MANILA — The Department of Agriculture (DA) has rolled out a village-based feed ecosystem designed to lower feed costs, boost corn and livestock production, and improve farm incomes through cooperative-led agribusiness.
Agriculture Secretary Francisco Tiu Laurel Jr. approved the initiative under Memorandum Circular No. 2 signed on February 2, authorizing the implementation of the Village-Type Feed Complete Chain Project (VFCCP). The program promotes a vertically integrated feed system that enables farmers’ cooperatives and associations to engage in corn and forage production, postharvest processing, feed milling, and Total Mixed Ration (TMR) preparation within a single enterprise.
Tiu Laurel said the project targets feed supply constraints, a long-standing issue that has driven up production costs and reduced productivity in the livestock sector.
“This is about fixing the weakest link in livestock production—feeds—by putting control back in the hands of farmers,” he said, adding that localized feed production can help stabilize supply, reduce costs, and improve sector resilience.
The DA noted that inconsistent access to affordable and quality feeds has resulted in frequent feeding disruptions, particularly during dry seasons, affecting smallholder raisers and weakening the competitiveness of domestic livestock producers.
Under the VFCCP, the DA will provide funding of up to Php 40 million per project, depending on the approved components and readiness of recipient cooperatives. Initial funding will be charged against the National Livestock Program under the General Appropriations Act, with future allocations proposed under the agency’s regular budget.
Each project will be anchored on an accredited farmers’ cooperative or association managing up to 25 hectares of corn and forage production areas. These cooperatives will operate mechanized, community-managed feed systems covering crop production, postharvest handling, feed milling, storage, and distribution, effectively creating localized, closed-loop feed supply chains.
The program incorporates climate-resilient technologies such as solar-powered irrigation systems, biomass dryers, and mechanized forage production to ensure year-round feed availability and reduce dependence on imported inputs.
The DA said the initiative supports broader government goals on food self-sufficiency, animal health, and agricultural sustainability.
Based on DA projections over a five-year project life, a VFCCP enterprise could generate average annual revenues of about P38.9 million against operating costs of roughly Php 30.7 million, translating to an estimated annual net cash flow of Php 8.2 million. The projected internal rate of return is 23 percent, with a benefit-cost ratio of 1.11, indicating commercial viability.
Up to 70 percent of the approved project cost will be released upon the signing of a memorandum of agreement to fund machinery, infrastructure, agricultural inputs, and capacity-building activities. Indicative allocations include up to Php 20 million for agricultural and forestry equipment and P8.5 million for building structures.
Beyond feed production, the DA said revenues from feed sales will be reinvested into operations, while partnerships with local government units, KADIWA outlets, and private buyers are expected to strengthen market access and support the growth of a more resilient, community-driven livestock sector.