December 10, 2003

 

 

Philippines Insist Domestic Chicken Supply Sufficient

 

The Philippines Department of Agriculture (DA) and local growers on Monday insisted chicken supply is sufficient in the country for the holidays amid the move of the Department of Trade and Industry (DTI) to allow the importation of one million kilos of dressed chicken.

 

Trade Secretary Manuel A. Roxas II had authorized the imports presumably to augment the domestic supply and bring down the prices of dressed chicken in time for Christmas.

 

Agriculture Secretary Luis P. Lorenzo Jr. raised the possibility that some groups were deliberately overpricing the chicken to create an impression of a shortage to justify the imports.

 

In a statement, Lorenzo asserted that chicken imports would not bring down prices in the domestic market. He pointed out that at the current exchange rate, the chicken from Thailand or China would have a final landed cost of P93 a kilo, much higher than the wholesale price of P85 a kilo of the local variety.

 

He added that chicken can even be bought at a low of P80 a kilo in select locations, citing the Philippine Association of Broiler Integrators, which has mobilized rolling stores selling cheap chicken and other meat products all over the city.

 

Assistant Secretary Segfredo R. Serrano, head of the agriculture department's policy and planning division, supported Lorenzo's position with government data.

 

In its forecast, the Bureau of Animal Industry said total broiler output would reach 152.02 million birds in the fourth quarter, higher by 17% than 129.8 million birds a year earlier. 

 

Local chicken production picked up by 3.82% to 801,760 metric tons (MT) in the first three quarters of the year from 772,290 MT during the same period last year. These figures were the basis of the department¡¯s forecast that the country would begin exporting chicken meat in 2004.

 

In contrast, Roxas in previous statements warned that the country would need one million kilos of chicken, or 3% of total demand in December.

 

Besides authorizing the importation, Roxas had also considered reducing to 10% from the present 20% the tariff rate on imported chicken to bring down prices.

 

He said the government would not allow prices of chicken to go beyond P100 a kilo.

 

As of December 4, the Bureau of Agricultural Statistics reported that a kilo of chicken was being retailed at P95. Chicken prices, the bureau admitted, ranged from a low of P90 a kilo to a high of P110 a kilo.

 

However, Serrano did not attribute the increase in chicken prices to the lack of supply but to the high prices of feeds. He said the prices of corn, wheat and other corn substitutes were on the rise in the previous months.

 

He said that typhoons "Harurot" and "Egay" destroyed the corn crops in Cagayan Valley in the second and third quarters, causing a shortage that led to increased corn prices.

 

This was aggravated by the failure of the National Food Authority to facilitate the importation of corn during the period.

 

Serrano, however, attributed the increase in chicken prices-not to the lack of supply-but to the high prices of feeds.  He said the prices of corn, wheat and other corn substitutes were on the rise in the previous months.

 

He said that typhoons Harurot and Egay destroyed the corn crops in Cagayan Valley in the second and third quarters, causing a shortage that led to increased corn prices.

 

This was aggravated by the failure of the National Food Authority to facilitate the importation of corn during the period.