Halal broiler processing : the case of Bounty Agro Ventures Inc. and VITARICH Corporation

Date

5-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dia Noelle F. Velasco

Abstract

The study entitled ?Halal Boiler Processing: The Case of Bounty Agro Ventures Inc. (BAVI) and VITARICH Corporation (VITARICH)? aimed to (1) describe the Halal practices implemented by Boiler Chicken Processors in Davao City (2) assess the implementation of Halal practices by the broiler chicken processors based on the Philippine National Standard (PNS) on Halal Foods (3) present the current demand for Halal broiler chicken in the local and international market (4) determine the problems, issues and opportunities for the Halal broiler processors in Davao and (5) recommend possible investment and development entry for existing and potential Halal broiler industry players in the city. The study used descriptive research design. Key informant interviews were conducted to gather data on the profile and actual Halal practices of broiler integrators in Davao City. Moreover, a survey among 60 broiler consumers was conducted to present the current demand for Halal broilers in the city. They were selected using purposive sampling technique. The study used secondary data to determine the demand of Halal broiler in the international market and to estimate the demand for Halal broiler of Muslim Filipinos. Results showed that three out of the five broiler integrators in Davao City were able to acquire Halal certification and their total production accounted for 90% of the supply of Halal dresses chicken in the city. Out of these three, BAVI and VITARICH were interviewed. BAVI was certified by Islamic Dawa?h Council of the Philippines (IDCP) while VITARICH was certified by Mindanao Halal Authority (MINHA). The result of the survey on 60 broiler consumers in Davao City showed that 44 or 73.33% of the respondents were already consuming Halal certified broiler products and 90.91% (40 out of 44) of them require that the broilers must have Halal certification. On the average, the respondents were willing to pay 12% higher for Halal certified broilers. Since there was no exact value of the demand for Halal broilers worldwide, the researchers used the values of demand, supply and distribution of Halal broilers in Malaysia and United Arab Emirates?the two leading Halal hubs?as an indication of demand for Halal broilers internationally. It was found that Malaysia?s domestic consumption of poultry meat in 2014 was 1,459,039 MT and 3.6% of which are imported. On the other hand, the 2014 domestic consumption of poultry meat in UAE was 385,000 and 94.81% of it were imported. The lack of unified Halal certifying body and Halal practices, and the questionable Halal credibility of broiler chicken posed as the biggest concern for the Halal broiler processing industry. Furthermore, the limited availability, higher price and possible sources of contamination of Halal feeds were critical for the industry. Moreover, limited infrastructure/facilities for Halal broiler slaughtering were also found to be weaknesses of the industry. It was recommended that a unification of Halal certifying organizations and standards be established. Also, market information on prices, demand and others should be provided to the industry players. Product promotion of Halal products should also be done by appropriate government agency. Furthermore, infrastructure development especially the establishment of slaughter houses should made be a priority. Lastly the possible investment entry points for investors include: engagement in Halal broiler production and feeds production, the construction of cold storage and transportation facilities and the establishment of Halal meat shops.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 P34

Document Type

Thesis

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