TABLE OF CONTENTS

Title Page

EXECUTIVE SUMMARY 1
Section 1: INTRODUCTION 3
A. Background Information 3
B. Objectives of the VCA 4
C. Methodology 4

Section 2: OVERVIEW OF THE INDUSTRY 6

A. Production Description 6
B. Production Trends 8

Section 3: NATURE AND STRUCTURE OF INDUSTRY 19

A. Value Chain Mapping 19
B. Key Players and Functions 20
C. Nature of Inter firm Relationship 23
D. Price and Cost Structures 24

Section 4: MARKETS AND MARKET OPPORTUNITIES 28

A. World Export and Import 28
B. Marketing Opportunities 32

Section 5: SUPPORT SERVICES 34

A. Financial Services 34
B. Non-Financial Services 34

Section 6: ENABLING ENVIRONMENT 36

A. Formal Rules, Regulations, and Policies 36
B. Informal Rules and Socio-Cultural Norms 37

Section 7: CONSTRAINTS AND OPPORTUNITIES 37

Section 8: COMPETITIVENESS DIRECTIONS 41

A. Competitiveness Vision 41
B. Priority Constraints, Opportunities and Interventions 44

Section 9: CONCLUSION AND RECOMMENDATIONS 45

Annex 47

ii
 LIST OF TABLES

Table Title Page

No.

1 World population of goats by continent (thousand heads), 2010-2014 8

2 Average percentage share in goat population by continent, 2010-2014 9
3 Goat inventory in the Philippines, 2005-2014 10
4 Value of production of goat, Philippines, million pesos at current 10
prices, 2008-2012
5 Inventory of goats in the Philippines by region, 2014 11
6 Goat inventory in Bicol Region per province, 2010-2014 12
7 Bicol region goat inventory per province (commercial production), 12
2010-2014
8 Bicol region goat inventory per province (backyard production), 13
2010-2014
9 Goat inventory per municipality in Masbate, 2009-2013 14
10 Percentage of households with goats 18
11 Snapshot relationship assessment horizontal 23
12 Snapshot relationship assessment vertical 24
13 Cost and return analysis (goat fattening) 25
14 Cost and return analysis (free range goat) 25
15 Top exporters of goat meat, 2005 28
16 Top importers of goat meat, 2005 28
17 Consumption of meat and milk in developing and developed 29
countries, 1980-2015 and 2030-2050
18 Growth rate on annual per capita consumption on meat (Kg) and Milk 29
(Kg) 1990-2015
19 List of financial service providers 34
20 List of non-financial service providers 35
21 Constraints and opportunities 38
22 Action plan to support the promotion and development of live goat 42
industry
23 Priority constraints and interventions 43

iii
 LIST OF FIGURES

Figure Title Page

No.

1 Native goats 6
2 Average percentage share in goat population by continent, 2010-2014 9
3 Graphical presentation of the goat population in Masbate 2009-2013 15
4 Top ten producing municipalities in Masbate, 2013 16
5 Number of Goat Backyard Raisers by Municipality (Backyard Raisers) 17
6 Number of Commercial Goat Farms in Masbate 17
7 Masbate live goat value chain map 19
8 Transport vehicle of live goats from del Carmen, Uson, 22
Masbate to Manila
9 Cost build-up analysis, live goat per head 26
10 Cost build-up analysis, live goat per head/dressed 27
11 Sheep and goat meat consumption per capita in the world 30
12 Volume of small ruminant shipment, 2009-2014 31
13 Local market flow of live goats 32
14 Competitiveness vision, Masbate goat industry in the next five years 41

iv
Executive Summary
The Masbate province is a hilly/upland development zone with vast grazing lands and
favorable climate for large and small ruminant production, but goat is consider the
priority commodities, easy to manage and affordable even for a small farmer. In the year
2014, based on national situation, Bicol region ranks in the 11th highest goat producer
and 37.19 % of the total goat population is from Masbate.

At present, the Bicol region goat industry has three players: the input suppliers, the
producers (individual goat raisers, Farmers/fisher folks associations, RICs and 4H
Clubs) and the traders. Generally, goat raising in Masbate and all parts of the Bicol
Region is more on the backyard raising. Majority of the backyard raisers are landless
rural farmers who cannot expand their production due to lack of area for pasture
development necessary to sustain a larger number of animals. Few of them have no
formal housing for goats. They just tether goats in areas where there are grasses and
kept them back home during night. Moreover, these farmers usually lack of capital to
buy better breeder stocks and to provide housing and other necessities for the animals.

Trading flow of live goats showed the absence of fully integrated players along chain
segments. The regular transaction involved in goat trading is buy and sell and shipment
of live goat. Anybody can sell to any trader or buyer as long as the price is agreeable to
both. Quality control is not practiced by traders. Live goats can be sold or purchased at
any size or age. There is no value adding for live goat production as of the existing value
chain.

Trading activities of live goat are always favorable to the traders. They usually dictate
the prices at the mercy of the marginal goat raisers. Tumbok, Mata mata (eyeball
estimate), Pakyaw or Bultohan is the main system of goat pricing, where in the live
goats are priced by merely looking without the use of weighing scales. The shippers get
the biggest slice in the profit of live goat trading. Similarly, trading middlemen, locally
known as Dicers share in the bulk of the profit scenario. These trading activities are
done in the auction markets of Uson, Cataingan and Placer. Traders who will buy the
live goat, will ship them outside the province. The provincial veterinary office identified
at least 10 traders operating in the auction markets in Masbate. The external markets
are those outside the province where live goats are delivered from the auction markets.
Masbate has a regular weekly shipment of goats every Thursday ranging from 400 to
500 heads.

Increasing world population, proportionally increases demand for meat products. The
increasing goat meat (chevon) and milk consumption per capita in the world is a clear
indication that demand on it will also increase. This is a huge opportunity for the goat
industry because market is assured and prices will definitely increase as demand
increases. As an integral part of the Muslim and Hindu tradition, Goat meat are highly in
demand in Muslim countries. Recently, people are becoming health conscious and the
demand for food coming from natural source is continuously increasing. Chevon is
exceptionally lean, low in fat and cholesterol. It is high in iron and protein making it an
ideal choice for health conscious consumers.

1
With the proper coordination and support, the goat industry in the province of Masbate
can achieve its huge potential as livestock champion not only in Bicol region but also in
the entire country. As an island province, installing measures that will increase
production like improvement of facilities, goat dispersal, and improvement of breeder
stocks, multiplier farms, road construction, common facility center and price
standardization must be in place.

Since 1998, Masbate has been declared as an International FMDFree Zone by the
World Health Organization for Animal Health or Office Internationaledez Epizootes
(OIE). This international recognition makes the goats from Masbate more attractive not
only to the Philippine consumer but also in the world market.

Strategically located at the center of the Philippines archipelago, Masbate has many
ports of entry and exit. At present, the province has 7 municipalities with RORO port
namely: Monreal, Claveria, Aroroy, and Masbate City. Cawayan, Cataingan and
Esperanza. RORO ports will boost the accessibility of the province to neighboring island
provinces for easy of transport of live goats.

2
 SECTION
1 Introduction

Background Information

The Department of Agriculture (DA) is implementing the Philippine Rural Development

Project (PRDP), a six-year national project which is jointly funded by the World Bank,
National Government and the Local Government Units (LGUs).

As a new national government platform, the PRDP is advocating an inclusive, value-

chain oriented, and climate resilient agriculture and fisheries sector wherein
innovations are introduced to support the rural market development in light of the
changes in the agriculture and fisheries landscape particularly the challenges brought
by climate change to the sector.

The specific objectives of the PRDP are as follows:

At least 5% increase per year in real household annual incomes of farmer and
fisher folk beneficiaries;
30% increase in incomes for targeted beneficiaries involved in enterprise
development
7% increase in value of annual marketed output; and
20% increase in number of farmers & fisher folk with improved access to DA
services.

In order to achieve the aforementioned objectives, the project builds on four (4) major
components, which are:

1. I-PLAN: Investment for Agriculture and Fishery Modernization Plan (AFMP)

Planning at the Local and National levels. The I-Plan component aims to enhance
the Agriculture and Fishery Modernization Plan (AFMP) through science-based
tools including value chain, Vulnerability and Suitability Assessment (VSA),
Participatory Resource Appraisal (PRA), and Climate Change Adaptation (CCA).

2. I-BUILD: Intensified Building-Up of Infrastructure and Logistics for Development.

The I-Build components goal is to put in place strategic and climate-resilient rural
infrastructure facilities along the value chain. Improved road networks linking
production areas with markets and increased productivity from irrigation and
water supply system are the key results areas of this component.

3. I-REAP: Investments in Rural Enterprises and Agriculture and Fisheries

Productivity. The I-REAP component is focused on creating marketable surplus of
commodities and elevating agricultural production into the next levels of the value
chain by installing production and market support facilities. It also targets to
establish enterprises and up-scaling product at the appropriate commodity value-
chain segment, among others with the end goal of creating beyond subsistence

3
 production to alleviate poverty. The key results are increased Smallholder Groups
operating viable enterprises, enhanced producer productivity through formalized
arrangements for marketing and /or technical services and increased smallholder
and fisher resilience to climate change and adverse weather conditions.

4. I-SUPPORT: Implementation Support to PRDP. The I-Support component

maintains the effective and efficient project management. It also aims to
institutionalize DA engagement with stakeholders. The fourth component is
expected to introduce AFMP and PCIPs processes as the means to integrate and
achieve synergies between DA-agency programs, Harmonize Technical and
Fiduciary manuals and efficient program implementation, reporting and loan
utilization.

The Bicol Region, being one of the producers of small ruminants was chosen as the
project area for value chain analysis for goat (Live goat). As a priority commodity, the
DA in partnership with the LGUs and private sector will provide key infrastructure,
facilities and technologies to enhance and improve the goat industry in the region
through the PRDP.

Objectives of the VCA

This report provides an overview and analysis of the goat value chain, linking the global
context to the national, regional, and provincial perspective, with the aim of identifying
main leverage points and key strategies to improve Bicol Region and Masbate
competitiveness and promote development in a pro-poor, gender-sensitive and
sustainable manner. It will provide the basis for the formulation of the Provincial
Commodity Investment Plan and will lay the foundation for PRDPs cooperation with
the private sector and other government agencies promoting the development of the
goat industry.

Specifically, the value chain analysis aims to:

Delineate the goat value chain map and be able to determine and identify the
major players in the value chain for live goat in the Province of Masbate;
Identify the constraints, opportunities and potential intervention strategy of the
different players along the goat value chain;
Establish the competitive directions of the goat industry; and,
Facilitate the translation of interventions into priority projects that must be
implemented to enhance productivity.

Methodology

In order to come up with substantial and significant information within the period of
study the following data collection methods were utilized:

1. Key Informant Interviews (KII)

In coordination with DA project team, interviews with the following key

informants who had provided valuable information were conducted:

4
 DA and its attached agencies representatives
Private sector/Institutional buyer
Middlemen (locally known as dicers)
Traders/shippers, retailers

2. Focused Group Discussions (FGDs)

The study engaged goat backyard raisers, shippers and middlemen locally known
as Dicers in one of the auction markets, at Brgy. Curvada, Cataingan, Masbate.
The questions were about cost and level of production, price, household income,
and sources of funds, support received from various agencies, as well as issues,
concerns and needs of goat raisers, farmers/associations/cooperatives.

