April 28, 2022

 

Poultry growers in Philippines voice firm opposition against liberalising chicken imports

 

  

Chicken producers in the Philippines said they will oppose strongly against any move to liberalise chicken importation, stating that local growers are still recovering from the impact of the pandemic and are not expected to fully recover until 2023.

 

In an interview, United Broiler Raisers Association (UBRA) president Elias Jose Inciong said they are just starting to recover after almost of two years of losses. The UBRA accounts for 35-45% of total chicken supply in the country.

 

Inciong raised this opposition, wary that the country's economic managers are already seeking to reduce the tariff of corn, instead of finding ways to encourage local farmers to plant more corn, which is the main component in poultry feeds production, to ease rising inflation in the country.

 

"We are just recovering, we are in the black but for most of the lockdown period, we were in the red," he said, adding that most of them have their possible exit strategies ready should the government pushes for the liberalisation of chicken importation. At present, regular chicken imports carry a tariff rate of 40%.

 

Inciong added: "We will oppose any special importation or lower than the 40% tariff. The 40% regular importation is already harmful because that has not been studied well," he said. He highlighted that the 40% tariff is still considered low, given the highly subsidised agricultural producers in the US and other countries as against nothing for the Philippines ."

 

Once importation is liberalised, poultry growers will shift to importing chicken seriously, he said.

 

Inciong stated that the 40% tariff on regular chicken importation would suffice only if the government provides for domestic support, which includes support for corn farmers.

 

Volume-wise, the UBRA is already experiencing spike in chicken demand due to election spending, according to Inciong. Normally, the summer season commands higher prices, due to lower production.

 

Volume is expected to firm up in the third quarter and for most of the last quarter as production from breeders start coming in.

 

"But this will not happen if there is special importation of chicken," Inciong said, citing the "failed" liberalisation of rice and pork.

 

However, he is wary that the Philippines' economic managers are already seeking to lower the most favored nation tariff rate for corn to 5% in-quota and 15% out-quota and allow a minimum access volume where importers can avail of the four million tonnes until the end of the year.

 

Economic managers said this is just temporary to ensure that there is adequate feeds.

 

- Manila Bulletin