September 12, 2014

Manila not likely to allow chicken, pork imports to check soaring meat prices

The Philippines won't resort to imports to check spiralling prices of pork and chicken.

A farmers group meanwhile told the government there was something sinister behind the recent escalation of meat prices in the market.

The SamahangIndustriyangAgricultura (Sinag), citing the results of weeks of price monitoring, said farm-gate prices of hogs and live chicken had fallen by PHP20 (US$0.45) to PHP23 (US$0.53) a kg during the past few weeks.

Yet, during the same period, retail prices had risen by PHP5 (US$0.11)-PHP10 (US$0.22) per kg, it said.

Rosendo So, leader of the association,  said that while prices at the farm are typically lower than those in the market, which must take into account cost of transport, handling, storage, marketing and profit margins—a price difference of almost a PHP100 (US$2.27) per kg was "unconscionable."

"At the current farm-gate price of PHP105 (US$2.39) to PHP115 (US$2,61) a kg for live hogs, retail prices of pork should only be about PHP170 (US$3.87) to PHP175 (US$3.98)," he said.

The association's price survey showed that the farm-gate price oflive chickenranges from PHP68 (US$1.55) to PHP73 (US$1.66) to a kg. So the retail price of dressed chicken should be around PHP110 (US$2.50) only, he said.

But according to data gathered by the farmers group,pork now sellsin Metro Manila markets at PHP220/kg (US$5/kg) with dressed chicken at PHP150/kg (US$3.41/kg).

"As far as we are concerned," Mr. So said, "pork is overpriced by about PHP45 (US$1.02)and chickenby about PHP37 (US$0.84)."

Some meat retailers attributed the current uptick in meat prices to the port congestion in Manila, which has increased the warehousing costs of importers.

But Mr. So dismissed it as nonsense. "Why should port congestion be a direct cause of any increase in the price of fresh meat?" he said.

Jose Reano, undersecretary for livestock operations at the Department of Agriculture, has blamed "opportunistic traders" for the recent upsurge in meat prices.

He said he does understand why chicken and pork prices are going up since when supply and the farm-gate prices of these livestock animals have been relatively stable.

Reano, however, maintains that despite the recent surge in pork and chicken prices "ours is still the lowest in the ASEAN region,"discounting any possibility of the government allowing large-scale meat importations anytime soon.

The agriculture department opposes importations "for the benefit of our farmers," he said.