Weak demand and oversupply push Philippine chicken prices lower

Producers warn that chicken prices may fall again as oversupply persists and households reduce purchases amid higher fuel costs.

aviNews Asia

Philippine poultry producers are warning of further price declines as chicken demand remains soft nationwide. The United Broiler Raisers Association (UBRA) said farmgate prices have not improved, even though production usually tightens during humid months.

UBRA president Elias Jose Inciong noted that households have been buying less chicken. He linked the slowdown to higher fuel costs, which have made consumers more cautious with daily spending. This shift has kept inventories elevated and prevented prices from stabilizing.

Oversupply intensifies pressure on producers

The industry is also dealing with a growing surplus of broilers. Mr Inciong said farms continue to operate efficiently, which has boosted output despite weaker demand. He stressed that production is not the core issue. Instead, the imbalance between supply and consumption is pushing prices lower.

Rising costs have added to farmers’ concerns. The expense of raising chicks has increased, yet selling prices remain low. Mr Inciong warned that some growers may reduce operations if losses continue. He also noted that importing hatchlings could become more costly because of the exchange rate, adding another layer of strain.