chicken manure based fert i l izer produclion in the Phil ippines:

Technology review, viability issues and success factors

: rSUsto D. Cambarand J.B.N4anuel l ,4 . Biona N4Sc'

: !Lrndalon lor S!s la inabe Socie ly Inc. , Ph ppines

:nra I ac@lss.com.ph, T: (632) 9288671

uon Eosco ecnn car uo eqe j Fnfipprnes

Enra I biona.manue @dbtc.edu.ph, T: (632) 5325812

1 tNTnoouclloN

. rhe contexl ol an a ng agriculture seclor where there s rnasslve pro feralion ol

cheap smuggled and rnpoded lam nplts and prcducts in lhe markel, i1 is a big

challenge in lhe Philippines lo dernonstfale organc larming and lerlilzer produclion

as a viabl€ bus ness underraking.

A ot of organizalions have venlured on organic iaming and lert lzer produclon but

only lew s!rvived due to various reasons discussed in lhe succeeding s€clions oi lh s

paper. Tho Foundalon for Suslainabl€ Soci€ly Inc. was one of those who lr€d to

venture n organic larrn ig and f€rlilizer produclion business lhal lailed lo sustain due

lo low producton capacily and accessbilily ol raw rnaterias such as coco peal and

brown seaweeds (nol localy avalable n lhe prodLrcton faciliry area). Despil€ this,

FSSI st i be eves thal lhe bLrsiness has a good potenilal to succeed as long as

sound business strategies ars appled. Hence, a jont veniure, between FSSI and

CBT'DBTC, aiming lo rehabllale FSSI's experimenla larm and lerli zer produclion

projecl in Silang Caviie s now underway Wilh lhe ja nr localed in a major poLr try

indls t ry area, usng chcken rnanur€ based fer l i lzer as growng medum is rnore

log ca and practcalthan seaweed based ierr zer.

CHIMATFA Workshop 2005

Thus. FSSI and CRT DBTC now ntend lo look inlo the feaslbilitv oi shifling to

chicken manure based feni izer as parl oi ihe rehabllilation of the Sih.g tarm And to

enrich such leasibility ass€ssrneni, ihis sludy not onLy hlghlighls lessons learned lrom

FSSI iam operaiion but also galhercd olhef valuable inlormation through lileratLrrc

researches and inleryiews of various Jedilizer producers operatng in of near lhe

CHICKEN MANURE FEFTILIZEB GENEBATION AND UTILIZATION IN THE

PHILIPPINES

Tab 1: Estimated manurc produclon wilh n th€ malor bro erand lavar chickon oowng p@v nc$ in

F.;;i@'Er'r;i;r'ivonro,y l u-unii'roarcia l iercint otiotaiiroauct"(000 'p l .cos) p {Y€ ' i ' (m0 |

B a a q a s I a n s : s r 2 3 1 l s o c l l 1 9 6 1

Bura.an | 436661 119590s91 1013

Ipanplnoe' l - l3a3sol l ldpoCir l 1oo7

l ;;; E;iE { sosTnel "" 105,5es.43 -

sesl ca , '€ 3 0012 a1 ,a7105 7 t9

2.1 chick€n Manure Generatlon and Pathways

Chicken manure prodLrciion ln lh€ Philppines is estimaled to reach l l8 l\,llion

metric lons yearly w th the geograph cal dislr bution shown n Table 1

94: 276426 75.8t1.A2 6.41

Bza 2 ,671 '5 7323709 62 l

O u € Z o r , 1 3 9 ! 1 3 1 1 9 ' 4 6

Panoas ' .an av6 22 304 oc l 1 89

N6aroe occ'oenra | 30135 22 O g osl 1a7

t " i r . i t ^s " , 2a : r l2aat t73

b;;a;;; ;d;- l "dzznl --

s, ior '3lf . -

oizVo lo .b ovn (65 157591 . 9?4 ,911 !1 3294

lorr'er erovince" 7,354101 2o131a.tel ,1..4ro le l 4a .3 '2 130,2)0 90 10000

sourcB ol basicdalarBurcau ol AgiclllLij sIal sllcs (unpu6 r;hsd data)

Imanu6 prclucl of compuled at 75 !6itd/day (Ave€g. iiom various sourcos)

cHLMATRA worf shop 2005

237

According to Naiional Slalisiics Coordinallon Boad, thls has grown by 4 8% in 2000

