July 27, 2010
Philippine meat processors seek level playing field
The Philippine Association of Meat Processors Inc. (PAMPI) is seeking the help of the government to level the playing field in the industry as bigger players are set to dominate exclusivity in supermarkets.
PAMPI president Felix O. Tiukinhoy said the sector is going through a situation that may be described as "survival of the fittest" as meat giants are set to toss small players out from the supermarkets.
Tiukinhoy, who is also the chief executive officer and president of Cebu-based Virginia Foods Inc. (VFI), said the entry of cheaper brands from other countries, which are now taking over the prime shelves location in huge supermarkets, have made the industry suffer more.
According to Tiukinhoy, the group may approach the House of Representatives to take legislative action on this matter. Otherwise, the industry will eventually be dominated by a few giants.
The VFI executive said the problem now is that the "big ones are buying space in the supermarkets for exclusivity of their products", adding that this practice can kill the smaller ones, whose companies do not have enough financial resources to buy spaces on the supermarket.
Tiukinhoy said the industry is now very competitive and margins are very low adding that processors have to continuously innovate in introducing new variant to the consumers.
Meanwhile, last year, VFI announced to pour in PHP80 million (US$1.74 million) capital expenditure (capex) starting 2010 to expand its operations and improve product quality.
VFI is the maker of the Virginia, El Rancho, Winner, Champion, and Australian Brands of canned goods and frozen processed meat.
VFI vice president Stanley Go in an earlier interview said that the company is looking at other potential areas where it can expand its distribution network in the Visayas and Mindanao.
He added that VFI has a major penetration in the Visayas and Mindanao areas but the company intends to grow its market in Luzon and extend its consumer-base.
