In a shocking turn of events for the poultry industry, farmgate prices for broiler chickens in the Philippines have plunged to P80 per kilogram, as reported by the United Broiler Raisers Association (UBRA). This significant drop, nearly 50% from June's price of P158.94, has raised alarms among local producers who are now facing substantial losses. Understanding the implications of these price shifts is crucial not only for farmers but also for consumers and policymakers.
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The Current Situation
The current farmgate price of P80 per kilo stands in stark contrast to production costs estimated between P105 and P110 per kilogram. Gregorio San Diego, UBRA Chairman Emeritus, expressed the dire situation faced by farmers, stating, “Bagsak na ang presyo sa farmgate ang broiler. P80 per kilo. Luging lugi na kami.” This price drop translates to losses of approximately P25 to P30 for each kilogram sold, creating a significant financial burden for broiler producers.
Factors Behind the Price Drop
San Diego attributes the declining prices primarily to a surge in imported broiler chickens combined with a decrease in local consumption. “Andaming imported na dumadating eh mahina consumption. Sabi ko nga, andaming supply kokonti naman ang pera ng tao,” he noted. The influx of cheaper imports has overshadowed local production, leading to a market oversupply while consumer purchasing power remains low.
Consumer Impact
Despite the drop in farmgate prices, consumers in Metro Manila are seeing whole chicken prices ranging from P150 to P220 per kilogram. San Diego argues that the benefits of lower farmgate prices are not reaching consumers. Instead, importers are the ones reaping the rewards, as they can lower their prices slightly to attract buyers toward imported broilers rather than locally produced options. “Kaya ‘yun nga sinasabi na hindi nagrereflect sa retail (ang farmgate). Meron talagang disconnect. Makikinabang din syempre ang mga importer,” he explained.
Government Response and Industry Concerns
The UBRA is increasingly concerned about the government's awareness of the challenges faced by local producers. San Diego highlighted that even with daily price submissions to the Department of Agriculture, government support has been insufficient. “Eh bente per kilo. … Hindi namin alam kung hindi naintindihan ng gobyerno ang sitwasyon,” he said, indicating a disconnect between policymakers and the realities on the ground.
> "So for each chicken, you're losing nearly fifty pesos. It’s only twenty per kilo. We don’t know if the government understands the situation." — Gregorio San Diego, UBRA Chairman Emeritus
### Broader Trends in the Market
In addition to the challenges facing broiler chicken prices, the egg market has also experienced fluctuations, with prices dropping by P0.50 per piece in some regions. However, as the Christmas season approaches, prices are expected to rise. Currently, retail egg prices in Metro Manila range from P7 to P14 per piece, depending on size and type. Whole chicken prices have remained relatively stable, though they are already P10 lower than figures recorded earlier in October.
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The steep decline in chicken farmgate prices poses a significant challenge for local producers in the Philippines, as they grapple with financial losses amid increased imports and stagnant consumer demand. As the situation unfolds, it is crucial for both the government and consumers to recognize the implications of these changes on local agriculture and food security. The disconnect between farmgate prices and retail costs raises important questions about the future of the poultry industry and the need for comprehensive support for local farmers.
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