Chicken prices continue to drop

MANILA, Philippines — Farmers are now bearing the brunt of the enhanced community quarantine as farmgate prices have collapsed due to the glut in the country’s chicken supply.

The United Broiler Raisers’ Association (Ubra) said farmers are already losing money as farmgate prices have plummeted below cost of production.

Data from the field showed that farmgate prices of chicken stood at only around P40 to P50 per kilogram, while cost of production is P70 to P75 per kilo.

The lowest on the market is even at P30 per kilo.

“Demand is very low, while supply relative to that demand is very high,” UBRA president Elias Jose Inciong told The STAR.

“The difficulty in the movement of goods and services for the broiler industry also contributed to the collapse in farmgate prices,” he said.

The government already said movement of agriculture and other essential commodities should be unhampered to ensure stable supply of food.

“That is the problem. It is hampered,” Inciong said.

The Samahang Industriya ng Agrikultura (Sinag) also noted that the temporary closure of food establishments and restaurants have contributed to the decline in prices.

“Institutional buyers like Jollibee, KFC, Mang Inasal, and Max’s have stopped operating. That’s why there is a glut (in supply). Plus there is gridlock in checkpoints,” Sinag said.

Inciong said earlier that there is an oversupply of chicken as importers bought a lot in the world market as consumers are expected to shift to chicken consumption due to the spread of African swine fever.

Local production is also improving which further contributed to the excessive supply of chicken in the domestic market which eventually pushed down farm gate prices.

Despite the oversupply, there remains a discrepancy in terms of prices.

Prevailing retail price ranges from P138 to P150 per kilo when the suggested retail price should only be at P130.

Sinag is calling on local government executives to buy directly from farmers and encouraging foundations that are providing food to frontliners to do the same.

Meanwhile, the private sector is calling on the government to put up emergency trading centers down to the barangay level to ensure consumers get enough supply of food amid the enhanced community quarantine.

The Philippine Chamber of Agriculture and Food (PCAFI) said the establishment of emergency trading centers is urgent as the country deals with the coronavirus disease.

“Emergency trading centers in barangays and subdivisions nearest to consumers will give people access to the food they need while enhanced community quarantine is in effect,” PCAFI president Danilo Fausto said.