MANILA, Philippines — A lawmaker and pork industry group official yesterday pushed for the implementation of a suggested retail price (SRP) on pork products amid the high retail prices reaching up to P400 per kilo.
In a radio interview, AGAP party-list Rep. Nicanor Briones, who also chairs the farmers’ group Pork Producers Federation of the Philippines, noted that the farmgate price ranged between P165 and P190 per kilo, but the retail cost of pork in markets is overpriced by as much as P80 per kilo.
“The farmgate price (of pork) slightly increased by P10 (per kilo) as it is sold between P180 and P190 (per kilo), but this is also the day when the demand of pigs in the piggery is the highest amid the Christmas celebration,” Briones said.
He explained that if the farmgate price of pork was at P190 per kilo, the maximum additional cost should only be between P310 and P320 for pork ham and P350 for pork liempo.
“The National Economic and Development Authority (NEDA), the Department of Trade and Industry and Department of Agriculture (DA) should coordinate so that they can determine how much the farmgate price is. If they know the farmgate price, they can determine the right retail prices in the markets. They should implement the suggested retail price in the markets,” Briones said.
He added that instead of acting on the high retail price of pork, NEDA and the DA instead recommended to President Marcos the importation of more pork.
“What they know is to suggest to the President to import more and more, that’s the sad reality,” Briones said.
Based on monitoring of the DA in 13 Metro Manila markets, the retail price of pork shoulder or kasim ranged between P260 and P370 per kilo and between P300 and P400 per kilo for pork belly or liempo.
“(Concerned authorities) should inform the consumers on the right prices. In the past years, consumers were not informed about the right pricing,” Briones said.
He added that the government could not impose a price cap on pork as the traders would only manipulate the price and sell pork at higher prices to retailers.
“There are raisers who can sell farmgate prices of P165 (per kilo). On the average, the farmgate price is at P170 (per kilo). If you add P120, the average retail price of pork kasim should only be P290 per kilo,” the lawmaker said.
Drop in egg farmgate price
Amid the development, the farmgate price of egg has already dropped by P0.35 per piece amid the high demand this holiday, according to United Broiler Raisers Association chairman and Philippine Egg Board chairman Gregorio San Diego.
In a radio interview over the weekend, San Diego said that from P7.20 per piece at the end of November, the farmgate price of eggs went down to P6.85, or a decrease of P0.35.
“If this (drop) reaches consumers, they will have a better Christmas. Based on our monitoring in the farms, the farmgate price of medium-sized eggs at the end of November is P7.20 (per piece), as of this week, the cost is P6.85 (per kilo),” he added.
Based on the DA’s monitoring, the retail price of medium-sized eggs even increased to as high as P9 per kilo compared to P8.50 per piece on Dec. 21, or an increase of P0.50.
The drop in farmgate price of eggs can be attributed to the raisers’ decision to extend the lifespan of layer chicken, according to San Diego.
“Since egg raisers are earning, they extend their layers. Instead of selling the aging chicken, they decided not to sell them so that they will have additional income,” he said.
He added that he expects that the egg production will further increase in the middle of 2024.
“That is why I am advising our members in case they will suffer losses anew,” he said.
On the other hand, San Diego stressed that while egg producers are earning, the broilers are suffering losses amid the slump in the farmgate price and low demand.
“It is really sad that it is our first time this Christmas that the farmgate price of broilers did not move. The average farmgate price is P90 when our cost of production ranges between P90 and P95 per kilo,” he said.
He added that if the slump in farmgate price of chicken persists in 2024, more raisers would suffer losses.
Despite the decline in the farmgate price of chicken, the retail price continues to go up as it sold as high as P200 per kilo, according to San Diego.
“Our problem is that there is a big difference in the retail price (of chicken) compared to the farmgate price. The retail price is doubled,” he said.
He added that as a rule of thumb, retailers should only increase the farmgate price by 69 percent.
“We understand that the retailers need to increase more because of low demand as the consumers have other spending but it’s too much,” San Diego said.
Slight hike in agricultural commodities
Amid the development, DA Assistant Secretary and spokesman Arnel de Mesa yesterday said that there is a slight increase in the retail prices of agricultural commodities this holiday season.
“We (already) expect a slight increase (in the agricultural commodities), especially with the high demand for (Christmas), especially today (Sunday), many are buying (in markets and groceries),” De Mesa said.
He added that the upward trend in supplies of food products is just temporary and is expected to prevail until the New Year celebration.
“The good news is that the supply (of agricultural commodities) is very stable in the entire country,” De Mesa said.
The DA particularly recorded an increase in the retail price of chicken, according to the official.
“The retail price has slightly increased as from P180 to P185 (per kilo) in the last few days, it went up,” he said.
He added that the DA is continuously monitoring the retail prices and supply of agriculture products.