Chicken broiler production is one of the most progressive sectors in the country.

Demand for chicken

meat for household consumption and institutional buyers like the fast-food chains continue to grow.
Prospects for yakitori, or Japanese chicken barbecue in the export market, and the Halal market, are
promising.

Vision, Goal, Strategies

The poultry industry cluster envisions being a competitive industry producing high quality products in
the domestic market, and establishing a strong niche in the export market. The industry goal is to be
competitive in terms of price and to be a producer of value-added products. The two-pronged strategies
are focused on pursuing import substitution and increasing market share.

Growth Rate

The poultry sector in the Philippines registered an average annual growth rate of 3.4% over a three-year
period (2008-2010). Growth rate of 4.72% was recorded in 2008, 1.81% in 2009 and 3.74% in 2010
(NSCB).

Volume of Production

The volume of chicken production (liveweight) over a three year period (2008-2010) in the Philippines
totaled to 3,953.3 MT, with year 2010 registering the highest output at 1,353.10 MT compared to 2009
(1,300.90 MT) and 2008 (1,281.30) production performance (BAS).

Percentage Distribution of Production, By Region

In 2010, Luzon generated the biggest percentage share of the country’s production (1,353.10 MT) with
66.14%, Mindanao with 18.98%, and Visayas with 14.88%.

The top three chicken producing regions in 2010 are in Luzon and Mindanao. Central Luzon (Region 3) is
the top performing region with a 33.87% share, Calabarzon (Region 4A) at second with 20.66%, and
third, Northern Mindanao (Region 10) with 8.78%.

Value of Production
The value of chicken production (liveweight) generated in 2010 totaled to 112.512.8 B; in 2009,
108.221.9 B; and in 2008, 98.318 B (BAS). Over a three-year period (2008-2010), a 4% increase in the
value of production was noted in 2010 over 2009 performance, and 10% growth was registered in 2009
over the 2008 total amount.

Volume and Value of Poultry Imports

Chicken meat (frozen) imports in the country totaled to 97.93 MT in 2010, 61.41 MT in 2009, and 43.01
MT in 2008 (NSO), or an average of 67.45 MT imports performance over the three-year period.

The value of chicken meat (frozen) imports generated a total of CIF US$ 136.49 M from 2008 to 2010.
2010 posted a 63% increase (CIF US$ 67.9 M) over 2009 performance (CIF US$ 41.41 M).

Type and Sources of Chicken Imports

In 2010, the chicken imports to the Philippines were chicken cuts, chicken leg quarters, deboned
chicken, fats, offals, and rind/skin. Top three imports in the same year were deboned chicken, chicken
leg quarters, and various chicken cuts. Primary Sources were United States of America and Canada.
(Source: “Jan.-Nov. chicken imports rise by 70%, pork up 68.6%”, 28 December 2010, Jennifer A. Ng,
BusinessMirror.com.ph).

Poultry: The Value Chain Process

The poultry value chain mapping validation is ongoing with the poultry stakeholders.

Industry Issues and Challenges

Issues and challenges have been identified on the areas of policy, production and market.

Policy issues include the importation policy on entry of cheap, imported chicken and that current
volume of chicken imports is not limited by the government. Poultry growers are also advocating for the
local government units (LGU’s) to rationalize municipal and barangay taxation fees, implementation of
zoning and land use plans. Issues on the implementation of environmental compliance certificate (ECC)
requirements are also identified.
Production issues include high cost of inputs for feed milling, no established production program
(growers), lack of transparency in the cost breakdown of integrators, over supply of production, and
occurrence of environment hazards/sanitation issues especially for small growers.

Market issues identified are the following: inadequate value-adding production, lack of a focused
market strategy for market-specific requirements, lack of an internationally-recognized halal certifier,
and strict HALAL requirements.

Cluster Action Plan

The cluster seeks to increase production of broiler farms and pursue import substitution The cluster also
seeks to establish operational efficiencies and production protocols, promote expansion of larger and
modern farms, introduce technology improvement and trainings, set policy advocacy agenda affecting
the sector, and enhance collaborative action of all poultry stakeholders.

To set directions in accessing new opportunities in the export market, conduct of market study for
country-specific market requirements will be pursued. Likewise, establishment of traceability protocol
for the entire value chain and compliance to international production standards will likewise be
enhanced.