CHAPTER 1: THE PROBLEM

1.1. Background of the Study

The world population has grown steadily, with most people now living in urban
areas. Technology has evolved at a dizzying pace, while the economy has
become increasingly interconnected and globalized. Many countries, however,
have not witnessed sustained growth as part of this new economy. The world
economy as a whole is not growing as much as expected. Conflict and instability
have increased and become more intractable, spurring greater population
displacement. Climate change and increasing climate variability and extremes are
affecting agricultural productivity, food production and natural resources, with
impacts on food systems and rural livelihoods, including a decline in the number
of farmers. All of this has led to major shifts in the way in which food is produced,
distributed and consumed worldwide

"Development will bring food security only if it is people-centred, if it is environmentally

sound, if it is participatory, and if it builds local and national capacity for self-reliance.
These are the basic characteristics of sustainable human development."
- James Gustave Speltz (UNDP, 1994)

Although food availability has increased along with the growing human population over
the last 30 years, there are still 800 million people suffering from malnutrition. This
problem is not only the result of insufficient food production and inadequate distribution,
but also of the financial inability of the poor to purchase food of reasonable quality in
adequate quantities to satisfy their needs (FAO, 1993a).

griculture is the most

comprehensive word used to
denote the many ways in which
crop plants
and domestic animals sustain
the global human population
by providing food and other
products.
Agriculture denote the ways in which crop plants and domesticated animals sustain the
global human population by providing food and other products. Agriculture is the
science, art or occupation concerned with production, preproduction and post
production of goods. (The World Bank. http://data.worldbank.org/ )

Livestock production constitutes a very important component of the agricultural

economy of developing countries, a contribution that goes beyond direct food
production to include multipurpose uses, such as skins, fibre, fertilizer and fuel, as well
as capital accumulation. Furthermore, livestock are closely linked to the social and
cultural lives of several million resource-poor farmers for whom animal ownership
ensures varying degrees of sustainable farming and economic stability.

The sectors of agriculture and industry have been customarily viewed as two separate

sectors in terms of their characteristics and the role they played in the economic

progress of a given country.

The agricultural sector was considered to be the attribute of the first stage of

development; at the same time as, the industrial sector was taken as the most relevant

indicator of a country’s economic progress. Likewise, the agricultural sector was obliged

to finance the shift of the economy from agriculture to a kind of industry that deters
completely from agricultural industrialization. This shift was considered as the proper

strategy for a country’s progress along the development path (FAO, 1997).

However, such kind of view no longer appears to be appropriate. This is because the

fact that agriculture by itself has become industry considering the different technologies

applied on the production, processing, transportation, and marketing of agricultural

products. This reality specifies that agricultural industrialization and thereby agro-

industrial development are combined processes that create new type of industrial sector

(FAO, 1997).

The mission of the Philippines when it comes to Food Security is to utilize the country’s

land and water resources in a manner that provides sufficient and affordable food

products to all Filipinos of the present and future generations through local production

and/or importation; [ CITATION The \l 1033 ]

On the other hand, agro-industry is an enterprise that processes agricultural raw

materials, including ground and tree crops as well as livestock which cater food security.

The degree of processing can vary tremendously, ranging from the cleaning and

grading of apples to the milling of rice, to the cooking, mixing, and chemical alteration

that create a textured vegetable food. Agro-industries can be roughly categorized

according to the degree the raw material is transformed, as shown in table 1.1
 Level 1 Level 2 Level 3 Level 4

PROCESSING ACTIVITY
Cleaning Ginning cooking Chemical Alteration
Grading Milling Pasteurization Texturization
Cutting Dehydration
Mixing Canning
Freezing
Weaving
Extraction
Assembly

ILLUSTRATIVE PRODUCTS
Fresh Fruits Cereal grains Dairy products Instant foods
Fresh vegetables Meats Fruits and Textured vegetable
vegetables products
Eggs Spices Meats Tires
Animal feeds Jute
Cotton Sauces
Lumber Textiles and
garments
Rubber Oils
Furniture
Sugar
Beverages
Table 1.1 Categories of Agroindustry by Level of Transformative Process

The agro-industrial sector is here defined as the subset of the manufacturing sector that

processes raw materials and intermediate products derived from agriculture, fisheries

and forestry. Thus, the agro-industrial sector is taken to include manufacturers of food,

beverages and tobacco, textiles and clothing, wood products and furniture, paper, paper

products and printing, and rubber and rubber products, as in FAO (1997). In turn, agro-

industry forms part of the broader concept of agribusiness that includes suppliers of
inputs to the agricultural, fisheries and forestry sectors and distributors of food and non-

food outputs from agro-industry.

