October 10, 2024

 

Philippine poultry farmers face losses as farmgate chicken prices plummet

Poultry farmers in the Philippines continue to incur losses as the farmgate price of chicken has dropped to PHP 98 (US$1.71) per kg, while retail prices remain high at PHP 230 (US$4.02) per kg, The Philippine Star reported.

 

United Broiler Raisers Association (UBRA) chairman emeritus Gregorio San Diego expressed concern over the falling farmgate prices, highlighting the disparity between production costs and current market prices.

 

San Diego noted that farmers are struggling with production costs ranging between PHP 110 (US$1.92) and PHP 115 (US$2.01) per kg.

 

He also pointed out that poultry raisers have no control over the retail prices, which are dictated by market forces.

 

"The retail price is market-driven, but the demand for chicken remains low because people don't have money. There should be a shift to chicken due to the outbreaks of African swine fever, but the demand hasn't increased," San Diego explained.

 

He highlighted that the cost of chicken per head is pegged at PHP 58 (US$1.01), a significant increase from the previous PHP 22 (US$0.38). This cost now accounts for 26% of total production costs.

 

San Diego called on the Department of Agriculture (DA) to address the issue of overpriced retail chicken. He suggested that retail prices should only increase by 69% of the farmgate price.

 

"The DA should step in and address those involved in overpricing," San Diego said.

 

According to DA monitoring in Metro Manila markets, the retail price of whole chicken ranges from PHP 170 (US$2.97) to PHP 230 (US$4.02) per kg.

 

San Diego added that local poultry farmers are further impacted by the influx of imported frozen chicken. He estimated that at least 480 million kg of frozen chicken are expected to be imported in 2025.

 

-      The Philippine Star