PCC pushes for pro-competitive pricing in chicken

MANILA, Philippines — The Philippine Competition Commission (PCC) is pushing for pro-competitive pricing in poultry and chicken farm gate amid the Department of Agriculture’s suggestion to poultry raisers to collectively set a farm gate price to address falling prices.

In a statement, PCC chairman Arsenio Balisacan said while it recognizes the DA’s efforts to proactively assist poultry raisers, an agreement among competitors to collectively raise prices is considered anti-competitive and illegal under Section 14(a) of the Philippine Competition Act (PCA).

“To address the concerns of poultry raisers and avoid harm to consumers, it is more efficient to allow producers to independently adjust their own prices or output. Concerned agencies may also consider pro-competitive forms of assistance such as access to agricultural credit or the provision of research and extension services to boost the productivity of poultry raisers,” he said.

Earlier this month, DA Secretary Emmanuel Piñol said poultry growers should agree to increase the farm gate price of chicken by at least P10 every week.

The price increase could be implemented until it reaches a certain level wherein poultry raisers would no longer be losing money in their operations.

Piñol made the suggestion as prices at the farm gate have declined to P38 per kilo in certain areas of the country.

He said not addressing the problem might cause some small players to cease operations.

He also said increasing the farm gate price would not necessarily affect retail prices since there is a suggested retail price (SRP)  for chicken.

Last October, the DA and Department of Trade and Industry agreed to set a moving SRP for chicken to be updated every three days, and put a cap on the difference between the farm gate price and retail price at P50 to keep prices in the market in check.

“As the country’s champion for market competition, the PCC stands ready to offer advisory support to the DA in the formulation of policies that meet the dual objectives of promoting healthy market competition and improving the welfare of producers in the agriculture sector,” Balisacan said.

The PCC is responsible for implementing the national competition policy, and enforcing the PCA to promote and protect market competition.