In a su&ey done by Delgado and Naffod I2O02l, fie most common scenario among

ihe farms suweyed was disposal ol rnanure either by selling it to chicken manure

irade6, sprcading ll on lheir own larrns' or some combinalion ol both (80%) oiher

observed means of dlsposing waste w€re contain ng the manurc ln closed p s'

convenienly throwing the wasle into a river or canal, or iust leavlng lhis bv-product

on lhe ground lo decompose

A sjmilar study shows thatsorne lwo_thirds ol smallcontract growers, lhree_fourths ol

arge lndependenl laisers, and almost all of the commerclal coflract growerc in lhe

sample sold chicken manure. For lhese prcducers' there is more or less zero

discharg€ ol wasle lnto the environm€nt at th€ point ol disposal Small independenls'

however, have lsss access to slch markels' with only 40 percenl ol the farms having

be€n abe lo ssllmanure ln the lasl lwo montrs

Tab.2: Diskibullon ol lam€rs by m€thod ol disposLllon ol manu€(in%)' Boll€r Productbn'

Phlllppln6s, 2002

LLHOLDEF laOMirEiCrALENTBY GlO.dOO) (>1O.OOO)

lnch p. ndq n 4c on t ru'r k d' Pdda nt c o niectI

li"H?""ff#0.!1L- -ft i,* i* _i.01l::jJilil' ::: ,i"' :'.' ["j'll;;;"**-.y'*",ir' ,li,

'::, ll! l:J.B . 6 o n e € r ' o d r o c o n r d n w a s . " * . - - . r - - l

- : f . -3 6ore €rrod to conr6 n *s3t6 , ,

I

o'spos€o o. cbs;dpr ,lz

- l

lco 6crod r en "oo-nd's3r,-.ru'€ l- " , i I's .bno8

ic No olor roco.lainwaBle

"" i

i.;;;";rur";;;i""**r" I I Iorspos€d o. cbseo p I

Lrnrown rn lpl" p t 132lThbwn lncansvrlv€r lv t

i.a;;; s;ffi ,i;llom;ft . su*ittuv Gncettainr^"*." i " :"1-sr

" t . ." ." . . -** t t" 1226 213 oo

l ; i l i ' .23 )za ta -oo-

CHIMATFA Worl6hop 200s

source UFLB-IFPFI Ll Fi€ d suNev, 2002-03.

Th s by-product s sold ln dry lorm. lt is usuall}/ collecled by lhe buyernEder lowards

rhe end ol ihe produclioi cycl6, about lour days p or to harvest ol ihe blrds Thg

ave€ge p ce of manlre across production arrangemeni and scaLe of opefalion

fanges from 10 pesos io 22 pesos per 50'kg bag dependng on lhe season.

Addilional rcvenues irom manure sales per cycle (usuajy every lwo weeks) range

lfom an average ow ol 1,293 pesos lor small independonls lo as high as 4,657

pesos lorlarge contractgrowers depending on the lam size.

The same slLrdy shows lhal brciier fanns Lrse the manure as ferl izer on lhe r own

larms and on olhef agrlcultuta lands that lhe farmers own or operale From the

sample, aboui 29 percent oi small independents, 13 pefcenl of srnali conlract

growerc, 17 percent of srge independenis and 19 percent of arge contract gfowers

used lheir manure as ferl zer as a means ol internalizng the exlernalities frorn

broiler prcduction. The volurne ol manure appisd on ands ranges from an average

of 25 bags ior small independenls to as hjgh as 72 bags ior commercia contracl

growers. The majn crops grown on broiler andhodings where manufe is applied

nclude mango, banana, rice, coconut, and some lruit lrees Thos€ crops are planted

on areas ranging in sze lrom a m nimum average ol 0 06 heclares lor lhe small

contfacl growerc to as large as 2.7 hectares lof the cornnrercial independenls For

orher agriculrura landholdings, whch lhe larms own or operale lhe maf crops

grown are rice and coconul. Across scales of operation, lhefe is a grsalet aqgregale

