Big, small poultry growers react differently to AFTA implementation

MANILA, Philippines - Backyard poultry growers are holding back on expansion plans, while big corporate growers such as San Miguel Corp. (SMC) are expanding in the face of the forthcoming implementation of the ASEAN Free Trade Agreement (AFTA).

This was revealed to The STAR by Gregorio San Diego, president of the United Broilers and Raisers Association (UBRA), the country’s major grouping of poultry growers.

According to San Diego, small backyard growers are holding back on expansion plans on fears that the forthcoming implementation of AFTA next year would flood the market with imported chicken.

Full implementation of AFTA next year mandates the ASEAN member countries to bring down to between zero and five percent their tariff rates on a whole range of agreed products.

But while small backyard growers are fearful of AFTA, big corporate farmers such as SMC are apparently seeing an opportunity to possibly increase their export of Avian Influenza-free poultry products.

Because small backyard farmers are holding off on expansion plans, San Diego said, local chicken prices have remained high due to the limited backyard production.

He said the farmgate price for chicken is currently at P88 per kilo which translates to a retail price of P130 per kilo.

Small poultry growers are urging the Department of Agriculture to help the industry become more competitive by helping reduce the production cost which includes electricity cost.

San Diego said the poultry and egg sector is asking President Arroyo to declare a “moratorium” on the implementation of the AFTA agreement.

According to San Diego, the Philippine poultry and egg sector cannot effectively compete against Thailand and Malaysia which are major exporters of poultry.

San Diego argued that while Malaysia and Thailand may still be affected by the Asian Avian flu virus, they would eventually  recover and the Philippines would be swamped with Thai and Malaysian poultry and egg exports.