September 25, 2020

Philippine pork, chicken production to decline in 2020

Philippine production of pork and chicken will decline this year due to the effects of African swine fever and weak demand resulting from the effects of the COVID-19 pandemic.

According to the latest report of the US Department of Agriculture (USDA) Foreign Agricultural Service, pork production is expected to drop by as much as 20% in 2020 as ASF remains a major concern in Luzon and parts of Mindanao.

Over 300,000 animals or about 3% of total swine inventory have been culled due to ASF, as reported to the World Organization for Animal Health (OIE) by the Department of Agriculture. During the first half of the year, pork production declined 3% as inventory numbers were down 8% and slaughter numbers were down 5%, based on data from the Philippine Statistics Authority (PSA).

On the other hand, chicken meat production is also likely to decline by 15% this year as the lockdown has limited the operations of hotels and restaurants, where it is estimated that one third of all chicken is consumed.

Broiler production in the first half of the year declined 4%, while slaughter numbers in dressing plants were down 9%.

A slight recovery is expected in 2021 as the economy continues to reopen and demand improves, said the report.

Pork imports, meanwhile, dropped significantly in the first half of 2020, but will likely pick up in the second half to offset the expected bigger drop in local pork output, the USDA report said.

However, there was an increase in chicken imports, particularly mechanically deboned meat (MDM), which goes to processed meat production and has proved during the pandemic to be a pantry staple and emergency relief item.

Imports of chicken leg quarters and other chicken cuts declined significantly during the period January to June due to the closures or partial openings of dining places.