Droeoirion ol smalholders i27oh\ vlho da not exert any apparenl eiiort to miligalg

pollulon lrom brol€r manuro compar€d to com me rcial prcduosrs (9%). Speclically' a

signilicanrly high€r number ot large-scale iarms (87% vs. 55o/o) sel ohioken manur€

lo lrad€rs. Th s linding cou d tell€ct scae economies and consequonlly, lesser cosl

on lhe tradsrs' parl to I tho r truck-quola wllh the lafger volume ol manlrs coming

lrom a sing€ larg6 comm€rcia broi€r larm Inst6ad of co scling tho samo lruckLoad

lrcm a gr€ater number ol disp€Fed smallholdor Ia ns Thess how lhal small

ind€psndsnt growors tend lo havs higher lev€ ol pollulon du€ to improper wasle

cHtMATFA Wo*shop 2005

2.2 Chicken Manure based Organic Fertiliz€r ll,larkel and lssues

From lhe dala above, it is quile evident thal markels lor chicken manure are working

etficiently, wlh lhe high dernand for organic ferll zer being mel by the ample supply

ol rnanure irom broiler farms, However, independenl smallholders have less access

lo such markels, as reflocted in lheir lower affirmalive response €le ol ofly 55percent when asked abolt th€ €xislence ot such markets. Eighty-seven percent

(87%) of the small conlract grcwers surveyed and all of lhe surveyed comrnercialiarms have access lo lh€ mark€t iof poullry manure. lv,loreovef, while the proportion

ol commercial raisers and conlracl srnallholders who were unable to sell manure€nges only from lhree lo 32 percent, more than hal ol the independent srnallhold€rs(58%)sold no rnanure atall. There ls a vast demand lorpoultry manure by vegelabelarms in Benguel provnce, whch is locared in rhe Cordillera Autonomous Region(cAR) as wellas in Cenl€ Luzon (Region 3) and elsewhofe in South€m Taga os(Begion 4). The lable below shows a distribution ol major crop produclion in the

various reglons in lh6 counlry.

Tab,3:Major aqrculuElcrop producllon in lhe Phlrpp n.s by Bgton ln 1994

n. Coconutl Rl.o I Con

lii-l'-----6.0 Tiii67ror63 fli;.3 -iosr

-rr,x ,-orz3 7ol ol 556.?j 6s6.21 390.s r79 6rr o lo.e 3906Jl €0691 s66olr .36?.0 354

1.2390.3 179,61 783,1

i r +oo.al o,eo6.! l 6o6.ei s66;l i ;3d.ol 054l ;17-6lxii I o.ol ;6tf-44.4[ adt.il b;.il 1nl 0.4lrnuv I aal 7n.i l ,r isl 6iaal i6i. i l oo6.i l b.bfoiAl fr,iJ,1.o FBor.tllo,$si [4"Er 12 F-Ja57[ i oiirs f-1prii.;

sourco Bur€au oiA$cu ru€lsraristrcs (unpubrsh€d dala)

CHIMATFA Worlshop 2005

Needless to sav, ihe maior suppliels ol broiler manurc are lound n cenlra and

South Llzon(ses lable 1). Despiie lhe existence of well_lunclloning markels lor raw

chicken manure. it is faced wiih a number oi issues Raw chicken manure lrading in

B€nguei province has been rendercd illegaLby a munic pal ordinance passed in 1990

(but mplernented only in 2ooo) The ordinance arose from the percepuon ol the

induslry be'g a lhreat lo oubl|c sa ely d'd hedlh wtotrl too rrch orocessing

involved, most ol lhe counlry's chicken manLrre supply is belng us€d as raw fediLizer

in agriculure and aquaculture production One lmpodant problem lhat needs

immedate allention is the widespread pmclice oi applving unprocessed chcken

rnanure lo lhe vegetable which may carry a lol oi harmlLr elemenls Chicken

coniain contaminants such as residual horrnones anlblotics'

oesticides, disease organisms and other undesirable subslances Since many of

these can be eiminaled through hightemperatLrre aerobc composling' this praclice

s recornmended where low leveLs oi organic contaminanls may be presenl CaLltion

is advised. however, as rssearch has demonstrat€d that Salnonella and E coli

bacleria aDDear lo surviv€ lhe composlng process much better than prcviously

lhoughl. WINCOM Agro Industrial Corporation, however pointed oul thal despte the

exstence ol th s ordinance, slill law chicken manure tradjng and use lar outweighs

