Philippine poultry raisers to plan for low-tariff import competition

Philippine poultry raisers will study the production process of leading chicken exporters in Southeast Asia to prepare the local industry for competition with low-tariff imports next year, according to an industry leader on Wednesday (Apr 1).

 

United Broilers and Raisers Association (UBRA) chairman and president, Gregorio A. San Diego, Jr. said his group is finalizing this week a research program to study the production process of Thailand and Malaysia.

 

Under the country's commitment to the Association of Southeast Asian Nations Free Trade Area-Common Effective Preferential Tariff scheme, the tariff rate on dressed and live chicken imports will be cut to 5 percent next year from 20 percent this year and from 30 percent last year.

 

The industry faces influx of poultry meat from Thailand and Malaysia, which currently costs P42 to P44 per kilogramme to produce, a third less than local cost.

 

According to data shown from the Bureau of Agricultural Statistics (BAS), Philippines imported 45,772 tonnes of chicken and chicken preparations last year, up from 45,074 tonnes in 2007 and 32,680 tonnes in 2006.

 

The research, which will run for two to three months, will cost the industry group P500,000.

 

San Diego said that they will first look into their production process, and then concentrate on what is possible in the Philippine setting, like local electricity prices are double of those in Thailand.

 

He added that other production advantages of neighbouring countries include low labour costs, steady supply of the feed ingredient yellow corn, and modern poultry houses.

 

The Agriculture department expects poultry production, which accounts for 14 percent of total agriculture output, to grow 5.4 percent this year from 4.71 percent last year amid a rise in chicken layers and breeders.

 

BAS data also showed that the value of poultry production increased to P46.650 billion last year from P44.552 in 2007 and P44.454 billion in 2006.

 

However, UBRA is expecting the sector to grow just 3 percent this year, against the government's 5.4 percent estimate, due to dampened consumption amid the economic slowdown.

 

Meanwhile, Philippine Maize Federation, Inc. chairman Roderico R. Bioco said that the problem in the country's corn production is the lack of infrastructure, whereas in Thailand, most of their production is covered by infrastructure, like post-harvest facilities.

 

Bioco said that the government should encourage the private sector to build post-harvest facilities by giving more incentives like tax breaks, as the lack of post-harvest facilities account for up to 15 percent of yield losses.

 

To date, the country has only four operational corn centres, all in Mindanao.

 

BAS data also showed that corn output fell short by 4 percent at 6.9 million tonnes last year, against a 7.2 million-tonne target because of high fertilizer prices and tropical storms in the first half of the year.