LKI PRESS STATEMENT 2020-053
August 17, 2020
LABAN KONSYUMER PRODS
GOVERNMENT TO ACT IMMEDIATELY AND CORRECT THE IMBALANCE OF FARM GATE AND RETAIL PRICES OF CHICKEN
Consumer Group Laban Konsyumer Inc. (LKI) called for close watch over the price of chicken, saying “there is an urgent need to correct and balance producers and retailers prices at a reasonable level. There are disconnects, as broilers are losing while retailers are selling above SRP.
The group exclaimed that “farm gate prices of chicken as of August 14, 2020, went down by PHP 10.00 versus a week ago. Offsize is 44.60 per kilo from 55.30, regular is 48.50 from 59.70 and prime size is 50.93 from 59.70. Average production costs is 70 to 75 pesos. The broilers are incurring losses, and we are now asking the government what is their plan of action. In the meantime, retail as of August 11 is 140 prevailing price, 170 high, and low 105. SRP stays at 130. Therefore given these disconnects, and knowing that broilers are losing while retailers are selling above SRP, we urge the government to act on this as there is a very crucial need to fix the producers and retailers prices at a reasonable level.”
LKI President Atty. Vic Dimagiba said “based on our monitoring of the PSA data, as well as the SRP figures, we saw that Chicken SRP is 130, and based on the farm gate it can be as low as 100 to 110 pesos a kilo “
LKI highlighted how “we reported earlier that as of August 4, the farm gate is going down, so we want to look into the action that the agricultural sector can take, and assess who is gaining or profiting from this situation. Based on UBRA Weekly Prices, there are a lot of imports. It is 50 percent higher as of June compared to the same period last year. This is so despite COVID. Unfortunately, not much impact on retail, and importers pocket the margins. In fact, they like high retail prices as they have more room to jack up their prices. SRP could be lowered to 110 pesos a kilo .
A lot of SME broiler producers will reduce or stop production. Imports like leg quarters are landing at 62-68 per kilo. Local cost to produce is 72 to 78 per kilo live.”
Dimagiba concluded by saying “for the protection of consumer welfare, we will continue to monitor and observe the prices of chicken and assess if these are the lowest costs possible for consumers and if there are opportunists profitering from the pandemic situation. Right now priority should be making basic food like pork and chicken most accesible to all the needy, poor and the marginalized, especially, as we are all trying to get our bearings together stepping into this new normal, and jobs and careers are sadly being lost as we speak.”