Major players agree to cut pork retail prices

MANILA, Philippines - Major players in the hog industry and the Agriculture department have agreed to cut pork retail prices in a bid to spur demand, a department statement said Tuesday. In a consultative meeting last Monday, hog producers, meat processors, meat importers, wholesalers and retailers, as well as the Agriculture department set the reference price of prime pork cuts like pigue, kasim and liempo at a range of P140-150 per kilogram from the current P150/kg-170/kg. Market data discussed during the meeting showed that retail prices averaged P140/kg for all cuts amid an P82.25/kg farmgate price, with liempo and other prime cuts fetching P145/kg-P170/kg in Metro Manila’s public markets. "Pulling down the retail cost of pork items would benefit not only consumers producers and traders would also benefit because lower market prices will boost consumer demand and, thereby, mean greater profits for them," the statement quoted Agriculture Secretary Arthur C. Yap as saying. "To increase the turnover of pork [from farms to the market], we should encourage our consumers to buy pork by selling pork cuts at attractive prices," Agriculture Assistant Secretary Salvador S. Salacup said during the consultation. Last week, Bureau of Animal Industry Director Davinio P. Catbagan said there are 50,000 overweight hogs that have not been sold by raisers due to lack of demand for pork and low farmgate price. The hogs weigh from 100 kg-130 kg, well over the national average selling weight of 70 kg, Mr. Catbagan noted. "We are hoping to spark the demand [with this lower reference price]," Renato R. Eleria, chairman of the National Federation of Hog Farmers, Inc., said in a phone interview Tuesday. "Small markets should follow the reference price because there would be a pressure from consumers," Mr. Eleria said in Filipino. Retail prices of prime pork cuts range from P150/kg-P170/kg in small wet markets and P180/kg in large supermarkets, Mr. Eleria said. Operators of large markets in Metro Manila like Maypajo Market and Multi-Purpose Cooperative, Commonwealth Market and Pritil Market have committed to follow the reference price, he added. But the reference price could soon change, given the seasonal increase in demand with the approaching holiday season. "What we foresee is that the direction of pork prices would go up in November," Mr. Eleria said. In an interview last week, Mr. Eleria said farm prices of pork might go up to P85/kg within this month and to P90/kg in November from P82/kg-P84/kg. — Neil Jerome C. Morales, BusinessWorld