DTI, DA to impose SRP on chicken, pork

The Department of Trade and Industry (DTI) and the Department of Agreement (DA) are imposing suggested retail prices (SRP) on chicken and pork in a bid to stabilize prices of agricultural commodities in the market.

Trade Undersecretary for Consumer Protection Ruth Castelo said Tuesday the DTI and DA will sign an agreement on imposing SRPs on the said agricultural products.

"The joint memorandum circular will be signed today by the DA and DTI to put SRP on pork and chicken," Castelo told reporters on the sidelines of dialogue on National Quality Infrastructure in Pasay City.

The Trade official said putting SRP on pork and chicken is pursuant to Memorandum Order No. 26 released by the Palace on September 21 for the DTI and DA to adopt measures to reduce the gap between farmgate prices and retail prices of agricultural products.

"We have known the farmgate price of these products and we know how much profit margin should be placed on top of the farmgate price," Castelo said.

The SRP will be computed as farmgate price plus profit margin.

"For chicken, the farmgate price plus P50 margin - these would include the cost of trading, dressing, and retailers markup so if farmgate price is P75 for chicken in the market should only be around P120 to P125," Castelo said.

"For pork, it's P70 profit margin that will include the trader's fee, slaughtering fee, and the retail fee. If farmgate price of pork is P130 so P200 lang ang SRP except for prime cuts like liempo and tender loin that will be 220," she said.

Once the SRP is in place, retailers cannot sell pork and chicken above the suggested prices.

"DTI will be very strict on ensuring compliance to this," Castelo said.

"Itong SRP na ito ang magiging basis ng government para manghuli ng profiteering," she added.

Among the consequences for profiteers include the revocation of business permit, a fine ranging from P1,000 to P2 million, and imprisonment, the DTI official said.

The DTI will announce the SRP on chicken every three days while for pork it will announced weekly.

"So it will be a moving suggested retail price," Castelo said.

UBRA welcomes DA, DTI initiative

Sought for comment, the United Broiler Raisers Association (UBRA) said it welcomes the initiative of the DTI and DA to put SRP on agricultural products.

"We support this effort. We hope that this will address not only the problem of inflationary pressures but also the systemic issue of disconnect between farmgate and retail prices for all agri-fisheries products," UBRA president Bong Inciong told GMA News Online.

"It will benefit all the stakeholders in the value chain including the retailers as it will reduce their working capital needs if they can buy chicken at lower prices," Inciong said.

The country is still reeling from a nine-year high inflation rate of 6.7 percent in September driven by higher prices of food items. — RSJ, GMA News