October 6, 2004

Chicken Prices In Philippines Kept At P60-P62
 

Poultry raisers in the Philippines have agreed to tame farmgate chicken price at P60 to P62 per kilo to keep food price low toward the holidays. But they demanded that government should keep the Safeguards Law effective to prevent entry of cheap chicken imports.

Cesar M. Drilon, Department of Agriculture (DA) undersecretary for livestock, said poultry raisers agreed to keep chicken's farmgate price low at P60 to P62 per kilo. The government likewise assured small backyard raisers and broiler integrators that imports below the P94 per kilo trigger price will not allowed.

"They agreed to keep farmgate price at P60 to P62 per kilo on condition that government will not suspend the safeguards law. The safeguards law protects local producers from imported chicken, because it will allow imports to come in with duties and taxes to bring the price to P94 per kilo," he said.

On top of the 40 percent tariff on imports within and outside the minimum access volume for chicken, the safeguards law is supposed to add more duties on the landed cost so as to protect local farmers from the entry of cheap imports.

While DA lifted the Special Safeguards Law early this year to allow the import of 5,000 metric tons (MT) of chicken to soften domestic price, Drilon said the volume has not been fully utilized.

"Only 40 percent was used because the price is high outside," he added.

He said a chicken shortage that occurred in the Christmas holidays last year should not recur this year. Poultry raisers have had normal production this year since the Philippines has not been hit by bird flu.

"We have enough. The shortage will not happen this year," he said.