The Department of Agriculture (DA) is rolling out a new village-based feed ecosystem aimed at boosting corn and livestock production, cutting feed costs, and strengthening rural incomes through cooperative-led agribusiness.
In a Memorandum Circular No. 2 signed on February 2, Agriculture Secretary Francisco P. Tiu Laurel Jr. approved the implementation of the Village-Type Feed Complete Chain Project (VFCCP), a vertically integrated feed system that allows farmer cooperatives and associations to engage in corn production, postharvest processing, feed milling, and Total Mixed Ration (TMR) preparation under a single, value-adding enterprise.
“This is about fixing the weakest link in livestock production—feeds—by putting control back in the hands of farmers,” Tiu Laurel said. “When communities can grow, process, and mill their own feed, we lower costs, raise productivity, and make our food system more resilient.”
The project tackles one of the sector’s most persistent constraints: the limited availability of affordable, quality, and consistent feed supply. This has long driven up production costs, reduced animal productivity, and caused frequent feeding disruptions during dry seasons, particularly among smallholder raisers, weakening the competitiveness of local livestock enterprises.
Under the VFCCP, the DA will set aside a maximum budget of P40 million for each viable project, depending on the approved components and readiness of the recipient. Initial funding will be charged against the National Livestock Program under the General Appropriations Act, with succeeding allocations proposed under the regular budget to ensure continuity.
Each VFCCP site 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 integrates climate-resilient technologies such as solar-powered irrigation systems, biomass dryers, and mechanized forage production to ensure year-round feed availability and reduce reliance on imported inputs.
The DA said this approach supports national goals on food self-sufficiency, animal health, and agricultural sustainability.
Financial projections over an assumed five-year project life point to commercial viability. Based on DA estimates, a VFCCP enterprise could generate average annual revenues of about P38.9 million against operating costs of roughly P30.7 million, yielding an estimated annual net cash flow of P8.2 million. The projected internal rate of return is 23 percent, with a benefit-cost ratio of 1.11.
Up to 70 percent of the approved project cost will be released upon signing of a memorandum of agreement to fund machinery, infrastructure, agricultural inputs, and capacity-building activities. Indicative allocations include as much as P20 million for agricultural and forestry equipment and P8.5 million for building structures.
Beyond feed production, the DA sees the VFCCP as a platform for inclusive agribusiness development. Revenues from feed sales will be reinvested into operations, while partnerships with LGUs, KADIWA outlets, and private buyers are expected to strengthen market access and help build a more resilient, community-driven livestock sector.
