CDA Region IV-B EO

Bansud Livestock Multi-Purpose Cooperative (BLMC) – Diversification in Response to the ASF Outbreak

Bansud Livestock Multi-Purpose Cooperative (BLMC) had been a cornerstone of agricultural stability in the province of Oriental Mindoro for many years. Known for its expertise in hog raising, the cooperative had established a steady supply chain that serviced both local markets and surrounding communities with high-quality pork products. Members of the cooperative, who were primarily smallholder farmers and livestock raisers, had long depended on the success of the hog industry for their livelihoods. However, the arrival of African Swine Fever (ASF) in the province would change everything.

The ASF outbreak in Oriental Mindoro in 2019 devastated the region’s pig population, and Bansud was no exception. Thousands of pigs were lost, and the disease spread quickly, affecting the cooperative’s entire livestock inventory. BLMC, which had relied heavily on its hog farming operation, found itself at a crossroads. With no clear path to recover its hogs and no immediate solution to the ASF crisis, the cooperative faced severe financial losses.

However, rather than succumb to the crisis, BLMC’s leadership took a bold step toward recovery. They adopted the best practice of business diversification, shifting from hog raising to poultry farming, specifically broiler and egg production. This pivot, though challenging, allowed BLMC to navigate the storm and emerge stronger, showing resilience and adaptability in the face of adversity.

The transition from hog raising to poultry farming involved several key changes in the cooperative’s processes. First and foremost, the cooperative restructured its operations to focus on broiler production, raising chickens for meat, and laying hens for egg production. To begin, BLMC members underwent extensive training in poultry farming practices. This included learning about broiler care, egg production methods, nutrition, and proper biosecurity protocols to prevent the spread of diseases like avian influenza, a risk that could potentially threaten the poultry industry.

In addition to the knowledge transfer, BLMC invested in upgrading its infrastructure to accommodate poultry production. New poultry housing was constructed, equipped with proper ventilation, temperature controls, and adequate space for the birds to thrive. The cooperative also purchased essential tools and equipment, including feeders, waterers, and incubators for egg hatching. Training in farm management and poultry-specific biosecurity measures ensured that the cooperative’s operations were aligned with best practices in poultry farming.

Through partnerships with local government units (LGUs) and the Department of Agriculture (DA), BLMC was able to secure loans and grants to finance this diversification. These funds helped cover the costs of building infrastructure and purchasing necessary equipment, ensuring the smooth transition from hog raising to poultry production.

The best practice of diversification is particularly applicable to agricultural cooperatives that are exposed to specific industry risks, like diseases that impact livestock. In the case of BLMC, ASF posed an existential threat to the cooperative’s operations. With no immediate way to recover the hogs and the local pig population in sharp decline, the cooperative had to act quickly to safeguard its future. Diversifying into poultry farming not only mitigated the risk of ASF but also allowed the cooperative to stay in the agricultural business and continue to serve its community. The switch to broiler and egg production helped solve the problem of food insecurity in the region while offering new income opportunities to cooperative members who were otherwise at risk of losing their livelihoods.

BLMC’s ability to pivot and adapt its business model in the face of crisis serves as a powerful example for other cooperatives in the region that may be facing similar challenges.

To implement this best practice, several resources were critical:

• Skills and Knowledge: Cooperative members received training in poultry farming, which included areas like broiler care, egg production, and farm management. They also learned about poultry nutrition and disease prevention, such as biosecurity measures to protect their flocks from contagious diseases.

• Techniques and Tools: BLMC employed various techniques to ensure efficient poultry management, including proper feeding practices, temperature control in poultry houses, and rotational farming to reduce the risk of disease. Essential tools such as automatic feeders, waterers, and egg incubators were used to support large-scale poultry production.

• Financial Resources: The cooperative secured loans and grants from LGUs and the Department of Agriculture to fund the transition to poultry farming. These resources were critical in purchasing equipment, constructing poultry housing, and ensuring the cooperative had the financial capacity to make the shift.

BLMC has been implementing this new business model for a year. In that time, they have successfully built their poultry farming operations and turned what was once a crisis into a sustainable and profitable venture.

The benefits of adopting this best practice are evident in several key areas:

1. Revenue Recovery and Growth: One of the most significant outcomes of the diversification was the recovery of BLMC’s revenue. The cooperative reported a 25% increase in annual revenue compared to pre-ASF levels, despite the initial challenges posed by the ASF outbreak. By shifting to broiler and egg production, BLMC was able to replace its lost income from hog farming and generate additional revenue streams.

2. Sustained Livelihoods for Members: The cooperative’s members, who were deeply affected by the ASF outbreak, were able to sustain their livelihoods through the new poultry business. Many members who had relied solely on hog farming now had an alternative source of income. This new business model helped stabilize their financial situation and provided them with a more diversified income.

3. Increased Productivity: BLMC now produces an average of 5,000 broilers and 10,000 eggs per month, providing a steady supply of affordable protein to local markets and nearby municipalities. This production level not only meets the needs of the local community but also allows BLMC to tap into other regional markets, further expanding their customer base.

4. Enhanced Customer Satisfaction: The shift to poultry farming also allowed BLMC to address the protein needs of the community, which had been severely impacted by the loss of the local hog industry. By supplying fresh broilers and eggs, the cooperative has helped maintain food security in the

The story of Bansud Livestock Multi-Purpose Cooperative is one of resilience, adaptability, and strategic thinking. By embracing diversification and shifting from hog raising to poultry production, BLMC has not only survived a devastating crisis but has emerged stronger, more diversified, and more sustainable in the long term. Their ability to adapt to external shocks and innovate for the benefit of their members and community serves as an inspiring example for other cooperatives facing similar challenges.