Philippines - Chicken Industry Updates

Domestic chicken production increased by 1.5 per cent in 2009 and is projected to continue to expand again this year, while demand is also forecast to rise, according to Pia A. Ang in the latest GAIN report from USDA Foreign Agricultural Service.
calendar icon 26 July 2010
clock icon 6 minute read


According to the Philippine Bureau of Agricultural Statistics, domestic chicken production increased by 1.53 per cent in 2009 and is projected to continue to expand again this year. Demand for chicken meat is also forecast to rise this year as a result of projected improvements in the Philippine economy and a growing population.


The Philippine poultry sector, valued at about 144 billion pesos ($3.20 billion [1]; PHP), expanded by 10 per cent in 2009 and represents about 14 per cent of total agricultural production in the country. Chicken production, valued at PHP98 billion ($2.17 billion) and the primary source of growth in this sector, went up by 10 per cent.

Source: Bureau of Agricultural Statistics

According to the Philippine Bureau of Agricultural Statistics (BAS), Philippine chicken production increased by 1.53 per cent last year, by volume, as a result of increased broiler production in commercial farms in Central Luzon, CALABARZON (Cavite-Laguna-Batangas), Central Visayas and Northern Mindanao. Production of chicken eggs went up by 5.04 per cent. Higher inventory of layers and better egg-laying efficiency were observed throughout the year.

In 2009, domestic broiler production reached almost 665,000 metric tons (MT; carcass weight equivalent). According to government and industry analysts, domestic broiler production in 2010 is forecast to increase by about three to four per cent.

[1] US$1=Philippine Peso (PHP) 46.68, as of 8 June 2010; made up of chicken, duck, duck eggs & chicken eggs


According to BAS, total annual demand in 2009 for broiler meat reached nearly 689,000MT, up more than three per cent from the previous year. Projected improvements in the Philippine economy as well as population growth are expected to continue to push-up consumption of chicken meat in 2010. Moreover, the continued high retail price of pork may result in some shift from pork to chicken by consumers.

Annual per-capita chicken consumption in 2008 was 8.64kg, an increase of almost 10 per cent from the previous year.

Source: Bureau of Agricultural Statistics


The importation of chicken meat also increased by 47 per cent in 2009, the majority of which came from the United States (41 per cent), Canada (38 per cent) and Brazil (21 per cent). Imports of chicken leg quarters, in particular, increased by 64 per cent, while imports of mechanically deboned chicken, used mainly in the production of hotdogs and processed meat products, increased by 45 per cent. In 2009, the Philippine Department of Agriculture (DA) approved special importations of chicken of up to 8,000MT, exempt from special safeguard duties, which contributed to the increase in chicken trade last year.


WTO commitments

Since 2005, the DA has continued to maintain 10th or final-year Minimum Access Volume (MAV) levels under its Uruguay Round commitments. For fresh/chilled/frozen poultry HS 0207, the final-year MAV was 23,490MT. The DA previously stated that it will continue to do so until such time as a new WTO agreement is reached. In late 2007, the DA announced that it would undertake a review of MAV distribution guidelines in order to allow new entrants and more entities to participate in the MAV system. In February 2009, after extensive and spirited consultations with local stakeholders and main trading partners, then Philippine Agriculture Secretary Arthur C. Yap announced that the current MAV system would remain in place and that no changes to would be initiated under his watch. A new administration will take over starting July 2010.

Minimum Access Volumes

Data from the DA MAV Management Committee shows that fresh/chilled/frozen poultry meat MAV utilisation increased to 96 per cent in 2009 from 89 per cent the previous year. Despite uniform in and out-of quota duties of 40 per cent for most poultry products, the Philippines maintains a Tariff-Rate-Quota or MAV system for poultry. All out-of-quota importations are subject to a special safeguard duty. Annual MAV utilisation for poultry meat for the last three years has averaged around 91 per cent. The majority of all the country’s chicken meat imports (except mechanically deboned or separated poultry) fall under the MAV.

Tariff rates

In-quota and out-of-quota tariff rates for MAV commodities have not changed since 2005. On the other hand, 2009 tariff rates for ASEAN countries have dropped to 20 per cent and are expected to reach 5 per cent in 2010. For this year, MFN and AFTA-CEPT (ASEAN Free Trade Agreement-Common Effective Preferential Tariffs) rates follow.

Special safeguards

In 2002, the Government of the Philippines imposed a price-based special safeguard duty (SSG) on chicken under H.S. 0207.1400 (frozen chicken cuts and offal). This has doubled the effective rate of protection for all out-of-quota imports for these specific products. Last year, the United States exported over $26 million worth of poultry meat to the Philippines, the majority of which are chicken leg quarters and other chicken cuts. The imposition of the SSG in 2002 was mainly the result of intense political pressure from the domestic poultry industry to keep low-priced chicken imports out.


San Miguel Corporation

On 31 May 2010, San Miguel Corporation (SMC) shareholders approved the sale of 51 per cent of its stakes in various core businesses, which include its food and packaging businesses for as much as $1 billion. During the shareholders meeting, SMC announced plans to further cut down the revenue share from its traditional food and beverage businesses and create a ‘more even’ distribution with its power, infrastructure and energy portfolio. According its Chairman, SMC is still in talks with five buyers for the sale of a 49 per cent stake in food subsidiary San Miguel Pure Foods which could raise for the parent firm almost $890 million. San Miguel Pure Foods is currently the largest broiler integrator in the Philippines.

Bounty Agro-Ventures

The Philippines’ second-largest poultry integrator, Bounty, disclosed that it will to spend PHP300 million ($6.5 million) to expand its roasted-chicken outlets to 1,500 stores this year. According to press reports, around 900 ‘Chooks to Go’ outlets will be put up all over the Philippines from now until the end of the year. Currently, there are already 600 stores nationwide and Bounty will continue to open more stores. The company started its foray into the roasted-chicken venture in 2008. It sought to differentiate itself from its competitors by offering roasted chicken that does away with sauces. Aside from its Chooks to Go, Bounty Agro Ventures supplies the domestic market with fresh chicken.

Further Reading

- You can view the full report by clicking here.

July 2010
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.