January 12, 2007

USDA: Major obstacles hinder Philippine broiler industry from taking off

As one of the important sectors in Philippine agriculture, the broiler industry has made significant contributions to the local agricultural economy over the past two decades.  However, recent changes in the sector's environment including high and volatile production costs along with concern about Highly Pathogenic Avian Influenza (HPAI) in neighboring countries have led to a 'state of flux' for the industry. The situation is exacerbated by the fact that broiler production costs in the Philippines are relatively high as a result of protectionist domestic corn policies, which prevents the country from being a major regional exporter of poultry meat.

Broiler chicken production costs in the Philippines are relatively high compared to world prices, as a result of protectionist domestic corn policies, which prevent the country from being a major regional exporter. However, due to the country's current Avian Influenza free status, the ability of Philippine producers to manufacture high quality, value added poultry products made from both domestically produced and imported broiler meat has surfaced, helping to differentiate Philippine products from its regional competitors.  High levels of regional and global intra industry trade indicate that there is room for further expansion in the market of such goods Sanitary and phytosanitary issues such as handling practices, traceability and animal health may nevertheless continue to impede such endeavors.

For the full USDA report, please click here