June 9, 2008

Philippine pork sector looks on high selling price to offset costs                        

The National Federation of Hog Farmers, Inc. (NFHFI) hopes that the hike in prices of pork and poultry products in the world market will offset the surge in feed ingredient prices.

NFHFI president Albert Lim also said that the industry now expects Philippine meat processors, who usually import their production inputs, to turn to locally produced meat instead.

Lim pointed out that farmgate prices for pork have so far gone down to PHP4 per kilogramme.

Last week, the Cold Chain Association of the Philippines, Inc. (CCAP) disclosed that the cost and freight (CNF) prices of imported pork have increased to US$2.50/kilogramme from US$1.90/kg in January.

CNF prices for beef have also gone up from US$2.65/kg to US$4.50/kg. CNF prices for chicken, meanwhile, went up from US$1.20/kg in January to US$1.50/kg.

Renato Eleria, NFHFI vice-chaiman, noted that some local growers have lost their enthusiasm because of the higher cost of production.

Eleria explained that this is due to higher prices of feed ingredients, of which 40 percent, including soy, soymeal and DDGS are imported by feed millers.