The Department of Agriculture (DA) is introducing a village-based feed ecosystem to help farmers increase corn and livestock production, lower feed costs, and strengthen rural incomes through cooperative-led agribusiness.
The initiative, formalized in Memorandum Circular No. 2 signed by Agriculture Secretary Francisco Tiu Laurel Jr., will implement the Village-Type Feed Complete Chain Project (VFCCP). This allows farmer cooperatives to manage corn and forage production, post-harvest processing, feed milling, and feed preparation as a single, integrated enterprise.
“This program targets the weakest link in livestock production—feeds—by giving control back to farmers. Communities that produce and process their own feed can lower costs, boost productivity, and make the food system more resilient,” Tiu Laurel said.
The DA said VFCCP will address the shortage of affordable, high-quality feed, which has long increased production costs and disrupted feeding during dry seasons, especially for smallholder farmers. Each project can receive up to P40 million, depending on its scale, and will be anchored on an accredited cooperative managing up to 25 hectares of corn and forage crops.
The program will also integrate climate-smart technologies such as solar-powered irrigation, biomass dryers, and mechanized forage production to ensure year-round feed availability and reduce dependence on imports.
Financial projections suggest a VFCCP enterprise could earn about P38.9 million in annual revenue, with operating costs of P30.7 million, yielding P8.2 million in net cash flow. Most funding—up to 70%—will be released after signing agreements to cover machinery, infrastructure, inputs, and training.
Beyond feed, the project aims to support local agribusiness by reinvesting feed sales into operations and creating partnerships with local government units, Kadiwa stores, and private buyers.
According to the Philippine Statistics Authority, corn production rose from 8.14 million metric tons (MT) in 2024 to 8.32 million MT in 2025, while livestock production slightly declined from 2.17 million MT in 2024 to 2.13 million MT in 2025.
