DA denies it ordered limit on local poultry production in favor of imports

The Department of Agriculture (DA) on Thursday denied that it ordered local chicken raisers to limit production in favor of allowing more importation.

In a letter to Agriculture Secretary William Dar, United Broiler Raisers Association president Elias Inciong had claimed that the Bureau of Animal Industry (BAI) recommended local poultry raisers to “self-regulate” and “limit local production” after the agency argued that the “volume of imports was small in proportion to local production.”

“They were saying, in effect, limit namin yung production namin,” Inciong told reporters in an online interview.

Inciong added that what government should do instead is, “Limitahan muna yung importation para yung breeder base, hindi magalaw.”

“They could not touch importation. They cannot stop because of WTO [World Trade Organization], because there are limited grounds. We disputed that. Sabi namin, bakit pag sa sibuyas at saka sa bigas, nata-timing yung pagpasok ng imports. Batay sa karanasan, ginagawa ng ibang bansa, puwede namang pigilan yan eh. Kasi 'yung commitment natin to the WTO, it’s a commitment to trade. It is not a commitment to commit suicide. Patayin mo yung industriya mo na pinanggagalingan ng maraming kabuhayan,” Inciong added.

In a virtual press briefing, however, Dar said that the matter raised by the UBRA was a mere miscommunication between the group and the BAI.

“Nagkaroon ng miscommunication si [BAI] Director Ronnie Domingo at UBRA... wala naman ini-issue ang kagawaran ng pagsasaka at saka ang BAI na ipatigil na [ang local production],” the Agriculture chief said.

“Walang order ang kagawaran ng pagsasaka na ihinto na ‘yung poultry production, ganun din ang BAI,” he added.

The Cabinet official also noted that Domingo has already clarified to him the issue.

“Kinlarify na niya kaninang umaga nung nagkita kami na wala rin siyang ganun na sinabi at in-order,” Dar said.

Local poultry producers have been requesting the BAI to suspend chicken importation amid concerns of oversupply, which has resulted in decline of farmgate prices.

To protect the local industry, Dar said, what will be imported is the needed volume to compensate for deficits.

“Kung ano lang kulang sa Pilipinas yun lang ang pwede i-import,” he said.

He also said that importation is stricter as the DA requires importers to have a warehouse or cold storage facility and they are compliant with food safety protocols.

Limits due to COVID

Inciong said that broiler raisers have been affected by the COVID-19 lockdown, forcing many raisers to limit production in order to also limit losses.

This, he clarified, was a decision of the raisers and not a result of the BAI’s call.

But if the government pushes through with the importation, Inciong said they could either comply and limit their production, or just become importers.

“Mababa ang demand ngayon. Marami pang saradong mga restaurant tsaka limitado pa rin ang kabuhayan ng mga kababayan natin. Kaya in effect, without really intending to, parang susunod na rin kami. Kasi mabilis makasalanta yang sobrang supply eh lalo na kung galing sa importation yung attack, kasi mababa naman talaga ng presyo ng imported kahit pa may taripa yan dahil nanggagaling yan sa mga bansa na subsidized ang agricultural systems.

"Saka siguro ang isa pang puwede naming gawin ay mag-import na rin kami. Mukhang yun ang may incentive eh. Hindi ka ire-regulate,” Inciong said.

He also said that consumers don’t stand to gain from the entry of cheaper imported chickens.

“Ang karamihan naman ng mga importer, binubulsa rin naman yung margins eh. Hindi naman pinapasa sa consumer eh. Hindi ko naman masisi,” Inciong said.

The US Department of Agriculture earlier noted that the Philippines’ poultry importation increased to 390,000 metric tons this year from 345,000 MT in 2019 and 320,000 MT in 2018. — BM, GMA News