Chicken demand falls despite price ceiling, poultry raisers say

MANILA, Philippines - Demand for chicken has failed to increase during the holidays despite a government-imposed price ceiling, poultry raisers said. As a result, frozen chicken supplies may last until early next year due to the slowdown, the United Broilers and Raisers Association (UBRA) said. “Traditionally, chicken sales go up as the Christmas season approaches, but up to now sales have not been picking up," UBRA President Gregorio San Diego said. “[Consumers] must have been scrimping to make both ends meet." Approximately eight million kilos of frozen chicken are waiting to be sold. The inventory is a million more kilos than last year’s inventory of seven million, the group said. Farmgate prices of chicken fell to P55 a kilo last month but it climbed to P73 in December, San Diego said. “We hope to narrow down the difference between retail and farmgate, so that consumers will increase their per capita consumption," San Diego said. High costs of corn—used for poultry feed—is the primary reason for the hike in farmgate chicken prices. The commodity is currently being sold for P16 a kilo. Meanwhile, a number of wet markets have refused to comply with a government-imposed price ceiling on pork products, an industry group said. Some vendors are selling pork at prices well beyond those agreed upon between producers and the Department of Agriculture (DA), a source who refused to be named said. Standard retail price of pork is currently at P140 to P150 a kilo, as indicated in a private-public sector agreement to keep commodity prices stable. “I think the DA should investigate this," said the source from the hogs sub-sector. Costs of pork reached P170 to P180 early this year even though farmgate prices plunged to as low as P78 per kilo. High prices resulted from lower demand, increased pork imports, and more expensive production costs, the source said. - GMANews.TV