Value Chain Analysis of Chicken of (in transition to organic) in Region 02


This study assessed the awareness, constraints and opportunities, policies and intervention points of organic farmers in Region 02. It aimed to 1. Determine the awareness of free-range chicken farmers, traders and consumers; 2. Map the value chain of organic chicken identifying the processes, actors and their roles from inputs to product consumption; 3. Determine the constraints and issues affecting organic production and marketing; 4. Recommend policy options to improve the production and marketing of the organic products. Data gathering by municipality in five provinces of Cagayan Valley, assisted by the DA organic focal persons, MAO’s and PAO’s of the LGU’s and other stakeholders have been undertaken.

Majority of the organic chicken raisers were aware that: 1) organic farming practice used indigenous knowledge in farming; 2) they practiced the natural way of organic farming; 3) synthetic chemical input is prohibited in organic farming; 4) organic farming is environmentally friendly; 5) organic produced are safe food for the family and market; 6) there were health benefits gained especially engaging in organic farming; 7) there is an increasing demand due to health consideration and bigger profit attained; 8) organic agriculture was the priority of Pinoy Administration laying down the implementation of organic agriculture in the country under RA 10068 of 2010; 9) there was an increasing niche market of organic products both in local and international markets, and aware of accreditation as organic procedures, processors and traders; and ready assistance to be provided by the DA, LGU’s and SUC’s; and 10) regulations in producing chicken as stipulated in Organic Act of 2010 promoting organically grown chicken.

Organic chickens feed on vegetation in pasture areas surrounded with chicken wire or plastic net ‘housed in a low-cost poultry house. However, the limitations of organic range chicken production and marketing were: a) issues of accreditation, b) no supplier of quality and volume organic feeds and biologics, d) inefficient marketing system, e) quality standards, and e) limited infrastructure support and credit. Moreover, the strict implementation of RA 10068 on accreditation discourages organic farmers to venture in the enterprise.

Majority, 50.8 percent of the organic chicken raiser was female; 52% of whom were college graduate. There was a significant relationship (0.05 levels) between married and owner of the land on the income derived from raising organic chicken. Moreover, organic chicken raiser’s knowledge in management systems and feed resources of Organic chicken was significantly correlated. Seventy eight (78%) percent were land owners, 11.9% were lease holders and 10.20% were shareholders. The mean farm income in 2015 of the chicken raisers was P24,200.00 which ranges 2,000-120,004 pesos. Of the 59 raisers, 44 percent had farm income above the mean while 56 percent had below the mean. Majority of the chicken raisers in CV-R02 had a low farm income.

The assembler, processors, retailer, middlemen, or traders used traditional vehicle to transport live chickens to public markets in the cities and towns which were being slaughtered or processed manually.

The production costs of raising chicken were found to be similar in Isabela, Cagayan, and Quirino. The Isabela farmers realized a net margin and value added of 75 or 56%, 30 or 22.22% for the middlemen, and 30 or 22.22% for processor. For Cagayan, the farmers who were input providers and at the same time got the highest net margin of P95 or 32% value added followed by wholesalers and retailers who realized a value added of P25 or 23% and P50 or 46%, respectively. Similar findings were find in Quirino province. However, the producers in Nueva Vizcaya realized a much lower margin (45.00 or 32%) compared to the processors/assemblers (P95.00 or 89.30%). Similarly, producers in Batanes captured a value added of P24 or 25.90% compared with the assemblers/processors with a value added of P50 or 37.02%.

The Provincial Geographic Information System (GIS) Map of the five (5) provinces of Cagayan Valley, R02 (Fig. ) showed the most organic raisers have access to the Service providers (LGU’s, DA, SUC’s) support such as trainings, seminars and financial support.

Moreover, the GIS map showed that some organic chicken raisers who were found in the far flung barangays were aware of benefits especially on the impact of health issues; b) resorted to less-cost natural way of raising chicken as practiced by their elderly farmers, c) their knowledge and competencies had been enhanced by the training and seminars conducted by DA, SUC’s and LGU’s.