The suggested retail price of chicken are expected to be lowered next week as the market is plagued with oversupply following the influx of imported chicken.

Agriculture Assistant Secretary Salvador S. Salacup said at the meeting of the National Price Coordinating Council that the current chicken inventory is placed at 7 million kilos, way above the 3 to 3.5 million kilos of supply in the local market in the same period last year.

Of the 7 million kilos supply of chicken, 5 million kilos are imported and two million is local supply.
There is also an expected 12 percent increase in local production even with El Nino.

Despite the oversupply, retail prices of chicken are still considerably high at P125 to P130 a kilo a kilo when farm gate prices have gone down to as low as P58 a kilo.

Salacup said a meeting with stakeholders is set next week to address the imbalance in the price reference band between farm gate prices and the retail prices.

“A lower SRP band could improve consumption and sales volume of chicken,” Salacup said.

Atty. Ilias Jose of the United Broilers and Raisers Association, said that from the farm gate prices the farm gate prices there should be between P26 to P30 margins. At a farm gate price of P58 a kilo, the retail price of chicken should be around P110 only.

Ernesto M. Ordonez of the Alyansa Agrikultura has blamed the government for allowing huge importations thus, causing oversupply of chicken in the market.

Meanwhile, Trade and Industry Undersecretary for consumer welfare Zenaida C. Maglaya reported that prices and supply of agricultural products have remained stable despite the El Nino phenomenon.

The DA is even expected to post a lower SRP for sugar from the current P52 to P52 a kilo while rice prices have remained stable as summer harvest comes in.

Prices of Tilapia and bangus are at its average price in the last four years of between P80 to P100, respectively.

Prices of vegetables are stable and supplies are abundant.

The NPCC was convened to address the impact of the El Niño, particularly on agricultural products.