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Philippines: Suspension of chicken imports urged amid supply glut
MANILA, Philippines — Poultry stakeholders are calling on the government to suspend the importation of chicken meat and its products amid an oversupply resulting in the decline of farmgate prices.
In a letter to Agriculture Secretary William Dar, the United Broiler Raisers’ Association (UBRA) urgently requested the government to suspend the importation immediately as the glut has gravely damaged the poultry industry.
“In order to preserve the remaining production potential for the year, the importation of poultry meat and poultry products must cease as soon as possible so that the industry, especially those at the breeder stage of the value chain, can hold on until times are less volatile,” UBRA president Elias Jose Inciong said.
“This will help assure food security for the people and a viable livelihood for the industry stakeholders,” he said.
Data from the Bureau of Animal Industry showed that chicken imports surged by 46 percent to 144.78 million kilograms from January to April compared with the 99.37 million kilos in the same period last year.
However, a source from the DA who requested anonymity, said suspending imports is not as easy as it seems as the Philippines has international obligations when it comes to trade.
“We are not only importing, but we also export albeit different commodities to our trade partners. If and when we say we stop importing, for reasons not stipulated in the trade agreements, we may be put in a bad light,” the source told The STAR.
“Retaliatory measures from trading partners may also be a possibility. It’s a complicated matter,” the source said.
Inciong said local production has been more than what the market demands since the start of 2020. The DA has also projected a broiler supply surplus equivalent to 253 days by year-end.
“The pandemic has severely aggravated the situation with the closure of hotels, restaurants, and other institutional buyers coupled with the restrictions in the movement of goods and people under the enhanced community quarantine,” he said.
Hotels, restaurants and institutional buyers corner at least 30 percent of the poultry market.
Data from the National Meat Inspection Service showed that frozen dressed chicken inventory stood at 71.86 million kilos as of April 20, but the industry estimates that as much as 90 million kilos.
This pertains only to cold storage facilities accredited by the NMIS.
Inciong noted that the industry’s request is not unprecedented in this COVID-19 impacted world. Poultry raisers in Europe have also asked for a similar relief to prevent an oversupply crisis.
“These are countries which heavily subsidize their agricultural sectors. In our case, the crisis is already at hand, it is also beyond cavil that our sector has long been neglected through several administrations,” Inciong said.
Source: https://www.philstar.com/business/2020/05/13/2013559/suspension-chicken-imports-urged-amid-supply-glut