The farm-gate prices of regular-sized broilers saw quick recovery last week as average quotation rose by 7 percent to P74.33 per kilogram (kg) but an upward trend remains uncertain.
Latest price survey by the United Broiler Raisers Association (UBRA) indicated a price uptick in the average farm-gate prices of all sizes of broiler last week.
The average farm-gate price of off-sized broilers rose by 13.54 percent to P72.67 per kg from the previous week’s P64 per kg.
Meanwhile, prime-sized broilers are now sold at P74.17 per kg, 7.2 percent higher than P69.19 per kg previous quotation, based on UBRA data.
However, UBRA President Elias Jose Inciong could not give a direct reason behind the sudden price increase last week.
Inciong told the BusinessMirror that the current market situation is “hard to read” and described it as a “roller coaster.”
But Inciong pointed out that this year has been the “hardest” year for broiler raisers due to the extreme price volatilities they are experiencing.
“It seems when farm-gate prices are up, players would increase production at the same time and then there will be a glut at harvest time,” he said. “The same pattern with imports. When prices increase then there will be a rush to unload frozen inventories.”
Inciong said the industry is currently building up data on the day-old-chick loading of the industry to see how the supply side of the value chain is doing.
Agriculture industry groups have been complaining on the lack of sound and reliable data covering the sector that could help and guide farmers with their planting and production intentions.
The lack of data forces farmers to be “blind” on how the market is performing, particularly demand, that results in a glut of commodities at times. (Read related Broader Look story here: https://businessmirror.com.ph/2019/03/14/fuzzy-ph-agriculture-data-leads-to-glut-confused-farm-sector/)
The loss of key broiler markets such as hotels, restaurants and institutional (HRI) buyers, which accounts for 30 percent of total demand, has created a glut in domestic chicken meat supply.
This was coupled by high imported chicken meat products that has been stalled from being unloaded due to lack of demand as well.
Latest National Meat Inspection Service (NMIS) data showed that nationwide dressed chicken inventory in accredited cold storages as of September 21 was at 73,127.42 metric tons (MT).
NMIS data indicated that about half of which, or around 33,740.45 MT, were locally produced while the remaining volume of 39,386.97 MT were imported.
The latest volume was 11 percent higher than last month’s 65,859.76 MT and was 152.42 percent over last year’s 29,085.04 MT, based on NMIS data.
Given current market conditions, a Global Agricultural Information Network (GAIN) report projected that the country’s total chicken meat output this year may decline by 13.79 percent to 1.25 million metric tons.