By Benjamin Cuaresma
Small and medium-sized broiler farms are bleeding from both ends: fuel costs spiked by the Middle East conflict are driving up expenses, while consumer demand has tanked as Filipinos shift spending to essentials. The twin pressure has sent farmgate prices crashing to as low as *P65 per kilo in some areas, according to industry data.
United Broiler Raisers Association (UBRA) chairman Elias Jose Inciong said demand for broiler chicken had gone down as fuel costs continue to drive up household expenses, resulting in the collapse of farmgate prices.
“When fuel prices stay high, Filipinos prioritize key expenditures such as fuels and utilities. Food budgets get cut, and chicken is one of the first to be trimmed,” Inciong said. “That drop in demand, combined with high production costs, caused farmgate prices to collapse.”
Industry groups say global oil volatility from the Middle East war has jacked up costs for chick delivery, feeds transport, and farm power. Small and medium raisers, with thinner margins than large integrators, are forced to absorb the rising operational costs while selling birds below break-even.
UBRA is urging authorities to probe the alleged abuse of meat importers who outsource raw material processing into value-added products. The group said the practice undercuts local raisers already reeling from high fuel costs and weak demand.
“We’re asking the government to look into how imported raw materials are being processed here and sold as finished goods. It’s another layer of competition that local farms can’t match when we’re already losing money at P65 per kilo,” Inciong said.
Despite the P65/kg farmgate levels, Metro Manila retail prices for whole chicken remain at P190-P250/kg. UBRA said P210-P230/kg should be the prevailing range, noting that P250/kg likely means “somebody is taking advantage” in certain areas.
The Department of Agriculture has previously stepped in during fuel-driven price swings, including setting suggested retail prices and easing poultry movement rules.
The DA said it continues to monitor supply and is sourcing alternative feed ingredients to help cut production costs. No new SRP has been set as global oil prices remain unstable.
UBRA warned that if small and medium farms keep absorbing losses from fuel, soft demand, and import pressure, many will reduce loading or shut down — setting up supply crunches once the market recovers.
ia/xf
