July 13, 2022

 

Farmers in Philippines urge for more imports of feed raw materials

 

Farmers in the Philippines called for increased imports of the raw materials used in animal feed, citing the need to provide relief to growers suffering from rising input prices in the wake of the war in Ukraine and the logistics disruptions caused by the pandemic.

 

"The priority should be the ease of importing ingredients, not finished products. (That way,) we can keep the livelihoods here and have the by-products," said Feedmix Specialist II, Inc. vice-president Norberto O. Chingcuanco. "As of the moment, I believe there is no need to import chicken. Too much importing will discourage poultry growers who are… taking on the extra challenges due to the Russia-Ukraine war and other global disruptions."

 

He added that the input costs have been rising due to the cost of soy and other proteins used in animal feed, as well as wheat.

 

"There are weather and disease related problems, in addition to the rising cost of feed. Then there is uncertainty over imports which discourages raisers from investing and rehabilitating or expanding their facilities," said Federation of Free Farmers National chairman Raul Q. Montemayor. "There could have also been a shift in demand from pork to chicken as a result of the high prices of pork."

 

Rising input costs have been an industry problem in the Philippines even before the onset of the pandemic and the crisis in Europe, according to United Broiler Raisers Association president Elias Jose M. Inciong.

 

"Even before the Ukraine war, prices of corn and soy already went up. In the case of local corn especially, corn farmers lost confidence because a large portion of their market, which was the hog industry, disappeared because of African swine fever," he said.

 

Corn prices have risen to ₱22-23 (US$0.39-0.41) per kilogramme from ₱14-16 (US$0.25-0.28) per kilogramme in 2021, according to Inciong. Soy likewise increased to ₱34-36 (US$0.60-0.64) per kilogramme this year from ₱24-26 (US$0.43-0.46) per kilogramme last year.

 

"This has impacted the performance of the broiler industry, whether terminal broiler farms or breeders. Right now, the day-old chicks that used to cost ₱28-30 (US$0.46-0.53) per kilogramme now cost ₱38 (US$0.67)," Inciong said.

 

Due to weak production by the poultry sector, he said that undersized chickens have proliferated and are now finding their way into the markets to meet demand.

 

Additionally, fast food chains like Jollibee and McDonald's have reported supply problems, particularly in procuring chicken that passes their quality standards.

  

In order to augment supply and solve the shortage for the long term, Inciong said that the government must look into policy reforms while consulting producers.

- BusinessWorld