September 11, 2003
Philippine Pork, Poultry Prices on Downward Trend
Philippine pork and poultry prices have been on a downward trend since August, due to poor consumer demand, industry officials said Thursday.
Farmgate prices of poultry are now much lower at 41-44 pesos ($1=PHP54.03) a kilogram, compared with PHP55-PHP57/kg in early July, Gregorio San Diego, president of the United Broilers Association of the Philippines, told Dow Jones Newswires.
At the prevailing farmgate prices, poultry raisers are selling at a loss, since the cost of production is about PHP48-PHP50/kg, San Diego said. However, poultry raisers are left with no option but to unload their broilers, or they risk incurring further losses, he said.
According to San Diego, the softer poultry prices can only be attributed to poor consumer demand, which may have been brought about by "political instability" and the depreciation of the peso against the U.S. dollar.
A failed mutiny in late July has caused the peso to stumble to as low as PHP55.45 against the dollar.
In the hog sector, farmgate prices have gone down to PHP58-PHP61/kg from PHP70-PHP75/kg around April.
Soledad Agbayani, president of the Philippine Association of Hograisers Inc, said local demand for pork products has been slower, as meat processors have resorted to importing most of their meat requirements.