January 30, 2004

 

 

Philippine Chicken Prices Fall Due To Bird Flu Scare

 

The domestic prices of chicken in the Philippines have fallen this week due to the bird flu scare, even as health and agriculture officials continue to assure the public that the country remains free of the virus, a poultry industry official said Friday.

 

Gregorio San Diego, chairman of the United Broiler Raisers Association, said farmgate prices of live chicken have declined to 57 pesos ($1=PHP55.885) a kilogram from PHP65/kg a week ago.

 

"If demand for chicken continues to dive, we may see a further collapse of prices in the coming week," San Diego told Dow Jones Newswires.

 

Even at prevailing prices, poultry raisers are already selling at a loss, since the production cost is around PHP60/kilogram, San Diego said.

 

The industry is faced with a possible significant contraction in output this year if the downward trend in poultry demand isn't arrested, he added.

 

Philippine poultry production in 2004 is expected to reach more than 500 million kilograms, 1.4% higher than the projected output of 493 million kg in 2003, San Diego had said earlier.

 

Agriculture and health officials insist the country is free of the avian flu virus.

 

Meanwhile, Swift Foods, Inc. said in a statement it was "initiating moves" to export chicken to Japan, which has banned chicken imports from Thailand and China, the two major suppliers of Japan's imported poultry.

 

"The Philippines will ship to Japan in order to provide steady supply and to retain the market for ASEAN," Swift president Jose Concepcion, said.

 

Swift has the capacity to process 100,000 chickens daily, the statement added.