SURGE Study: Tagbilaran City Slaughterhouse Comprehensive Study

Tagbilaran is a third class component city in Bohol Province, and serves an important role as the center of education, seat of political power and the primary hub of trade and commerce. Located 630 kilometers southeast of Manila and 72 kilometers south of Cebu City, the city is composed of 15 barangays with a total land area of 32.7 square kilometers. Its 2015 population is 105,051 and projected to increase to 106,685 by 2017 and 115,967 by 2023.

Livestock production is limited to the backyard level and the city relies on adjoining areas for its supply of meat. At the provincial level, however, there is an overproduction of livestock based on data for both sufficiency level and the actual production volume.

As a major economic driver of Bohol, tourism fuels the economy of Tagbilaran City. Tourist arrivals, according to the Department of Tourism, registered a 74 percent increase from 2008 to 2015. With the increase of number of tourists in the city, the demand for food, services and facilities consequently increased.

The Tagbilaran City Slaughterhouse is located on a 1.9-hectare lot, which is part of an agriindustrial zone in Purok I, Barangay Tiptip. A private operator managed the slaughterhouse since its establishment in 2002, which generated revenues from monthly rental fees. In 1997, the slaughterhouse received its Environmental Compliance Certificate (ECC) from the Environmental Management Bureau (EMB). In 2004, the National Meat Inspection Service (NMIS) granted the facility with an “AA” accreditation.

The city government assumed management of the facility after the 10-year contract with the private operator expired in 2012. The facility has deteriorated over time and has lost its “AA” accreditation. Thus, there is a need to rehabilitate the slaughterhouse and help it to regain its “AA” standard to ensure a sustainable supply of safe and good quality meat products for the increasing number of residents and tourists. The proposed rehabilitation will involve upgrading existing facilities and equipment, streamlining operations, and implementing environmental management measures.

The Tagbilaran City Government requested the Strengthening Urban Resilience for Growth with Equity (SURGE) Project for the conduct of a project study to assess the financial and technical feasibility of upgrading the existing slaughterhouse. In response to the city government’s request, the Project undertook a pre-feasibility study to review the current and projected meat supply-demand situation and to conduct an analysis of the facility’s estimated costs and returns.

The pre-feasibility study of the Tagbilaran City Slaughterhouse is a preliminary document and partially covers output 3.3.1.3.1 of SURGE Project’s year 1 approved work plan, i.e. Comprehensive Analysis of Tagbilaran City’s Slaughterhouse. The report includes the economic and financial analysis of rehabilitating the slaughterhouse, taking into account various demand scenarios and risks that may arise from deviations in some cost and consumption projections. Refer to Annex A for the full report of the slaughterhouse pre-feasibility study.

The SURGE Project, in partnership with Winrock International of the U.S. Department of Agriculture-supported Philippine Cold Chain Project (PCCP), also evaluated existing slaughterhouse facilities and recommended appropriate upgrading measures. The project also performed an environmental screening to identify critical environmental issues that may result from the operations of the slaughterhouse and to recommend appropriate mitigating measures to address the negative impact on the environment.