Pork price cap possibly back by end-July or early August

Metro Manila, Philippines - The price cap for pork may be restored by the last week of July or the first week of August, the Department of Agriculture (DA) said on Thursday, May 29.

The DA suspended the maximum suggested retail price (MSRP) — determined based on producer cost — on May 15 to heed the plea of the African Swine Fever-hit industry, and amid low compliance rate from 

The price ceiling may still be set for liempo (belly) at P380 per kilogram, and kasim (shoulder) and pigue (ham) at P350/kg.

Agriculture Secretary Francisco Tiu Laurel Jr. said the re-implementation “may be delayed a little” as the DA is studying a “revised plan” to sell cheaper pork in Metro Manila.

The Food Terminal Inc., a state-run firm attached to the DA, and Thai agro-industrial and food conglomerate CP Foods piloted a program in April to supply 100 live hogs daily at a discounted price.

“One month na namin ginagawa na bumibili kami direct from the farm… Kami nagpapakatay, kami nagdadala sa retailer, ‘yong retailer may margin din siya. Pumasok kami as middleman na hindi kumikita,” Tiu Laurel also told reporters on the sidelines of a shipment inspection at the port of Manila.

[Translation: We have been directly buying hogs from a farm for a month. Then we slaughter the hogs and deliver them to retailers. Retailers also have margins on this. We became a middleman without profit.]

The agriculture chief said he has requested P500 million from Malacañang as “standby fund” for the possible program.

He said they are still reviewing the set up of booths and freezer systems in public wet markets in Metro Manila, as well as trucks and drivers needed.

The DA is eyeing to buy around 150,000 metric tons of pork from local farms. Partner retailers may have a profit of around P30/kg to P50/kg, Tiu Laurel said.

“It will create competition if we compete with other retailers... Dapat bumaba ‘yong presyo [Prices should go down],” he said.

As of May 28, pork ham was sold at P350/kg to P430/kg in Metro Manila markets, while pork belly at P370/kg to P480/kg, according to the DA.