3. Review of Secondary Data

The following documents were reviewed and considered in preparing the project
reports and meetings with stakeholders:

Goat Population worldwide, Nationwide, Bicol Region and Masbate

Farm gate price trend of live goats
Other relevant statistics (e.g. no. of backyard and commercial raisers,
shippers, etc.)

Data gathered from websites (CountryStat, FAOSTAT, BAS), roadmaps and studies
on the goat industry were also considered as source of information in formulating
this VCA.

4. Study Focus

VC Competitiveness with private sector participation

Interventions to attain PRDP increase in income targets
Areas for investments/ enterprise development

5
 SECTION
1
Overview of the Industry

Product Description

Goat is a member of the family Bovidae and is closely related to the sheep as both are
in the goat-antelope subfamily Caprinae. There are over 300 distinct breeds of goat. It
is believed that goats are among the earliest animals domesticated by human. As one
of the oldest domesticated species, they have been used for their milk, meat, hair, and
skins over much of the world. The most recent genetic analysis confirms the
archaeological evidence that the wild Bezoar ibex of the Zagros Mountains are the
likely origin of almost all domestic goats today.

Considered as ruminants, they have a four-chambered stomach consisting of

the rumen, the reticulum, the omasum, and the abomasum. As with other mammal
ruminants, they are even-toed ungulates. The females have an udder consisting of two
teats, in contrast to cattle, which have four teats.

Goats have horizontal, slit-shaped pupils. Because goats' irises are usually pale, their
contrasting pupils are much more noticeable than in animals such as cattle, deer, most
horses and many sheep, whose similarly horizontal pupils blend into a dark iris
and sclera. This adaptation allows goats to see at least 320 degrees around their heads
with no blind spot in front of them. Both male and female goats have beards, and
many types of goat (most commonly dairy goats, dairy-cross Boers, and pygmy goats)
may have wattles, one dangling from each side of the neck.

Some breeds of sheep and goats look similar, but they can usually be told apart
because goat tails are short and usually point up, whereas sheep tails hang down and
are usually longer and biggerthough some (like those of Northern European short-
tailed sheep) are short, and longer ones are often docked. Figure 1 below shows
picture of native goats in Masbate that mostly average mature weight reached at
35kgs.

Figure 1. Native goats

6
As cited from the Livestock Development Council (LDC), breeds of goat that are raised
here in the Philippines are the following:

Anglo Nubian
Basically a tropical breed that was successfully adapted in the western countries. Its
distinguishing features include drooping and pendulous ears, and a brown hair or a
combination of brown and black. It has a long body that usually weighs 70-90
kilograms at mature age and produces 1-21 liters of milk daily.

Boer
A meat type breed with distinct white body color and usually black or reddish brown
from rear legs to the head. The goat weighs an average of 90 kilograms at mature age.

Saanen
Originated from Switzerland, is a pure white to off-white in color. It holds the
distinction as the highest milk producer (1.8 liters daily), and weighs an average of 70
kilograms.

Toggenburg
Also from Switzerland, have distinct white markings on the face, legs and tail and an
erect ears like the Saanen. Milk production averages 1.5 liters daily. This duck
assumes very erect normal postures which are almost straight neck. The back is long,
straight and narrow. An adult weighs about 2.10kg while an adult duck weigh about
1.8 kg. The egg production characteristics of this breed resemble that of the Khaki
Campbell.

Alpine
Also of European breed has a color that ranges from off-white to red, to black. An alert
breed of medium to large size, it weighs 70 kilograms at mature age. It poses upright
ears and straight face, the breed produces 1.5 liters of milk daily.

Native
The breed are small, stocky and low-set. Colors range from red, white or black or a
combination of these colors. Milk production is just enough for its kids. It weighs 20 to
30 kilograms at mature age.

Goats reach puberty between three and 15 months of age, depending on breed and
nutritional status. Does of any breed or region come into estrus (heat) every 21 days
for two to 48 hours. Gestation length is approximately 150 days. Twins are the usual
result, with single and triplet births also common. Birthing, known as kidding,
generally occurs uneventfully. Just before kidding, the doe will have a sunken area
around the tail and hip, as well as heavy breathing.

Uses of Goat

Usually, goats are being raised for the purpose of producing meat, milk, and/or, fiber.
As cited in a research paper entitled, Present Status of the World Goat Populations and
their Productivity, written by Prof. Mahmoud Abdel Aziz of King Faisal University, the
potential of goats for sustainable supply of milk and meat for human consumptionis

7
unquestioned. Goat meat is the most widely consumed meat in the world. It is the only
red meat that transcends all religious boundaries. It is an important part of many
ethnic traditions and festivals such as Ramadan of the Muslim, Greek Easter, Hindu
Festival of Dashera and holidays such as Christmas and thanksgiving.

In the Philippines today, more and more Filipinos are consuming goat meat as part of
their healthy lifestyle. Aside from having low fat and low cholesterol chevon is very
nutritious and delicious. Filipinos are known to have distinctive palate and two of the
famous Pilipino recipe of goat are the Kalderata and Kilawin.

Aside from cooking, goat meat can further be processed to longganisa, tapa, and
sausage or can be canned.

In developing countries, much of the milk produced by goats is for family

consumption. The demand for goat milk has been gradually increasing. According to
FAOSTAT, Goat milk production has increased in the past 10 years with a growth rate
of 24%. Goat milk can be further processed into a variety of marketable products such
as cheese, yoghurt, candies and pastillas. Goat milk is now widely used as one of the
ingredients of cosmetics and beauty products (whitening soaps, moisturizes and
lotions).

Goat used as fiber (Cashmere and mohair) are made into bags, belts, accessories and
other novelty items.

Production Trends

Global Production

For the past five years (2010-2014) the world population of goats has been generally
increasing, having an average growth rate of 1.403%. Africa has contributed the
greatest with this increase, performing an average rate of 2.778%. Both America and
Europe performed poorly, garnering negative rates for the past years.

Figure 2 shows that for the past five years, the largest producer of goats is Asia, with
over 59% share to the worldwide goat population. The second largest producer is
Africa, having over 34% share, distantly followed by America, Europe, and Oceania,
having 3.77%, 1.76%, and 0.41% shares, respectively. Asia and Africa are leading
continents too in terms of pasture land area.

Table 1. World population of goats by continent (thousand heads), 2010-2014

Ave. Growth
CONTINENT 2010 2011 2012 2013 2014
Rate
Asia 565,317 561,900 568,013 573,042 586,023 0.909
Africa 330,647 335,622 306,041 319,841 364,338 2.778
America 37,063 37,206 35,532 35,580 35,632 -0.958
Europe 17,091 16,568 17,120 16,587 16,800 -0.389
Oceania 3,921 3,914 3,970 3,961 3,993 0.458
TOTAL 954,039 955,210 930,676 949,011 1,006,786 1.403
Source: FAOSTAT

8
 Europe Oceania
1.76% 0.41%

Africa
34.54%

Asia
59.52%

America
3.77%
Source: FAOSTAT

Figure 2. Average percentage share in goat population by continent, 2010-2014

Compared to 2000, in 2011, worldwide, there is an increase of 16.52%. Among

continents, Oceania marks the highest growth rate of 105.22%, doubling its herds,
significantly, given that it ranks last in the number of heads. In Europe, however, the
goat population fell to 9.87% from 2000 to 2011.

As to the country with the largest goat population worldwide in 2013, China has the
highest goat population with over 182 million heads. (Table 2). As the worlds most
densely populated country, China produce more goats to supplement their food
requirement.

Table 2. Countries with the largest goat population in 2013

Rank No. of Heads
Country
(thousand heads)
1 China, mainland 182,700
2 India 162,000
3 Pakistan 64,900
4 Nigeria 58,250
5 Bangladesh 55,600
6 Sudan (former) 44,000
7 Kenya 30,000
8 Ethiopia 25,000
9 Iran 22,100
10 Mali 19,127

41 Philippines 3,694
Source: FAOSTAT

9
Second in rank is India, with about 162 million heads followed by Pakistan, with 64.9
million head. Nigeria ranked 4th with 58.250 million heads while the 5th is
Bangladesh with 55.6 million heads. Philippines ranked 41st, having 3.694 million
heads, about 2% of Chinas population.

National Production

Based on the data from CountryStat, the inventory of goats in the Philippines for 2014
was 3,695,267. Table 3, provides the data of goat inventory in the Philippines for the
past 10 years. From 2005 to 2009, data shows that inventory of goat is gradually
increasing every year. Comparing the inventory in 2009 from 2005, goat inventory has
19.43% growth rate. However, from 2010 to 2013, data shows a gradual decrease in
animal inventory which could be attributed to poor production techniques, pest and
diseases, and extreme weather conditions like the El Nino. Low farmgate price is also a
contributing factor why farmers does not increase their production volume in spite of
high demands.

Table 3. Goat inventory in the Philippines, 2005-2014

Year Inventory
2005 3,535,195
2006 3,735,816
2007 4,048,550
2008 4,174,251
2009 4,222,234
2010 4,177,721
2011 3,881,503
2012 3,715,228
2013 3,694,025
2014 3,695,627
Source: CountryStat

In terms of the value of goat production in the Philippines, the Bureau of Agricultural
Statistics in 2013, recorded a mean of 7.076 million or 3.48% for the period 2008-
2012. Table 4, shows value of production of goat in the Philippines from 2008 to 2012.

Table 4. Value of production of goat, Philippines, million pesos at current prices, 2008-
2012
2008 2009 2010 2011 2012 Mean %
Goat 5,873.4 6,800.2 7,306.8 7,710.5 7,689.3 7,076.0 3.48
Source: CountryStat

The top 5 producing regions in the Philippines based on the data generated from
Country Stat, are Western Visayas with 542,678 heads, followed by Central Visayas
with 495,678, Ilocos Region with 425,476, Davao with 342,972 and Central Luzon
with 334,464 heads. Bicol Region ranks as the 11 th producing region with 127,710

10
heads for the year 2014, in terms of number of heads. Table 5 shows the number of
heads per region and corresponding percentage share of the total inventory.

Table 5. Inventory of goats in the Philippines by region, 2014

Region No. of Heads % Share
Western Visayas 542,678 15
Central Visayas 495,678 13
Ilocos 425,476 12
Davao 342,972 9
Central Luzon 334,464 9
CALABARZON 238,021 6
Northern Mindanao 234,248 6
SOCCSKSARGEN 232,222 6
MIMAROPA 173,675 5
ARMM 150,613 4
Bicol 127,710 3
Zamboanga Peninsula 116,117 3
Cagayan Valley 114,564 3
CAR 71,852 2
CARAGA 53,888 1
Eastern Visayas 41,942 1
Source: Country Stat Philippines

In terms of percentage using the same data generated from CountryStat, it is reflected
that Western Visayas Region occupied the biggest share with 15% of the total number
of heads of goats. Central Visayas follows next with 13%, while 12% is occupied by
Ilocos Region. Two regions, Davao and Central Luzon occupied the same contribution
of 9% each while three regions namely CALABARZON, Northern Mindanao and
SOCCSKARGEN contributed 6% each. As shown in the pie graph, MIMAROPA
accounted for the 5% while 4% is occupied by ARRM. Bicol Region, where Masbate
belongs contributed only 3%. Two more regions contributed 3% each, the Zamboanga
Peninsula and Cagayan Valley. Cordillera Administrative Region (CAR) contributed 2%
while the remaining 2% is contributed by CARAGA and Eastern Visayas at 1% each.

