Chicken prices up as tax reform spurs higher gas cost, supply tightens on production break

February 1, 2018 - 4:23 PM
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Fresh chicken being cooked. Prices of the favorite item on Filipino tables have gone up an average P10 a kilo. INTERAKSYON FILE BY DOLLY DY-ZULUETA

MANILA – The stoppage of production after Christmas as poultry workers took their vacation, and the higher costs – especially fuel – as a result of the tax reform law were cited among the factors behind the average P10 hike in chicken prices.

Monitoring by the Bureau of Animal Industry (BAI) in Metro Manila markets confirmed that chicken prices indeed rose, partly on account of tighter supply.

The price per kilo for fully dressed chicken, which last week went for P145.92, is now P149.42, per BAI monitoring.

Chicken breast, pegged last week at P149.83 a kilo, is now P153.08.

Chicken wings now go for P157.50 from last week’s P155.50.

Chicken legs/drumstick went for P155.67 last week, but is now at P156.50.

One of those affected by the price hikes, Maymay Bitalyar who regularly buys ingredients for her small carinderia from Mega Q-Mart, found the fully dressed chicken she used to buy at P150 is now at P160; while choice cuts that used to cost P160 is now at P170.

Bitalyar felt gratified she could still haggle , being a long-time customer.

BAI assistant director Simeon Amurao said the price hike can be attributed to the stoppage of production before and after Christmas, when poultry workers take a break after a frenzied season.

The impact of the TRAIN law, which took effect January 1 and slaps higher excise taxes on fuel, is also a factor.

“The incidental expenses of poultry dealers have also risen because everyone is using gasoline,” said Amurao.

Meanwhile, prices are seen to stabilize and go down in the first or second week of February, when production levels are expected to normalize.