In general, the purposes of transforming raw food and fiber are to create an edible or

usable form, to increase storability, to create a more easily transportable form, and to

enhance palatability or nutritional value.

Agro-processing industries in developing countries

Food processing industries can be considered within three categories, viz. primary -

those that involve the basic processing of natural produce, for example, cleaning,

grading and dehusking; secondary – those that include simple or elementary

modification of natural produce, for example, hydrogenation of edible oils; and tertiary –

those that include some form of advanced modification to the natural produce, for

example, to make it ready to eat (tomatoes into ketchup and/or dairy products into ice

cream are two familiar examples).

1.1.1 Review of related literature

I.1.1 Philippines Livestock Agro-Industry

Table1.2 Volume of production of agricultural products, Philippines, 1992, 1994 and

2012

Agricultural Products Volume of Production Rate of

Increase/
Decrease (%)
1992 1994 2012
CROPS1 15,057,300 25,439,252 68.9
1. Palay 10,538,054 18,032,422 2.31
2. Corn 4,519,246 7,406,830 2.17
LIVESTOCK2 2315.93 4438.55 91.65
1. Carabao 108.60 142.73 1.20
2. Cattle 166.91 253.98 1.7
3. Hog 1,056.98 1,973.63 2.32
4. Goat 59.67 75.66 1.06
5. Dairy 15.42 18.45 0.82
6. Chicken 651.99 1,479.44 2.8
7. Duck 39.09 33.85 -0.78
8. Chicken Eggs 180.52 421.06 2.86
9. Duck Eggs 36.75 39.75 0.38
Data Source: Bureau of
Agricultural Statistics
1 Data are in metric tons

2 Data are in thousand

metric tons

I.1.2 Regional Livestock Agro-Industry

Region 1 Pangasinan

I.1.3 Urdaneta City Livestock Agro-Industry

According to the goals in trade and industry of Urdaneta City, which stated at

Comprehensive Land Use Planning 2017-2027, the city is aiming to be the

agro-industrial and commercial center of Region I and eventually regain its

position as the premier livestock trading center of the country.

The city has one of the biggest livestock markets in the country and the most

modern abattoir with triple A standard. It has five Public Markets which are

Urdaneta Public Market, Urdaneta Wholesale Market, Urdaneta Cattle

Market, Xentromart Bagsakan and and Pangasinan Agri-Pinoy Trading

Center.
 The City Government’s land development strategy revolves around compact

growth centers while maintaining wedges of productive open spaces

(agricultural areas). Growth centers shall be hierarchical according to

envisioned functions. These shall be linked by major roads which will also

serve as transit routes of farm products. On which Barangay Anonas is

situated in a Secondary Central Business District beside the population centre

of Brgy. San Vicente.

Urdaneta city is the gateway to the North; it is accessibie via TPLEX,

McArthur Highway, and By Pass Road. All these roads traverse the Brgy.

Anonas which the roads become investments to stimulate local economic

growth for the city. The existing Abattoir and Urdaneta Cattle Market are also

both located at Barangay Anonas.

Urdaneta City is a recognized trading, commercial and service center in

Northern Luzon being in an enviable crossroads location. Agricultural and

livestock trading in the city is significant that prices in its markets serve as the

benchmark in the price setting of farmers and traders based on the

“Marketing and Information Needs Assessment of Pangasinan” issued by the

Bureau of Agricultural Statistics.

II. STATEMENT OF THE PROBLEM

 The development of sustainable agro-industries has the advantages of income

generation and employment creation both in farming and non-farming activities; can

reduce poverty among the populations of both the rural and urban communities,

which is one of the key Millennium Development Goals (MDGs) (AU, 2010); it can be

a means of export earnings (Narin and Shamsul, n.d.); it can provide the rural

people with off-farm employment such as handling packaging, transporting and

marketing of the agro-products (Stjepan, 2007); and it contributes a lot in enhancing

the quality of agro-products and raises the demand for these products (Carlos et al,

2009). From this fact we can understand that a better handled and well developed

agro-industry opens room for vast employment and plays great role on the economic

enhancement of a given country.

