October 29, 2004

Sufficient Chicken Supply to Meet High Demand in Philippines

The Special Safeguards Measures (SSM) for chicken importation in the Philippines need not be lifted, as a 42,000 metric ton (MT) chicken inventory is enough to supply soaring demand for meat products during the Christmas holidays, according to the government.

Further imports of chicken are also ruled out.

National inventory in cold storage is currently at 7,000 MT while another 35,000 MT will be produced within two months, said Agriculture Secretary Arthur C. Yap.

"Last year (when a meat shortage occurred), our chicken inventory was only one million kilos (1,000 MT). Now it's seven million (7,000 MT), and we still have a production of 35 million (35,000 MT). So there won't be (special chicken importation)," he assured.

The Philippines usually consumes 40,000 MT chicken during the holidays which is considerably higher than the rest of the year. According to the Bureau of Animal Industry (BAI), consumption in December normally increases by at least 10 percent from the average consumption of 20,000 MT every month.

Yap said the government is also watching chicken price closely so that it will not go beyond R115 per kilo during the holidays. The present farmgate price is about R60 per kilo.

"Prices do go up (during Christmas), but it should not be above R115," he added.