Price ceiling is proving a hindrance for Philippine hog raisers

A combination of production shortfalls and price ceilings are making it unattractive to sell certain provinces.

Local hog raisers are recommending the lifting of the price ceiling on pork by December, as farmgate prices are expected to rise in response to increased demand. Albert Lim, president of the National Hog Raisers Association, said a price ceiling during a time of extremely high demand could cause a shortage in pork supply in Luzon.

Some of the reasons cited explained that the sow population in Luzon had decreased, causing a production shortfall.  However, supply from the Visayas and Mindanao remained relatively high.

To supply the shortfall in Luzon, it is suggested that pork from General Santos City could be brought to the region.

With a ceiling of P170 a kilo in effect, however, hog raisers might no longer be keen on sending supply over to Luzon.

"The current retail price is okay for now, considering the existing farmgate prices. But at this time, there's not much demand yet. The Christmas demand is not yet here. By December, retail prices (without the ceiling) could reach P200-P220 a kilo,'' ,Mr Lim said. "But we also don't want prices to go too high. Around P200 a kilo should be reasonable.''

He also noted that prices in General Santos had already increased due to demand, providing a disincentive for producers there to sell in Luzon if the price freeze would remain in effect.