March 15, 2010

Philippine chicken prices seen lower on oversupply

The suggested retail price of chicken are expected to be lowered next week as the Philippine market is plagued with oversupply following the influx of imported chicken.

Agriculture Assistant Secretary Salvador S. said current chicken inventory is placed at 7 million kilogrammes, way above the 3-3.5 million kilogrammes of supply in the local market in the same period last year.

Of the 7 million kilogrammes supply of chicken, 5 million kilogrammes are imported and two million is local supply.

There is also an expected 12% increase in local production even with El Nino. Despite the oversupply, retail prices of chicken are still considerably high at PHP125-130 (US$2.73-2.84) a kilo when farm gate prices have gone down to as low as PHP58 (US$1.26) a kilo.

Salacup said a meeting with stakeholders is set next week to address the imbalance in the price reference band between farm gate prices and the retail prices.

Atty. Ilias Jose of the United Broilers and Raisers Association (UBRA), said that from the farm gate prices the farm gate prices there should be between PHP26-30 (US$0.56-0.65) margins. At a farm gate price of PHP58 (US$1.26) a kilo, the retail price of chicken should be around PHP110 (US$2.40) only.