Pc[,] use in the area aff€cting ils matketabilily Thls could bs altribuled l0 the low

cost of raw chick€n manurs compared to PCIII tertilizer (5'l0limes ch€apet lhan

prooessed). WLth lho prcs ot larm inplts conslanlly sng ths blg differenoo In lh6

prlco ol raw (5-10 pesos/sack iarm gats p ce) aid processod (140_160 pesos/sack)

manure and the conlnuous inllux ot choap impodgd and smuggod veg€lab€s n

Philipplne mark€t, it may be logical lo assume that tho vegstabl6 larmers wll have

dilflculty Ehilling to procsssed chlck€n rnanufs' There are aso a 'umoef oI

organ zalion lhat arc able slstain to chickon manure lonllker processing businesses

Two ot lhose companios ars as loLLowsl

WINGOM Agro IndustrialCorp manages le€dmilland organic lertlizer busin€ss rn

lqe orovinco ol Bslangas Balangas s lh6 o'gg€sl poultry indJslry a'ea wllh an

est rnaled 4-6 million bLds and producing 14% ol lhe egg produclion in lhe counlry'

Eulk ol its raw manure requiremenls are supplled by lhoss generaled by ihe poullry

lam ol lho owner and olher poultrios neaby being bought al less lhen P10 00 per

bao. Produclion procsss involves mixing a specia enzymo and olh€r componenls lo

CHIMATRA WolkshoP 2005

the manue. Attet which the mi*ure is cured lor a week before being dried, grounded

:-a packaged. Pro.essjng takes apprcximalely lwo (2) weeks. lt has a capac(y {o

:roduce 150 sacuday i50Kgs./sack) They were ass sled lechnolog cally by

Jnversily ot lhe Phllippines - Los_Banos lhrough ihe provlsion of rn xlng iormulas

and applcation guides. The product is mixed wilh other fetilizers at diiferenl

lroporuons depending on crop wher€ it is used at ll is used to a wide array of piants

nclud ng vegetab es, ice, sugarcan€, huit bearing trees and flowers ll conside6 the

ncreasng use ol raw chicken rnanure lertiizer a ma*el threal because ol big

Cillerence in p ce. lt altribules its conlinuols existence to lhe lmplemenlation of a

*elthoughl educalion program. The companv inlends to go into niche marketing

rocusing on liquid organic le'lilizers lor golf courses. Thev would however need

assistance lo develop lhe€aid lechnoogy.

cold6n Egg Farms is owned by a Ta wanese doing business in Cavile City. lt

manages a chicken lam producing around 5500 Kg chicken manur€ per day

Seventy percenl (70%) ol lhs amount is processed inlo l€rdlizor while tho red arc

sold as raw manure. Chlck€n manure Ls mixed wilh Bokashiand cLrrsd tor one (1)

week, air d €d and packed. Forly p€rcent (40%) ol lls produced arc boughl by

l€ders while lh€ resl is directly bought by cut low€r lamerc near the iam. lt is able

ro produce loo sacks/day ol procossed chickgn manlfe. lhe poultry however ls

lacsd wilh conplainls lrcm its n€ighbors du€ to excsssiv€ odor and lhete ar6 also

concems on the hoalth and sal€ly ol lls workers

3 FSSI'S PELLETIZED COCOPEAT.SEAWEED BASED OFGANIC FERTILIZEN

PRODUCTION BUSINESS: 1998-2000

3.1 Prolect Background

The FSSI'S organ c sxpeflm€nlal tarming and pe letized"l€niliz€r prodlclion venture

was a lorward bus ness inlegmtion ol ils coco_coir based enlends€ program. During

rhe decodicaling process (translorm ng husks lo llbers) ony 40% oi coco"husks

being deconcabd ar€ convefted to lib€rs,lhe rema nlng 60% are coco-dust or peat

Since p6al is considered a by_producl ot decorticating process wlth lirnled

CHIMATFA WorlshoP 2005

applicallons, FSSI was challengod lo use it as maior inpui in lerlilizer produclLon to

maximlze its soilconditionlng potenllal as wellas rnanage the iast accurnr'rlation ol

coco-peal which causlng space problem in rnany decorticaling planls

ThLrs in 1998, FSSI start€d to ventufe in experime'lal organlc larm ano organr

lerlllzer prcduction in 1g98 wlth the suppoft lrom FoBD Foundalion through a projecl

dubbed as "Coco_Enieprise TechnoLogy Developmeni and Disseminaiion" This

prcjed was likewlse conceptualized 1o showcase and popu adze organic larrnrng as a

proiitable business undertaking lo manv communjty based organizations in the

Philippires. The prcduction ol pelleuzed serni_organic ledilizer produclion branded as

