Ex­pen­sive op­er­a­tion

• Poul­try group seeks city to re­duce reg­u­la­tory fees


POUL­TRY oper­a­tors in the city are ask­ing the lo­cal gov­ern­ment to re­duce the high fees im­posed to the in­dus­try say­ing it neg­a­tively af­fects the po­lutry op­er­a­tion.

In a let­ter ad­dressed to Mayor Sara Duterte, mem­bers of the Fed­er­a­tion of Live­stock and Poul­try As­so­ci­a­tions, Rais­ers and Co­op­er­a­tives (FLPARC) seek to amend the ex­ist­ing rev­enue code of the city amid the in­crease of the reg­u­la­tory fee for chicken and fouls un­der Or­di­nance No. 0291-17.

Among the sig­na­to­ries in­cluded Aileen Suy of Ana’s Breed­ers Farms, Inc., Dr. Ed Luauaco of San Miguel Foods, Inc., Esper­anza Ca­puyan of Vi­tarich, Ruben Jara­plasan of Bounty Agro Ven­tures, Inc., Johnny Te of Davao Vless Poul­try farm, and Atty. Lalaine Lili­beth Dela Vic­to­ria of the Davao Poul­try and Egg Pro­duc­ers, Inc.

Ac­cord­ing to the let­ter, the reg­u­la­tory fees have in­creased to 600% from the pre­vi­ous rate in the 2005 Rev­enue code – from P0.50 to P3.00 per head.

“While it is true that the reg­u­la­tory fee is only P3.00 per bird, this is trans­lated to P60,000 per dress­ing plant

per day for a plant with a ca­pac­ity of 20,000 birds per day,” the let­ter said.

It also trans­lates to P1,560,000 per month for a dress­ing plant with the said ca­pac­ity op­er­at­ing for 26 days a month.

In their pro­posal, the reg­u­la­tory fee should only be at P0.65 per bird – P0.15 per head for per­mit to slaugh­ter, P0.20 per head for ante mortem, and P0.30 per head for post mortem.

“The poul­try in­dus­try is now in the verge of clo­sure be­cause the price of fresh chicken has gone down to less than the cost of pro­duc­tion,” it said.

Ac­cord­ing to the let­ter, the mar­ket price of fresh chicken has gone down to P75 last Jan­uary, and P95 last Fe­bru­ary. Its farm gate price has also gone down from P85 to the low­est of P45.

“These prices are way be­low the av­er­age pro­duc­tion cost of P105 per kilo,” it said.

“The fu­ture of the poul­try in­dus­try in Davao City or even in the whole Philip­pines is very bleak, how­ever, the stake­hold­ers in the in­dus­try are try­ing their very best to stay afloat de­spite the in­sur­mount­able chal­lenge they are now fac­ing,” it added.

The group also cited that it dis­ad­van­ta­geous to op­er­ate in the city due to higher reg­u­la­tory fees.

Ap­prox­i­mately 7,000 em­ploy­ees di­rectly re­lated to the poul­try busi­ness is set to be af­fected by the in­crease.

Other prob­lems of the said in­dus­try in­clude “mas­sive im­por­ta­tion be­cause the farm gate price is way be­low the pro­duc­tion cost; mas­sive con­ver­sion of agri­cul­tural lands to res­i­den­tial uses, ex­pen­sive wa­ter treat­ment fa­cil­ity in com­pli­ance to en­vi­ron­men­tal re­quire­ments, volatile prices due to mas­sive im­por­ta­tion, and ar­bi­trary Barangay de­ci­sion to close poul­try re­lated busi­nesses due to un­sub­stan­ti­ated com­plaints of res­i­dents.”


FARM­ERS from all re­gions in Min­danao gather in the first Min­danao Farm­ers Con­fer­ence at the Davao City Re­cre­ation Cen­ter on Satur­day.

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