Philippine chicken output set to decline as cost of feed rises

MANILA • The Philippines will likely produce fewer chickens in the coming months, with the numbers reduced by pricier, lower-quality feed and poor weather, a slowdown that could drive food costs higher.

Raising poultry will be "very challenging" in the coming months, said United Broiler Raisers' Association president Elias Jose Inciong, as producers in the Philippines compete with the rest of the world for chicken feed because of supply disruptions caused by the war in Ukraine.

Across South-east Asia, food costs are rising, hitting domestic supplies and exports. Malaysia recently banned chicken exports due to rising local prices and the move hit poultry supplies in neighbouring Singapore.

In the Philippines, the cost issue is compounded by high humidity that is unfavourable to rearing chickens, as rainy season came earlier this year.

"Normally, the answer to high humidity would be very good nutrition. The problem is it's now more difficult to get good quality feeds because of the high cost of raw materials," said Mr Inciong in a phone interview yesterday.

Whole chicken prices in Manila have risen 25 per cent to 200 pesos (S$5.20) since the start of the year, Agriculture Ministry data showed.

Meat price increases quickened 5.4 per cent in May, boosting overall inflation to its fastest since November 2018. Higher chicken prices could, however, ultimately boost production, Agriculture Assistant Secretary Noel Reyes told The Philippine Star.

The Philippines' total chicken output fell 3.6 per cent last year to 1.7 million tonnes.

BLOOMBERG