Regional Production

Bicol Region ranks as the 11th producing region in the country with 127,710 heads for
the year 2014, contributing 3% of the total population. As shown in Table 6, the
province of Masbate is the highest producer with 47,496 heads or 37.2 % of the total
goat population in Bicol Region. Camarines Sur is the second top producer with 39,895
contributing 31.24% while the province of Albay ranked at number 3 with a total
25,312 goat population representing 19.82%.Camarines Norte ranked at no. 4 with an
inventory of 6,970 representing 5.4% of the total population. Sorsogon ranked 5th and
Catanduanes as the least producing province having an inventory of 6,247 and 1,790
heads respectively.

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Bicol Region is registering a negative growth rate of 6.45 from year 2010 to 2014. Out
of the six provices of the region, three provinces showed positive growth rate:
Sorsogon (19.12%), Albay (5.12%) and Cam Sur (.45%). The provinces of Cam Norte (-
5.13%), Catanduanes (-9.2%) and Masbate (8.01%) reflected negative growth rate.
Data comfirms the observations of the goat traders in Masbate during the
stakeholders forum that the population of goats in the province is declining. According
to one of the participants, farmers are no longer encouraged to raise more goats
because of the low farmgate price.

Table 6. Goat inventory in Bicol Region per province, 2010-2014

2014
% of the
PROVINCE 2010 2011 2012 2013 2014 compared
Total
to 2010 (%)
Masbate 51,634 47,114 46,648 45,755 47,496 37.19 -8.01
Cam. Sur 39,713 38,000 40,714 37,967 39,895 31.24 0.45
Albay 23,887 15,692 16,145 20,778 25,312 19.82 5.96
Cam. Norte 7,347 7,450 6,648 6,619 6,970 5.40 -5.13
Sorsogon 5,244 4,634 5,250 5,953 6,247 4.89 19.12
Catanduanes 1,972 1,063 1,500 1,651 1,790 1.40 -9.20
Source: CountryStat

Total goat inventory in Bicol Region has two sources: the backyard raisers and the
commercial farms. With an inventory of at least 50 heads, a goat farm could be
considered as a commercial farm. Table 7, shows the Commercial goat inventory in the
region per province for the past five years (2010-2014). The province of Masbate
produced 914 heads representing 56.2% of the total inventory in Bicol. Camarines Sur
contributed a share of 25% with 415 heads. Data source showed no commercial
grower in the province of Catanduanes.

Table 7. Bicol Region goat inventory per province (commercial production) 2010-
2014
% 2014
PROVINCE 2010 2011 2012 2013 2014 Total Ave Share Compared
2014 to 2010(%)
Masbate 230 338 491 704 914 2677 535.4 56.2 297.39
Cam. Sur 466 487 498 396 415 2262 452.4 25.5 -10.94
Albay 0 0 207 175 149 531 106.2 9.1
Sorsogon 61 44 195 132 109 451 90.2 6.7 78.68
Cam. Norte 0 0 48 44 40 132 26.4 2.5
Catanduanes 0 0 0 0 0
Source: CountryStat

Compared to 2010, Masbate recorded a 297.39% growth rate in commercial

production. Table 7 further shows that goat inventory is increasing every year. The
sizeable increase could be attributed to the increased number of commercial farms for
the past five years. This clearly indicates that some raisers have observed the
increasing demand of live goats and the great potential of goat raising as an

12
enterprise. Sorsogon also registered a positive growth rate of 78.68%. A yearly
increase over the past four years in the province could also be noted.

In backyard production, Masbate again is the highest contributor with 46,582 heads
(Table 8). Camarines Sur ranks second with 39,480 heads followed by Albay with
25,163 heads. Camarines Norte registered an inventory of 6,930 while Sorgoson has
6,138. Catanduanes has the least inventory among the six provinces with only 1,790.
Like the commercial production, the province also reflected a negative growt rate in
its inventory of goats in the backyard production. Provinces showing negative growth
in commercial production (Masbate: 9.38%, Catanduanes: -9.2% and Cam Norte: -
5.6%) also shows negative growth in baclyard backyard production while the other
three provinces, show a positve growth rate (Albay,Camarines Sur and Sorsogon).

Table 8. Bicol Region goat inventory per province (backyard production), 2010-2014
% 2014
Province 2010 2011 2012 2013 2014 Total Ave Share Compared
2014 to 2010(%)
Masbate 51,404 46,776 46,157 45,051 46,582 235,970 47,194 36.96 -9.38
Cam. Sur 39,247 37,513 40,216 37,571 39,480 194,027 38,805 31.31 .13
Albay 23,887 15,692 15,938 20,603 25,163 101,283 20,257 19.95 5.34
Cam. Norte 7,347 7,450 6,600 6,575 6,930 34,902 6,980 5.49 -5.6
Sorsogon 5,183 4,590 5,145 5,821 6,138 26,877 5,375 4.87 18.42
Catanduanes 1,972 1,063 1,500 1,651 1790 7,976 1,595 1.42 -9.27
Source: CountryStat

Generally, goat raising in Bicol Region is more on the backyard raising. All provinces in
the region shows a relatively small data on commercial goat production as compared
to backyard production.Majority of the backyard raisers are landless rural farmers
who cannot expand their production due to lack of area for pasture development
necessary to sustain a larger number of animals. In most cases, they do not have
formal housing for the goats. During daytime, they just tether the goats in areas where
there are grasses and kept them in their homes at night. Backyard raisers are also
raising inferior breeds which gives lower yields. Moreover, these farmers usually lack
the capital to buy more stocks and provide housing for the animals. Provision of
capital and making superior upgraded goats available to backyard raisers could help
the goat industry boosts its production.

Provincial Production

Based on the data from the Provincial Veterinary Office (PVO), Masbate has a total
production of 40,141 in the year 2013 (Table 9). The Provincial Veterinary Office
(PVO) obtained their data from the reports of the municipal agriculturists of the 20
municipalities and the City Agriculturist Office of Masbate City. The said data on
production differs from what is reflected in CountryStat. The total production for the
province of Masbate for 2013 is 45,051 heads. However, in the next discussions and
graphical presentations, the data from the provincial veterinary office will be used to
have production per municipality. All the municipalities and one city of the province is
engaged in goat raising.

13
From the data in Table 9, a graphical presentation shows that the goat population of
the province of Masbate for the year 20092013 has been fluctuating (Figure 3). This
is because rural farmers considers goat raising as an anwer to their immediate
financial need. Everytime the farmer needs finances, goats are sold for cash (in times
of sickness or special occasions like school enrollment, etc.). There are cases that even
2 pregnant does, weanlings, and productive goats are marketed by the farmer. Due to
lack of capital, replenishement is very low. However, interviews reveal that when
rural farmers have the capacity to buy goats to breed or fatten, they will always take
the oportunity to buy because they consider goat raising as their savings and a source
of ready cash in times of need. Much to their desire to raise more number of heads,
backyard raisers are also constrained in the area for pasture development. Majority of
these raisers does not own the land they are settling and cannot make structures like
goat shed without the concent of the owner.

Table 9. Goat inventory per municipality in Masbate, 2009-2013

Ave. % Share Growth
Municipality 2009 2010 2011 2012 2013
(5 yrs) (2013) Rate
Cawayan 6,054 6,220 5,445 6,860 4,781 5,872 11.91 -21.02
Uson 5,251 5,849 4,623 3,758 3,649 4,624 9.07 -30.67
Placer 2,233 3,150 2,725 950 3,254 2,462 8.11 45.72
Pio V. Corpus 2,026 2,691 2,661 2,932 2,932 2,648 7.30 44.71
Cataingan 3,268 3,130 3,214 2,733 2,791 3,027 6.95 -14.5
Claveria 2,608 2,608 2,608 2,608 2,608 2,608 6.49
Balud 2,126 1,921 4,118 2,510 2,510 2,637 6.25 18.06
Dimasalang 1,269 1,287 1,465 1,940 2,222 1,636 5.53 75.09
Aroroy 1,932 1,463 1,294 1,294 2,025 1,601 5.04 4.81
Milagros 1,151 1,364 1475 1,817 1,886 1,538 4.69 63.85
Esperanza 1,863 1,863 1,863 1,863 1,863 1,863 4.65
San Pascual 4,024 4,024 1,568 1,568 1,568 2,550 3.91 -61.03
Masbate City 617 392 1,764 1,721 1,339 1,166 3.33 117.01
Mobo 1,281 1,281 1,281 1,368 1,259 1,294 3.14 -1.71
San Jacinto 1,421 1,794 1,180 1,197 1,203 1,369 2.99 -15.34
Baleno 875 892 963 963 1,029 944 2.56 17.6
Mandaon 1,081 1,141 1,263 771 920 1.085 2.29 -14,89
Palanas 1,200 959 801 795 795 910 1.98 -33.75
San Fernando 677 768 768 909 626 749 1.56 -7.53
Monreal 743 726 926 556 556 701 1.39 -25.16
Batuan 334 334 334 334 334 334 0.83
TOTAL 40,102 42,394 41,045 38,153 40,141 8,028 0.09

14
 Figure 3. Graphical presentation of the goat population in Masbate, 2009-2013

Source: Provincial Veterinary Office

In terms of growth rate, seven municipalities shows a positive growth rate and the
city of Masbate reflected the highest of growth rate of 117.01%. Ten municipalities
shows a negative growth rate while the municipalities of Batuan, Claveria and
Esperanza has zero rate. According to the provincial veterinary office they have not
received any updates on the report on goat population from these municipallities
thereby registering zero growth rate.

The top ten goat producing municipalities in the province of Masbate based from the
data provided by the Provincial Veterinary Office are Cawayan, Uson, Placer, Pio
Corpus, Cataingan, Claveria, Balud, Dimasalang, Aroroy and Milagros. Most of these
municipalities came from the 3rd district of Masbate. This is because the auction
markets are located in this district namely: Del Carmen Auction Market, Uson (located
near the boundery of Uson and Cawayan); Curvadaand Estampar in Cataingan, and
Aquada, Placer. Farmers living near the auction markets can see the opportunity to
earn by raising goats in their backyard. Figure 4 is a graphical presentation of the top
ten producing municipalities.

15
Figure shown that among top ten producing goat municipality three among them are
Cawayan, which ranks 1st with 5,765 heads, next is Uson with 4,625 heads and the 3rd
is Cataingan with 3,005 heads all these municipalities are near in the livestock auction
oksyon market.

Figure 4. Top ten producing municipalities in Masbate, 2014.

