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Poultry market forces currently distorted by high prices

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POULTRY growers said potential investors in the sector should not be misled by high retail prices because farmgate prices are actually falling and competition in the sector is intensifying.

Elias Jose M. Inciong, United Broilers Raisers Association (UBRA) president, said Tuesday: “On the issue of investment, there is a need for a better data system so that all interested parties can decide rationally.”

“Right now, many are misled by high retail prices,” Mr. Inciong said.

UBRA has called for the abolition of the minimum access volume (MAV) on chicken in order to apply special safeguards (SSG) to protect the domestic poultry industry.

Falling farmgate prices emerged in late 2018 due to oversupply. Agriculture Secretary Emmanuel F. Piñol said in January that the poultry industry should increase farmgate price by P10 weekly, a move flagged by the Philippine Competition Commission (PCC).

Mr. Inciong said “competition will be fierce” when asked if the oversupply situation is expected to improve.




“Intended production based on the breeders in place (is pointing to) an expansion. As to whether that increase in production will mean more profits is another matter,” Mr. Inciong said.

According to UBRA’s weekly farmgate price report of April 5, off-size chicken in Tarlac averaged P62 per kilogram (kg), while off-size chicken in Bulacan was P66.

Regular-size chicken was P64 per kg in Tarlac and P66 in Bulacan.

Prime-size chicken in Pampanga was at P73 per kg, P71 in Tarlac, P67 in Pangasinan, P66 in Bulacan, P77 to P79 in Rizal, P68 to P70 in Laguna, P68 to P71 in Batangas, and P68 to P72 in Cavite, he said. — Reicelene Joy N. Ignacio