November 15, 2007

Philippine chicken demand low due to high oil prices

Philippine poultry group United Broilers Raisers' Association (UBRA) warned that demand for poultry products in 2008 will drop following the drastic increase on oil prices.

Gregorio A. San Diego Jr., UBRA president told the Manila Times daily that with the current high price of commodities in the country, the demand for poultry has dropped, adding that people tend to buy less today compared with last year.

He said that farm-gate price of chicken stands at P85 (US$1.97) a kilo, while in the retail markets they go for P150 (US$3.47). 

Market price is far more expensive than the farm-gate price and this is the trend near Christmas season, he said.

Amid the strong peso, it is much cheaper now to import chicken than to grow it locally, he said.

The Department of Agriculture earlier imported three million kilograms of chicken for buffer stock for the upcoming holidays.

Agriculture Secretary Arthur C. Yap said that imported chicken is less than a percent of the total consumption of the Philippines every year of 450 million heads.

The shortage, he said, was due to industry's decision not to load up production in the first quarter this year because of excess importation in the last quarter of 2006.

He added that the decision was also aggravated by drought in the second quarter, which has now led to the shortage in the third quarter.

Because of the dry spell, growers are experiencing a longer grow-out period, Yap said.

US$1 = P43.130 (as of November 15, 2007)