Supply and Demand Analysis for Chicken Eggs in the Philippines 2002-2022

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nora DM. Carambas

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

Chicken eggs are one of the most important agricultural commodities in the Philippines. Ninety two percent of the gross supply in the country is allocated for the total net food disposable or for human consumption in unprocessed form. Chicken eggs are consumed mainly due to their nutrient contents, especially protein. The protein intake recommendation for an adult weighing 60 kg is 72 g of protein. It takes approximately 11 pieces of medium eggs to satisfy this recommended daily intake of protein. Phenomenal increases in the prices of chicken eggs in the recent years were observed. This is mainly attributed to the shifting of hog raisers to layer production in 2020 due to the outbreak of the African Swine Fever. This caused an oversupply of eggs in the country in 2021. In 2023, even with the oversupply, it was reported that demand declined due to the increase in the price of rice. However, retailers were still setting their price high to avoid losses. This prompted the researcher to analyze the supply and demand for chicken eggs in the Philippines from 2002 to 2022. The specific objectives were to (1) analyze the trends in chicken egg production, prices, and consumption, (2) describe the production practices for chicken eggs to identify the production inputs, (3) analyze the supply response to significant factors, (4) analyze the demand for chicken eggs, and (5) formulate policy recommendations. The study utilized data from Philippine Statistics Authority (PSA) OpenSTAT and Family Income and Expenditure Survey (FIES), and Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA). Multiple regression analysis was used to analyze the supply response and demand for chicken eggs. Results on the supply response analysis with the log-linear model showed that the lagged volume of production of chicken eggs as well as the lagged agricultural wage rate are the statistically significant variables of the supply in the model. The lagged volume of production positively affects the current supply while the lagged agricultural wage rate has an inverse effect to the current supply. Additionally, the elasticities of the variables were both less than one which indicates that supply is not very responsive to the changes in these factors. On the other hand, the demand analysis showed that consumption of chicken eggs in the aggregate national level is very responsive to the changes in the retail price of rice, pork, and beef. Chicken eggs are also considered as a normal and necessity good. On the analysis in each income classification, it was revealed that chicken eggs are considered a normal and necessity good in low-income households but are considered inferior goods in middle- and high-income households. The study recommends continuing incentivizing the egg-layer raisers and promoting the consumption of the commodity by highlighting the nutritional benefits and its nature of being a cheaper alternative for protein. Furthermore, policies on price regulations can consider the estimated elasticities since a slight change on the prices of related commodities can greatly affect the demand for chicken eggs.

Language

English

LC Subject

Poultry industry, Supply and demand

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 M85

Notes

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Document Type

Thesis

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