Chicken farmgate prices expected to remain soft on weak demand

THE farmgate price of chicken is expected to remain soft in the coming months despite more freedom of movement and business operations promised by the new quarantine scheme, the United Broiler Raisers Association (UBRA) said.

UBRA President Elias Jose M. Inciong said in a mobile phone interview that prices will remain soft because the underlying demand remains weak due to the pandemic. Only an “unexpected event in the near future” could cause prices to rise, he added.

UBRA estimates that as of Sept. 17, the average farmgate price of an off-sized broiler chicken fell 10.4% week on week to P73 per kilogram (/kg), while the average farmgate prices of regular-sized and prime broilers fell 10.7% and 12.6% to P75/kg and P73.63/kg, respectively.

Mr. Inciong said the production cost for broiler chicken ranges from P83 to P90/kg.

He said the increase in overseas Filipino worker (OFW) remittances and the upcoming start of the campaign for the 2022 elections may help address soft prices.

“The industry is hoping that people can set aside more funds for food as the economy opens up (so) we start to recover in the coming months. Hopefully the 13th month pay, OFW remittances, and the election spending will have some sort of positive impact. But we do not know given the deep wounds inflicted by the COVID-19 pandemic,” Mr. Inciong said.