Bread, sardine prices to go down

MANILA, Philippines - Bread makers are reducing by P1 the price per pack of 10-piece pan de sal beginning May 29 as they source cheaper flour from Indonesia. Bakers are asking for a reduction of at least P50 per bag of flour from local millers but decided to implement the price reduction nonetheless to put pressure on flour millers to reduce their prices.

In an interview on the sidelines of the National Price Coordination Council (NPCC) yesterday, Philippine Baking Industry Group (PhilBaking) director Walter Co said the price of flour from Indonesia now averages P840 per 25 kilogram bag.

“This will put pressure on flour millers,” he said.

Prices of locally-milled flour, on the other hand, ranges from P880 to P930 per bag. Hard flour ranges from P820 to P880.

Based on the prices submitted by Philbaking to the NPCC, prices of flour decreased by P10 to P20 per bag from February to April. Prices of hard flour fell by P10 per bag during the period.

Based on the acquisition cost submitted by Philbaking to the NPCC, Gardenia buys flour from San Miguel Mills at P900 per bag and from Morning Star at P890 per bag; Uncle George buys flour from Phil. Foremost at P880 per bag; Tinapayan from Divisoria at P879 per bag; Liberty from Phil. Foremost at P890 per bag and Wellington at P930 per bag; Classic bakery from Phil Foremost at P880 per bag; Creative Bakers from Morning Star at P880 per bag.  

Co said that the industry still cannot afford to reduce the prices of Pinoy tasty bread because local flour is still used for it. The lowering of price for Pinoy Tasty bread usually leads to the lowering of prices of other loaf bread.

Trade Secretary Gregory Domingo said that for prices of Pinoy tasty to be reduced, flour prices have to go down by P50 per bag.

He said that right now, there are still no plans to issue a show cause order to millers.

With regards to prices of canned sardine prices, Domingo said the department continues to conduct dialogues with canners to lower the prices of their products.

The DTI is now studying a suggested retail price (SRP) of P12.80 for canned sardine considering that the Tamban fishing ban had been lifted two months ago.

As of April 3, 2012, the SRP for canned sardines in tomato sauce weighing 155 grams is P13.00 to P13.50 because of an increase in prices of Tamban from P26.02 to P29.17.

Trade Undersecretary Zenaida Maglaya said the department allowed increases in the prices of some brands of canned sardines in the first quarter of the year because of the high cost of fish.

 “But now that the ban has been lifted, we expect a better supply of Tamban and a corresponding drop in the price per kilogram.

Fish price composes 40 to 60 percent of the cost per can.

“We have kept the line of communication open with the sardine industry. Any recorded movement in the price of tamban can be easily reported to us for easy reference,” said Domingo.

The Price Act stipulates that the state has the right to ensure the availability of basic necessities and prime commodities without denying legitimate businesses a fair return on investment.