February 27, 2023

 

Philippines' poultry farmers seek long-term solutions from the government for the industry

 

Philippines' poultry group, the United Broiler Raisers Association (UBRA), has urged the government to propose a long-term solution to ensure the country's chicken supplies amid high prices of various commodities, The Philippine Star reported.

 

Gregorio San Diego, chairman of UBRA, said feed prices have reached an all-time high, resulting in higher input costs for farmers.

 

Christopher Ilagan, chairman of the American Chamber of Commerce's Agribusiness Committee, said that the poultry industry is more aware of factors that could push prices up, particularly input costs, animal diseases, and general supply levels.

 

The industry was helped by the reduction in corn tariffs, which also provided a base to keep prices a bit tempered amid a high-inflation environment.

 

It should be noted that while feed costs account for roughly 70% of the production of poultry meat, corn can make up as much as 60% of feed costs.

 

Ilagan, however, suggested that the government reconsider the minimum access volume (MAV) of 217,000 metric tonnes when the deficit is at a high of three to five million metric tonnes in order to make the tariff reduction truly effective.

 

Vitarich Corp, one of the first Philippines companies in poultry and feed manufacturing, said there is lack of corn in the country.

 

Karen Jimeno, a spokesperson for Vitarich, said the ideal situation is for corn prices to remain constant throughout the year in order to prevent rising input costs.

 

In order for the price of inputs to stabilise sooner, Jimeno recommended that the appropriate policies be implemented as soon as possible.

 

Jimeno said the government must rationalise the taxes levied by both the federal and local governments in order to support the value chain.

 

She said poultry producers pay varying local taxes when simply passing through different cities or municipalities, which makes doing business more complicated.

 

She also said the government should eventually stop importing chickens because doing so is not only inefficient but also detrimental to every link in the local value chain.

 

The local chicken industry has the ability to meet market demand, but there are obstacles that keep it from expanding, Jimeno said.

 

-      The Philippine Star