Improvement of Livestock Production in Crop-Animal Systems in ...

Table A5. Summary of policies/issues affecting smallholder crop–animal production system in the Philippines.Brief description of nature ofPolicies/Issuespolicies/issuesTrade and exchange ratepoliciesTariff on maize To gradually decline to 5% in 2004.Minimum access volume on maize.Tariff on livestockproducts and largeruminantsTariff on small enginesand machinesTo gradually decline to 5% in 2004.Minimum access volume.To gradually decline to 5% in 2004.EffectsDecrease production of maize, decrease costof producing maize-fed animals, contractionof marginal corn farms.Discourage development of feed substitutes.Decrease protection on animal products,particularly poultry which historically enjoyedprotection as high 60%.Decrease landed cost of imported breeders.Decrease landed cost of fatteners.Increase rate of tractorisation of farmoperations especially in high-wage areas,decrease demand for animal draft power. Thisis happening on many lowland irrigated farmsin Luzon.Exchange rate Overvalued by as much as 20%. Favours importation over domestic production(e.g. milk and milk products, yearlings).Medium Term AgriculturalDevelopment Plan (1993–98)Credit programme Commodity-specific, bulk of it goingto grains.Livestock credit is through animaldispersal and in limited supply.Key production area Encourages conversion of marginalapproachrice and maize lands to livestock andLivestock developmentplanCarabao slaughter andtransport banControl of foot-and-mouthdisease (FMD)commercial crops.Emphasis on beef-cattle development,dependent on cattle imports fromAustralia.Restricts inter-provincial transportand prohibits slaughter of buffaloes.Low priority for total eradication.Little access to small animal producers, highinterest rate.Repayment, in kind, of animal inconvenient.Credit allocation politically manipulated.Diminishes supply of crop residues for feeds.Encourages monoculture instead of farmingsystems approach.Neglect of small ruminant development.Neglect of development of indigenous breedercattle.Restricts opportunities of raising buffaloes formeat.Restricts potential (including FMD-freeislands) of entering the growing world marketfor cattle and pigs.Infrastructure DevelopmentRoads/transportinvestmentUrban-biased.Insufficient marketing systems resulting inunfavourable input–output prices in remoteplaces.Communication Urban-biased. Poor information access.Decentralised governmentfunctions since 1991Devolution of extensionworkers to localgovernment unitsPricing and regulatorypolicyAgricultural inputsWeak national extension system.Department of Agriculture lostoperational control over extensionworkers.Artificially low price of deleteriouschemical inputs.Poor implementation of regulatorypolicy.Low inorganic fertiliser price.National crops and animal programmes do notfilter down to small farmers fast enough.Local government units should now play agreater role in crop–animal development.Discourages use of indigenous methods ofcontrolling pests and diseases.Less incentive to use organic fertiliser,including manure.