Broiler groups to sell cheaper chicken next wk

Agriculture Secretary Luis Lorenzo Jr. has approved a move by the country’s broiler producers to deploy "rolling stores" selling cheap chicken in key areas all over Metro Manila next week in a bid to arrest an unusual price escalation of the meat commodity.

The decision was arrived at during his teleconference with agriculture officials and industry representatives from the Philippine Association of Broiler Integrators and the United Broiler Raisers Association.

"Let this proaction send a strong message that the government will never allow prices of essential commodities like chicken to be manipulated by unscrupulous traders or anyone else," he said.

Under the plan, PABI will deploy, starting Nov. 21, their own version of "rolling stores" from where they will sell to the public unbranded chicken weighing about three-fourths of a kilogram priced at P60 per pack or P120 for a 1.5 kg meat, averaging about P80 per kilo.

Chicken prices currently range from about a high of P110 per kg, P95 to P100 per kg in Metro Manila.

PABI, which accounts for 80 percent of the country’s broiler production and composes San Miguel Foods Inc., Swift Foods Inc. Tyson Agro-Ventures Inc., Universal Robina Corp. and Vitarich Corp., told agriculture officials the broiler industry can produce enough supply for the country’s chicken requirements.

Broiler output is forecast to hit 152.02 million birds in the 2003 fourth quarter, up 17.12 percent from its year-ago level of 129.79 million birds, Bureau of Animal Industry data show.

In the conference, broiler industry representatives and DA officials led by Undersecretary Cesar Drilon Jr. also concurred that the sudden price increase of chicken in Metro Manila was not due to lack of production but most likely due to unscrupulous traders and price manipulators out to make a killing especially in public market.

They suspected these traders created the artificial price hike to justify a clamor to import volumes of chicken in time for the Christmas holidays, a ploy government officials say they will not buy because imported chicken, if allowed entry, would cost more than their local counterparts.

At an exchange rate of P55.50 to the US dollar plus shipping and handling charges, but excluding 40-percent tariff, imported chicken, say from Thailand or China, will have a final landed cost of P93 per kg, much higher than the P84 per kg wholesale price of local chicken.

DA officials also warn the public some traders may resort to smuggling chicken from China, a move which animal quarantine officers will tightly monitor because shipment of fowls, birds, eggs and egg products from the East Asian country is currently banned to protect the Philippines of the possible entry of the dreaded avian flu virus.