Poultry operators in the city are asking the local government to reduce the high fees imposed to the industry saying it negatively affects the polutry operation.
In a letter addressed to Mayor Sara Duterte, members of the Federation of Livestock and Poultry Associations, Raisers and Cooperatives (FLPARC) seek to amend the existing revenue code of the city amid the increase of the regulatory fee for chicken and fouls under Ordinance No. 0291-17.
Among the signatories included Aileen Suy of Ana’s Breeders Farms, Inc., Dr. Ed Luauaco of San Miguel Foods, Inc., Esperanza Capuyan of Vitarich, Ruben Jaraplasan of Bounty Agro Ventures, Inc., Johnny Te of Davao Vless Poultry farm, and Atty. Lalaine Lilibeth Dela Victoria of the Davao Poultry and Egg Producers, Inc.
According to the letter, the regulatory fees have increased to 600% from the previous rate in the 2005 Revenue code – from P0.50 to P3.00 per head.
“While it is true that the regulatory fee is only P3.00 per bird, this is translated to P60,000 per dressing plant per day for a plant with a capacity of 20,000 birds per day,” the letter said.
It also translates to P1,560,000 per month for a dressing plant with the said capacity operating for 26 days a month.
In their proposal, the regulatory fee should only be at P0.65 per bird – P0.15 per head for permit to slaughter, P0.20 per head for ante mortem, and P0.30 per head for post mortem.
“The poultry industry is now in the verge of closure because the price of fresh chicken has gone down to less than the cost of production,” it said.
According to the letter, the market price of fresh chicken has gone down to P75 last January, and P95 last February. Its farm gate price has also gone down from P85 to the lowest of P45.
“These prices are way below the average production cost of P105 per kilo,” it said.
“The future of the poultry industry in Davao City or even in the whole Philippines is very bleak, however, the stakeholders in the industry are trying their very best to stay afloat despite the insurmountable challenge they are now facing,” it added.
The group also cited that it disadvantageous to operate in the city due to higher regulatory fees.
Approximately 7,000 employees directly related to the poultry business is set to be affected by the increase.
Other problems of the said industry include “massive importation because the farm gate price is way below the production cost; massive conversion of agricultural lands to residential uses, expensive water treatment facility in compliance to environmental requirements, volatile prices due to massive importation, and arbitrary Barangay decision to close poultry related businesses due to unsubstantiated complaints of residents.”
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