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Risk-averse poultry producers could lose opportunities
| By goGreen | November 28, 2011 |  |
LOS BAÑOS, LAGUNA – Fears among local farmers have affected the overall performance of the poultry industry in the Philippines, according to a study.
This lack of risk-taking by poultry farmers could actually worsen the situation, according to the study released by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA).
The study was undertaken by Dr. Raquel Balanay, an assistant professor at the College of Agricultural Sciences and Natural Resources of the Caraga University in Butuan City.
She indicated that due to the price volatility of poultry in the Philippines, poultry farm owners are averse in making long-term production decisions
Balanay, who is also a SEARCA scholar, stressed that poultry farmers are more concerned with short-term changes in pricing. By then, the changes actually happen which further builds the aversion for long-term aversion that should lessen the impact of these short-term changes.
A report by the Department of Agriculture Bureau of Agriculture Statistics (DA-BAS) As of January 2010, the Philippines has at least 150 million chickens with an annual production growth rate of only about 1.53 percent.
So far, chicken prices have remained stable at around P125 per kilogram though these change depending on season.
Dr. Balanay suggested that the government should take action in improving the market coordination and hedging options of poultry growers. A price monitoring system is also recommended, as well as upgrading the government’s information network capability.
She said the government should also establish easy access to online databases, extension services for transmission of relevant market information to poultry farmers. Statistical agencies should also improve data collection and the organization of online databases.
Dr. Balanay also stressed that the government and other related institutions should further conduct research on price volatility and supply.
SOURCE: Business and Finance
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