April 23, 2007

Chinese imports, fake goods injure Philippine meat processing sector

The influx of cheap consumer goods from China and counterfeit products in the meat market has resulted in the closure of some meat manufacturing firms in the country, industry sources said.

Philippine Association of Meat Processors Inc. (Pampi) president Felix Tiukinhoy Jr. said three firms have shut down operations last year because of high production costs and the entry of Chinese meat imports.

Tiukinhoy illustrates the domination of Ma Ling brand from China in the luncheon market, even if Filipino consumers "do not know what's inside".

Earlier reports from a leading toxicologist and pharmacologist in the Philippines have cautioned consumers against eating Ma Ling goods from China allegedly due to their high lead content.

Another problem meat processing firms is facing in the domestic market is the low purchasing power of consumers, he added.

With high production cost and a decrease in demand for canned goods due to the emerging of more health-conscious consumers, Tiukinhoy admitted the profit margin of meat processing players is small or only break-even.

He said most meat processors and in behalf of Virginia Food Inc. (VFI), where he sits as president, have not increased prices.

To help cushion the effect of the declining purchasing power of consumers on the company, he said VFI is now following a "sachet-type" canning, which means a reduction in the sizes of its canned products.

For the health-conscious market, he said many meat manufacturers are looking at producing veggie-meat items and the use of technologies that help maintain the nutritious content and the quality of the meat.