Chicken farmgate prices plunge to P80 per kilo, industry group reports

MANILA, Philippines — Farmgate prices for broilers, or chickens raised for meat production, have dropped to P80 per kilogram, the United Broiler Raisers Association said on Monday, November 4.

UBRA Chairman Emeritus Gregorio San Diego said farmgate prices for whole chickens are below the estimated production costs of P105 to P110 per kilogram, leaving broiler producers with losses of around P25 to P30 per kilogram of chicken.

“Bagsak na ang presyo sa farmgate ang broiler. P80 per kilo. Luging lugi na kami,” San Diego said in an interview with Super Radyo DZBB 594. 

(The farmgate price for broilers has dropped. It's down to 80 per kilo. We're incurring heavy losses.)

Farmgate prices refer to the prices of agricultural products sold directly by farmers or producers to buyers, excluding any transportation costs or retail markups.

The Philippine Statistics Authority reported that the farmgate price of broiler chicken in June was P158.94. A decrease to P80 indicates nearly a 50% drop.

The association’s chairman attributed the low farmgate prices to a surge in broiler chicken imports despite recent declines in consumption.

“Andaming imported na dumadating eh mahina consumption. Sabi ko nga, andaming supply kokonti naman ang pera ng tao,” San Diego added. 

(So many imports are coming in, but consumption is low. Like I said, there’s a lot of supply, but people don’t have much money)

Who benefits? With whole chickens priced between P150 and P220 per kilogram in Metro Manila markets, San Diego said consumers are also not benefiting from the lower farmgate prices. 

Instead, he said, it is the importers who benefit, as they can slightly reduce their prices to encourage consumers to purchase imported broilers over locally produced ones.

“Kaya ‘yun nga sinasabi na hindi nagrereflect sa retail (ang farmgate). Meron talagang disconnect. Makikinabang din syempre ang mga importer… Syempre ‘yung bibilhin ay imported,” San Diego said.  

(That's why people say that farmgate prices don’t reflect retail. There’s really a disconnect. Importers will also benefit… Of course, people will buy imported products.)

Questions on government response. UBRA is also concerned about whether the government recognizes the challenges producers face in earning a profit when farmgate prices are low and broiler chickens can weigh up to two kilograms. 

“So sa bawat manok nalulugi ka ng kulang-kulang singkwenta pesos. Eh bente per kilo. … Hindi namin alam kung hindi naintindihan ng gobyerno ang sitwasyon,” San Diego said.

(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.)

The chairman added that although their association submits prices to the Department of Agriculture (DA) daily, the government's efforts to ease the burden of low farmgate prices appear insufficient.

San Diego, who is also chairman of the Philippine Egg Board Association (PEBA), said that egg prices have been low, with reductions of P0.50 per piece in some regions. However, prices are expected to rise as the Christmas season approaches.

Other trends. As of October 31, the retail price of eggs in Metro Manila markets ranged from P7 to P14 per piece, depending on the size and type.

Following Severe Tropical Storm Kristine, some egg prices dropped while others rose by a few centavos.

Meanwhile, retail prices of whole chickens remained stable between October 21 and October 31. However, current prices are already P10 lower than those recorded on October 19.