Soaring chicken prices only temporary

MANILA, Philippines – The rise in chicken prices in Metro Manila is only temporary, according to an association of growers.

The “hotter than usual temperature” during the summer season slowed down the growth of chicken population in farms, United Broiler Raisers Association (UBRA) President Jose Inciong, said.  

UBRA is a group of small- and medium-scale poultry broiler raisers with chapters in major poultry producing areas in the country.

Chicken prices in metro markets now range from P120 ($2.73) to P140 ($3.19) per kilogram (kg), almost double the prevailing farmgate price of P70 ($1.59) to P80 ($1.82) per kg of live weight.

Breeders have also been culling layers since October last year when farmgate prices of chicken fell to P45 ($1.02) per kg of live weight to recover losses.

The poultry population in breeder farms during the summer were produced from young flock. Chicks produced by young hens cannot easily endure hot weather and tend to grow slower, Inciong explained.

“Growing conditions during the summer were abnormal. It was difficult,” Inciong said. But the domestic poultry population is expected to recover in the coming months, he added.

“There are many brave new investors in the poultry sector so the production capacity is there. The supply will return to normal. There is no structural problem in production with regards to broilers,” Inciong said. 

The domestic poultry sector produces about 700 million heads annually that increases about 4% year-on-year.

Back to stable prices in weeks

As farmgate prices of chicken have started to go down, retail prices are expected to adjust in the following weeks, Inciong said.

“On our end, farmgate prices have started going down. The retail prices would follow but it would take several weeks,” he said, noting that the downward movement in retail is still influenced by the behavior of traders in wet markets. 

The retail prices of poultry usually falls during the opening of the academic year when education-related expenses prevents families from spending more on food, Inciong said.

Meanwhile, President Benigno Aquino III expects concerned officials to provide him with “definitive answers” on the cause of price spikes in rice, garlic, and other commodities, when he meets with then in the next two weeks.

“There will be a meeting, perhaps this week – if not, at the latest, by next week. We will check this [price spikes] especially on rice but also garlic to determine exactly what is causing this price spike or price spikes,” he said.

Aquino made the statement in a media interview on Tuesday, June 24, onboard Philippine Airlines Flight PR001 from Tokyo to Hiroshima in Japan, where he was on a day-long working trip. – Rappler.com