7000

6000 5765

5000 4625

4000

3005
3000 2650 2635 2610 2532
2460
1865
2000

1000

0
Cawayan Uson Cataingan Pio V. Balud Claveria Placer San Pascual Esperanza
Corpus

Total Number of Goat Population by Municipality

Source: Provincial Veterinary Office

Aside from the presence of auction markets which means accessibility, top producing
municipalities have vast coconut areas. In Masbate, goats are tethered under coconut
trees. Goats require low maintenance because they eat tree leaves, grasses, weeds, and
agricultural by-products. Studies show that goat has become one of the most
economical alternatives for meeting protein needs of Filipino families.

16
The figure below shows the number of goat backyard raisers by municipality, data is
based in the inventory reports consolidated by the PVO and from assessment made by
DA-MBS staff.

Figure 5. Number of Goat Backyard Raisers by Municipality (Backyard Raisers)

Number of goats by municipality(Backyard)

1,153

894

591
530 517 492 488
461
373
320 296 292
251 204
189 182 178 150 140
100 67

Source: DA-MBS & PVO

Figure 6. Number of Commercial Goat Farms in Masbate

8
7
7

5
4
4
3
3
2 2 2 2 2
2
1 1 1 1 1
1
0 0 0 0 0 0 0 0
0

Number of Commercial Goat Farms in Masbate

Source: DA-MBS & PVO

17
Table 10 below shows the percentage of households with goat per municipality for
both backyard and commercial type goat raisers.

Table 10. Percentage of households with goats, Average, 2009-2013

Percentage of households with goats(%)
Backyard Commercial
@Ave. 5 % of
Heads of Households
Municipality Actual %
Goat/ with Goat/
Household Municipality
Cawayan 1,153 15 2 6.9
Uson 894 11.6 2 6.9
Placer 492 6.4 0 0
Pio V. Corpus 530 6.9 0 0
Cataingan 591 7.7 1 3.6
Claveria 488 6.3 2 6.9
Balud 517 6.7 1 3.6
Dimasalang 292 3.8 3 10.3
Aroroy 320 4.2 0 0
Milagros 296 3.9 1 3.6
Esperanza 373 4.9 0 0
San Pascual 461 6 4 13.8
Masbate City 204 2.7 2 6.9
Mobo 100 1.3 7 24.1
San Jacinto 251 3.3 1 3.6
Baleno 189 2.5 0 0
Mandaon 178 2.3 2 6.9
Palanas 182 2.4 0 0
San Fernando 150 2 1 3.6
Monreal 140 1.8 0 0
Batuan 67 .9 0 0
TOTAL 7,686 100 29 100

18
 SECTION
3
Nature and Structure of the Industry

Value Chain Map

Goat raising is anywhere in the Philippines. It is one of the most simple, low-cost food
production projects that a Filipino can get involved in. Goat production requires low
initial investment and small risks compared to other livestock, making it an attractive
undertaking among resource-poor families. In addition, women and children can raise
the animals, making it a sound option to augment familys income.

Figure 7. Masbate live goat value chain map

19
Key Players and Functions

The present goat industry in the Bicol region has three (3) players: the input suppliers,
the producers (individual goat raisers, farmers associations, RICs and 4H Clubs and
the consolidators/traders.

Input Suppliers

DA Masbate Breeding Station is one of the key players in this segment both as a
supplier for pasture grasses, breeder stocks and technical assistance. The Department
of Agriculture RFU V through the Livestock Divisionlauched an upgrading program
under PL480 (US-Funded Project). Purebreed breeder stock like Boer, Anglo Nubian
Toggerburg, andOver-hassle for meat type breeds were provided to selected Masbate
goat raisers. The project also distributed Saanen, Alphine for the milk type. This on-
going project is hoped to produce more upgraded goats of better breeds. At present,
purebred bucks and does is priced at Php 400.00-1,000.00 per kilogram live weight.
Breeders with 50% purebred and 50% Native are sold at Php 3,000 toPhp 5,000 per
goat or 200 to300 pesos per kg. live weight.

Commercial farms in the province are sources of stocks especially for those requiring
a big number like goat dispersal projects.Individual goat raisers in the entire province
become input supplier when they sell their goats and other farmers will buy it for
growing or breeding purpose. As to the source of biologics (dewormers), feeds,
vitamins (UMMB) and other veterinary needs, agrivet stores scattered all over the
province are the input suppliers. However, in backyard production, rural farmers are
not practicing the use of biologics and vitamins.

Farmers (Goat Raisers)

Individual backyard raisers in all the 21 municipalities of the province, Farmers and
Fisherfolk Associations women (Rural Improvement Clubs), Youth (4H Club
Members), AKBAY Recipients, and Cooperatives engaged in goat raising are the
producers and practically the key players in the production segment of the value
chain.

Presently, there are farmers associations and cooperatives having individual members
raising one or more goats. Sixteen (16) Fisher folks associations, recipients of
livelihood project under ICRMP are also engaged in the goat production (Annex 1).
Forty (40) recipients of the AKBAY Pinoy Program coming from the municipalities of
Esperanza, San Fernando and San Jacinto have goat raising as their livelihood project.

The youth sector is also considered one of the key players in the industry through the
4H Clubs. Out of 58 clubs in the province, 7 Clubs are presently engaged in goat raising
project under the DA-ATI Livelihood Program (Annex 2). Clubs are required to submit
project proposal from Php 20,000.00 to a maximum of Php 50,000.00 on the kind of
livelihood project they will engage in. After two years without interest, the club is
required to make repayments for next in line beneficiaries to avail the program.

20
Women are also considered vital players in goat production. Based on the records of
the provincial RIC Coordinator,there are 27 Rural Improvement Clubs with 765
members who are engaged in goat production as their livelihood project (Annex 3).
Some of these RICs are recipients of DA LEAD Program wherein they are given capital
to buy breeder stocks. Basing on the repayment scheme as reflected in the proposal,
they are required to pay the amount borrowed under a certain period of time. Other
RICs have members who are raising goats on their own, seeing the economic benefit it
offers like immediate cash to buy medicines in case of sickness.

Commercial farms are also one of the key players in the production chain as well as
the supply chain. A total of 17 commercial farms are operating in the province (Annex
4).

Traders (Dicers and Shippers)

There are approximately 50 middlemen locally known as Dicers operating in the

province. These middlemen go to remote barangays to look for goats for sale which
they in turn sell to the Traders after determining their mark up. In cases where the
goat farmer goes to the auction market, these dicers will be the one to transact
business or make arrangements with the traders and buyers. The farmer will just wait
at the corner and the middlemen will get the money from the traders or buyers.
According to one of the dicers interviewed some of them become raisers. In cases
when the farmers sell thin or premature goats (newly weaned) they will have it
fattened first before selling. Thin goats cost very little and two to three weeks
fattening will give them more returns. Sometimes, due to financial constraints,
farmers sell pregnant does. According to another dicer interviewed, if they have
enough capital, they will take care of the animal first until it will give birth and sell it
after weaning. Whenever the doe shows good breeding characteristics like producing
3 kids in one breeding, healthy and bigger offspring, they will keep the doe as a
breeder.

Transactions in the auction market specifically at Del Carmen, Uson, Masbate is

facilitated and controlled by the market management. All pertinent sanctions and
requirements are settled before the shipment of live goats will be undertaken. Auction
market day is every Thursdays of the week, locally known as Saud or Tiangge.
Business transactions starts as early as 7:00 in the morning and usually by 10:00 am
all goats are already intact at the hauling truck, ready for shipment to its final
destination. A 10-wheeler truck with a carrying capacity of four hundred goats, more
or less is used as transport vehicle (Figure 8).

21
 Figure 8. Transport vehicle of live goats from del Carmen, Uson, Masbate to Manila

The auction market at Curvada, Cataingan, also operates on the same day, or every
Thursdays of the week. Both farmers and buyers must see to it that they will be in the
auction market between 7:00 to 9:00 am, when business transaction is at its peak. In
Curvada, Catiangan, only payment for the barangay is required. There is no record as
to the number of goats shipped or sold at the auction market. Auction market in Placer
and Estampar, Cataingan are scheduled every Friday and Monday respectively.
Limited transaction can be observed in this auction market day.

There is no formal system of trading. tumbok, bultohan, pakyaw or mata-mata

is used wherein live goats are priced by merely looking at the animal, or eyeball
estimate, without the use of weighing instruments. This kind of arrangement is
disadvantageous to the farmers. Determining the price of live goat is usually based on
live weight estimation, age and appearance of the animal. Prices varies from time to
time and is usually dependent on the number of animals brought in for auction,
demand and the number of competing buyers. Buyers consists of local market meat
dealers and retailers, traders from other provinces.

Due to limited supply in the province, some traders buy goats in neighboring areas
like Samar, Leyte and Cebu. The transport from this places are easy through the RORO
operating in the ports of Cataingan and Cawayan. Goats from Cebu, particularly the
municipality of Bogo, are hauled in mini vans or jeepneys aboard the barge. Motorized
boats from Samar and Letye are also available. Weather permitting, they can do the
transport on a daily basis. Traders who will buy live goats will ship them outside the
province. The provincial veterinary office identified at least 10 traders operating in
the auction markets in Masbate (Annex 5).

Prices are usually dictated by the traders. If the supply is high, or there are many
animals for auction, the price is very low. This is true during beginning of classes or
enrolment period. Farmers use the proceeds from their livestock sale to finance the
requirements in school like tuition fees, uniforms, shoes, notebooks and other school
paraphernalia. Prices during special occasions and holidays like Christmas season is
usually high.

22
Trading flow of live goats showed the absence of fully integrated players along chain
segments. The regular transaction involved in goat trading is buy and sell and
shipment of live goat. Anybody can sell to any trader or buyer as long as the price is
agreeable to both. Quality control is not practiced by traders. Live goats can be sold or
purchased at any size or age.

Nature of Interfirm Relationships

Horizontal Relationships

The goat raisers in Bicol are mainly fragmented. While there are registered farmers
associations, RICs, recipients of AKBAY Pinoy Program, and 4-H Clubs engaged in goat
production, these are not organized to a next level of a federation or network.

Table 11. Snapshot relationship assessment horizontal

Description
Aspect/ Parameter
Farmer Farmer Trader Trader
Buyer and Supplier Looks for higher buying Selection of buyers are
Selection/ Procurement price of goats depending on dependent on those present
Process timeliness in the auction market
Some traders have loyal
buyers
Information Sharing/ Sharing of information Sharing of information is
Transparency through verbal through verbal
communication and within communication and happens
organizations in the auction market

Quality Control/ Most of the time assumes Studies the requirements of

Inspection that goats are healthy their end-markets, quality is
through eyeball estimate dependent on the end-
markets

Value Added Services/ Live goats are usually sold
Collaboration and after weaning
Cooperation If a doe shows a good
breeding characteristics,
they will keep it as a
breeder
Other traders would have
their goats fattened first
before selling it to other
traders for higher prices

Basis of Price and timeliness Price, quality and timeliness

Competition/Offer

Information sharing among the players is highly exclusive among individual segment
players. Within the players, there is limited information sharing on goat production
technologies. Price is usually dictated by the traders at the mercy of the farmer.

While the farmer-suppliers are fragmented, the traders are also not organized,
According to one of the traders interviewed, each one of them view one another as a
potential competitor. However, they have arrangements as to transportation or

23
trucking services. Presence of middlemen locally known as dicers is rampant in the
industry. They connect goat raisers to buyers and traders and some of them are also
raising goats.

