the Pacific, the reader is referred to the review by Devendra (1985). To attend to the training needs of technicians and farmers concerning the use of non-conventional feedstuffs, BAI established in its Quezon City compound the non-conventional Feed Development and Outreach Center in 1990.
Table 38 presents the major imports and exports of selected fats and oils. The major types of fats and oils imported into the Philippines (not necessarily for feed use) are crude and refined soybean oil, tallow, and fish oil; during 1994, this amounted to 49,984 mt, 9,783 mt, and 259 mt, respectively. Crude and refined coconut oil constitute the bulk of the oil exports totalling 848,756 mt in 1994. Table 39 shows major suppliers of fats and oils.
Albeit the country produces large amounts of coconut oil, this is marketed for human and industrial use and not suitable for feeds due to its high cost (US$ 0.41-0.43/kg). At present, local production of animal oils for use in feeds is minimal and generally poor in quality. Sardine cannery waste and fat trimmings from abattoirs are major fat resources of potential value to the feed industry. However, manufacturers have to first properly source raw materials and invest in good handling and processing equipment.
Vitamins and mineral additives used in animal feeds are all imported into the Philippines with the exception of some natural mineral supplements such as calcium phosphates and oyster shell. Suppliers of vitamin and mineral supplements and premixes are listed in Table 40.
Commercial vitamin premixes for livestock and poultry feeds are widely available even for retail sale due to the numerous small non-commercial feed millers in the country. In contrast, fish and shrimp premixes are uncommon due to the limited market and also since many aquafeed millers import their requirements directly. For example, shrimp feed manufacturers which have Taiwanese partners usually obtain their premixes directly from Taiwan although details of the premix composition are usually not disclosed for proprietary reasons. An example of a commercially available vitamin and mineral premix for use in fish and shrimp feeds is given in Appendix 2.
Binders are an important ingredient of aquaculture feeds. Binders reduce wastage from fines and ensure physical and chemical integrity of the feed in water prior to consumption. Locally available natural and chemical (or synthetic) binders for fish and shrimp feeds are described in Table 41. Other important feed additives include antioxidants, mould inhibitors, and chemo-attractants. The commercial incorporation of therapeutants in feeds is currently limited to the use of furazolidone and Virginiamycin (Table 42) within tilapia and catfish feeds.
The use of therapeutants is quite common in shrimp culture at the farm level and this was particularly widespread a few years ago. However, the industry abandoned this practice between 1991-1992 after shrimp shipments to Japan from the Philippines and Thailand were rejected due to the presence of high levels of oxolinic and oxalic acid within the shrimp tissues. Recently, heavy losses in survival have again forced many shrimp farmers to use antibiotics such as oxolinic acid and furazolidone, although in this instance, farmers appear to be more responsible in their use (i.e. withdrawal period). Apart from the use of antibiotics, vitamins and sometimes enzyme are also applied on the farm level using marine or soybean oil, chicken egg, or pre-gelatinized starch as binders (Table 43).
3.4.2 Marketing channels
Fish and shrimp feeds are usually packed in woven polypropylene (PP) bags provided with an inner polyethylene (PE) lining. All feed companies pack grower and finisher fish feeds in 25 kg bags since quite a number of farmers compute their feed inputs in terms of bags rather than kilogrammes. Mash feeds are either packed in 5 or 10 kg PE-lined PP bags while crumbled feeds are packed in 10 or 20 kg PE-lined PP bags. All feed bags are mechanically sealed by stitching; an exception is one company which utilizes 5 kg vacuum packed plastic bags for its crumble shrimp feeds. Imported shrimp feeds from Taiwan arrive in 20 kg PP laminated paper bags with an inner PE film bag. By contrast, livestock and poultry feeds are usually packed within 50 kg/woven PP bags with no inner lining.
