April 8, 2008

Philippine broiler industry expects growth despite snags

Players in the Philippine broiler industry are confident of achieving a 21-percent growth amid risks of oversupply and high production costs, an industry official said.

During the 2008 National Food Summit last week, Rita Imelda Palabyab, president of the Philippine Association of Breeders and Integrators, said that this growth can "assure everyone of sufficient supply of chicken for this year but it certainly comes with a major risk for producers not only from possible oversupply but also from high increases in feed prices and raw materials driven by growing demand for biofuels."

Feeds and feed ingredients constitute about 65 percent of a raiser's production cost and as of March, output prices already reached P65 a kilo, equal to the farmgate price of P69 a kilo for live broiler.

Palabyab thus urged the government to address three major issues concerning the broiler industry, such as maintaining priority in the use of corn for food and by extension, for animal feeds.

Yellow corn is the main ingredient of animal feeds. Demand for corn has surged in the past few years, however, as the staple is being used as a biofuel feedstock.

Palabyab also stressed the need to strengthen the country's disease surveillance and meat inspection system, not only to ensure food safety but to also open more opportunities for export.

With the country's avian influenza free status, export market can be expanded similar to that in Japan, she added.

Earlier, the Bureau of Animal Industry said it expects chicken exports to Japan to increase by 33 percent to 8 million kilos this year, boosted partly by a projected increase in local production.

Last year, chicken exports to Japan reached six million kilos.

She also urged the government to preserve the current tariff structure for chicken to ensure the sector's positive contribution to the country's food security.