Vertical Relationships and Supply Chain Governance

Majority of the backyard goat raisers in Bicol are dealing with spot-market where
there is no formal business arrangements. They operate mainly on a per transaction
basis with no long-term commitments or coordination with the end-buyers. In fact,
their business relationship is not bounded by a written agreement (e.g. official
receipts). Negotiations are done verbally. Business transactions of the traders are
facilitated by mere mutual agreements. See table below showing a snapshot of the
vertical relationships of the various stakeholders in the live goat industry.

Table 12. Snapshot relationship assessment vertical

Aspect/Parameter
Buyer and Supplier
Selection/ Procurement
Process
Description
Farmer Trader
Dicers serve as intermediaries between
farmers and shippers
Dicers look around for available suppliers

Information Sharing/ Sharing of information is through verbal

Transparency communication and happens in the
auction market

Quality Control/ Inspection Studies the requirements of their end-

markets, quality is dependent on the end-
markets

Value Added Services/ Underweight/Undernourished goats after

Collaboration and weaning are fattened first before selling
Cooperation them to traders

Basis of Competition/Offer Price

Source: Focus Group Discussion and Stakeholder Workshop

Price and Cost Structures

Income and Profit

Goat raisers can derive sizeable income from goat raising in two different ways. A
rural farmer can engage in goat fattening or free range. In goat fattening, a farmer may
buy undersized or thin goats approximately weighing 15 kgs at Php 1,500 per head.
He will fatten the animal through cut and carry method for a period of 4 months. After
the fattening period, the animal will more or less weigh 25 kgs and could command a
price of Php3,500.00. In this case he will have a net profit of Php 1,016.80 or net
return on investment of 1.41 (Table 13).

24
 Table 13. Cost and return analysis (goat fattening)
Particulars Cost/Head Amount Per Head
Gross Return 35,000 3,500
No. Of Heads (Yearling w/ 25kg ave) 10 1
Price per Head (P3,500 & above) 3,500 3,500
Total Cost 24,832 2,483
Raw Materials
Native Wean (not less than 1,500 15,000 1,500.00
15kgs)
Other Inputs
Rope 200/roll 200 20.00
Goat Feeds (ricebran) P10/kg 8,000 800
(20kgs/mo
Labor Cost
Grazing/Tending (P20x30x4 mos) 1000 1,000 100.00
Animal Shed depreciation 33.20
(P3,000/3yrs/12*4) 332
Transportation/Marketing P10/head 100 10.00
Auction Market Permits & Licenses P20/head 200 20.00
Total production cost 24,832 2,483.20
Net Returns 10,168.00
Production Cost (4 mos.)/head 2,483.20
Net Returns 1,016.80
Profit Cost Ratio 1.41

Most of the rural goat farmer practices the free range. Usually, there is no proper
housing and the goat is simply tied with a rope. During daytime, the animals are
tethered in places where there are plenty of grasses and under coconut trees. Table 14
shows the net return on investment when the famer will raise newly weaned goat
priced at Php 800. After 6 months of tethering the animal, the animal could be sold at
least Php 3,000, with an ROI of 1.36. Since the farmer is tending the animal, the cost on
labor could be added to his net gain.

Table 14. Cost and Return Analysis (free range goat)

Particulars Unit Cost Amount per head Percentage
Gross Return 30,000 3,000
No. of Heads (Yearling w/ 25-
30kg average) 10 1
Price per Head (P2,500-3,000) 3,000 3,000
Total Cost 12,698 1,270
Raw Materials (newly weaned or
4-month old Kid) P800.00 8,000 800.00 0.63
Other Inputs
Transportation 10 100 10.00 0.01

25
 Rope 200 200 20.00 0.02
Labor Cost
Grazing/Tending
(P20x30x6 mos) P20/day 3,600 360.00 0.28
Animal Shed Depreciation
(P3,000/3yrs/12*6) 498 49.90 0.04
Transportation/Marketing P10/head 100 10.00 0.01
Auction Market -
Permits & Licenses P20/head 200 20.00 0.02
Total production cost 12,698 1,269.90
Net Returns 17,302 1,730.10
Production Cost (1 yearling goat) 1,269.80
Net Returns 1,730.20
Profit Cost Ratio 1.36
JanuaryJune (free range) 6 mos 17,302
Fattening 4 mos 1,017
Value Adding for 1 year 18,319

Relative Financial Position of Players

The shippers can either sell goat as live or have them butchered/slaughtered and sold
as meat. Final destination of the live goats particularly Nepa Q-Mart has an abattoir or
facility where in the shippers/ traders can butcher the goats before delivering them to
their clients like restaurants and hotels. Figure 9 provides data on the income and
expenses of the various key players of the value chain, assuming that the live goat
raised by the farmer has reached 15kgs when he brought it to the auction market.

Figure 9. Cost build-up analysis of live goat per head

26
Based upon the survey and interview conducted, middlemen locally known as dicers
has a markup of at least one hundred (100.00) to three hundred (300.00) per head,
depending on the size and appearance of the goat. Most of the time, they have no
expenses incurred and only few minutes is involved to get the profit share of
approximately 12.5%. In cases in which middlemen or dicers goes to the remote
barangays to look for goats, they usually offer low price to the famers, enjoying higher
profit. They will scout goats for sale in the barangays two to three days before the
Saud or market day. In the same figure (Figure 9) it is assumed that traders will sell
the animals as live and he gets approximately 25% of the profit share.

If the trader/shipers opted to butcher the goat upon reaching its final destination in
Nepa Q-mart and sell it as dressed meat, he will have a bigger share of the profit or
approximately 37% (Figure 10). In this case, he will incur additional expenses for
permits, licenses and rentals or payment for the use common facility or abbatoir.
Traders will also spend more time and labor but this is compensated in higher returns
or more profit. Aside from the proceeds of the meat he can earn additional income in
selling the entrails or viscera and the hide or skin.

Figure 10. Cost build-up analysis of live goat per head/dressed

27
 SECTION
4
Market Analysis and Opportunities

World Export and Import

According to FAOSTAT in 2011, the top exporter of goat meat is Australia with 25,149
MT (Table 15). With a considerable gap, Ethiopia follows as the 2nd top exporter of
goat meat with 12,306 MT followed by China (Mainland) with 4,614 MT. Pakistan is
the 4th top exporter with 4,290 MT.

Table 15. Top exporters of goat meat, 2011

Goat meat
Rank Countries
(MT)
1 Australia 25,149
2 Ethiopia 12,306
3 China, mainland 4,614
4 Pakistan 4,290
5 France 2,684
6 Saudi Arabia 1,229
7 Argentina 736
8 Spain 736
9 New Zealand 694
10 Netherlands 655
Source: FAOSTAT

The same data source, FAOSTAT (2011) reveals that U.S.A. is the top goat importer
with 15,752 MT (Table 16). Most of its meat requirement is supplied by Australia. The
2nd top importer of meat is Bahrain with 10,446 MT. U.A.E. follows with 9,247
Meanwhile China (Mainland) and Saudi Arabia imported 3,851 MT and 3,503 MT
respectively.

Table 16. Top importers of goat meat, 2011

Goat meat
Rank Countries
(MT)
1 United States of America 15,752
2 Bahrain 10,446
3 United Arab Emirates 9,247
4 China, mainland 3,851
5 Saudi Arabia 3,503
6 Oman 3,006
7 China, Hong Kong SAR 2,177
8 Trinidad and Tobago 1,856
9 Canada 1,693
10 Italy 1,649
Source: FAOSTAT

28
It is estimated that human population in 2050 is estimated to be 9.15 billion, with a
range of 7.9610.46 billion. Rapid population growth could continue to be an
important impediment to achieving improvements in food security in some countries,
even when world population as a whole ceases growing sometime during the present
century. Another important factor determining demand for food is urbanization.
Urbanization has considerable impact on patterns of food consumption in general and
on demand for livestock products in particular. Table 17 shows the past and projected
consumption of meat and milk worldwide. With increasing demand for meat and milk,
goat production is a very good source of alternative income, a very viable business
enterprise.

Table 17. Consumption of meat and milk in developing and developed countries,
1980-2015 and 2030-2050
Annual per capita
consumption Total consumption
Meat (Kg) Milk (Kg) Meat (Kg) Milk (Kg)
Developing 1980 14 34 47 114
countries 1990 18 38 73 152
2002 28 44 137 222
2015 32 55 184 33
2030 38 67 252 452
2050 44 78 326 585
Developed 1980 73 195 86 228
countries 1990 80 200 100 251
2002 78 202 102 265
2015 83 203 112 273
2030 89 209 121 284
2050 94 216 126 295
Sources: Steinfield, 2006 and FAOStat

Based on the above table the growth rate (1990-2015) on the annual per capita
consumption of meat in developing countries is 77% while develped countries with
3.75% (Table 18). It could be noted that developed countries shows a small increase
in growth rate, However, in terms of volume, developed countries has almost 250%
consumtion compared to the developing countries. This is understandable because of
the higher standard of living, higher income and greater capacity to buy meat.

Table 18. Growth rate on annual per capita consumption on meat (Kg) and Milk (Kg)
1990-2015
Product Form 1990 2002 2015 Growth rate ( %)
Meat (kg)
Developing countries 18 28 32 77
Developed countries 80 78 83 3.75
Milk (kg)
Developing countries 38 44 55 44.73
Developed countries 200 202 203 1.5
Source: FOASTAT

29
Similarly, the per capita comsumption of milk in developing and developed countries
has a considerably big gap in terms of growth rate. Like the meat comsumption,
Developing countries, reflects 44.73% increase from 19902015 while developed
countries only reflected 1.5%. This is attributed to the same reasons mentioned
earlier.

Figure 9 below shows the sheep and goat meat consumtion per capita in the world. It
could be noted that since 1980-2010, the per capita consumption is steadily
increasing. This clearly indicates a steady increase in the demand for goat meat in the
years to come. There is a great opportunity for goat raisers to expand their production
to supply this increasing demand.

Figure 11. Sheep and goat meat consumption per capita in the world

Local Market

The Philippine dairy industryalthough considered a vital component of the countrys

economic and nutritional developmentremains undeveloped. Presently, the country
imports 98 percent of its milk and other dairy products requirements. The country is
also importing breeder goats from Australia. Production in the country is not even
enough for its meat and milk requirement.

Backyard and commercial goat raisers in Masbate produce goats and sell them as
Live goats. Figure 12 is a graphical presentation live goat shipment in the province
for the past five years. Illustration below indicates a declining volume of shipment for
goats. According to traders, there is demand for live goats coming from Masbate.
However, shipment depends on the volume of animals traded at the auction market.
The province of Masbate was able to ship a total of 21,820 goats in the year 2014 with
an average of 450 goats per week. These figures were taken from the permits issued

30
by the provincial veterinary office. Shipments that were done without permits were
not reflected.

Figure 12. Volume of small ruminant shipment, 2009-2014

Source: Provincial Veterinary Office

Apparently, trading of live goats within the province for consumption is very limited.
Inter-commercial transactions involve trading of live goats for fattening and for
shipment. Further, goat meat consumption within the province usually happens
during special occasions. Chevon is not considered a regular table food for the
Masbateos, the present goat meat supply (MT), per municipality in the province of
Masbate can be found in annex 6. Average supply ranges from .20 to 3.52 while the
total goat meat supply for the province is 119.89.

