THE retail price of pork in Metro Manila wet markets has stayed at above P320 per kilogram and is reaching highs of P380 per kilogram, way beyond the mandated P280 to P300 per kg price ceiling of the government.
The higher prices come less than three weeks before the government’s price ceiling for pork and chicken meat products in Metro Manila is lifted.
Price monitoring by the Department of Agriculture (DA) showed that from March 15 to 19, the prevailing price of pork ham (kasim) in selected markets in Metro Manila ranged from P300 to P350 per kilogram.
DA reports showed that on March 19, a kilogram of pork kasim fetched P320 on average.
The prevailing price for pork belly (liempo) in the same reference period ranged from P320 to P380 per kilogram. On March 19, the prevailing price for pork cut was at P340 per kilogram.
Since February 8, pork kasim and liempo sold in Metro Manila has been capped at P270 per kg and P300 per kg, respectively. The price ceiling is in effect for two months or until April 8.
‘Market dictates price’
Pork Producers Federation of the Philippines Inc. (ProPork) President Edwin G. Chen said these prevailing prices are the real market price for pork given the current tight supply situation of the country.
“That is the market price. Market dictates the price,” Chen told the BusinessMirror.
Philippine Chamber of Agriculture and Food Inc. (PCAFI) President Danilo V. Fausto said hog industry players have repeatedly said price for pork should be really at P330 to P360 per kg given current costs incurred by hog raisers.
Fausto noted that government is just tolerating the higher prices of pork cuts in Metro Manila wet markets as it is aware of the challenges that both producers and retailers face in complying with the caps.
Some hog industry players have been proposing to raise the price ceiling to P330 to P360 per kg or scrap the price cap and instead implement a suggested retail price with the same proposed amounts.
Fausto said the wholesale cost of a kilogram of pork currently ranges at P290 to P310 given the prevailing farm-gate level of P180 to P200, slaughter cost of P60 per kg, and transport cost of P50.
Fausto disputes the view that the price ceiling’s purpose has been defeated since prevailing market prices have breached the mandated price cap.
He pointed out that the price ceiling had a “psychological” impact on market players—that they are under scrutiny by government following the sudden surge to P400 per kilogram in recent months.
With the price ceiling, the industry will no longer push for a high price of P400 per kilogram, Fausto added.
DA data showed the lowest market price of pork began breaching the price ceiling on March 8, a month after the measure was implemented.
DA data showed the lowest price of pork ham in Metro Manila on March 8 was at P295 per kilogram while pork liempo’s lowest quotation was at P310 per kilogram.
Agriculture Secretary William D. Dar has been lukewarm to this proposal, arguing that an increase in the price ceiling would be “a redundant measure given that the actual average pork and chicken prices are higher than the ceiling imposed by EO 124.”
Dar said that if the price ceiling is raised then industry players would hike their prices anew, with Filipino consumers at the losing end.
“It is not far-fetched that if the price ceiling is raised to a new level, industry players will hike their prices once again, emboldened by the knowledge that they are capable of pressuring the government to change its mind,” he said.
“In the meantime, consumers will be fretting that the government is not really serious in protecting their interests,” he added.
Dar noted that Filipino consumers are “suffering from lower incomes due to the adverse impact of the Covid-19 pandemic on our economy.”
“Hog producers, wholesalers, and retailers are no less expected to do their share in helping the country’s economic recovery effort,” he added.