December 13, 2006

 

URC eyes niche market for chicken parent stocks

 

 

While Philippine broiler companies are setting its sights on export markets, food conglomerate Universal Robina Corporation (URC) is eyeing a niche for local parent stock locally which, they foresee, has tremendous growth opportunities.

 

According to the Manila Bulletin daily, URC will try to displace parent stock imports from the US and Europe as they may have been affected with the dreaded bird flu virus. The Philippines regularly imports parent stocks from these western countries.

 

In a statement, URC said the bird flu has been an opportunity for the company to breed local but quality parent stocks and an indication that the country cannot wholly rely on imports.

 

URC has already exported parent stocks to Malaysia and is trying to penetrate potential markets in Indonesia and Bangladesh.

 

Parent stocks are used to produce day-old chicks for fattening and dressing. The country needs four to five million parent stocks each year to augment the 600,000-head yearly production of dressed chicken.

 

With the absence of imported supply of parent stock and with the growth of the poultry sector, URC sees consistent growth in consumption for parent stock by 10 to 15 percent annually.

 

Parent stocks command an attractive price of US$ 2.80 per piece. One male can pair with 10 females. In the market 100 mated female can be bought with 15 males for free. One parent can yield 120 chicks. However, mortality intervenes so that only 20 to 100 day-old chicks survive for growing.

 

The Bureau of Agricultural Statistics (BAS) records showed that the country has been cutting on its importation of parent stocks. This decreased by 38.6 percent to 226,175 pieces in 2005 from 368,371 in 2004

 

Moreover, importation of grandparent stocks which give rise to parent stocks, totalled 190,450 in 2005, also down from 261,610 in 2004.

 

Having remained bird flu free, URC foresees a promising market for poultry in 2007. The company cites exports of yakitori or skewered chicken to Japan which is expected to reach around 8,000 to 10,000 tonnes.