Marketing of Chilled/Frozen Carcass and Cuts in GSC

The customers of chilled/frozen carcass and cuts are mainly meat processors in Metro-Manila, Iloilo and Zamboanga. The logistics system for these types of products is shown in the Figure below. It follows a similar pattern as the logistics of live hogs but with major differences in infrastructure requirements, transport type, information flow, and mode of payment.

Live hogs are directly brought to the GSC slaughterhouse at Barangay Mabuhay where carcass and cuts are produced. These are then packed in plastic bags and brought to a blast freezing facility for meat or fish located in the city. These are temporarily stored in a cold storage facility located separately from the blast freezing facility or directly loaded to a refrigerated van ready for shipment to a particular meat processor. The products are then directly brought to the cold storage facilities upon arrival in Manila.

Mode of payment is by Letter of Credit (LC) that is made directly to the grower. This does away with the shipper considering that the business transaction is directly between the grower and the buyer, in this case the meat processor. Delivery is usually FOB GSC port and as such, the grower pays for the slaughtering, processing, packaging costs and transport to the port. The processor accounts for the port services at GSC and Manila Ports, shipping freight cost and transport from Manila port to its cold storage house.

Information flow is direct between processor and buyer. Processor coordinates with the refrigerated provider such as Cryo Company for the size and schedule of loading of the goods in the cold storage facility and its shipment to Manila. ICTs used in coordinating order demand and supply are cellular phone, landline phone, fax machine, and the internet.

The BAI (Bureau of Animal Industry) and GSC veterinarian do quarantine inspection in the grower’s farm. NMIS (National Meat Inspection Services) officials then inspect and certify for quality and safeness of meat at the slaughterhouse prior to blast freezing and delivery. There are currently two AA slaughter houses in GSC City, one owned by the city and the other is Joliza’s a privately owned slaughterhouse.