June 27, 2011

Philippines may experience chicken supply shortage this year

Filipino consumers may be faced with higher pork and chicken prices particularly in the last few months of 2011 after government estimates show that the demand for pork and chicken could outpace projected supply.

An official of the Department of Agriculture (DA), however, quickly said that hog raisers and poultry growers were already made aware of the situation and that the government and the private sector are doing everything possible to ensure the stable supply and price of chicken and pork.

The official also added that meat prices will fluctuate but pork will not be beyond PHP200 (US$4.58) a kilo.

A quarterly outlook from the Bureau of Agricultural Statistics indicated that pork demand will exceed supply during the second, third and fourth quarters of the year.

Estimates place the deficit for pork at 8,000 tonnes for the rest of the year but the official said this can be remedied given the proper intervention. In the first quarter, pork production was found to be sufficient in meeting the demand of the local market.

Chicken production is expected to remain robust until the third quarter of the year.

A surplus of 8,993 tonnes of chicken is expected in the second quarter of the year.The deficit for the fourth quarter, however, is expected to reach 14,675 tonnes. In the second half, the net deficit for chicken is projected at 2,882 tonnes.

Despite the projected deficit, live chicken output is projected to increase 5.33 percent versus the 2010 output.

Traditionally, there is a surge in the demand for pork and chicken particularly during the last quarter of the year for the Christmas holidays.

In recent years, the government has been resorting to importation to plug the shortfall in the domestic requirement for pork and chicken.

Filipinos usually serve and consume pork and chicken dishes during Christmas and the New Year.