December 9, 2008

Philippines faces low poultry demand despite low prices

Poultry farmers in the Philippines are alarmed by the persistent low demand for chicken despite cutting prices to make them retail at the government’s suggested price of PHP120 (US$2.47) a kilo.

That compares with the PHP140 (US$2.89) to PHP150 (US$3.10) per kilo of choice cuts of pork.

The president of the United Broilers and Raisers Association, Gregorio San Diego, said chicken sales have not been picking up, which traditionally increases as the Christmas season approaches.

He speculated that people are scrimping to make both ends meet because they seem to have no money.

Poultry farmers now have an inventory of 8 million kilos of frozen chicken, one million kilos more than in the same period last year.

San Diego said inventory was enough for the Christmas season, but it could last up to early next year because of low demand.

High prices were caused by lower demand, increased pork imports, and more expensive production costs.