Poultry imports in the January-to-May period rose by 50 percent year-on-year to 178,334.181 metric tons (MT), due to an increase in orders for chicken cuts, leg quarters, and mechanically deboned meat (MDM), according to government data.
Latest data released to the public by the Department of Agriculture’s (DA) attached agency, the Bureau of Animal Industry (BAI), showed that the 5-month figure was almost 60,000 MT higher than last year’s 118,616.864 MT.
BAI data indicated that higher imports of chicken cuts, chicken leg quarters and MDM drove the increase in poultry shipments during the period.
Purchases of chicken cuts, which include wings and breasts, more than doubled to 22,941.333 MT, from last year’s 9,536.124 MT, DA-BAI data showed.
DA-BAI also showed that imports of chicken leg quarters during the five-month period reached 43,445.712 MT, which was 40.37 percent over last year’s 30,950.688 MT.
Whole chicken imports during the reference period more than quadrupled to 545.406 MT, from 115.693 MT.
MDM, which accounted for almost 61 percent of total poultry imports, rose by 45.2 percent to 108,428.904 MT, from 74,669.669 MT recorded a year ago.
Chicken MDM is a raw material used by local meat processors to manufacture canned products like chicken nuggets and hotdogs.
‘Spillover effect’
Meat Importers and Traders Association (Mita) President Jesus C. Cham attributed the increase in overall imports to the so-called spillover effect.
Cham explained that shipments intended for arrival in December were delayed due to global shipping problems last year. The shipments entered the Philippines in January and March, he said.
The Mita official said there has been a growing demand for chicken cuts and leg quarters from the hospital, restaurant and catering industry (horeca) since last year.
“The horeca industry started to discover chicken cuts other than leg quarters because the economy was getting better. The consumers are now moving a little bit up in the market,” he told the BusinessMirror. “People are buying more wings, breasts and boneless products. They are starting to buy higher value items.”
Cham said overall meat imports, including chicken meat, are expected to decline as importers and traders reduced orders in recent months due to trade restrictions, including the limited movement of goods due to the Covid-19 induced lockdowns.
In a recent statement, the DA said it has observed a decline in imported chicken meat products, which “shows that local production is sufficient to satisfy national demand.”
The DA said chicken meat imports in May fell by 23 percent to 33,000 MT, from 43,000 MT in January.
The agency also said MDM does not compete with local broiler since this is used by meat processors.
However, United Broiler Raisers Association President Elias Jose Inciong said the decline in chicken meat imports on a monthly basis cannot be considered by the DA as an achievement.
“The reason for the decline is obvious: the entire world had a problem with the movement of goods, including the Philippines. This decline is not an achievement of the DA,” Inciong told the BusinessMirror.
The disruptions in food trade forced meat industry players to keep their stocks in cold storage facilities as demand plunged following the shutdown and the closure of the food service industry during lockdowns.
‘Suspend importation’
The Philippine Association of Feed Millers Inc. (PAFMI) has joined the call of local broiler raisers to suspend the importation of poultry given the glut in domestic supply.
The chicken glut caused by higher local production and imports was worsened by the decline in domestic demand for poultry.
PAFMI President Stephanie Nicole S. Garcia said the survival of the feed milling industry depends on the growth of the local livestock and poultry industry.
Garcia said feed demand has dropped by 30 percent as poultry raisers reduced production while hog raisers are still grappling with the impact of African swine fever.
“We survive if our customers survive. The feed milling industry does not live on feeds alone. Our survivability depends on the survivability of our allied industries,” she told the BusinessMirror.
“Imported meat does not eat feeds. The DA does not see the direct impact [of imports] on the whole value chain. If there’s reduced poultry production, then we will reduce purchases of corn, coconut oil and rice bran.”
Garcia said her group has received reports that more poultry industry players will cut output due to the supply glut.