Marketing of Live Hogs in GSC

In live hog selling to the Metro-Manila market, the major players are the hog growers, shipper, wholesaler-retailer, retailers, land transport provider, shipping line, port service providers, slaughter house operators and quarantine and meat inspection regulatory officers. Commodity order starts from retailers to wholesaler-retailers who in turn place their order to shippers. The shippers consolidate the orders and get live hogs from GSC and/or South Cotabato growers.

Live hogs are hauled to the GSC port using owned truck haulers designed for this purpose. The hogs are then immediately transferred to an open container and loaded to a ship bound for Manila. SCIPSI, the private firm operating and managing the port, provides the stevedoring and arrastre services. Shipping services are provided by several firms which include Solid Shipping Lines, William, Gothong and Aboitiz, Regional Container Lines, Sulpicio Lines, CT Navigation, Lorenzo shipping Lines, Maerks Line, and Negros Navigation. Solid Lines accounts for the largest share of hogs shipped to Manila. The Philippine Ports Authority and Marina, controls the arrival and departure of ships at berth. Upon arrival, the wholesaler-retailer takes charge of the hogs that are transferred to a hauler truck and brought to the Manila slaughterhouse. Fresh carcass and pork cuts are then distributed using meat vans to retailers in the wet market, supermarkets/groceries, fastfoods/restaurants, and hotels and other institutional buyers.

Animal and food inspection, which are requirements of food safety and animal disease regulation and control, are done at several points of the chain. Bureau of Animal Industries officers conduct quarantine inspection at the Makar port. In the slaughterhouse National Meat Inspection Services (NMIS) officers do further quarantine inspection and certifies the quality of the meat.

Information between buyers and sellers are through the use of cellular phones and landline phones. Business transactions are done through individual business dealings and are basically spot market transactions.

Transport is through individually hired or owned haulers in the absence of formal logistics service providers. Hauler trucks are so designed to accommodate one container load of hogs (90 heads).

Payments of goods are practically in cash terms. The shipper pays the grower before shipment and accounts for the payment of shipping cost and arrastre and stevedoring costs in both ports. The wholesaler-retailer pays the shipper in cash. He extends credit to wet market retailers, restaurants, supermarkets and institutional buyers.