January 31, 2008

Corn prices blamed for stagnation in Philippine's poultry sector

Rising corn prices in both the Philippines and abroad are causing stagnation in the country's poultry sector as chicken output barely expanded in the past two years, according to the Department of Agriculture's Bureau of Agricultural Statistics (BAS).

Poultry output inched up by 0.31 percent last year and actually dropped 0.37 percent in 2006, thanks to the rising costs of imported feed.

In 2007, the poultry sector's total production was valued at PHP 44.58 billion (US$1.096 billion) compared to  P44.44 billion (US$1.093 billion) in 2006, a barely perceptible 0.3 percent increase, according to figures from BAS.

Chicken egg production last year grew 1.5 percent to PHP 9.608 billion (US$236.5 million), thanks to increases in the number of laying flocks in the first and third quarters of last year.

Still, this was less than half the 3.1-percent growth seen in 2006.

Duck production fared worse, suffering an 8.4 percent drop, following a 6.9-percent drop in 2006. The duck industry in the country is worth just PHP 1.478 billion a year (US$36.1 million) currently.

Duck populations in the Visayas and Mindanao regions continued to decline, leading to the loss, the BAS said.

Duck egg production, meanwhile, declined by another 6 percent last year to PHP 1.058 billion (US$26 million).

Philippines would have to boost a way to find ways to grow more corn if it is to support its poultry and swine producers, National Corn Competitiveness Board (NCCB) Executive Director Salvador D. Umengan said last week. The government expects an 8.5 percent growth in corn production this year, according to Agricultural Secretary Dennis Araullo. Corn production is expected to hit 7.37 million tonnes on increased acreage, especially in new areas such as Sultan Kudarat and Maguindanao.

Philippines imports 1.2 million tonnes of corn each year and the amount is growing, according to NCCB.