October 22, 2013

Philippines calls for lower retail chicken prices

In order to align with the current farmgate prices, the Philippines' Department of Agriculture (DA) is asking the Department of Trade and Industry (DTI) to lower the suggested retail price of chicken in major trading centres.

"There is a huge supply of poultry and farmgate prices are falling, but retail is not so we will recommend to the DTI the lowering of retail prices," said Agriculture Secretary Proceso Alcala.

United Broilers Integrators Association (UBRA) president Gregorio San Diego said the average live weight price of chicken has fallen to PHP78 (US$1.80) per kilogramme (kg) while dressed poultry is sold in markets at Php130/kg (US$3). He said chicken growers are incurring losses because production costs have risen to PHP70/kg (US$1.62).

Alcala said based on the latest field monitoring of DA, the farmgate price of a live chick has now fallen to PHP5 (US$0.12) apiece from PHP20 (US$0.46) apiece months ago.

According to the Bureau of Agricultural Statistics (BAS) chicken production in the first semester of the year rose on-year in terms of volume and value. Chicken production consisted of broiler meat, meat of native and improved breed of native chicken, meat of culled layers and breeders, and meat of culled game fowls.

For the first semester of the year, the volume of chicken production was placed at 758,680 tonnes, up 5.05% from the output of 722,210 tonnes in the same period last year. Broilers accounted for 74.66% of the total chicken production for the period. The gross value of chicken production at current prices was placed at PHP63 billion (US$1.5 billion), up 7.18% in the same period last year.

In January-June of 2013, the country's total chicken population was placed at 176.85 million birds, 4.05% higher than last year's headcount of 196.97 million birds.