Chicken Demand Falls

by 5m Editor
8 December 2008, at 6:59am

PHILIPPINES - Demand for chicken is falling despite the price ceiling.

Demand for chicken has failed to increase during the holidays despite a government-imposed price ceiling, poultry raisers told GMANews.TV.

As a result, frozen chicken supplies may last until early next year due to the slowdown, the United Broilers and Raisers Association (UBRA) said.

"Traditionally, chicken sales go up as the Christmas season approaches, but up to now sales have not been picking up," UBRA president, Gregorio San Diego, said. "[Consumers] must have been scrimping to make both ends meet."

Approximately 8000 tonnes of frozen chicken are waiting to be sold – one thousand tonnes more than last year, the group said.

Farmgate prices of chicken fell to 55 pesos (PHP) per kilo last month but it climbed to PHP 73 in December, San Diego said.

"We hope to narrow down the difference between retail and farm gate prices, so that consumers will increase their per-capita consumption," Mr San Diego said.

The GMANews.TV report added that the high cost of corn for poultry feed is the primary reason for the hike in farm gate chicken prices. The commodity is currently being sold for PHP 16 per kilo.