June 17, 2008
Philippine processed meat prices to go up on expensive carabeef imports
Luncheon meat, hotdog, corned beef and other processed meat products in the Philippines are expected to jack up within two months as the prices of imported carabeef from India have gone up by 30 to 40 percent.
Francisco Buencamino, executive director of the Philippine Association of Meat Processors Inc. (Pampi) said the price hike was due to surging demand from Egypt and Malaysia in the past four months.
Carabeef is the primary item used by meat processors in producing products like hotdogs, luncheon meat and corned beef. Local processors have been sourcing their products from India, where it is cheaper.
Buencamino says Indian carabeef has become restrictive as importing countries compete for it.
The Pampi official added that India has no shortage of carabeef but their market is expanding, thus, the shortage of the commodity.
Buencamino disclosed that carabeef usage has gone down by as much as 40 percent in recent months.
The price hike in tin cans have also contributed to the increase in the cost of canned goods like luncheon meat and corned beef.
The race by countries to stock up on crucial food supply in recent months is weighing heavily on food-importing countries like the Philippines, which are forced to pay more for the food they procure.
Pampi is composed of 31 member-companies, including San Miguel Foods Corp., with annual production of about 600 million kilos of meat products worth over P80 billion.
The association, which groups the largest meat processors in the country, directly employs 35,000 Filipinos and provides indirect employment to 50,000 others
