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Frabelle hikes hot dog prices due to more expensive MDM

Frabelle Premium Hotdogs (Photo from the company website)

Frabelle Corp. said it has increased the prices of its Yummy and Bossing hot dogs to be able to maintain production amid the shortage of a raw material used in making processed meat products.

Frabelle President Fay T. Bernardo confirmed to the BusinessMirror that the company has raised the prices of its hot dog products to cover its production cost.

Bernardo said the price increase was driven by the doubling of the cost of mechanically deboned meat (MDM) of chicken. She added that pandemic-related problems are also affecting production costs.

“[Price hike was] due to the shortage of MDM because of avian influenza specifically in Europe, which is a major source for us. The price has doubled,” she said via SMS.

“We are left with no choice but to increase [prices] just to cover our cost, otherwise we cannot continue to produce. Covid is also still an issue as it is affecting our productivity [and] increasing our production cost.”

The BusinessMirror broke the story on Monday that certain hot dog makers have implemented price hikes, including Frabelle and San Miguel Food and Beverage Inc. (SMFBI). (Related story: https://businessmirror.com.ph/2021/05/31/meat-processors-set-list-price-hikes-hot-dogs-to-cost-more/)

Data obtained by the BusinessMirror showed that Frabelle increased its hot dog prices last May 5.

Based on the data, the list price of Frabelle Yummy Hot dogs Regular (1 kilogram) rose by P2.86 to P151.43 per pack. Likewise, the list prices of its cheesedog and jumbo variants went up by P2.86 to P151.43 per pack and P155.24 per pack, respectively.

The list price of Frabelle’s Bossing Hot dog Classic (200 grams) increased by P0.6 to P26.67 per pack while its Bossing Cheesedog Regular (250 grams) rose by P0.47 to P33.33 per pack.

SMFBI, which produces Tender Juicy and Star hot dogs, increased the list prices of hot dogs, or the price being passed on to its distributors, last May 31 for wet markets while supermarket prices would increase on June 21.

The products affected by the price increase are Tender Juicy hot dogs (regular, cheese dogs, cocktail, giant), Star hot dogs (regular, jumbo, cheese dog), and Higante hot dogs (queen size, king size, super jumbo).

For example, the list price of Purefoods Tender Juicy hot dog (regular, 230 grams) for wet markets would rise by P2.85 to P46.55 per pack from P43.70 per pack.

The BusinessMirror earlier broke the stories that meat processors would increase the prices of their products as they have started to use more expensive imported raw materials.

The Philippine Association of Meat Processors Inc. said prices of processed meat products may increase by as much as 20 percent—on a staggered basis over the next eight months—due to depleting stockpiles and thin volumes of imported supply.

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