June 25, 2004

 

 

Philippines To Export More Poultry Products To Japan

 

The Philippines is shipping out 150 to 160 metric tons (MT) of high-value chicken products to Japan in June and July, even as broiler integrators are confident that the country has already made a mark for itself in the highly-discriminating export market as shipment has picked up to a more regular monthly basis.

 

Ruben Pascual, spokesman of the Philippine Association of Broiler Integrators (PABI), told reporters that PABI members, mainly San Miguel Foods Inc. (SMFI) and Swift, are exporting more volumes to Japan. They are also treading newer grounds by the second half of the year in highly prospective export markets in South Korea, Hong Kong, and the United Arab Emirates (UAE).

 

"The confidence on Philippine export is fast gaining as reflected in the increased order from Japan. Outside Japan, we will be exporting to export to Korea, Hong Kong, and the Middle East," he said.

 

SMFI is set to ship another 150 to 160 MT to Japan within the June to July period on top of the 60 MT that it exported since February this year. This is the first time SMFI is exporting chicken products to Japan directly, as its previous exports consist of smaller volumes being shipped through third-party traders.

 

Industry officials said the shipment to Japan has been slowly becoming more regular. This prompts the industry to gain confidence that the Philippines will maintain a share of the export market even if huge poultry exporters such as Thailand return to the export market after a recovery from the bird flu crisis. Thailand's poultry export was a $2 billion industry before the Asian bird flu crisis broke out.

 

"I think we will definitely keep some share (even after the crisis is over). One big benefit of export companies is their efficiency level has adapted to the stringent export requirement. The same way is applied for the processing of the chicken for both the export and domestic markets. San Miguel and Swift can attest to that," Pascual said.

 

"We probably can't compete with Thailand in terms of volume. But bird flu can happen anytime. If you import, you always want to balance the source of supply. I think we won't be lost anymore in the (export) map," another PABI official said.

 

Despite the chicken export, PABI officials believe most poultry producers will expand just according to their "normal" growth paths since any substantial expansion can cause a price plunge the local market.

 

"They will have their normal expansion. Expansion will not be significant. It's difficult if we build up supply and the local market collapses. (Besides), it takes one-and-a-half-year to build up capacity for chicken," he said.

 

Likewise, a PABI official said the export hardly pulls up the local chicken price even if chicken prices have been firming up in the wet market, reaching close to R100 per kilo from year ago levels of R85 to R90 per kilo.

 

"It has nothing to do with the local market price. It's such a small volume. It's a drop in the bucket," he said.

 

Yet, broiler integrators see the export as an essential function of the industry.

 

"The main business is still domestic. But there is a good long-term implication if we're able to export. Our ability to export will help balance the supply instability," Pascual said.