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This information will be uploaded to a computerized database which will be used by the DA in a monitoring production levels.
The DA will also engage a private study group to conduct a scientific analysis on the absorptive capacity of the market. This will be used in “advising” local producers to be conscious of the market demand, especially on specific periods of the year, and the meat traders who will be expected to “temper” their importation so as not to cause a glut in the market.
By the way, part of the study will also include questions on why, in spite of the huge volume of imports, prices of pork and chicken remain high in the market while farm gate prices have collapsed.
Also, the DA would like to determine whether meat and chicken importations which go straight to the bonded warehouses for processing and export are really exported.
Background
Over the last two years, prices of pork and poultry products showed erratic movement and this was attributed largely to the lack of information on the absorptive capacity of the market.
There was a surge in the volume of imports which was hurting the otherwise vibrant and growing hog and poultry industry.
Local producers, encouraged by good prices in 2017 and early part of 2018 and aided by easily accessible bank loans with low interests, also blindly increased their production level.
The surplus supply of chicken in the cold storage facilities is about 27-million kilos while pork is about 34-million kilos.
Due to the low farm gate prices of hogs and chicken, banks are now starting to report defaults in the payment of loans by local producers.
Monday April 22, 2019/ DA/ Philippines.
http://www.da.gov.ph/