Cococreen had tried to reach a cerlaln d€gree ol comrnercialization wllh CocoTech

Corporalioi, which is lointly owned by FSSI and Juboken Enterprse' as the legal

4 PBOOUCT

Cococreen lerlillzer uses the lollowing malerials such as oocopeal (242%)'

vefmi0ast (24.2%)' bfown seaweeds powder (4'8olo)' mldpress (6 5%)' sand (8 1%)

and complete fedilizor (32.3%) lt haE r€csived llll 'edificallon aid lic€nse lo ma(el

from rhs Philippine Fenilizer and Pesllcde Aulho ty (FPA) in 2OOO wllh a 7:717 NPK

lt was obEervod dulng tho l€sllng phas€ thal applying the ssaw€gd ioirilizer in i1s

pure powder fom r€sulled In wastage due to waler run"oll and ineqLlalily ol water

sprayLng appllcalion This led CocoTech lo d€velop the pfocess of combinLng

seaweed powder and coco peat inlo lonllizer p€ll6ts' The rosulling producls w€re

lound to be easier io apply r€ducing wastage Also' pollols allow lor longer

absorplion lhoroby elm 'allng t's'un_oii p'oblsns

The prcduct wero lesied on various crops incLuding cabbage' leltuce' €ggplanl' bell

pepper, culllowsrs, biller gourd with encouraging resulls

CHllr,lATFA Wo shop 2005

{.1 Productlon Process

i.ocessng is consists ol iour main processes These are:

r tr/ixing' Pellelzirs (usinSan exlrusion equipmenl)

' Drying (usjng a ic€ hullhealed mechanical drver )

:.ere were concerns however on lhe lrigh capilal and operational cosl ol these

:qulpm€nl. Equlpmenl used had lo undergo a nrJmber ol modillcations which proved

:! have been very costlyand conlributed €ignficantly lo the cosl ot lhe prcduco

r.2 l$ues Loadlng to Failure lo Suslein Operalions

A nurnber of issues havo been dentiliod that contribut€d 1o the eventual closure of

:-e venlur6. These are:

No €search and develoDmeni (R&O) plan devoloped ior lh€ projecl Technologvd€veloomonl was done bas€d on "hll ard niss' siralegy, a olear indicallon ol lack of€xp€rtise in prodLrot and proce€slng facillly dsslgn developmoil

EculDmonl used In prcducllon was dsv€loped by peopl€ whos€ exp€ns€ is lBdillzofiomulallon and not on €qu pm€nt d€slgn and labricalion

Fund allorted tor 6qulpm6nt d6slgn and labdoation was nol €fl€cllvely ullllz€d slno€ ator olnachln€rl€s d6v€lop€dlorlhe projecl dld nol wort as expooted

Prcldci dld nol reachlhelarg€l podlcllon capacity ol5lonE oll6dllz€r P€rdav Theh qh€st ppducllon r€ood€dwas only around.6lons pfl daJ/

Dosplre th6 good r€sulls in vadous produol dBmonslralons and o€dLilcatlon by lh6FPA, lh6 Ofol€cl was not 3u31aln€d becausg oi lallur€ lo devolop and implem€nl anetf ecllv6 commsrclalizallon plan.

lnacoesslblllty of raw mal6flal Inpuls. When tho projecl was aboul io op€rale on acornmorc al scal6, lho proioct oxpo €nced probl€m wilh lho suPPllff of coco p€alThe prol€ci was cash si€pp6d becauso fnosl of lh6 operallng caplla wenl lo pay lorv€rmicag and browr sean6€d6 whlcl'wo€ not alyroro ptocessgd

Hnsncial resoulces slaned b dwindle when ke prciecl was abau+ to be lullvcommorclalized. onlv 20% oi proJ6cl was allon6d for oporation whlle 80'/. wenl looquipmontdesigndsvolopmontandfab calonandconslruclionoilhsbulldlng

Low oroduction oulpul ss lha proiecl was designed lo produco 5 tons ol lodil26r bulrh6 Lack oi owne6hiD lrom lhos6 who w6re pan ol the projecl operalon as mosl olrhelunds usedcam€lromlhe FOBD Folndalion and FSS

CHIMATRAWorkshop2005

5 CONCLUSTON

The lollowing conclusions were iomuated irorn lhe dala and inlomaiion gathered.

