December 17, 2007

 

Rising chicken prices in the Philippines could lower consumption in 2008

 

 

Rising prices for chickens amid price hikes for other commodities may mean lower consumption next year, Gregorio San Diego Jr., association president of the United Broilers Raisers¡¯ Association announced Friday (Dec 14, 2007).

 

Chicken prices in the Philippines are expected to go up further before Christmas and New Year's due to rising demand in the local market. 

 

Gregorio San Diego Jr., association president, said farm-gate price of live chicken increased by P1 a kilogramme, bringing live chicken average farm-gate price to P77 and P78 a kilogramme.

 

San Diego also warned that this would not be the last increase of the year.

 

At the retail markets as of Friday, price of dressed chicken was ranging from P120 to P130 a kilo. San Diego said growers are spending at least P70 for every head.

 

The market price is far [higher] than the farm-gate price, a norm near the Christmas season, San Diego said.

 

The Department of Agriculture, meanwhile, said prices of chicken remain stable, and consumers are assured of sufficient supply for the holidays.

 

Growers have imported 3 million kilogrammes of chicken to ensure a sufficient supply of the commodity during the holidays.

 

Although there is no need for more imports, next year's situation would be uncertain due to the significant increase in corn prices this year, he said.

 

Imported chickens account for less than 1 percent of total consumption in the Philippines.

 

An earlier shortage during the year was due to the industry's decision during the first quarter this year to lower production due to excess imports last year, he said.

 

The dry spell in the second quarter, which prolonged the grow-out period, then led to the shortage in the third quarter.

 

Production of chicken, the third-largest contributor to agriculture, is seen to reach 1.24 million tonnes this year from 1.21 million tonnes.

 

San Diego said inflation in the country meant lower demand for poultry in recent months, adding that people tend to buy less today compared with last year.

 

There may be a challenge to the market next year as consumers would further tighten their purse strings following the series of price hikes this year, he said.