August 23, 2007

Philippines may lack 3 million kilograms of chicken in Q3

Philippine Senator Manuel a Roxas II has urged the Agriculture and the Trade and Industry departments to take immediate steps in addressing a foreseen tight chicken supply situation.

Roxas said though the peaks and drops in supply and prices are not extreme, the lack of supply could be felt this Christmas season.

He particularly asked the Department of Trade and Industry to intensify its price monitoring in wet markets and other retail outlets on news that prevailing prices of chicken have increased to P120 per kilogramme, or as much as 20 percent higher than last year. The increase was in spite of farmgate prices being at their lowest levels of around P70/kg.

In a consultation with representatives from poultry and hog sectors, Roxas said they have yielded a consensus that around 3 million kilograms of additional chicken supply will be needed to address the tightness of supply in the third quarter.

He said the shortage started when there was excess importation of chicken in December last year, which spilled over to the first few months of this year. The excess prompted poultry growers to slow down in production amid the resulting glut, coupled with low demand for chicken in the first half.

Moreover, the Agriculture department and the industry have not yet agreed on the "special" importation of 3 million kilograms of chicken. He noted that poultry industry representatives, especially those of the United Broiler Raisers' Association of the Philippines and of the Philippine Association of Broiler Integrators, expressed reservation to the plan. Roxas said there is roughly 13 million kilograms of unused Minimum Access Volume (MAV) quotas, and this could be utilized anytime by importers who may be waiting for a good price due to a supply shortage. Total MAV for this year is 23 million kilograms, yet only 10 million kilograms, around 45 percent, have been used.