Food crisis in P.I.

From all indications, there is a looming global food shortage, if it isn’t with us already.  Imagine that rice supply, for instance, is only about 17 percent of what is needed. Then too, the world’s leading rice producers, Thailand and Vietnam, have just upped their prices, precisely because of the increased  global demands. They can afford to do this, and we could have been right up there with these two rice producers. Instead, we join the ranks of rice importers who are at the mercy of rice producers as far as pricing and supply go.

The Philippines has always been a rice-growing, and rice eating nation. Our rice granaries in Luzon used to boast of robust palay harvests and really abundant supplies, more than enough to feed this nation of big rice eaters, and still sell the surplus to our neighbors. Whatever happened to us?

Even Vietnam has now surpassed us in rice production. Thailand, with its superior agricultural advances, has been riding the crest for over a decade now, but Vietnam? Poor Secretary Arthur Yap must be hurting from all the negative publicity. To be sure, he is one of the hardest working government officials in the land, highly visible, not prone to controversies, though not entirely immune to it either because, like it or not, all government positions are political in nature. Remember, politics is right up there together with basketball as the Filipinos’ favorite pastime, and anyone who’s in government is fair play for mudslinging.

Whatever happened to the much-touted miracle rice variety, the one that is supposed to be the answer to the country’s rice woes? The Gintong Ani had so much promise, and now we’re falling in line to import from Thailand and Vietnam, We  cannot  even blame mother nature for our problems because we didn’t have the big howlers of 2006 last year.

This brings up the problem of the country’s egg and broiler producers to mind.

Chicken and egg prices have been escalating, as I’m sure you have all noticed. And yet, if you talk to the association of broilers and growers of the country, they have maintained their farm gate prices very low. Right now it is between P52 to P54/kilo, but when these supplies reach the wet markets and supermarket shelves, they effectively double. Apparently, there are too many layers in-between, from the farm gate to the retailers, and the consumers have not choice but to pay for these multi-layers of middlemen.

Last year, there was a shortage. This was aggravated by the fact that one shipping company threatened to discontinue its service of transporting live stock from the South to Manila because of decreased shipment volumes. Both problems have since been resolved. There is no longer a production shortfall, as Gregorio S. San Diego, president of United Broilers  Raisers Association, and president of the Philippine Egg Board, relayed to us. They announced that the broiler business is set to expand by 15 to 20 percent this year. As for the logistics problem, Secretary Yap has been holding dialogues with the shipping company in question and they have agreed to resume operations as usual — that is, continue ferrying live stock to Manila from the Visayas and Mindanao despite the decreased volume.

With increased production of, say 15 percent, the question is whether the demand will be able to match the increased production. Because of the shortage last year, the Department of Agriculture wanted a commitment from the growers’ association of a stable supply to ensure stable prices of chicken for this year. With the increased production, is the consumer going to be assured of stable prices?

The problem actually lies a bit deeper. The growers, even if they maintain stable farm gate prices, cannot dictate retail prices. They tried to bring their woes to the Department of Trade and Industry and to the Department of Agriculture to cushion the build-up from the suppliers to the end consumer. Both agencies have informed the association that we are still in a free market and they intend to respect it as such. Price controls, according to them, are only resorted to during times of calamity, so they are not in a position to dictate price ceilings for any commodity.

Normally, an abundant supply drives the prices down, but with so many layers of middlemen, this possibility is not likely. San Diego also rationalizes that the small-time peddlers are forced to resort to jacking up their prices because, at the end of the day, their volume of sales is not adequate to meet the day’s needs. With decreasing sales, their only recourse is jack up the prices to make up for the difference.

And why is there a significant decrease in retail sales? Because not too many people can afford the luxury of eating chicken everyday. The market distortion takes its toll on the daily consumer.

And then there is the problem of importation to compound the problems of our local growers. Last year, 40 million kilos of chicken were brought into the country. Of this, 24 million was for chicken quarters, and we’re only talking of legal importation here. Smuggled chicken is another story.

As for the hog industry, many small-time hog raisers have likewise folded up. The industry is made up of 30 percent big-time producers, while backyard producers make up the balance of 70 percent. Because of the growing cost of feeds, only the more resilient have stayed in the business.

Speaking of resilience, the egg producers seem to be a classic example of this. Despite the escalating cost of feeds (it has doubled, according to the association), the industry manages to stay afloat. Perhaps it is because egg production has traditionally been a family business, so labor costs are not a problem. This is especially true in the Batangas area where there is a concentration of egg producers and the industry still flourishes.

Incidentally, I understand that due to the bird flu scare, the government has issued a ban against the entry of chicken, eggs and other fowls from our neighboring countries. How come we still see a lot of Peking duck, century eggs, etc. from China in many restaurants and supermarkets?  How did they get in, if the ban is still in force and there is still an active bird flu watch globally?

Mabuhay!!!  Be proud to be a Filipino.

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