San Miguel Foods projects 20% hike in chicken exports

MANILA, Philippines - San Miguel Foods Inc. is projecting a healthy 20-percent growth in its chicken exports this year, with Japan continuing to be it main export destination.

According to SMFI president Rita Imelda B. Palabyab, the Philippines is only ranked No. 3 in terms of raw chicken exports to Japan after Brazil and the United States.

However, Palabyab pointed out, SMFI has been able to develop a niche market in Japan because “Philippine chicken has a reputation of being more tasty, more tender, because we use a smaller bird than Brazil or the US.”

As such, Palabyab said, SMFI’s chicken exports to Japan comprise mostly of processed “yakitori” chicken especially since no other company exports “yakitori” chicken to Japan.

SMFI exported about six million kilos of yakitori chicken to Japan last year.

The Japanese market, Palabyab revealed, favors more of the brown meat rather than the white chicken meat.

“White meat is the healthier meat, so we have chicken fingers. Japan is a high value market. The products are quite complicated, but they are willing to pay the right price for it,” Palabyab elaborated.

On the other hand, Palabyab admitted that SMFI is not as competitive in the ASEAN (Assocation of South East Asian Nations) market.

“If you talk ASEAN market, you’re talking about basic chicken and we are not as competitive in ASEAN as we are in Japan,” she said.

The full effectivity of the ASEAN Free Trade Area (AFTA), thus, Palabyab acknowledged, poses a possible threat.

“It’s a looming threat. As of today we do not feel it yet, but we have to prepare for that. We have to make ourselves more competitive.”

However, Palabyab is not unduly worried that imported chicken would destroy the local poutry sector.

According to Palabyab, “I think Filipinos will always prefer… I mean anyone not just Filipinos, anyone in any country will always prefer fresh chicken than frozen chicken. All imports have to be frozen so we have to capitalize on that market.”