The average farm-gate price of broiler has sunk below P90 per kilogram (kg), as supply in the market increased due to the resumption of production, according to the Bureau of Animal Industry (BAI).
Citing industry repots, BAI Assistant Director Simeon S. Amurao Jr. said the farm-gate price of broiler as of November 10 has declined by as least P18, after touching the P100 per kg price level in the previous week.
“This could be attributed to the resumption of production cycle of poultry growers. They might be now selling in the market the products of broiler hatchings imported this year,” Amurao told reporters in an interview on Thursday.
“Another factor would be the huge disposal of dressed chicken from the cold storages. So, somehow, the supply in the market would increase, leading to the decrease in the price of chicken both in the farm-gate and retail levels,” he added.
Citing data from the United Broilers Raisers Association (Ubra), Amurao said the farm-gate price of chicken as of November 10 ranged from P75 to P85 per kg. The figures where at least 24 percent lower than the farm-gate price range recorded in November 3 of about P93 to P101 per kg.
Data from the Ubra indicated that the lowest farm-gate price of broiler was recorded in Bulacan, while the highest level was reported in Rizal.
Amurao said the country’s broiler production was continuously growing on a monthly average of 18 percent, even before the avian influenza struck Central Luzon in August. This, he noted, contributed to higher supply of chicken meat in the market this year.
“Plus, from April to August, we imported about 7.5 million broiler hatching eggs. So, from the time we imported it to the time it will be sold in the market, it would take almost two months,” he said. “So this contributed to additional supply in the country.”
But the BAI official noted that the price of chicken meat is expected to increase by the latter part of the month as demand picks up. “Demand may peak by the last week of November because a lot of people will now be receiving their bonuses, so demand is expected to increase. Thus, price may also increase by that time.”
Amurao pointed out that the country has sufficient chicken-meat supply throughout 2017. Based on the government’s projection, total broiler demand this year would reach 1.49 billion heads. Meanwhile, local supply would reach 1.44 billion heads, without including the imported hatching eggs to date, according to Amurao.
“Based on our computation, the country’s supply will balance out the demand up to December,” he said.
The local broiler industry estimated that output this year would increase by at least 16 percent, from last year’s recorded production of 1.2 billion heads.
Data from the National Meat Inspection Service (NMIS) showed that the country’s dressed-chicken inventory declined for the fifth consecutive week, as demand for poultry continues to improve after the government declared that it was able to contain the bird-flu outbreak.
NMIS data showed the country’s chicken inventory in accredited cold storages reached 20,110.58 metric tons (MT) as of October 30, 24.37 percent lower than the previous week’s 26,593 MT.
NMIS data also indicated that the latest dressed-chicken inventory level was nearly 40 percent lower than the 33,140.99 MT recorded in the same period last year.
The bulk of the inventory during the period consisted of locally produced chicken. Local dressed chicken in cold storages amounted to 11,570.11 MT, 34.36 percent lower than the previous week’s 17,625.45 MT.
Earlier, Ubra President Elias Jose Inciong told the BusinessMirror that poultry growers have started selling their dressed chicken so they could earn and resume production.
“They are selling what they can to generate working capital. Growers who were forced to sell to stores are in dire need of capital,” Inciong said in an earlier interview.