The retail price of pork should have declined to as low as P330 per kilogram (kg) after the average live-weight price of hogs softened in recent weeks, an industry leader said.
Pork Producers Federation of the Philippines Inc. (ProPork) Chairman-elect Nicanor Briones said the farm-gate price of live hogs has fallen to P220 per kg from P250 per kg.
Briones said the reduction in farm-gate prices was committed by the hog industry after the economic managers and senators reached a compromise on pork tariff reduction and the hike in minimum access volume (MAV).
“We promised that [reduction in prices] and since there has been a compromise [on the tariffs and MAV] and we are willing to help the consumers. It is a show of goodwill,” he told the BusinessMirror.
Given the prevailing farm-gate price of live hogs, Briones said the retail price of pork should be at a range of P330 per kg (pigue) to P360 per kilogram (liempo).
He added that the markup should only be around P105 to P110 per kg, which would provide both retailers and traders an income of P50 per kg.
At the current farm-gate price, Briones said hog raisers are earning P30 per kg since their average production cost is now estimated at P190 per kg due to higher feed costs.
Price monitoring reports from the Department of Agriculture (DA) showed that the retail price of pork in Metro Manila wet markets is steadily declining.
As of June 2, the average price of pork kasim is now at P340 per kg while pork liempo averaged at P370 per kg, P10 lower than the average quotations recorded on June 1, based on the DA’s price monitoring reports.
Compared to the previous month, the average retail price of a kilo of pork kasim is now cheaper by P30 while pork liempo price is lower by P20 per kg, according to the DA.
Latest DA data showed that the agency was able to facilitate the delivery of 472,057 heads of hogs and 3.545 million kg of pork to Metro Manila as part of its measures to temper high pork prices caused by supply shortage.
Last month, President Duterte issued Executive Order (EO) 133 which raised the MAV for pork imports to plug the supply shortfall created by African swine fever (ASF). The EO increased the MAV for pork this year to 254,210 metric tons from the usual 54,210 MT.
“The MAV of pork meat for the MAV Year 2021 of 54,210 MT is hereby increased to 254,210 MT, provided that any unavailable balance at the end of 2021 shall not be carried over to 2022,” EO 133 read.
A DA interagency committee has recommended that 55 percent or about 110,000 MT of the pork MAV plus be imported within July to September to immediately boost domestic supply and temper retail pork prices.
The BusinessMirror learned that the interagency committee created by Agriculture Secretary William D. Dar and led by Agriculture Assistant Secretary Noel Padre has sent its recommendation for the pork MAV plus implementing guidelines to the MAV Management Committee.
The recommendation includes allocating the additional 200,000 MT of pork MAV among existing MAV licensees, pork producers and other importers/new entrants.
Based on the panel’s recommendation, 25 percent of the total volume shall be allocated for existing MAV licensees, another 25 percent for pork producers and the remaining 50 percent for the new entrants.