Poultry growers in Central Luzon are facing the prospects of a bleak Christmas after farms in the region were struck by bird flu. Despite the pronouncement of the Department of Agriculture (DA) that the worst is over for the poultry sector, farmers remain hesitant to restock their farms. This decision to delay restocking has also affected other producers, such as corn farmers who complained on Monday that the farm-gate price of yellow corn has declined by more than 30 percent due to slower demand.
While backyard poultry growers are starting to get back on their feet, their recovery has been slow. The price of live broilers remains below production cost, making it difficult for them to earn from raising chickens. The United Broiler Raisers Association said earlier that the farm-gate price of chicken in Central Luzon has yet to breach P65 per kilogram. For farmers to recoup their production cost and earn a little, the live weight price should reach at least P75 per kg.
A few days after the government confirmed the outbreak of bird flu in San Luis, Pampanga, in August, the farm-gate price of broilers dropped to P15 per kg. Poultry growers lost a lot of money as consumers avoided eating chicken and eggs. However, the steep decline in the farm-gate price of broilers did not translate into cheaper dressed chicken, according to data from the Philippine Statistics Authority (PSA).
In a survey it conducted last month, the PSA found that the price of dressed chicken declined in only two regions—the National Capital Region and Region 4. Data from the PSA showed that the price of dressed chicken in the third week of August went down by only P10 to P140 per kg, from the previous week’s record of P150 per kg. The PSA also noted that the demand for chicken egg remained stable, as prices did not decline significantly despite the discovery that the bird flu in Pampanga struck commercial layers.
Despite the relative stability of chicken prices at the retail level, this did not benefit poultry growers themselves. That this also happened while backyard poultry growers in Central Luzon were brought to their knees by the bird-flu crisis makes it appalling. The DA should look into this as it bolsters the claim of farmers that only middlemen and traders benefit from their produce. While the law does not allow the government to put in place price controls, except during times of natural disasters, it must address the huge disparity between the price of food items at the farm gate and retail levels.
Agriculture experts said the delivery of produce from the farm to various markets involves four layers, making a commodity more expensive. The DA has already taken “baby steps” to take middlemen and unscrupulous traders out of the picture by rolling out its Farmers and Fisherfolks outlets. Obviously, this is not enough. The DA should consider expanding or institutionalizing these outlets and conduct a comprehensive study as to how this problem could be addressed once and for all.