January 7, 2004

 

 

Philippines To Monitor Chicken Supply

 

The Philippines Department of Trade and Industry (DTI) is keeping a lookout on the fulfillment of an additional supply of 1.3 million chickens as promised by the domestic chicken farmers. The chickens are to meet demands for the holiday season and keep prices from skyrocketing.

 

DTI Acting Secretary Adrian Cristobal, Jr. said they will decide what to do later when the chicken growers failed to live up with their commitment.

 

Cristobal, however, said the Department of Agriculture (DA) has released data noting that Philippine Association of Broiler Integrators (PABI) led by San Miguel, Purefoods, Swift, Tysons, Universal Robina has somehow partially compiled with their commitment.

 

PABI has committed to harvest in advance 1.3 million heads of chicken to fill up the supply gap during the holidays.

 

As supply of chicken became scarce, prices of chicken in public markets have gone up to as much as P120 to P130 per kilogram from P95 before the Christmas holiday.

 

Cristobal, however, said that the shortage is just temporary and that supply is going to stabilize starting on the first week of January as demand goes down.

 

Cristobal further said that chicken, which is an agricultural product, is actually a responsibility of the Department of Agriculture. But the DTI has the power to punish unscrupulous traders for artificially controlling supply and prices.

 

But the DTI being co-chair of the Tariff and Related Matters committee can actually initiate a tariff measure to help local growers in their importation of feeds. Broiler integrators failed to raise chicken because feeds have gone up after the country's corn production was affected by typhoon "Harurot".

 

The DTI is also looking at the unutilized portion of the minimum access volume for chicken imports.

 

Originally, the DTI had proposed for the importation of chicken to fill up the supply gap for the holiday season when the National Price Coordinating Council detected the increasing prices of chicken as early as November.

 

But the DA rejected the idea, and time was running out to undertake the processes, for importation at preferential tariff rate.

 

Agriculture Secretary Luis Lorenzo said there is enough supply of chicken calling the DTI proposal to import chicken not necessary and impractical.

 

The DA's opposition from the DTI move was based largely on its suspicion that unscrupulous traders are manipulating the supply of chicken to create an artificial shortage that would drive prices higher.