The distance and isolation of many of the countrys islands makes a multi-level marketing channel inevitable and this significantly adds to the cost of local feeds and feedstuffs. Imported feedstuffs are channelled from the importer to wholesaler (which may be the same entity) to the distributor and dealers. However, local feedstuffs such as corn, rice bran, and copra meal pass through a more intricate marketing channel, originating from the farmer or miller through several levels of traders before reaching the feedmiller (Figure 30). To ensure continuous supply of rice and corn products during the off-season, it is common for barangay and municipal traders to offer financing and buy-back arrangements to farmers, many of whom lack capital for adequate fertilizer and pesticide implements. This arrangement makes it especially difficult for end users to source rice bran and yellow corn during the lean months even directly from the trading areas. Ironically, during the peak months when it is possible to buy directly from the source, many feed millers avoid doing so as a gesture of goodwill to their suppliers whose favour becomes invaluable when the next shortage of raw materials arrives.
Fish feeds are normally marketed from the manufacturer to a network of distributors, dealers, and even sub-dealers due to the distance and isolation of many fish farms. However, large feed manufacturers like Vitarich, Universal Robina, and San Miguel Foods which have established company-owned distribution channels for poultry and livestock feeds, are usually able to market directly to the sub-dealer level or consumer level. By contrast, other feed companies tap the marketing networks of provincial and municipal traders. For shrimp feeds, the marketing channel is simpler since farms are never too far from a city or major town; from the manufacturer (or importer) the channel passes only through a distributor then directly to the farmer. A listing of aquafeed distributors and dealers in specific areas can be obtained from the marketing department of the feed company concerned.
Indicative wholesale prices of selected feedstuffs are shown in Table 44. In general, each level of trader from the farmer to the distributor makes 5-10% profit, while dealers and retailers who sell directly to the end user make a margin of 10-15%. From the source of the raw material (i.e. farmer, miller, or importer) up to the feed manufacturer, the marketing channel including the cost of transport adds from at least 30% to up to 80% on to the acquisition cost; the further the feed miller from the source the higher is its cost of feedstuffs. Large feed manufacturers for this reason often have personnel, agents, or direct suppliers at the trading area (Figure 30) allowing them to substantially cut down their raw material cost which small feedmillers are unable to do.
Feed distributors and dealers usually make a margin of around 4-6% for fish feeds and 7-11% for shrimp feeds. Feeds are generally marketed in cash or in credit terms of 30-60 days, with cash purchases given attractive discounts. In the case of shrimp feeds, the stiff competition over the remaining market has forced some companies to offer credit terms in excess of 60 days, with others even offering after harvest arrangements. Tables 30-31 list the retail prices of fish and shrimp feeds in the Philippines.
The pricing of manufactured feeds in general is affected by the import price of the major feedstuffs such as soybean oil meal and wheat, and the seasonal availability of local feed ingredients. At times when the supply is tight, it is not uncommon for feedstuff suppliers to require feedmillers to book and pay for their orders in advance.
Despite the current growth of the aquafeed milling industry, no comprehensive data has been published to date concerning the nutrient content and value of the feedstuffs used in aquaculture diets. Although Gerpacio and Castillo (1979) provided an exhaustive compilation of the nutrient analysis of Philippine feedstuffs, this list only focused on ingredients used for land-based farm animals. A wealth of data on aquaculture feedstuffs however exists from various sources, such as the SEAFDEC Central Analytical Laboratory, private laboratories, and research publications from universities and government research agencies. Tables 45a, 45b, and 45c show the proximate composition of selected protein foods, energy foods, and natural foods of value to aquaculture and Tables 46 and 47 present the essential amino acid and fatty acid profile of selected ingredients, respectively.
The following directories have been compiled, namely:
· Directory of poultry and livestock feed manufacturers: commercial (Table 48a);
· Directory of poultry and livestock feed manufacturers: non-commercial (Table 48b);
· Directory of hatchery feed suppliers (Table 49);
· Directory of commercial and non-commercial aquaculture feed manufacturers (Table 50);
· Directory of manufacturers and suppliers of feed ingredients and additives (Table 51);
· Directory of accredited abattoirs (Table 52);
· Directory of accredited meat processors (Table 53);
· Directory of poultry dressing plants (Table 54); and
· Directory of fish landing centres (Table 55),