July 12, 2021


Philippines produces and imports less chicken in 2021, according to USDA data



The Philippines is seeing a drop in the production and import of chicken this year amid tight demand and global supply, data from the United States Department of Agriculture (USDA) showed.


In its latest report, the USDA's Foreign Agricultural Service (FAS) in Manila (Post) revised downward its outlook on the country's' chicken meat production and imports for the year. For chicken meat output, it now expects the Philippines to produce only 1.33 million tonnes from its earlier forecast of 1.36 million tonnes.


The reduced forecast is in line with industry and government forecasts, citing a latest Philippine Statistics Authority (PSA) data showing that chicken production was 11% lower year-over-year in the first quarter of 2021.


In addition, Post also adjusted its 2021 official forecast for chicken imports from 350,000 tonnes to 330,000 tonnes due to increasingly challenged supply chains.


"While official trade data remains mixed, Philippine meat processors, which account for the majority of poultry meat imports, have stressed difficulties sourcing MDM (mechanically deboned meat) as long as European supplies remain restricted," Post said.


From January to April, the global chicken meat exports increased by 25.56% from 123,500 tonnes to 155,064 tonnes, coming largely from the US, Brazil, the European Union, Canada, China and Turkey.


By year-end, the Philippines may also see a decline in demand for chicken meat from the earlier forecast of 1.7 million tonnes to 1.6 million tonnes.


United Broiler Raisers Association (UBRA) president Bong Inciong said in an earlier report that the Philippines' poultry industry is still struggling to recover from the early impacts of the COVID-19 pandemic, which continues to pull down farmgate prices and demand.


"Even (importers) are losing money because of the very low demand. They will do what we were forced to do which was to self-regulate," Inciong said.


Post said that "inventories of chicken meat in accredited cold storages, excluding MDM, have recovered but will increasingly have to compete with imported pork for limited space through at least 2021."


- Manila Bulletin