Poultry growers face oversupply

Photo/Analy Labor

Poultry growers are struggling to sell out their stocks as consumers balance their finances amid higher prices of other commodities, an industry leader told the Daily Tribune on Tuesday.

“Demand for poultry products has been low because consumers are also paying higher for other goods. Poultry growers and retailers are competing for a share in consumer budget for their other basic expenses,” United Broiler Raisers Association president Elias Jose M. Inciong said.

Inciong said the weakening demand for poultry, which has resulted in oversupply to some extent, is evident in the data from the National Meat Inspection Service.

“High inventory of chicken in cold storage — which nearly doubled compared to last year — proves there is really weak demand now exceeding the supply, both from local and foreign producers, especially those from Brazil, The Netherlands and the United States.”

NMIS data show chicken in cold storage was up to 52,109 metric tons as of 6 March this year from 50,177 metric tons in the previous week and from 24,428 metric tons in March last year.

He said many consumers are limiting expenses as prices of other commodities rise, especially water and electricity in Metro Manila. Inflation in utilities and other fuels in the cities accelerated to 7.7 percent last month from 6.9 percent in January, according to the Philippine Statistics Authority.

Inciong, however, said poultry growers have been hesitant to reduce farmgate prices to compensate for higher production costs.

“Prices of animal feeds have also gone up,” he added.

Apart from individual consumers, he said poultry demand from other business owners is also slow.

“Small retailers and restaurants and many hotels are still recovering from the pandemic and competing with big restaurants or fast-food chains,” Inciong said.

Read more Daily Tribune stories at: https://tribune.net.ph/

Follow us on social media
Facebook: @tribunephl
Youtube: TribuneNow
Twitter: @tribunephl
Instagram: @tribunephl
TikTok: @dailytribuneofficial