February 3, 2010

Marginal increase in Philippine hog production; pork supply tight

Philippine hog production increased by only 1.2% in 2009, but this is an improvement compared to the 1.6% contraction it suffered in 2008.

Figures released by the Bureau of Agricultural Statistics (BAS) showed that hog production last year neared 1.88 million tonnes, better than 2008's 1.86 million tonnes but still less than 2007's 1.89 million tonnes.

Hog production grossed roughly PHP161.15 billion (US$3.45 billion), an improvement of 5.91% from 2008's PHP152.15 billion (US$3.26 billion). The sector remains the second leading contributor to the entire gross value of Philippine agriculture for the year, accounting for 13.56%.

The improvement has been attributed to increased production volume as well as better prices which grew by 4.7% to PHP85.84 (US$1.84)/kg in 2009 from PHP81.99 (US$1.76)/kg the previous year. BAS credited the industry's better performance in 2009 to the increase in the number of finishing stocks in the Visayas and Mindanao and the control of the Porcine Respiratory and Reproductive Syndrome (PRRS).

Despite the improving output of the Philippine hog industry, industry insiders think that the country will continue to experience a tight supply of pork meat at least until April 2010. At least for the first four months of the year, pork supply will remain tight as many pig farms are still recovering from the PRRS outbreak that hit the country in the last few years.

Meanwhile, Bureau of Animal Industry Director Dr Davinio Catbagan said that pig and poultry production might be affected by the El Niño phenomenon that the country is currently experiencing, which could bring an extended drought.