In 2013, the total goat meat demand of Masbate is 743.2 MT. Masbate City has the
highest demand because more residents have stable income and has the purchasing
capacity. Batuan has the lowest demand among the municipalities with only 11.55 MT.
The demand for goat meat per municipality in the province for the period 2009-2013
is found in Annex 7.

The province is considered sufficient for the past 5 years (Annex 8). By increasing its
present production, Masbate could become a supplier of meat meat in the country and
other parts of the world.

Local Market Flow (Live Goats)

This Value Chain Analysis is the actual scenario of the goat industry in Bicol Region
particularly the province of Masbate. Interviews and consultations from various
stakeholders revealed that current marketing of live goats involves a very plain
andsimple process. Goat raisers go to auction market where middlemen will arrange
price with the trader. The traders themselves ship the live goats to the final market,
Usually Nepa Q-Mart, where they sell the live goats for butcher/slaughter the goat and
sell them as meat. Sometimes traders from other provinces like Pangasinan, Ilocos,

31
Batangas and Baguio City buys live goat. It is the traders who will determine the price.
There is no standard or establishedpricing of goats and traders commands the price.
Middle men will always have their mark up so if traders will lower the price, farmers
have no option but to sell the live goat and at a very low price. Low price of goats at
farmers level discouraged the rural farmers to raise goats, resulting to declining
inventory.

Figure 13. Local market flow of live goats

Marketing Opportunities

World Market

Increasing world population results to proportionally increase in demand for meat

products. The increasing goat meat and milk consumption per capita in the world is a
clear indication that demand for goat meat and milk will also increase. This is a huge
opportunity for the goat industry because market is assured and prices will definitely
increase as demand increases.

Since 1998, Masbate has been declared as an International FMDFree Zone by the
World Health Organization for Animal Health or Office Internationaledez Epizootes
(OIE). This international recognition makes the goats from Masbate more attractive
not only to the Philippine consumer but also in the world market.

International Market-ASEAN Integration

As a member of AEC, the Philippines has a potential to become a supplier of goatmeat

and milk. Goat industry could be developed as a single market and production base,
highly competitive and fully integrated into the global economy.

Domestic Market

The annual average farmgate price of live goat went up by 6.46 percent or from
P106.74 per kilogram in 2013 to P113.64 per kilogram in 2014 (BAS Report,
December, 2014). This is a great opportunity for local goat raisers. The external

32
markets of live goats in Masbate are other provinces and urban trading centers in the
country (e.g. Metro Manila, Pangasinan, Baguio, Ilocos Region, Batangas, etc.).
Transactions prior to shipment are undertaken in the local auction markets during
Thursdays of the week. These transactions have been already established and
shippers from the local market and from other places flock during the auction market
day. Masbate has a regular weekly shipment of goats ranging from four hundred
(400) to six hundred (600) heads of goat per shipment.

HALAL Products

As an integral part of the Muslim and Hindu tradition, goat meat are highly in demand
in Muslim countries. Goats are widely used in muslim festivals. To mention a few,
Eiduladha, Muharram (uses goat as the main course for the holiday meal), Maulid al
Nabi Ramadan and Eid al Fitrare muslim festivals in which they use goats that should
be Halal certified. This huge market potential could be accessed through complying
the requirements on Halal certification.

As an Island province, Masbate could easily apply for HALAL Accreditation because
whatever production requirements necessary could easily be maintained and
monitored.

Healthy Lifestyles

Recently, people are becoming health conscious and the demand for food coming from
natural source is continuously increasing. Goat meat is exceptionally lean, low in fat
and cholesterol. It is high in iron and protein making it an ideal choice for health
conscious consumers. Similar in taste to lamb, but slightly sweeter, goat meat is a
healthy choice for meat lovers. Goat meat is reported to be the healthiest red meat
available, according to the US Department of Agriculture.

Masbate goat is known to be palatable and delicious because it is all natural. Goat
raisers in Masbate does not use supplemental feeding and goats are purely feed by
grasses which are considered organic because it is chemical free.

Upgraded Goats

The province has island born purebred Boers which could be used to upgrade native
does. This could result to bigger, heavier kids at weaning, increasing its production
weight.

Strategic Location

Strategically located at the center of the Philippine Archipelago, Masbate has many
ports of entry and exit. At present, the province has 7 municipalities with RORO port
namely: Monreal, Claveria, Aroroy, Masbate City. Cawayan. Cataingan and Esperanza.
RORO ports will boost the accessibility of the province to neighboring island provinces
for easy of transport of live goats.

33
 SECTION
5
Support Services

These support services, both financial and non-financial, are geared towards the
development and promotion of live goat industry for poverty alleviation. Specifically,
these services have two pronged goals: a) stimulate the competitiveness of the goat
industry of the province; and b) increase goat raisers income.

Financial Services

In most of the areas covered by this VCA, there are very limited formal financing
services provided to the goat raisers. The source of financing comes from the informal
lenders-mainly the traders and local buyers that tie up with dicers for the proceeds
in selling live goats.

In the year 2014, Agricultural Credit and Financing Program (ACPC), started to grant
loans to farmers who are interested to go on livestock production and goat raising is
included. This year, some farmers were able to avail loan through Land Bank, the
conduit bank of the program. Table 19 provides the list of financial service providers.

Table 19. List of financial service providers

Financial Service Providers Services
Land Bank of the Philippines Loan packages for micro- small and medium
(LBP) industries as their loan portfolio. ( ACPC)

CARD Bank, Inc. Provide financing to goat raisers who are

(Center for Agriculture and members/depositors
Rural Development Bank,
Incorporated)
Akbay/ ACPC Provide financing to goat raisers / Provision
of initial stocks

Non-Financial Services

Table 20 is a list of non- financial service providers available in the province that could
be of help in boosting the goat industry.

34
Table 20. List of non-financial service providers

Service Provider Services/Contributions to the Goat Industry

Masbate Breeding Station Develop pure breeds and highbred goats as source of
stocks
provides technical assistance , AI services
Provide/ Conducts R and D on goat production
As source of Forage grasses
Provincial Veterinary Provides technical assistance, health, and veterinary
Office/PLGU services (Deworming)
Provides Livelihood assistance such as goat dispersals
Leads the establishment of checkpoints and quarantine
stations to maintain FMD Status
DA RFO 5 Provides technical assistance and capability trainings
Provides Livelihood assistance such as goat dispersals
Agricultural and Training Provides technical assistance and capability trainings
Institute (ATI)
Bureau of Animal Provide support for the upgrading of auction markets
Industry
Bureau of Agricultural Conducted location-specific research cum extension that
Research (BAR) deals with the improved goat-based farming systems
Implement the National Technology Commercialization
Program (NTCP) and Community-based Participatory
Action Research (CPAR) that possess high-value potentials
in advancing the agri-fisheries sector
Department of Trade and Provides goat raisers the needed access to skills upgrading
Industry (DTI) and also connects them to the market through trade fairs
and matching.
DSWD Goat Dispersal
Relay and production
Integrated Farming cum goat production
Sustainable Livelihood Project
LGUs of Uson, Cataingan, Provide marketing facilities (auction market)
Placer

35
 SECTION
6
Enabling Environment

Formal Rules, Regulations, and Policies

HALAL Accreditation

Halal certification is a certificate of compliance of the religious requirement observed

by all Muslims worldwide. It is a purification rite mandated by Islam in order to
ensure that food is fit for consumption by its faithful.It is now accepted scientifically
that a Halal certificate is a guarantee of genuineness, best quality, wholesomeness,
cleanliness, and best fit for human consumption.

The Department of Agriculture-National Meat Inspection Service (DA-

NMIS) and National Commission on Muslim Filipinos (NCMF) has been working
together as partners in the promotion and development of Halal Industry as an
institution and more importantly as a linkage to a long-term economic development of
the country.

Last February 25, 2015,NCMF released a list of accredited halal-certifiers in the

Philippines, as follows.

1. Halal International Chamber of Commerce and Industries of the

Philippines, Inc.
Unit 701 Jafer Place, Eisenhower St., Greenhills, San Juan City

2. Mindanao Halal Authority (MINHA)

3/F Dinopol Bldg., Osmea St., General Santos City

3. Muslim Mindanao Halal Certification Board, Inc. (MMHCB)

No. 2 Abdul KadilDaod Apartment, Campo Muslim Drive, Cotabato City

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

The implementation of the ASEAN-Australia-New Zealand Free Trade Agreement

(AANZFTA) has resulted in significantly lower tariffs on meat and meat products.
There are no longer tariffs on the importation of beef or sheep (mutton and lamb).
Tariffs on goat meat and offal are currently being phased down, as are tariffs on meat
preparations. In addition, fresh meat is exempt from the payment of a 12 per cent
Value Added Tax (VAT).

Provincial Ordinance No. 005-2009

To provide proper and systematic transactions/shipment of animals, a provincial

ordinance was passed regarding collection of fee for out-going domestic animals. For
small ruminants (live goats) fees are pegged Php10.00 per head.

36
Municipal Ordinance No. 002012 (Article 6)

At the municipal level, Legal sanctions had been instituted particularly in auction
markets. In the case of Uson Livestock Auction Market, Municipal Ordinance 002-2012
adjusting the registration fees of all animals was enacted. With this initiative, all
animals that will be sold are ensured that these were not stolen and with complete
documents and most importantly, this sanction is revenue and job generations for the
local government unit.

Within the auction market, all kinds of domesticated animals were traded, i.e. large
animals, (carabao, cow, horse), small ruminants (goats), fowls (geese, chicken, ducks)
and swine. These animals are kept in distinct respective places inside the auction
market.

Informal Rules and Socio-cultural Norms

Some of the local traditions and perceptions that hinder value chain upgrading and
competitiveness of the goat industry are as follows:

1. There is a perception among goat raisers that buyers and traders dictate
the price and they cannot do something about it. They will always be at the
mercy of the traders.

2. The existence of middlemen/dicers are necessary to forge sale of live

goats.

3. Despite the economic significance of goat industry in the local and

international economy, it was observed that farmers regard goat
production not as a business enterprise but as an alternative source of
income.

These myths and misperceptions can be eliminated through massive information

drive and campaigns on the importance and economic benefits of goat raising,
Furthermore, rural goat raisers as the lead players in the industry should be given
opportunities toward the development of the goat enterprise.

37
 SECTION
7
Constraints and Opportunities

Based on the result of interviews and discussions during the stakeholders forum
several constraints that have affected the goat industry have been identified (Table
21). This section covers the discussion on the constraints and opportunities that are
specific to the value chain analysis of live goat production. It also outlines the
opportunities and potential interventions/strategies that will help develop the goat
industry in the areas of supply volume and sustainability, capability building and skills
development of the goat raisers, improvement in product quality, application of new
technology and marketing strategies.