. The abiliry lo s€1| manure is crucial tor al tarms ln posillvely conlibuling ro€nvircnmenhl miligal on b€havor. Al prodLrcers r€spond lo lhe martel for manurewher€ il ex sts Large scale produceBlend lo 9€l a biggor pan oflhe ma.kel du€ loconveni€nco in the part of rhe rrader. chicken manufe supply irom smaLl scaeprcdLcers is yet lo be maximized. To address colection probems, dec€rlralzirq th€processirg ol manur€ in lhe communiles should be slongly @nsidered and sludiodwhere small ooultry iams could be clusl€red lo iom a common chick€n manurei€dlizer p@c€s€ing hub. [,lor€over, wilh |aw chick€n nranur€ selins not consideredas a maior sourc€ ol income by lhe smal pbducers, this conc€pl wou d al ow lhsm romanage lhefwaste in a mor€ €nvironmenrally ben gr mann€rwhi€ ai rh€ same I me€amlrg mor€ lrom ii. Pad ot lhe produce could ihen be sold io lho local lam€rs orcollected by a poducl consolidalor in lhe arca lor l6din9 elsewhefo. This wouldrequ re ihe develop.n€nl of low cosl proc€s€e€ and equipmenls aliodabl€ ro rh€se

. Th6.e is a need to dev€op l€chnolog€s lhal can b ng down lhs cosi ol Pcr'/produciion and/of signiticanlly increase etficacy compar€d lo rawchick€n marlre andchemlcal i€rli iz€rs.

r Uness lechrologica ini6wsnlions to r€duc6 production cosl and signiticanlync€ase PcM €fllcacv compared lo chlcken rnanure and ch€mlca lenlizeE is€lt€ctively addressed, nlch€ mark€llng should bs adapted. PCM fealures should bocuslomized lo lh€ n€€ds ol lhis indusiry. Som€ ol lhe possib€ technologi€s lhalwould bs required by lhis s6clo.lncludB p€l6iizn9 for lh€ cultlowor induslry andodorl€ss liquid oqancle llzer lor golt cou€€s sndgardone.

. To avod tho €xpe encs ol FSSI, matu€ l€chnologl€s and provsn oqulpmenl shouldb€ used lo €nsure altafmonr of dos rod oroduclon oaDacltv and Droduct

. Exp€ns shoud b6 rappod ro woii on va ous r6chnology ar6as io miligaro andmanage lechnology felalgd isks.

. To much cosl incuiied in l€chnology d€v€loprnenl, a clear indicalion ol lack ofexperdse equipmenidesign deveopm€nl, and producl d€monslraiion and pronoron.

CHlI'TATFA Workshop 2005

6 BIBLIOGRAPHY

FSS|(1999).1999Annual Bepon, Foundatjon lor Sustainable Sociely nc , pp. 25_31.

FSSt (2000).2000Annua Reporl, Foundalion for Suslalnable Sociely Inc , pp 38 46

Garde E.O. (1999)Env ronmenl and Ag r cullura Technology fiom Coconul Waste L vlng Slor esExemplary Ph jppine Praclices on Envirofmenl and SuslainabeDeveopm€nl ; FSSI, FE and PRRl, l rpp 95 '112

Detgado c.L. et. al. (2003)Policy, Techncal, and Env ronm€nlal Determinants and lmp calions ol lheScaling'Up of Llveslock Produclon n Four Fasl-Growing DevelopingCount es:A Synthesis . FAOIpp. 118'198

Glcana B.N. (2001)lnlegGted Plant Nulrenl l,lanagement in the Philppines. Fegiona] Wo*slropon Inlegrated Plant Nltrilion System (IPNS) Developrnent in Fural PoverlyAllev auon. Bangkok, Thailand

CHIMATFA V!orkshoP 2005