November 15, 2007

 

Philippine livestock, poultry brace for a difficult 2008

 

 

Philippine livestock and poultry industries on November 13 said they expected difficulties next year due to rising prices of oil and other production inputs, as well as expected poor performance of the agriculture sector due to prolonged drought.

 

The statements were made at the sidelines of the launch of the Association of Southeast Asian Nations Farmers Congress set to take place on February 27 to 29 next year at the SMX Convention Centre in Manila.

 

Gregorio San Diego, president of the United Broiler Raisers Association said the sectors foresee a generally rough 2008 on the continual price rise of corn feedstock, fuel, and electricity.

 

Additionally, the industries are also reeling from the third quarter lull as farm gate prices will not improve despite high production input costs.

 

He added that, a muted inflation rate notwithstanding, "the expected price increases for daily necessities has forced him [the consumer] to make some adjustments."

 

However, San Diego assures that there should be enough poultry supply for the upcoming holiday season despite dull production and lesser demand.

 

Albert R.T. Lim, president of the National Federation of Hog Farmers, Inc., echoed similar projections, stating the hog industry is set to face similar problems next year.

 

Although there'll be enough pork supply for the holiday season, it will still be a "sad Christmas" for the producers, said Lim.

 

Lim is also hoping that the Philippines can attain foot-and-mouth disease (FMD)-free status for the entire country next year so that the industry can maximize export opportunities. Luzon and Mindanao have been declared FMD-free by the Office Internationale de Epizooties.

 

He added they are also optimistic of entering the European Union pork market with Matutum Meat Packaging Corp. -- the first pork exporter to Singapore -- which operates on standards set by the United States Department of Agriculture and of EU.

 

Matutum Meat Packing Corporation, based in Polomolok, South Cotabato, is one of the two meat processing firms in Mindanao accredited by the Department of Agriculture to export fresh and frozen pork, initially to Singapore.

 

Philippine Association of Meat Processors, Inc. executive director Francisco J. Buencamino said that members of his group are already looking at boosting exports.

 

Leonardo A. Gonzales, president of agricultural think-tank Strive Foundation, said that the industries face two main challenges: the increasing prices of feedstock such as corn, soy and wheat; and the lower tariff rates compared to other countries.

 

The lesser tariff protection, he noted, is "basically an offshoot of us believing too much that production efficiency and quality is enough."

 

Gonzales said that the government has not provided enough assistance to these industries, including new technologies such as aggressive promotion of genetically modified corn varieties.

 

Rolando T. Dy, head of the University of the Asia and the Pacific's Centre for Food and Agribusiness, said that increasing production costs will give the industry a hard time.

 

He added that rising prices have put pork and chicken beyond the reach of the masses, hence the low demand.

 

Dy said the economic growth has not been "distributed equally" with people unable to cope up with high prices.

 

Investments are needed so that there will be more jobs, and maybe chicken and pork may become affordable to them again, he said.