MANILA -- The Department of Agriculture (DA) mulls the setting of farm support prices for some agricultural products like rice, chicken and pork, to protect producers from a sudden decline in the prices of these commodities as supply continues to recover.
Agriculture Secretary Emmanuel Piñol said poultry raisers lament the plummeting farmgate prices of chicken now at below PHP80 per kilo.
“They are now also suggesting that if there is an SRP (suggested retail price) in selling dressed chicken in the market, they are also asking if there should be a farm support price for chicken so they will be protected,” he told reporters Monday on the sidelines of the opening of World Food Day.
Piñol said poultry industry stakeholders are asking that farmgate price for live chicken should not be below PHP80 per kilo.
On pork, the agriculture chief said he will still discuss with industry stakeholders on the level of price support. “For rice, it should decline PHP18 per kilo for fresh palay. NFA (National Food Authority) is now starting to buy at PHP20.70. Farmers get PHP3 (buffer stock) incentive regardless of the moisture content,” he added.
Piñol said the NFA is now prioritizing the procurement of local palay. “My feeling is, if we could buy at a price, then why import?,” he said. “We are now determined to buy more. With PHP3 buffer stocking incentives, farmers are excited. In fact, we are expecting a huge volume to be procured before the end of the year, this harvest season because the procurement has started.”
Pork Producers Federation of the Philippines (ProPork) president Edwin Chen welcomed the government’s plan to adopt farm support prices for some agricultural products.
“Malaking tulong yan kung magawa ng government natin na magkaroon ng farm support price kasi sa panahon na may oversupply, bumaba talaga yung farmgate price. Kawawa naman ang producer kung malulugi so isang uri ng pagtulong sa producer ay magkaroon ng farm support price (That’s a big help if the government can provide farm support price because in time of overuspply, farmgate prices are declining. Producers are pitiful when they incur losses so having farm support price is an assistance from producer,” he told reporters in a separate event.
Chen said the mechanics and acceptable range of farm support pricing should be discussed considering the changing prices of feed inputs and production cost.
Farmgate prices of pork range PHP120 to PHP130 per kilo and even lower than PHP120 in some other areas amid softening demand, he added.
He added that prices normally decline in October to November due to low demand as consumers prioritize education expenses for the second semester.
Chen said he is optimistic that pork demand will recover as consumption is expected to increase with the holiday season approaching. (PNA)