Table 21. Constraints and opportunities

CONTRAINTS OPPORTUNITIES INTERVENTION
STRATEGY
INPUT SUPPLY Lack of capital Presence of - Linking
limited resources financing farmers/assn. to
institution financing
Institutions
- Provision of
Small Ruminants
through dispersal
programs
High cost of upgraded Presence of Procurement and
breeder stocks Multiplier Farm distribution of
(MBS) additional
highbred bucks
and does

- Upgrade facilities
at the MBS.
Establish
additional
Multiplier farms
No improved Availability of Distribution of
pasture/forage at Planting Materials planting materials
farmers level
No pasture Vast Idle pasture Provision of
development endeavors area incentives to
farmers who will
develop areas for
pasture
development
Limited Access to Credit Presence of - Linking
financing farmers/assn. to

38
 institution financing
Institutions
PRODUCTION Declining stock of -Increasing demand Provision of
inventory for goat additional goat
-Suitable land and stocks through
topography dispersal

Poor herd management Presence of Conduct

competitive appropriate
-Excessive breeding and technical personnel trainings and
inbreeding (Goat experts) seminars
-high mortality
Poor Health Presence of Conduct
management competitive appropriate
- Parasitism technical personnel trainings and
(Goat experts) seminars
Provision of
anthelmintic
grasses
Low quality forage Availability of Distribution of
Planting Materials planting materials
(MBS)
Lack of knowledge on Unutilized crop Conduct capability
alternative source of residues as trainings on use of
feeds alternative source crop residues and
of feeds forage pasture
development.
Lack of financial -Availability of -Provision of
resources which results programs such as additional goat
to: Integrated Farming stock through
-Selling of premature and Sustainable dispersal
goats Livelihood Projects -Establishment of
-Selling of Pregnant pooling areas,
does managed by the
-low replenishment rate farmers, to buy
goats that are not
supposed to be
sold due to
financial
constraints.
Inability to access credit Presence of Soft loan provision
financing
institution
Low buying price -Increase in goat Train farmers to
demand become
entrepreneurs

Goat rustling Presence of tanods -Mobilization of

tanods
39
 -Animal
Identification and
registry
No pooling area Establishment of
pooling areas,
managed by the
farmers
MARKETING/ No standard pricing Presence of Auction Provide weighing
TRADING (tumbok, pakyaw Markets scales at auction
matamata,bultohan market
system) Install price
regulation and
monitoring at
auction market
with the help of
LGU, OPV and DTI
Presence of Middle man -Install weighing
dictating /controlling scales at auction
the price market or the
common market
facility
-Strengthening of
farmers
Associations to act
as the market
representative of
the farmers.

Limited transportation Provision of

transport facilities
Lack of policies on goat Development of
Small ruminants
council
Logistics Inability to access Existing Improvement,
market due to poor government concreting of
road network/damaged agencies providing access road
roads farm to market
roads
Extensionand Current farmers assn. Presence of Strengthening and
support are weak as business institutions capability building
organization providing capability on business and
building trainings financial
(DA, Ati, PLGUs) management

40
 SECTION
8
Competitiveness Direction

Competitiveness Vision

During the Stakeholders meeting conducted in Masbate City, industry players

composed of goat raisers, shippers, traders, and government representatives
(Municipal Veterinarians, OPV) or the enablers collectively determined the directions
they want to pursue for the next six (5) years. In the achievement of the industry
goals, the stakeholders had considered the availability of resources, weaknesses/
strengths of the industry, threats/opportunities, needs/potentials, extent of
involvement of stakeholders. Figure 14 below illustrates the vision of Masbate
stakeholders for the goat industry in the next five years

Figure 14. Competitiveness vision, Masbate goat industry in the next five years

Generally, marginal goat raisers are living in nipa shanties/huts and the goats that
they are tending are mostly sickly and thin. However, equipped with appropriate
trainings, with upgraded breeds and proper herd management, Masbate will
eventually emerge as the goat capital of the Country, and consequently, augment
incomes by at least 5% per household. Income/revenue augmentation involves
establishment of processing plants for meat and milk. Table 22 is the action Plan while
Table 22 is the list of priority constraints and strategies that should be undertaken to
support the promotion and development of the goat industry in the province.

41
Table 22. Action plan to support the promotion and development of live goat industry
Policy Thrust Targets

Increase provincial Goat Dispersal

production of goat by at least
5% from 2013 production of
40, 141
Development of viable, sustainable goat
enterprise
Upgrading of stocks to at least 35%
Establishment Common service facility
Establishment of AI Center
Regular deworming activities
Capability and technical skills training
Information dissemination on goat production

Increase Goat Shipment by Intensive market promotion and positioning

5% (2013 goat inventory)
Establishment of competitive advantage thru
product quality development ( Upgraded Goats)
Continuous R and D on Goat Production
Technologies
Price standardization and regulation to
encourage farmers to engage in goat production

Expansion of market Establishment of Agri-Pinoy Trading Center for

coverage livestock (APTC)
Conduct of market related activities (investment
forum, trade fairs, market matching etc.)

Value addition Provision of goat meat processing facilities

Training on value addition, packaging and
42abeling

Expansion and development Inventory of potential pasture areas for

of pasture areas development
Giving of incentives to farmers who will engage
in pasture development
Distribution of pasture grasses and anthelmintic
forages

42
Priority Constraints, Opportunities and Interventions

Table 23. Priority constraints and interventions

INTERVENTION WHO WILL DO IT AND POTENTIAL
CONSTRAINTS/OPP CONCERNED
STRATEGY AND ROLES
ORTUNITIES AREAS
APPROACH PUBLIC PRIVATE
INPUT PROVISION
1. Lack of Goat Quality and Acquisition of new Upgrading
Stocks upgraded breeds through AI Programs of DA
stocks
2. No improved Over grazing Plant/provide DA (livestock) Goat raisers
pasture/forage forages to
improve pasture
PRODUCTION
1. Poor herd Excessive Appropriate DA (Livestock)
Management breeding and trainings and ATI, OPV
Inbreeding Seminars
2.Poor Health Parasitism Regular LGU Lead regular Goat raisers
management Deworming activity
3. Limited Stock Lack of Capital Financial LBP/Dispersal
procurement Assistance
through soft loan
provision
4. Lack financial Soft Loan Advocacy to open LGU/PO prepare
support provision window to goat business plan
financing
intervention
TRADING
1. High price of Low supply Increase supply PLGU/ LGU/ DA
goats and more by increasing goat Program (Animal
competitors raisers through Dispersal)
animal dispersal
2. Limited Cost of Provide PRDP Additional
trucking/transport transportation trucks/transport Transport
ation carriers facility
3.Unstable price of No weighing Provide weighing LGU, DA, OPV
goat scale scales at auction
market or
designated
pooling areas

4. Tumbok, No standard Establish LGU, DA, OPV

Pakyaw price of goat standard price of
Matamata or goat/ price
Bultohan regulation and
system of trading monitoring

43
 INTERVENTION WHO WILL DO IT AND POTENTIAL
CONSTRAINTS/ CONCERNED
STRATEGY AND ROLES
OPPORTUNITIES AREAS
APPROACH PUBLIC PUBLIC
5. Presence of Low price at Establish a DA (PRDP),
middlemen farmers level pooling area PLGU, MLGUs
where farmers concerned
can directly sell to (Cataingan&Uson
buyers ), OPV
6. Poor road Poor Concreting of DA (PRDP)
network transportation roads that leads to LGUs to
production areas prepare/submit
FS, DED & POW
INTERFIRM
RELATIONSHIP
Farmers have no No clear cut Establish tie up in DA, OPV, DTI
formal ties or and systematic the value chain
coordination with Marketing (input suppliers,
end-buyers arrangement producers,
(consolidators/ traders,
processors) processors,
There is no retailers,
consideration institutional
among traders, buyers)
consolidators and
retailers

Current groups are Social Provide capability DA, OPV, DTI,

weak as a business Infrastructure building activities CPA, DOLE
organization Building and on agricultural
Strengthening development,
financial
management and
cooperative
formation

44
 SECTION
9
Conclusion and Recommendations

The goat-trading industry in the Province of Masbate has been an established

enterprise for a long period of time. Raisers and traders are able to sustain their
livelihood depending solely on this industry.

Masbate has its vast grazing lands and favorable climate and topography for small
ruminant production. It is internationally declared as FMD Free Zone by the World
Health Organization for Animal Health, therefore it can join the international market
anytime. Basing on a National scale, Bicol Region ranks 11 th in the production of goat,
wherein Masbate owns the highest bulk and inventory of goats both backyard and
commercial production with a total of 37.19% of the total goat population in the
Region for the year 2014. It was anticipated that this recorded production can
practically soar to an economic level with the initiative of the Local Livestock Office of
institution upgrading of the breed of these ruminants through artificial insemination
and improving pasture and forage management. Further, improved health and herd
management trainings are also given preferential concern of the said office (Masbate
Breeding Station) to address the risk of stocks mortality.

Henceforth, considering these initiatives and future activities, both from the public
and private sectors, it is deemed economically sound that live goat industry in
Masbate is a promising and financially rewarding enterprise. This economic activity
can be considered to be farmer-friendly because of its facility in terms of cultural
management and cost-effectiveness.

With proper coordination and support, the goat industry in the province of Masbate
can achieve its huge potential as the livestock champion not only in Bicol region but
also in the entire Philippines. As an Island province, it is very easy to install measures
that will increase production. A holistic approach to technology commercialization
and enterprise building must be in place. Backyard production will be intensified by
organized, interested goat farmers throughout the province. These backyard goat
farmers will be organized into cooperatives, Associations and will be given full
support from the local government starting from the initial stock requirement,
technical assistance and institutional development like capability trainings necessary.
These cooperatives/associations can be considered will be the leader in the industry.

To further increase productivity of goats, the following program interventionsare

hereby recommended:

1. Improvement of the facilities at Masbate Breeding Station to serve as AI

Center. The Center will be the source of breeding stocks and source of
viable superior quality semen for Artificial insemination. As the source
of forage planting materials, the station should be properly maintained

2. Goat Dispersal and Improvement of breeder stocks at farmers level. In

answer to the declining stock inventory and poor breeder stock, there is

45
 a need to provide quality breeders to enhance production. As famers
lack the capital to develop the business enterprise, they should be
provided with initial stocks to be able to start up the extensive
production.

3. Capability building and strengthening of FAs, COOPs and POs.

Capacitating FAs, Coops and POs, will ensure that they will be able to
manage the interventions given to them that will lead to a successful
rural enterprise development.

4. Establishment of multiplier farms. Initial stocks, replacement stocks,

and quality breeders must be available to the FAs, COOPs, and POs
anytime. The multiplier farms will also improve the genetic breed of
goats that is necessary for maximum productivity weight and desirable
milking characteristic of goats in case farmers will further venture milk
production.

