Backyard pig operation is characterized by the main use of available household resources. The size of animal holding per farm is relatively small and usually accounts for only 2-4 % of the commercial farm. The ownership of household labor at low opportunity cost is one of their comparative advantages with those commercial operators that require more hired labor to run their enterprise. However, being a resource poor and non-organized, they are unlikely to get, on their own, access to the limited resources relating to high quality genetic stocks, animal nutrition and health services and premium markets for output. Backyard pig raisers have been shown to be a heterogeneous entity. Nevertheless, it has been regarded as forefront of the country’s agricultural growth by contributing the highest and consistent average annual growth of 4.6% in gross value-added in agriculture from 1990-2000 despite the financial crisis which struck Philippines and other Asian countries in the latter part of this decade. For years, this sector dominates the country’s pig industry by producing 70% of the total domestic pork supply; comprising 80% of the aggregate pig inventory and providing livelihood to 3.8 million dependents that rely on this livestock activity as their substantial source of income (Tibayan, 2003).
Costales’ (2002) study on backyard pig raisers’ production and market characteristics in Southern Luzon revealed that access to scarce production resources necessary for expanded smallholder participation is not a sole working of the market force and is unevenly distributed across locations (provinces). It is found greater in areas with institutions like cooperatives where members are encouraged and taught to pool together their available scarce resources to benefit
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everyone in the group. As everyone gains access to these resources, they are enabled to expand their operation, which consequently empowers them to gain more revenue, better profit, and greater income for the household. Thus, the challenge to assemble these backyard pig raisers into institution like cooperatives, which adheres to principles of cooperation, is viewed as a potential measure to directly link them with the whole spectrum of market chain ranging from the acquisition of available production resources and services to the efficient marketing of their differentiated final products. Based on a field survey1, this paper aims to highlight the role of the cooperatives in improving the backyard pig raisers’ access to various production resources and their household economy.