Current Challenges in the Philippine Poultry Market: A Crisis of Prices, Supply, and Sustainability

Declining Farmgate Prices and High Retail Prices

On November 5, 2024, the farmgate prices for broiler chicken fell to Php80 per kilogram (kg), reflecting a 43% drop from the previous quarter and 50% below June’s peak of Php158.94/kg, according to the Philippine Statistics Authority (PSA). The Department of Agriculture (DA) attributed the sudden drop to a surge in chicken imports amid declining domestic consumption as consumers started to consume pork again. 

Table 1. Farmgate Price (Php/kg) of Broiler Chicken Nationwide, 2024

Source: PSA, 2024

Note: *Highest farmgate price recorded so far this year

**vs. November Farmgate Price

The United Broiler Raisers Association (UBRA) mentioned that the farmgate price of broiler chicken, Php80 per kg, dropped below the production cost of Php105 to Php110 per kg, leading to substantial losses of Php25 to Php30 per kg for local producers. Meanwhile, retail prices remained high at Php150 to Php220 per kg, with prices of broiler chicken in Los Baños, Laguna, reaching Php190 to Php195 per kg, resulting in an average price gap of Php70 to Php140 per kg. UBRA Chairman Emeritus Gregorio San Diego noted that this 87.5% to 175% difference highlights a severe disconnect between farmgate and retail prices that benefits importers while leaving local producers struggling to stay profitable.

Table 2. Price Disparity Between Farmgate and Retail Prices of Broiler Chicken, November 2024

Source: PSA, 2024

The disconnect between farmgate and retail prices emphasizes the significant market inefficiencies in the supply chain. This disparity not only diminishes the profitability of local producers but also raises concerns about fairness, transparency, and distribution of value across the supply chain. Addressing these challenges may require policy interventions to improve supply chain efficiency and ensure equitable benefits for all stakeholders, especially local farmers.

Slight Decrease in Q3 Production

Poultry production in the country showed a 6% increase in the third quarter (Q3) of 2024, reaching 492,759 metric tons (MT), compared to the same period in 2023. However, despite this growth in Q3, overall poultry production for the year has decreased by 3%, attributed to the adverse effects of typhoons. The increase in production during Q3 is notable, especially as the poultry subsector was the only agricultural subsector to post growth for the period. Nonetheless, the industry faces challenges due to an oversupply caused by a surge in poultry imports, which has led to a decline in farmgate prices.

Table 3. Production (MT) of Poultry Nationwide, 2023 – 2024

Source: PSA, 2024

*vs. Q3 2024 production

Initiatives to Enhance the Poultry Industry

• Legislative Support

The proposed livestock bill, known as “Act Strengthening Livestock, Poultry, and Dairy Industry Development and Competitiveness, Rationalizing the Organization and Functions of Relevant Government Agencies, And Creating a Competitiveness Enhancement Fund”  targets Php15 billion in tariff collections to be earmarked for the livestock, poultry, and dairy competitiveness enhancement (LPD fund). The fund will support disease control, repopulation, food safety, and animal feed production programs.

The bill has already passed the Senate and seeks to address rising costs and outbreaks of diseases such as bird flu and African swine fever (ASF). It proposes a ten-year livestock and poultry development fund, modeled after the Rice Competitiveness Enhancement Fund (RCEF), to assist small-scale farm raisers. Counterpart bills are still pending in the House of Representatives.

• Administrative Measures

Administrative measures are also being implemented to improve the efficiency of the industry. Agriculture Secretary Francisco Tiu Laurel Jr. has ordered the Bureau of Animal Industry (BAI) to simplify the transport procedures for broiler chickens. Under Administrative Circular No. 9, the requirement for a veterinary health certificate from local government units (LGUs) will be waived in areas without ongoing avian influenza outbreaks. This move is expected to improve the poultry supply chain’s efficiency, helping to stabilize the market during periods of increased production and fluctuating demand, particularly as holiday season demand is anticipated to rise.

• Scientific Innovations

CVSu’s Study on Antimicrobial Resistance in Poultry Farms

Cavite State University (CVSu) conducted a study under the CVSu Research Grant (CRG) to address the issue of antimicrobial resistance (AMR) in commercial poultry farms. Completed in December 2020 and led by Dr. Cynthia Rundina-Dela Cruz, the research investigated the antibiotic sensitivity profile and dominant resistance genes in avian bacterial pathogens in upland Cavite, focusing on farms in Barangay Tambo Malaki, Indang, and Barangay Litlit, Silang. 

The study revealed the prevalence of avian pathogenic Escherichia coli (25.6%) and Salmonella enterica (58.9%), with the infected chickens showing resistance to critical antibiotics, including azithromycin, cephalotin, and colistin—a “last resort” medication classified by the World Health Organization (WHO). It also highlighted lapses in farm biosecurity protocols and the misuse of antibiotics, which are primary drivers of AMR. The findings emphasized the urgent need for stricter antibiotic use policies and enhanced biosecurity measures in poultry farms to mitigate the risks of AMR, protect public health, and ensure food security. The outcomes provide valuable insights for policymakers and the agricultural sector in combating AMR and promoting sustainable livestock practices.

DOST’s Smart Poultry Growing System

The ChicIoT: An IoT-Based Smart Poultry Building Environment and Growth and Health Status Monitoring and Modelling project, funded by the Department of Science and Technology (DOST) under the Collaborative Research and Development to Leverage Philippine Economy (CRADLE) program, aimed to optimize poultry production using Internet of Things (IoT) technology. Completed in August 2023, the project was led by Dr. Franch MAverick Arellano Lorilla of the University of Southeastern Philippines (USeP) in collaboration with Tetra Consulting Corporation (TCC). It developed an IoT-based system for environmental monitoring and disease surveillance, featuring real-time data collection, analysis, and communication through sensors and a dashboard. Pilot-tested at Agro-Industrial Development Corporation’s (AIDC) poultry facility in Rosario, Agusan del Sur, the system monitors key factors such as temperature, humidity, and dust concentration to optimize chicken growth, predict diseases, and improve farm management. By showcasing the transformative potential of wireless sensor networks (WSNs) and data analytics, the project provides a scalable solution for enhancing efficiency and productivity in the poultry industry.

Market Outlook

Due to an oversupply of chicken in the market, the broiler chicken sector is expected to face sustained downward pressure on farmgate prices in the short term. The significant 43% drop in farmgate prices in November, well below production costs, reflects this trend, with local producers facing substantial losses of up to Php50 per kg. Despite the decrease in farmgate prices, retail prices in Metro Manila remain elevated, indicating a disconnect between farmgate and retail markets. This price gap benefits importers while local producers struggle to stay profitable. 

Additionally, the oversupply in the poultry market, worsened by the lingering effects of typhoons, may continue to suppress farmgate prices as the year progresses, challenging the sustainability of local production. Government interventions and potential adjustments in the pricing structure may be necessary to address these market imbalances and stabilize prices in the coming months. Public support is equally crucial—consumers can help by prioritizing locally produced poultry, directly aiding struggling farmers. Additionally, advocating for policy reforms to ensure fairer pricing mechanisms can contribute to a more equitable and sustainable poultry industry.