5. Concreting of road in municipalities with high goat inventories/priority

areas to cut costs of transportation and eliminate or minimize animal
stress due to transport

6. Establishment of common Facility Center/Trading Center for small

ruminants (Multiplier, marketing, training etc)

7. Price standardization, regulation and constant monitoring of goat price.

8. Value addition

9. Expansion of pasture areas

46
Annex

47
Annex 1. List of cooperatives, farmers associations (FAs) engaged in goat production
NO. OF
MEMBERS NAME OF
NAME OF COOP, FAS, &
ADDRESS PRESIDENT/
FISHERFOLKS ASSOCIATION
M F CHAIRMAN

1 Tinapian Fisherfolks Assn. Baleno 7 8 Alex Relova

2 QUEENSCUP COOP Cataingan 175 113 Giovani Queseio
3 Calanay Fisfherfolks Association Aroroy 8 10 Winnie Gregorio

4 Cagpandan Fisherfolks Assn. Baleno 6 9 Ramon Lopez

5 Morocborocan Fisherfolks Monreal 12 10 Mila Madrid
Association
6 Burgos Farmers & Fisherfolks Assn. San Jacinto 12 8 JudexLlanto
7 Tuburan Farmers & Fisherfolks Assn. Cawayan 24 11 Robinson Riveral
8 Matalang-talang Fisherfolk Assn. Aroroy 5 10 ErlitoTupas
9 MAGSRA, Inc. Masbate City 23 7 Edgar Magallanes
10 SAGIP Multipurpose Coop Masbate City 10 9 Redeemer Anabe
Subtotal 282 195
TOTAL 477

Annex 2. List of 4H Clubs engaged in goat raising livelihood project

Number of
Members
Name Of 4h Club Address
M F NAME OF PRESIDENT
Nadawisan Nadawisan, Cataingan 12 18 Rogelio Barruga
Technocrats Ilaya, Balud 6 13 Ma. Arlene Toledo
Poblacion 4H Poblacion, Pio V Corpus 6 9 JonelPepito
Alas Alas, Mandaon 7 8 Rian Jordan Candidato
Tagpu Tagpu, Mandaon 8 12 XyraCantoria
Bontod Bontod, Palanas 12 8 RianBelarmino
Nabangig Seaside Nabangig, Palanas 9 6 Richard delos Santos
Subtotal 60 74
TOTAL 134
Source: Provincial Agriculture Office

48
 Annex 3. Rural Improvement Clubs (RIC) with goat raising as one of their livelihood
projects
NO.OF
NAME MUNICIPALITY MEMBERS NAME OF PRESIDENT
M F
Panisihan RIC Batuan 32 Consuelo M. Ensiso
Canvanez RIC Batuan 26 MerciditaMarmol
Poblacion RIC Batuan 32 NelinaBayona
Canares RIC Batuan 25 Juliet T. Medes
Mabini RIC San Jacinto 25 Rowena C. Sola
Sta Rosa RIC San Jacinto 25 Adorin Cabilis
RIC Purok Sampalok Mobo 23 Vilma O. Reyes
Nasundoan RIC Mobo 25 Nida C. Natural
Umabay Interior Mobo 14 Magdalena Tumbaga
Sabang RIC Masbate City 49 Ester Andaya
Batuhan RIC Masbate City 33 HaydeeBuncaras
Mataba RIC Aroroy 10 Deliea I. Atendido
Estampar RIC Cataingan 24 Elona L. Jimenes
CAWN RIC Cataingan 35 Nida C. Bautista
Tuybo RIC Cataingan 33 Irene Alvarado
StaTeresita RIC Cataingan 18 GelitaSaladas
PotingBato RIC Esperanza 32 Jemalyn S. Espinosa
Labrador RIC Esperanza 15 Marilyn C. Dalogdog
Jamorawon RIC Milagros 31 Rowena A. Borja
Poblacion West Milagros 33 Angeles E. Medina
San Isidro RIC Uson 21 Myrna D. Crisostomo
Sto Cristo RIC Uson 31 Lolita E. Maloloy-on
Del Rosario Uson 19 NidaOdenia
Mongahay RIC Uson 23 Elena C. Aspa
Paguihaman RIC Uson 25 Evelyn Dignos
Mabini RIC Uson 23 Uliza A. Sablan
Aurora RIC Uson 25 Remedios M. Ireneo
San Ramon RIC Uson 37 Sabina H. Montealegre
Arado RIC Uson 27 Myrna Crisostomo
ARICA RIC Uson 19 Eva R. Sombese
Candelaria RIC Uson 40 Pinky Bonsobre

32 RIC Total 810

Source: Provincial Agriculture Office

49
Annex 4. Commercial farms in Masbate
Goat
NAME OF FARM Population MUNICIPALITY
D1- Burias Island
Garcia Farm 55 San Pascual
Rivera Farm 50 San Pascual
Dela Torre Farm 62 San Pascual
Lazaro Farm 50 San Pascual
Sabaulan Farm 105 Claveria
Jade Rivera Farm 65 Claveria
Ticao Island
Arevalo Farm 65 San Jacinto
Rivas Farms 50 San Fernando

D2
ED Ranch 85 Masbate City
Lim Farm 60 Masbate City
Joseph Macadat, Jr. Farm 50 Mobo
Arnel Vargas Farm 52 Mobo
Antonio Gigante 50 Mobo
Teodorico Esquillo Farm 80 Mobo
Emerson Vargas Farm 50 Mobo
Jonis Vargas Farm 50 Mobo
Salvador Aban Farm 55 Mobo
Sia Farm 60 Milagros
Avelita Farm 50 Balud
Dr. Ataat Farm 120 Mandaon
Dr. Estipona Farm 75 Mandaon
D3
Edionito Ylaran Farm 50 Cawayan
Danny Ylaran 55 Cawayan
Nilo Casas Farm 70 Cataingan
Eddie Basas Farm 68 Dimasalang
Edencio Diuala Farm 55 Dimasalang
Joel Almario Farm 50 Dimasalang
Luis Belarmino Farm 70 Uson
Sanchez Farm 85 Uson
Total No. of Farms: 29 1,842
Source: Provincial Veterinary Office

50
 Annex 5. List of goat traders/ shippers in the Province of Masbate
Name Gender Address
1 Exer Aragon M Masbate City
2 ArchelitoViajedor Jr. M Uson, Masbate
3 Jun Brizo M Cawayan, Masbate
4 Larry Merelles M Cawayan, Masbate
5 Luciano Anit M Cawayan, Masbate
6 Teotimo Glariana M Cataingan, Masbate
7 Larry Majia M Uson, Masbate
8 Manuel Mejia M Uson, Masbate
9 Laura Glariana F Cataingan, Masbate
10 Edwin Du M Masbate City
10 Total 9M/1F
Source: Provincial Veterinary Office

Annex 6. Goat meat supply (MT), Masbate, 2009-2013

Municipality 2009 2010 2011 2012 2013 Total Average
Aroroy 1.16 .88 0.78 0.78 1.22 4.80 0.96
Baleno 0.53 .54 0.58 0.58 0.62 2.83 0.57
Balud 1.28 .15 2.47 1.51 1.51 7.91 1.58
Batuan 0.20 .20 0.20 0.20 0.20 1.00 0.20
Cataingan 1.96 .88 1.93 1.64 1.67 9.08 1.82
Cawayan 3.63 .73 3.27 4.12 2.87 17.62 3.52
Claveria 1.56 .56 1.56 1.56 1.56 7.82 1.56
Dimasalang 0.76 .77 0.88 1.16 1.33 4.91 0.98
Esperanza 1.12 .12 1.12 1.12 1.12 5.59 1.12
Mandaon 0.65 .68 0.76 0.46 0.55 3.11 0.62
Masbate City 0.37 .24 1.06 1.03 0.80 3.50 0.70
Milagros 0.69 .82 0.89 1.09 1.13 4.62 0.92
Mobo 0.77 .77 0.77 0.82 0.76 3.88 0.78
Monreal 0.45 .44 0.56 0.33 0.33 2.10 0.42
Palanas 0.72 .58 0.48 0.48 0.48 2.73 0.55
Pio V. Corpus 1.22 .61 1.60 1.76 1.76 7.95 1.59
Placer 1.34 .89 1.64 0.57 1.95 7.39 1.48
San Fernando 0.41 .46 0.46 0.55 0.38 2.25 0.45
San Jacinto 0.85 .08 0.71 0.72 0.72 4.08 0.82
San Pascual 2.41 .41 0.94 0.94 0.94 7.65 1.53
Uson 3.15 .51 2.77 2.25 2.18 13.87 2.77
PROVINCE 24.06 5.44 24.63 22.89 22.87 119.89 23.98

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Annex 7. Demand of goat meat per municipality, Masbate, 2009-2013
Municipality 2009 2010 2011 2012 2013
Aroroy 56.24 56.74 57.25 57.76 58.27
Baleno 19.29 19.32 19.35 19.38 19.41
Balud 28.20 28.38 28.56 28.75 28.93
Batuan 11.27 11.34 11.41 11.48 11.55
Cataingan 43.74 44.02 44.31 44.60 44.89
Cawayan 53.72 54.36 55.00 55.66 56.31
Claveria 36.14 36.39 36.64 36.89 37.14
Dimasalang 20.37 20.52 20.67 20.82 20.97
Esperanza 15.06 15.14 15.22 15.30 15.38
Mandaon 30.98 31.35 31.72 32.10 32.48
Masbate City 73.95 75.32 76.72 78.13 79.58
Milagros 43.35 43.82 44.29 44.77 45.25
Mobo 29.74 30.35 30.98 31.61 32.27
Monreal 19.55 19.79 20.03 20.28 20.53
Palanas 22.30 22.50 22.70 22.91 23.11
Pio V. Corpus 19.74 19.82 19.89 19.96 20.04
Placer 43.66 44.19 44.72 45.26 45.81
San Fernando 17.46 17.51 17.56 17.61 17.66
San Jacinto 23.81 24.03 24.26 24.48 24.71
San Pascual 37.65 38.15 38.67 39.19 39.72
Uson 45.73 46.63 47.54 48.46 49.41
PROVINCE 691.96 699.67 707.48 715.39 723.41

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 Annex 8. Goat meat sufficiency level (%) per municipality, Masbate, 2009-2013
Municipality 2009 2010 2011 2012 2013
Aroroy 2.06 1.55 1.36 1.34 2.09
Baleno 2.72 2.77 2.99 2.98 3.18
Balud 4.52 4.06 8.65 5.24 5.21
Batuan 1.78 1.77 1.76 1.75 1.74
Cataingan 4.48 4.27 4.35 3.68 3.73
Cawayan 6.76 6.87 5.94 7.40 5.09
Claveria 4.33 4.30 4.27 4.24 4.21
Dimasalang 3.74 3.76 4.25 5.59 6.36
Esperanza 7.42 7.38 7.35 7.31 7.27
Mandaon 2.09 2.18 2.39 1.44 1.70
Masbate City 0.50 0.31 1.38 1.32 1.01
Milagros 1.59 1.87 2.00 2.44 2.50
Mobo 2.58 2.53 2.48 2.60 2.34
Monreal 2.28 2.20 2.77 1.64 1.62
Palanas 3.23 2.56 2.12 2.08 2.06
Pio V. Corpus 6.16 8.15 8.03 8.81 8.78
Placer 3.07 4.28 3.66 1.26 4.26
San Fernando 2.33 2.63 2.62 3.10 2.13
San Jacinto 3.58 4.48 2.92 2.93 2.92
San Pascual 6.41 6.33 2.43 2.40 2.37
Uson 6.89 7.53 5.84 4.65 4.42
PROVINCE 3.48 3.64 3.48 3.20 3.16

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