By Bernie Cahiles-Magkilat
The Department of Trade and Industry (DTI) has urged the Department of Agriculture (DA) to control the influx of imported chicken as the local poultry producers are now suffering from supply glut.
DTI logo (Manila Bulletin file photo)
DTI Undersecretary Ruth Castelo said unabated importation has caused prices of chicken to drop substantially to the detriment of local poultry producers.
According to Castelo, prices of chicken have gone down to P90 to P99 per kilo in the supermarket although some are still selling at P140 to P160 a kilo.
“Once local poultry producers stop production, we will be eating all imported chicken,” Castelo warned.
As of November 2017, importation of chicken leg quarter already reached 61,434,860 kilograms as against the whole of 2017 with only 44,834,405 kgs.
“We would like DA to regulate the volume until such time that local producers have become stable,” she said.
Already Agriculture Secretary Emmanuel Piñol has proposed for weekly price hikes of chicken to protect farmers and growers from falling prices.
Farmgate prices of chicken had fallen to about P38 per kilo in some areas in the country, keeping farmers from earning higher incomes, which could push them to quit raising chickens.
To assist poultry farmers, Piñol had called on the stakeholders to agree among themselves to increase the farmgate price of chicken by at least P10 every week until such time they are no longer incurring losses. Another measure the DA is looking at to help local poultry raisers from continued loss is to control imports and to export chicken and eggs.
Meantime, the Philippine Competition Commission (PCC) has warned DA that such policy of collective price fixing is anti-competitive.
“An agreement among competitors to collectively raise prices is considered anti-competitive and illegal under Section 14(a) of the Philippine Competition Act,” pointed out PCC Chairman Araenio M. Balisacan.
To address the concerns of poultry raisers and avoid harm to consumers, Balisacan said it is more efficient to allow producers to independently adjust their own prices or output.
Concerned agencies may also consider pro-competitive forms of assistance such as access to agricultural credit or the provision of research and extension services to boost the productivity of poultry raisers.
“As the country’s champion for market competition, the PCC stands ready to offer advisory support to the Department of Agriculture in the formulation of policies that meet the dual objectives of promoting healthy market competition and improving the welfare of producers in the agriculture sector,” he said.