Supply Analysis of Chicken Eggs in the Philippines, 2000-2019

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Zenaida M. Huelgas

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

The Philippine chicken egg industry had met the four criteria under the global food security index- i.e. available, affordable, safe and resilient. Despite being self-sufficient, the industry was vulnerable and susceptible to disease outbreak due to its importation of parent stock and feed components. Furthermore, the industry faced an increase in the cost of feeds. However, even with circumstances like global pandemic, increased price of inputs, HPAI outbreak, importation bans, and natural calamities, the chicken egg industry continued to increase production, which showed its resiliency. This study analyzed regional quarterly data on chicken egg supply from 2000 to 2019 in the Philippines. The specific objectives of the study were to: (1) analyze the trends in the supply, prices of chicken eggs, and prices of related goods; (2) determine the factors affecting the supply of chicken eggs in the six top egg-producing regions; (3) estimate and explain the elasticities of supply with respect to the prices of chicken eggs, feeds and substitute commodity; (4) identify the problems in the chicken egg industry; and (5) provide recommendations based on the results of the study. From 2000 to 2019, the supply of chicken eggs continued to grow, with an average growth rate of 4.75 percent. Similarly, the layer flock inventory of the country was also in an increasing trend, with an average growth rate of 5.36 percent. CALABARZON, Central Luzon, Central Visayas, Western Visayas, Northern Mindanao and Davao Region were the top egg-producing regions, which constituted 80 percent of the total egg production in the country. For the past 20 years, CALABARZON dominated the chicken egg production with an average percentage share of 28.56 percent. In terms of prices, nominal farmgate and retail prices of chicken eggs showed an increasing trend with an average annual growth of 4 percent. However, by factoring inflation out, the real farmgate and retail prices reveal only a minimum increase for the past 20 years. The results of multiple regression analysis for the national supply model obtained an adjusted R-square of 0.8815, which implied that 88.15 percent of the variations in the total supply chicken egg production can be explained in the explanatory variables in the model. The lagged real farmgate price of chicken eggs and the lagged real retail price of pork meat were found to be significant at 5 percent level. Furthermore, the lagged real retail price of chicken meat, retail price of yellow corn, agricultural wage rate and implementation of importation bans were found to be significant at 1 percent level. However, the variables disease incidence and natural calamity occurrence were found to be not significant in the study. Based on the results, the study recommended the establishment of a breeding program for grandparent and parent stocks for poultry to eliminate the need for importation. Further study was also recommended on the following: price of production stock, marketing of chicken eggs, cultural management and practices of chicken layer raisers.

Language

English

LC Subject

Poultry industry, Supply and demand

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 D45

Notes

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Document Type

Thesis

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