MANILA, Philippines - Poultry growers are appealing to the Department of Agriculture (DA) and Department of Trade and Industry (DTI) to lower the suggested retail price (SRP) for chicken in major trading posts to immediately ease oversupply.
“Based on projections, we will have an oversupply unless there are interventions put in place by players and other stakeholders,†said Jose Inciong, president of the United Broiler Raisers Association (UBRA).
The prevailing retail price for chicken in most public markets is placed at P120 to P135 per kilogram.
Inciong noted that prevailing farmgate prives, while still low at P82 per kilogram of liveweight, has improved from last year’s low of P45 per kilogram of liveweight.
“Prices fall because there are speculative breeders who anticipated a large demand because it was the Christmas season. Most new players have this mindset so farmgate prices have been depressed,â€said Inciong.
He said oversupply of chicken is expected to prevail this quarter, keeping farmgate prices at a range of P60 to P85 per kilogram of liveweight.
“Prices will remain volatile because of oversupply,†said Inciong.
“The problem is, even if farmgate prices are low, this is not felt by consumers. Right now, we are trying to coordinate with the DTI and the DA to adjust the suggested retail prices when farmgate prices are low so that the excess supply can be absorbed,†he added.
Inciong noted that the mark up on farmgate prices is usually just P30 per kilo at the most unless there is another layer of middlemen involved in the transaction.