INTERVIEW: Philippines set for beef demand surge by 2026 amid local production challenges

The Philippines is poised to witness an increase in beef demand and consumption by 2026, driven by a growing population and a decline in local pork and chicken production impacted by animal disease outbreaks, Randy Favis, the Corporation Secretary of the Federation of Cattle Raisers Association of the Philippines, told Platts, part of S&P Global Energy.

With a population nearing 115 million and a cattle herd of approximately 2.5 million head, the country heavily relies on imported beef to meet its consumption needs. Favis highlighted in an interview that around 94%-95% of local production comes from small-scale farmers, each managing 10 head of cattle or fewer, which is insufficient to meet domestic demand. He noted that the beef products that the Philippines imports from Australia include brisket, round, full boneless carcass and trimmings.

According to Australia's Department of Agriculture, Fisheries and Forestry, as of October, Australian beef exported to the Philippines totaled 23,350 mt.

Outbreaks of bird flu in poultry and African Swine Fever in hogs have intensified the demand for beef. Favis said FCRAP's primary objectives include increasing the cattle herd size, improving the breed quality, educating consumers on beef and increasing farmers' income from cattle farming. The country imports breeder cattle from Australia, benefiting from proximity and competitive pricing, while also exploring live cattle from Brazil, following the country's foot-and-mouth disease-free status earlier this year. He added that they are waiting for the establishment of export and import protocols, including necessary disease testing prior to shipping and acknowledged the potential for strong competition between Australian and Brazilian live cattle, with freight costs being a key differentiator.

In the year to October, the Philippines imported a total of 23,337 head of Australian live cattle, up 12% year over year, according to Meat and Livestock Australia data.

Consumer education is another crucial focus for FCRAP. The association aims to address misconceptions surrounding beef consumption in the Philippines, where high prices have led to the perception that beef is exclusive to high-income households. Favis emphasized the importance of promoting more economical cuts, such as brisket and chuck, which are more accessible to consumers. The association also provides recipes to help individuals prepare beef properly.

Additionally, FCRAP plays a vital role in increasing the income of cattle farmers. Many of these small-scale farmers are also crop producers, relying on grass, forage, and crop residues -- such as rice straw and corn plant leftovers -- for cattle feed. This group of cattle farmers purchases cattle from commercial farmers and fattens the cattle before selling the meat to increase their income. The association supports these farmers by offering technical assistance regarding the costs associated with cattle farming, including feed and veterinary expenses, to encourage adherence to recommended best practices.

Looking ahead to 2026, Favis anticipates a steady increase in beef demand in the Philippines, fueled by population growth and the ongoing impacts of African swine flu and bird flu, which continue to pose challenges despite government eradication efforts. He added that the local production of poultry and pork is likely to decline, leading to higher prices for these protein sources.

Platts assessed 90CL beef FCA Australia at $7,183/mt on Nov. 17, down 0.18% from the previous session. The average monthly price for 90CL beef FCA Australia reached $7,156/mt in October, the highest since Platts launched this assessment and up 26.5% year over year.