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Supply Response of Chicken Production in the Philippines
Thesis Abstract:
The study was aimed primarily at estimating the supply response parameters of the chicken industry on the national and regional levels. For purposes of this study, a statistical supply response model was formulated.
Data used in the analysis of chicken inventory and slaughter came from the crops and livestock statistics of the Bureau of Agricultural Economics (BAEcon). Data on farm prices were also taken from BAEcon, while those on retail prices were from the Central Bank of the Philippines. Chicken inventory covered the period 1954 to 1970, while data on prices were confined to the period 1959 to 1972.
Growth of the chicken industry had slowed down in recent years. Chicken population decreased by 4.29% annually for the last seven years (1966-72). Even aggregate slaughter weight had dropped by 5.72% in the last six years (1964-1970). Only two regions (Cagayan Valley and Southern Tagalog) had relatively sustained growth in chicken inventory. Six regions experienced declines in growth rate after 1960, with Southern and Western Mindanao registering the highest decline of 35.50% from 1964 to 1972.
Both farm and retail prices had increased rapidly since 1965, with retail price increasing at a much faster rate. The gap between them was observed to have been widening over the years.
Seasonal analysis indicated more violent fluctuations in farm prices, whereas retail prices were relatively stable throughout the year, with peak during December and January.
The supply response analysis showed some degree of price responsiveness among the producers. However, the low short-run supply response clasticity was 0.13, that is, a use percent increase in the price of chicken will increase the quantity of chicken dress weight by 13%.
On the whole, aggregate slaughter dressed weight of chicken was mainly a function of the price of pork and chicken inventory stock. Com price was found to have an insignificant effect on chicken output.