Philippines poultry sector faces challenges

While chicken meat output growth is slowing down, the country’s poultry producers are facing competition from what they call dumped imports, and some facilities have been forced to close.

(Yurii Bukhanovskyi | Bigstock)
(Yurii Bukhanovskyi | Bigstock)

While chicken meat output growth is slowing down, the poultry producers in the Philippines are facing competition from what they call dumped imports, and some facilities have been forced to close.

Two poultry farms in the Central Luzon region of the Philippines have been forced to close by the local mayor, reports Sun Star. Owners of Allim Poultry and Big Eight Farms in the municipality of Bacolor were found to be operating without the required local government permits, and for being non-compliant with biosecurity measures.

One month previously, the town’s mayor had ordered two other poultry facilities — operated by Ayes Farm and AGD Farm — to close, citing similar misdemeanors.

No farms in Bacolor may currently be set up or expanded, according to the mayor’s latest order.

A recent local government survey revealed 26 farms in the town, almost all of which have been classified as large-scale farms.

Small poultry producers in the Philippines under pressure from cheap imports

Representatives of the Philippines’ poultry producers association have met with newly appointed Department of Agriculture Secretary, William D. Dar, to urge him to address irregularities in poultry meat imports, Inquirer recently reported.

According to the United Broilers and Raisers Association (UBRA), imports reached a record level of 310,000 metric tons (mt) in 2018, and members expressed concerns about a lack of either systematic monitoring or effective controls over smuggling and illegal imports.

Without proper documentation, UBRA president Bong Inciong expressed his concern that imported meat stored in Customs Bonded Warehouses is released onto the market without the necessary tariffs being applied.

Government subsidies granted to farmers in poultry meat exporting countries is a concern for the Philippine Chamber of Agriculture and Food Inc. Its president Danilo V. Fausto urged the Agriculture Secretary to consider a more pragmatic approach to supporting producers.

Inciong alleged that recent government action to raise imports has been counterproductive, and actually forces domestic producers out of business rather than encouraging healthy local competition. He called for subsidies for poultry producers in the Philippines.

Growth in chicken meat output slows

At 477,110 mt, chicken production was 3.1% higher in the second quarter of 2019 (April-June) than in the same period of 2018, according to the latest data to be released by the Philippines Statistics Authority (PSA). The rate of expansion in the sector has slowed from 9.3% in 2017, to 4.6% in 2018.

Central Luzon accounts for more than 37% of the total chicken production in the Philippines, but the fastest increase in output — more than 32% over the period — was achieved by Eastern Visayas.

Volume increases were achieved in all categories except for duck, but prices were 2.3% lower than the record levels set the previous year. Poultry production for the first half of the year was 4.7% higher than in the comparative period of 2018.

Earlier this month, the Philippines confirmed the first cases of African swine fever (ASF) in domestic pigs.

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