April 16, 2013

Philippines sees 4.53% rise in chicken output during 2012

Philippine poultry output has increased by 4.53% in 2012, due to strong growth in chicken production and high demand for chicken meat throughout the year, according to a USDA report.

Duck production went up by 2.08% as favourable weather conditions and sufficient water supply resulted in increased duck inventory.

On July 1 2012, about 55% of the total chicken populations were broilers and layers raised in commercial farms. Native chicken raised in backyard farms accounted for 45% of the total chicken inventory.

Chicken production for the first half of 2012 totalled 721,961 tonnes live weight. The top producing regions were Central Luzon, Calabarzon and Northern Mindanao.

Philippine poultry meat exports were valued at US$33.3 million in 2012, down from US$43.1 million in 2011. Most poultry meat exports are shipped to Japan.

The Philippines is the largest market in Southeast Asia for US food and beverage (F&B) products, and one of the fastest growing markets in the world. According to US Customs statistics, the top five F&B product categories by value in 2012 include dairy products and poultry meat, among others. Poultry meat recorded the highest growth.

US poultry meat exports to the Philippines totalled 89,065 tonnes in 2012, up 23% from the previous year.

The Philippines imposes a tariff rate quota (TRQ), known as the Minimum Access Volume (MAV), on several agricultural products, including poultry. Since 2005, the government has maintained MAV levels at its WTO Uruguay Round commitments despite a continued rise in market demand for MAV products.

The high in-quota tariffs, which range 30%-50%, significantly inhibit US exports of MAV products to the Philippines. The in-quota tariff on poultry currently stands at 40%. Since 2002, the Philippines has also invoked a price-based special safeguard (SSG) on imports of chicken meat, essentially doubling the MAV rate of protection for out-of-quota imports.