New Iloilo feed mill to absorb crops, cut aquaculture costs

By Francis Allan L. Angelo

A newly inaugurated PHP 30-million aquaculture feed mill in Tigbauan, Iloilo is set to open a steady market for local crop producers while easing one of the heaviest cost burdens on the province’s fish farmers, officials said during the facility’s launch on April 27, 2026.

The Southeast Asian Fisheries Development Center Aquaculture Department (SEAFDEC/AQD) and the Department of Agriculture–Bureau of Fisheries and Aquatic Resources (DA-BFAR) jointly opened the plant inside the SEAFDEC/AQD compound in Barangay Buyu-an. It is designed to produce 5 metric tons of feed per day at standard capacity, with a maximum output of up to 8 metric tons.

The facility will use locally sourced, plant-based ingredients to substitute for imported fishmeal and soybean meal, which together can account for as much as 40% of feed content for carnivorous species and drive up production costs across the aquaculture sector.

By tapping plant-based alternatives grown within the region, the mill is expected to stabilize feed prices and create a direct procurement channel for Iloilo and Western Visayas crop farmers, strengthening the link between the province’s agriculture and fisheries sectors.

Feeds account for over 50% of the cost of production in aquaculture and can reach 60 to 70 percent of operational expenses, according to officials and the project’s feasibility study.

The plant is expected to directly benefit at least 6,240 fisherfolk annually, equivalent to roughly 47% of the 13,202 fisherfolk engaged in aquaculture out of 192,679 registered fisherfolk in Western Visayas.

DA-BFAR 6 Regional Director Remia Aparri said the project responds to years of feedback from farmers, local government units, the private sector, and the academe.

“The high cost of feeds—reaching up to 70% of production expenses—remains a major constraint to growth. Today, we deliver a concrete response to that long-standing challenge,” Aparri said.

She said the facility will function not only as a feed production center but also as a hub for innovation, training, and technology transfer, serving backyard fish farmers, cooperatives, and commercial producers within and beyond the region.

DA-BFAR Assistant Director for Administrative Services Zaldy Perez said the project goes beyond manufacturing feed.

“The establishment of this feed mill plant is not simply about producing feeds—it is about transforming the economics of aquaculture,” Perez said.

He said the mill is meant to complement, not compete with, existing industry players, particularly during periods of high prices and tight supply.

SEAFDEC/AQD Chief Dan Baliao said the agency has been working on cost-effective feed formulations since the 1980s, established its own feed production laboratory in 1991, and recently developed alternative raw material formulations in collaboration with the National Fisheries Research and Development Institute (DA-NFRDI).

“This feed mill plant stands as another way for SEAFDEC/AQD to bridge the gap between research and development and practical application and a sign of the Department’s unwavering commitment to its stakeholders,” Baliao said.

Operations and management

DA-BFAR 6 will serve as the sole operator of the plant, guided by a Management Board composed of DA-BFAR 6, SEAFDEC/AQD, and representatives from different cooperatives. SEAFDEC/AQD will manage daily operations to ensure science-based and efficient production systems.

The facility will hire eight dedicated workers, including a Head Operator, an Administrative Officer, a consulting Chemist/Nutritionist, a Mixing Aide, a Weighing Aide, an Extruder Aide, a Bagger, and a Preventive Maintenance Staff member. It will also generate livelihood opportunities for at least 578 fish farmers.

To achieve acceptable profitability, the cost-effective feeds will be sold at PHP 40 per kilogram, or PHP 1,000 per bag. The plant’s expected return on investment is 8.26%, with a 6.71-year recovery period for the initial investment.

Beyond production, the plant will function as a training and demonstration site. Resident technicians will provide hands-on training on feed mill operations for university and college students on on-the-job placements, as well as for private groups planning to establish their own feed mill facilities.

The feeds produced will primarily support commercially important finfish species such as milkfish, locally known as bangus, and tilapia. Output is intended mainly for aquaculture farms in Western Visayas, with any surplus to be transported to neighboring regions to meet their feed requirements.

Economic returns and regional impact

The feasibility study reported a Net Present Value of PHP 722 million, an internal rate of return of 283.68%, and a Benefit-Cost Ratio of 2.36. Total economic benefit over 20 years is estimated at PHP 141 million, with the facility projected to generate roughly PHP 79 million annually in direct and indirect economic value through job creation, higher farm yields, additional farm employment, and increased regional milkfish production.

The province of Iloilo and the wider Western Visayas region stand to gain from the operation. In 2020, Western Visayas produced 210,554 metric tons of aquaculture output, with milkfish — the region’s top cultured commodity — reaching 98,326 metric tons. Capiz accounted for 43% of the region’s milkfish production, while Antique led with 82,261 metric tons or 39.07% of total regional output.

Aquaculture made up approximately 52.9% of total Philippine fisheries production in 2021, with brackishwater pond culture, where Western Visayas is the country’s top producer, contributing about 14.8% of total aquaculture output.

 

Inside the production line

The facility’s processing line follows an eight-step production flow. A hammer mill grinds raw ingredients into fine particles, after which a dust collector removes particulates to maintain a clean working environment. A mixer then blends the ground ingredients uniformly to ensure even nutrient distribution.

The blended material moves to an extruder, which cooks and shapes the feed under high temperature and pressure to improve nutrient availability and pellet durability. A dryer reduces moisture content to ensure stability and prolong shelf life, while an oil sprayer coats the pellets to improve palatability and nutrient retention. A cooler then lowers the pellet temperature to prevent moisture build-up before a bagger weighs and packs the finished feed for storage and distribution.

The April 27 program included the blessing of the facility, the unveiling of the marker, the ceremonial switching-on of equipment, and a guided tour of the plant.