However, the food needs of a country depend upon the growth of the population and the

changing socio-economic development of local communities that may bring changed

lifestyles. This normally raises demand for more food and for alternative foods. The

population of the world is increasing rapidly, and particularly in most developing

countries where annual growth rates may typically be 2–3 percent. This suggests that

the food needs of these countries may double or triple during the next 20-30 years.

During the same period, per capita land available for food production is expected to

decline to less than half that of current levels. It follows that self-sufficiency and food

security will come increasingly to depend upon systems of food production that will be

more intensive. The continuity of many subsistence and unproductive systems will no

longer be tenable, and higher levels of food production will become essential for

survival. In order to feed populations growing at >2 percent per year, a minimum target
growth of 4 percent or more must be set for food production during the same period –

and attained.

The City of Urdaneta has an urbanization level of 68.61% and has been identified by the

Provincial Government of Pangasinan as a growth pole. Agriculture is still the major

source of income and livelihood of the people.

The city has once one of the biggest livestock markets in the country and the most

modern abattoir with triple A standard. But then in several years, it lost track in

sustaining the position as the premier livestock trading center of the country. According

to the Technical and Observational findings in Agricultural Analysis of the City of

Urdaneta stated in the CLUP, there are low priority in agriculture development, farmers

are lacking in information dissemination and training and the agricultural land for

production base is now decreasing while the cost of production inputs are increasing.

Furthermore, the facilities catering the market has limited booth and stalls and unable to

accommodate additional number of traders due to inadequate quantity and quality of

infrastructure investment.

Due to arising of agricultural problems, the city is now aiming for the revitalization to

regain its national stature when it comes to livestock trading.

Although, there are existing abattoir and cattle market in Barangay Anonas, an upgrade

is needed in order to regain the city’s status when it comes to livestock market

especially cattle and carabao since they are the symbol of the City.

Therefore, Livestock processing and Trading center is…

III. OBJECTIVES OF THE STUDY

1. To determine the strategies to regain the Livestock Agro-Industry in the City

through its Barangay, Anonas.

2. To Identify Significant requirements and considerations in the process of

Livestock Processing Trading Market.

3. To

IV. SIGNIFICANCE OF THE STUDY

To the Public – the study provides an overview

To Traders and Farmers –

To Agriculture Sector -

To the Community -

To the Researcher -

V. SCOPE AND LIMITATIONS

RESEARCH FRAMEWORK
LEVELS Dependent Independent Intervention
Theoretical
Conceptual
Operational

VI. THEORETICAL FRAMEWORK

VII. CONCEPTUAL FRAMEWORK

VIII.

IX. DEFINITION OF TERMS

Arable land: land that can be used for growing crops (FAO).

Barangay: The smallest political unit into which cities and municipalities in the

Philippines are divided. It is the basic unit of the Philippine political system.

City: There are three classes of cities in the Philippines: the highly urbanized, the

independent component cities which are independent of the province, and the

component cities which are part of the provinces where they are located and subject

to their administrative supervision.

Double Burden of Malnutrition: refers to the dual burden of under- and over-

nutrition occurring simultaneously within a population

Food Security: exists when all people at all times have access to sufficient, safe,

nutritious food to maintain a healthy and active life.

Food Threshold: minimum income/expenditure required for a family/individual to

meet the basic food needs, which satisfies the nutritional requirements for

economically necessary and socially desirable physical activities.

Gross Domestic Product: refers to the value of all goods and services produced

domestically; the sum of gross value added of all resident institutional units engaged

in production (plus any taxes, and minus any subsidies, on products not included in

the values of their outputs.

Gross National Product/Income: measures the market value of all products and

services produced during a certain period of time by labor and property supplied by

the residents of a country.

Human Development Index: A tool developed by the United Nations to measure

and rank countries' levels of social and economic development based on four

criteria: Life expectancy at birth, mean years of schooling, expected years of

schooling and gross national income per capita.

