International Egg and Poultry Review - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at the Poultry and Egg Industry in the Philippines.

The Poultry and Egg Industry in the Philippines

Poultry production has climbed steadily in the past few years. The broiler industry was projected to expand nearly 4 percent in 2004 due to the growing domestic and regional demand for domestic chicken meat. In 2004 poultry accounted for 15.57 percent of farm production.

Chicken production was up 3.62 percent due to increased production from commercial farms; however, duck meat production was down 1.32 percent due to a decline in the number of culled layers. Duck production is constrained by continuous inbreeding which has led to lower productivity. Expansion in the poultry sector is constrained by the high cost of feed, inefficient marketing, and a lack of organization within the industry. In 2004, the Philippine chicken inventory was 59.6 percent native/backyard chickens, 25.8 percent broiler chickens and 14.6 percent layer chickens.

Philippines Poultry Imports

Poultry meat imports were up 26.4 percent to 26,670 MT in 2004. The U.S. supplies nearly half of all Philippine chicken imports and Canada supplies 42 percent. The U.S. is also a major supplier of chicken sausages to the Philippines.

Competition for the Philippine market is expected from the ASEAN countries. The Department of Agriculture has accredited 24 Brazilian and 3 Chinese meat establishments to export poultry meat products to the Philippines. ASEAN membership will boost Southeast Asia countries’ competitiveness, especially for Thailand and Malaysia, by reducing tariffs under its regional free trade plan. The ASEAN countries are: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Laos, Myanmar and Cambodia.

Philippines Poultry Exports The Philippines is one of the few countries in Asia that has remained free of Highly Pathogenic Avian Influenza. The poultry industry has taken the opportunity to increase exports, especially to Japan. Poultry product exports to Japan totaled 1,500 metric tons 2004. The EU’s ban on poultry from several Asian nations could provide an opportunity for the Philippines to sell product into in that region. Several broiler companies are seeking certification for Hazard Analysis Critical Control Point (HACCP) with the National Meat Inspection Council.

Chicken and Duck Eggs

Chicken egg production was up 7.92 percent, due to improved egg-laying efficiency and the increased number of laying flocks. An increase in the number of duck layers in commercial farms led to a 4.7 percent higher duck egg output.

In 2004 shell egg imports totaled 600 MT, up 27 percent compared to the previous year. Imports of egg products grew from 592.6 MT in 1998 to 1,560.5 MT in 2002, an increase of 163.3 percent. Egg producers are exploring the possibility of exporting egg products. The Netherlands government is proposing a grant for the Philippine Egg Board to purchase an egg processor that could produce egg products for domestic institutional use and for export markets.

The Autonomous Region in Muslim Mindanao

In 1996 the Philippine Government signed a peace pact in Mindanao with the Moro National Liberation Front (MNLF), a Muslim group that had resorted to a war for independence in the 1970s. Mindanao is the southernmost island in the Philippines.

The peace pact granted a certain degree of autonomy to an area known as the Autonomous Region in Muslim Mindanao (ARMM). The ARMM includes the provinces of Maguindanao, Lanao del Sur and the Tawi- Tawi, Sulu, and Basilan provinces in the Sulu Archipelago. Tawi-Tawi is only 18 nautical miles from Malaysia, and very close to Indonesia and Brunei.

The Philippines is seeking to turn Mindanao into a jump-off point for exports to the Middle East. Indonesia and Malaysia have consulates in Davao City, Mindanao and Brunei plans to open a consulate in Davao. Brunei Darussalam officials have agreed to assist the Philippines in getting halal certification. Halal certification would allow Philippine poultry product exports to the global halal market. The Department of Trade and Industry has sought to turn the Southern Mindanao into a Halal Food Production Area. In the wake of the Asian tsunami last December, Philippine hala food exports are expected to double this to about $100 million.
Source: Philippine Bureau of Agricultural Statistics, Philippine Department of Foreign Affairs, United Nations Food and Agriculture Organization, CIA World Factbook, USDA/Foreign Agricultural Service, news wires

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Source: USDA's Agricultural Marketing Service - 15th March 2005