May 19, 2006

Philippines'meat processors and poultry producers resist price increases

Meat processors in the Philippines said they would not pass on a 2-percent increase in value-added tax to consumers so as to retain the domestic market.

Felix Tiukinhoy, president of the Philippine Association of Meat Processors (Pampi), said in a statement that the industry would hold prices of canned and frozen meat products at current levels for the next three months.

The industry would also absorb higher costs for tin plate, the material for canned meat products.

However, meat processors may have to increase prices of their high-end products soon, PAMPI's executive director Francisco Buencamino said.

Pampi's 32 meat processing companies, which include San Miguel Foods, has combined annual revenues of 65 billion pesos (US$1.2 billion).

Poultry producers are also maintaining prices, fearing the loss of the market.

The Philippines government has been urged by poultry associations to delay the increased tax.