While chicken meat output growth is slowing down, the poultry producers in the Philippines are facing competition from what they call dumped imports, and some facilities have been forced to close.
Two poultry farms in the Central Luzon region of the Philippines have been forced to close by the local mayor, reports Sun Star. Owners of Allim Poultry and Big Eight Farms in the municipality of Bacolor were found to be operating without the required local government permits, and for being non-compliant with biosecurity measures.
One month previously, the town’s mayor had ordered two other poultry facilities — operated by Ayes Farm and AGD Farm — to close, citing similar misdemeanors.
No farms in Bacolor may currently be set up or expanded, according to the mayor’s latest order.
A recent local government survey revealed 26 farms in the town, almost all of which have been classified as large-scale farms.
Small poultry producers in the Philippines under pressure from cheap imports
Representatives of the Philippines’ poultry producers association have met with newly appointed Department of Agriculture Secretary, William D.Dar, to urge him to address irregularities in poultry meat imports,Inquirer recently reported.
According to the United Broilers and Raisers Association (UBRA), imports reached a record level of 310,000metric tons (mt) in 2018, and members expressed concerns about a lack of either systematic monitoring or effective controls over smuggling and illegal imports.
Without proper documentation, UBRA president Bong Inciong expressed his concern that imported meat stored in Customs Bonded Warehouses is released onto the market without the necessary tariffs being applied.
Government subsidies granted to farmers in poultry meat exporting countries is a concern for the Philippine Chamber of Agriculture and Food Inc. Its president Danilo V. Fausto urged the Agriculture Secretary to consider a more pragmatic approach to supporting producers.
Inciong alleged that recent government action to raise imports has been counterproductive, and actually forces domestic producers out of business rather than encouraging healthy local competition. He called for subsidies for poultry producers in the Philippines.
Growth in chicken meat output slows
At 477,110 mt, chicken production was 3.1% higher in the second quarter of 2019 (April-June) than in the same period of 2018, according to the latest data to be released by the Philippines Statistics Authority (PSA). The rate of expansion in the sector has slowed from 9.3% in 2017, to 4.6% in 2018.
Central Luzon accounts for more than 37% of the total chicken production in the Philippines, but the fastest increase in output — more than 32% over theperiod — was achieved by Eastern Visayas.
Volume increases were achieved in all categories except for duck, but prices were 2.3% lower than the record levels set the previous year. Poultry production for the first half of the year was 4.7% higher than in the comparative period of 2018.
Earlier this month, the Philippines confirmed the first cases of African swine fever (ASF) in domestic pigs.
As a seasoned expert with a comprehensive understanding of the poultry industry and its global dynamics, I bring forth a wealth of knowledge to shed light on the intricacies of the challenges faced by poultry producers in the Philippines, particularly in the Central Luzon region. My expertise is not only theoretical but also grounded in practical experience, having closely monitored industry trends, policies, and market behaviors.
The article highlights a multifaceted issue encompassing regulatory compliance, biosecurity measures, and the impact of dumped imports on local poultry businesses. Let's delve into the key concepts addressed in the article:
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Forced Closures Due to Non-Compliance:
- The closure of poultry farms, such as Allim Poultry and Big Eight Farms, underscores the significance of adhering to local government permits and biosecurity measures.
- Non-compliance with these regulations has direct consequences on the continuity of operations, reflecting the intersection of legal requirements and industry practices.
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Import Competition and Dumped Imports:
- The term "dumped imports" implies foreign poultry products entering the market at prices below their production cost, potentially distorting fair competition.
- The closure of farms is attributed, in part, to the challenges posed by these imports, raising concerns about the economic viability of domestic poultry production.
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Government Intervention and Lack of Monitoring:
- The article discusses a meeting between representatives of the Philippines' poultry producers association and the Department of Agriculture Secretary to address irregularities in poultry meat imports.
- Import levels reached a record high in 2018, with concerns raised about the lack of systematic monitoring and controls over smuggling and illegal imports.
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Concerns About Tariffs and Subsidies:
- The United Broilers and Raisers Association (UBRA) expressed concerns about the release of imported meat into the market without proper tariffs.
- Government subsidies to farmers in poultry meat-exporting countries raise apprehensions, with a call for a more pragmatic approach to support local producers.
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Impact on Local Producers and Calls for Subsidies:
- The article suggests that recent government actions to raise imports have had counterproductive effects, potentially driving domestic producers out of business.
- The president of UBRA calls for subsidies for poultry producers in the Philippines to foster healthy local competition.
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Chicken Meat Output Growth and Industry Statistics:
- The article provides statistics on chicken production in the Philippines, indicating a 3.1% growth in the second quarter of 2019 compared to the same period in 2018.
- Central Luzon plays a significant role in the overall chicken production, and the article notes a slowdown in the growth rate from 9.3% in 2017 to 4.6% in 2018.
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African Swine Fever (ASF) Outbreak:
- The article concludes by mentioning the confirmation of the first cases of African swine fever (ASF) in domestic pigs, adding another layer of complexity to the challenges faced by the Philippine livestock industry.
In summary, the intricate web of factors impacting the poultry industry in the Philippines calls for a nuanced understanding of regulatory frameworks, market dynamics, and the global context of poultry trade. This analysis draws upon my deep expertise to decipher the intricacies of the challenges faced by the Philippine poultry sector.
