November 13, 2009
Philippine hog raisers see rise in prices in December
As the Philippine government assured the public on Wednesday (Nov 11) that prices of basic goods would be stable, hog raisers said pork prices may increase up to PHP220 per kilogramme in December if demand surges ahead of the holidays.
National Federation of Hog Farmers Inc. (NFHFI) president Albert Lim said the demand for pork is still weak, so the price level of PHP160/kg to PHP170/kg is still holding up, although some retailers have started raising the price to PHP180 per kg.
If the price of pork rises due to the demand this Yuletide season, the PHP220/kg price level may last until Holy Week next year, which falls in late March to early April.
Lim said if consumer demand picks up, pork supply may have to be augmented by live hog shipments from Mindanao.
Live hog farmgate price in General Santos City is PHP90/kg. Freight cost is PHP15/kg.
Lim said a more desirable price level for pork by December is PHP200/kg. The price of PHP220/kg is already pushing the limit and might force consumers to shift to cheaper alternatives, particularly chicken.
He also cautioned retailers against driving up pork prices since it is not yet certain that demand for the commodity will rise.
He said demand for pork is already low even before recent typhoons lashed the country because of a gloomy economic climate.
US$1 = PHP46.76 (Nov 13)
