Industry Analysis: The Case of Broiler

Abragan, Augustine Raphael

Andini, Meilisa
Cruz, Stephanie Nicole
AECO 121 G
I. Introduction

According to the Philippine Council for Agriculture, Aquatic and Natural

Resources Research and Development-Department of Science and Technology

(PCAARD-DOST), poultry is the most progressive animal business of today. It has

significantly contributed to the Philippines agriculture sector, and is one of the major

producers of meat all over the world (PCAARD-DOST, n.d.). Poultry consists of meat

production or broiler farming, egg production or layer farming, chicken breeding or

hatchery, and free range chicken farming. This paper will solely focus on the broiler

industry in the Philippines from the past 15 years with the aim of projecting its supply

and demand for the next 10 years.

The most common commercial breeds of broilers in the Philippines are the

following: a) Arbor Acres, b) Hubbard, c) Shaver StarBro, d) Ross, and e) Cobb

(Filipino Poultry, 2016).

In 2010, broiler population was estimated to have reached 159 million, where

more than 50 percent were from the commercial broiler (PCAARD-DOST, n.d.). In the

same year, the Philippines won the most prestigious award in Livestock Asia, held in

Kuala Lumpur, Malaysia, with the countrys brand representative, Bounty Fresh

Chicken.

The broiler industry in the Philippines is relatively small as compared to that of

other countries all over the world, especially to the neighboring countries such as

China and Thailand (Chang, 2007). However, based on the consumption of chicken

from the past 10 years, the numbers are observed to be increasing. In 2002, the total

consumption for chicken was 644 (thousand MT), and it increased to 1,440 (thousand
 MT) in 2017. With the growing number of consumption, this may be a take-off point for

new and more producers in the poultry industry, particularly in the broiler industry.

II. Production, Area, Yield

Production of Broiler in Philippines

The Philippines known as the largest market in Southeast Asia for U.S. food and

beverage (F&B) products, and one of the fastest growing markets in the world.

According to U.S. Customs statistics, the top five F&B product categories by value in

2012 were: dairy products, red meats, poultry meat, snack foods and processed fruits

and vegetables. Poultry meat was the top product by growth (thepoultrysite.com 2013).

One of that poultry meat is broiler (chicken).

Souce : Countrystat.psa.gov.ph (2016) (processed)

 Based on the record data of the broiler production in the Philippines, generally,

broiler production was seen to rise steadily from year to year, especially from 2007-

2015. According to Chang (2007), the Philippine broiler sector has shown continuing

growth since the introduction of modern technologies in the 1960s and the demand

outlook appears positive for the Philippine chicken meat industry for the next 10 years

(2016-2026) as the projection below.

III. Supply Projection

Souce : Countrystat.psa.gov.ph (2016) (processed)

As has been projected above, it shows that broiler production will always

increase steadily for the next 10 years, it is estimated because of the high demand of

broiler throughout the year. According to BusinessMirror (2015), domestically, poultry

meat is a popular and affordable protein source for many Filipinos. Moreover, broiler

(chicken) is one of the extensively used as an ingredient for making popular Filipino
dishes, such as adobo. Whereas from price side, even the broiler price was also seen

to increase, however, some people still concern about Ebola Reston Virus in pigs may

result in some shift from pork to broiler (chicken) by consumers.

References

BusinessMirror. (2015). Philippines to produce 1 billion broilers in 2015 [internet], from

http://www.businessmirror.com.ph/philippines-to-produce-1-billion-broilers-in-2015/

Chang, H. (2007). Overview of the World Broiler Industry: Implications for the

Philippines. Asian Journal of Agriculture and Development, 4(2), 67-82. Retrieved

February 6, 2017, from

http://ageconsearch.umn.edu/bitstream/166013/2/AJAD_2007_4_2_5Chang.pdf

Filipino Poultry. (2015). Chicken Breeds in the Philippines. Retrieved February 6, 2017,

from http://www.filipinopoultry.com/index.php/category/chicken-breeds-in-

philippines/

Index Mundi. (2017). Philippines Broiler Meat (Poultry) Domestic Consumption by Year.

Retrieved February 6, 2017, from http://www.indexmundi.com/agriculture/?

country=ph&commodity=broiler-meat&graph=domestic-consumption

PCAARD-DOST. (n.d.). Industry Status - Chicken. Retrieved February 6, 2017, from

http://www.pcaarrd.dost.gov.ph/home/momentum/poultry/index.php?

option=com_content&task=view&id=76&Itemid=110

The Poultry Site. 2013. USDA International Egg and Poultry: Growth in Philippines

Poultry Production, from http://www.thepoultrysite.com/reports/?id=1886