Chicken prices likely to go down

MANILA, Philippines - Chicken prices are expected to go down to around P110 to P120 per kilo following a significant drop in the farm gate prices of chicken this week.

In a report to Agriculture Secretary Arthur Yap, Director Davinio Catbagan of the Bureau of Animal Industry (BAI) said chicken farm gate prices went down by an average of P20 per kilo as of July 21 due to a “confluence of factors.”

Chicken farm gate prices dropped from P92-P94 per kilo three weeks ago to P72-P74 per kilo as of July 21.

The DA, along with the Department of Trade and Industry (DTI), is closely monitoring wet markets all over the country to make sure that the drop in chicken farm gate prices translates to cheaper retail prices for Filipino consumers.

“Because farm gate price is down by P20, retail prices must be adjusted down correspondingly as well,” Catbagan said. “The drop in prices is not a decision of the raisers, but is supply driven, brought about by improved farm production efficiency and increase in birds’ harvest weight,” Catbagan added.

“The DA will also continue to monitor the supply of day-old chicks as it is still tight due to early culled breeders in the fourth quarter of 2008 and the first quarter of this year,” Catbagan said.

The poultry sub-sector posted a 4.71 percent growth last year, with chicken production rising 5.76 percent.  

The poultry sub-sector, which accounts for 14.11 percent of total agricultural output, was valued at P130.9 billion at current prices or 10.71 percent higher than the previous year’s record.

The country’s continuous bird flu/avian influenza (AI) free status allows the Philippines to continuously export chicken meat to Japan and the Middle East, and breeders’ day-old-chicks (DOC) to Nepal and other Asian countries.