ICN: an inclusive inter-governmental meeting on nutrition jointly organized by the

Food and Agriculture Organization (FAO) of the United Nations and the World

Health Organization (WHO).

Land Degradation: a decrease in land quality caused by human activities.

Marginality: a condition of poor access to political and policy decision-making and

to natural and other livelihood resources.

Millennium Development Goals: are the eight international development goals that

were officially established during the Millennium Summit of the United Nations in

2000 with the adoption of the United Nations Millennium Declaration.

Moderate Hunger (per SWS survey): referring to those who experienced hunger

"Only Once" or "A Few Times" in the last three months

Municipality: Is a political corporate body which is endowed with the facilities of a

municipal corporation, exercised by and through the municipal government in

conformity with law.

National Nutrition Council: the country's highest policy-making and coordinating

body on nutrition.

NNC Governing Board: the policy-making body of the NNC.

NNC Technical Committee: composed of heads of major department bureaus and

agencies involved in nutrition and appropriate NGOs. It provides technical

assistance to the Board and NNC Secretariat, and facilitates inter- and intra-agency

coordination, supervision and monitoring, and implementation of nutrition policies

and programs.

NNC Secretariat: serves as the executive arm of the NNC Governing Board.

Nutrition Transition: refers to changes in the composition of the diet, usually

accompanied by changes in physical activity levels.

Pacific Ring of Fire: an area where a large number of earthquakes and volcanic

eruptions occur in the basin of the Pacific Ocean.

Province: The largest unit in the political structure of the Philippines. It consists, in

varying numbers, of municipalities and, in some cases, of component cities.

Region: A sub-national administrative unit comprising of several provinces having

more or less homogenous characteristics, such as ethnic origin of inhabitants,

dialect spoken, agricultural produce, etc.

Severe Hunger (per SWS survey): referring to those who experienced hunger

"Often" or "Always" in the last three months.

Subsistence Poor: families or individual with per capita income/ expenditure less

than the per capita food threshold.

Underemployed: are persons who work less than 40 hours during the reference

period and expressed the desire for an additional work (NSO, 2010).

Underemployment Rate: the proportion of underemployed persons to the total

population 15 years old and up.

Urbanization: proportion of population living in areas classified as urban

Limited Production Sub-Area - areas where the following may be allowed

consistent with an approved management plan: settlement, traditional and/or

sustainable land-use, including agriculture, agro-forestry, and other income

generating or livelihood activities. It shall also include, among others, areas of high

recreational, tourism, educational or environmental awareness values, areas

consisting of existing installations of national significance/ interest such as

development of renewable energy sources, telecommunication facilities and electric

power lines, hunting grounds and areas for non-timber forest products gathering by

IPs.
 ABBREVIATIONS

DA Department of Agriculture

FAO Food and Agriculture Organization

DAR Department of Agrarian Reform

HUCs Highly Urbanized Cities

LGC Local Government Code

LC Land Classification

MAO Municipal Agricultural Office

MPDO Municipal Planning and Development Office

PCLUP Provincial Comprehensive Land Use Plan

PD Presidential Decree

PDP Provincial Development Plan

PLUC Provincial Land Use Committee

RA Republic Act

SAFDZ Strategic Agriculture and Fishery Development Zones

Agricultural Lands (in forest lands) - areas that are extensively used for the

production of agricultural crops. These lands are primarily intended for cultivation,

livestock production and agroforestry. (DAO 1995-15)

Agricultural Land Use

Agricultural areas shall be used exclusively for the production of food and industrial

crops, livestock and poultry and pre-processing of such agricultural products

IX.1.1 Tourism

The city also wants to establish annual festival for the city. Regaining the

position of being the top trader of Cattle Industry can become the face of the

festival.

CHAPTER 2

RESEARCH DESIGN

POPULATION AND LOCALE OF THE STUDY

DATA GATHERING PROCEDURE

TREATMENT OF DATA
CHAPTER 3

PROFILE OF RESPONDENTS

PRESENTATION, ANALYSIS AND INTERPRETATION

CHAPTER 4

SUMMARY OF FINDINGS

CONCLUSION

RECOMMENDATION

BIBLIOGRAPHY