The Department of Agriculture is rolling out a village-based feed program to increase corn and livestock production, cut feed costs, and strengthen rural incomes through cooperative-led agribusiness.
Under Memorandum Circular No. 2, signed Feb. 2, Agriculture Secretary Francisco Tiu Laurel Jr. approved the Village-Type Feed Complete Chain Project (VFCCP). The initiative allows farmer cooperatives to manage corn production, post-harvest processing, feed milling, and total mixed ration preparation in a single, value-adding enterprise.
“This addresses the weakest link in livestock production by putting control back in farmers’ hands,” Laurel said. “Communities that grow and mill their own feed lower costs, raise productivity, and make the food system more resilient.”
Each VFCCP site will be run by an accredited cooperative managing up to 25 hectares of corn and forage.
The project uses mechanized, community-managed feed systems covering production, post-harvest handling, milling, storage, and distribution.
The DA will provide up to P40 million per project, with 70 percent released upon the signing of a memorandum of agreement for equipment, infrastructure, inputs, and capacity-building.
Projects will use climate-resilient technologies, including solar-powered irrigation, biomass dryers, and mechanized forage production, to ensure year-round feed availability.
Financial projections indicate solid returns, with a VFCCP enterprise expected to generate P38.9 million in annual revenues against P30.7 million in costs over five years. This is projected to produce a net cash flow of P8.2 million, a 23 percent internal rate of return, and a benefit-cost ratio of 1.11.
The DA expects the VFCCP to boost inclusive agribusiness, with feed revenues reinvested and partnerships with local government units, Kadiwa outlets, and private buyers expanding market access and supporting community-driven livestock development.
