The country’s chicken inventory in June declined by 42.65 percent to 10,906.6 metric tons (MT), from 19,016.74 MT recorded a year ago, according to the latest data from the National Meat Inspection Service (NMIS).
United Broilers Raisers Association (Ubra) President Elias Jose Inciong attributed this to the decision of poultry growers to cut production so they won’t incur losses again. Inciong added that big industry players have shifted to contract growing from the “volatile” wet market supply chain.
“Poultry growers don’t want to lose money like last year,” he told the BusinessMirror.
“As such, especially for large players, there is a shift in emphasis in market segments, from the commodity pricing of wet market supply chains to contract pricing of HRIs [hotel and restaurant industry]. Therefore, there is less excess production,” he added.
NMIS data showed that both the volume of chicken purchased abroad and locally produced chicken declined year-on-year.
Chicken purchased abroad, which accounted for 64.12 percent of the June inventory, reached 6,993.48 MT. The figure was 30.04 percent lower than the 9,997.12 MT imported a year ago.
The inventory of locally produced chicken declined by more than half, or by 56.61 percent, to 3,913.12 MT from 9,019.62 MT posted in June 2016.
On a monthly basis, local chicken inventory as of June 5 was 21.69 percent lower than the 13,927.83 MT recorded on May 1.
Inciong said the preference of poultry growers, particularly the big players, to venture into contract growing could persist throughout the year or even beyond.
“It’s a choice between the roller coaster and a relatively smooth highway. We shall see how the market goes. There are always new players who do not know what they are doing, which causes disruptions,” he said.
Inciong, however, made an assurance that consumers need not worry as the retail price of chicken, a popular ingredient in making Filipino dishes, has remained stable.
“Yes [prices are stable]. There was just a reduction in surplus. The competition remains stiff,” Inciong said.
Latest data from the Philippine Statistics Authority (PSA) showed that the retail price of dressed chicken in Metro Manila as of the second week of June has remained at P150 per kilogram. The lowest price of dressed chicken was recorded at P130/kg in Region 10, while the highest was at P175/kg in the Cordillera Administrative Region.
Data from the PSA also indicated that the country’s chicken inventory as of April 1 stood at 179.01 million birds, 3.78 percent higher than the 172.49 million birds recorded a year ago.
The PSA said broiler chicken accounted for the bulk, or about 35.91 percent, of total chicken inventory. Broiler chicken inventory as of April 1 reached 64.28 million birds, 1.74 percent more than the 63.18 million broiler chickens recorded in the same period last year.
Image credits: Bloomberg