Meat processors to increase purchases from hog raisers

The Philippine Association of Meat Processors Inc. (PAMPI) will increase their pork purchases from the breakaway group of big hog raisers in an attempt to ease their frayed relations.

In the recent induction of the new officers of PAMPI, reelected president Felix O. Tiuhinkoy Jr. said the group has been in talks with the Gabriel Uy camp of the National Federation of Hog Farmers Inc. (NFHRI).

Tiuhinkoy, who is also president of the Cebu-based Virginia Foods Inc. said PAMPI will increase their regular purchases from Uy’s group of about 1,200 hogs monthly to 10,000 hogs.

PAMPI began their partnership with the Uy-led group late last year when the meat processors which include the likes of Swift Foods Inc., San Miguel Foods Inc. and Del Monte Foods, agreed to get part of their supply requirements from the hog raisers.

"Several PAMPI members became beneficiaries of this supply of pig meat, and we encourage all to look into this potential source of raw material," Tiukinhoy said.

PAMPI has been getting the flak from another faction of the NFHRI led by Albert Lim which have been blaming the meat processors for the slowdown in the local pork industry.

Lim’s group said that meat processors‚ preference for imported carabeef from India has caused their sector to suffer substantial losses.

But meat processors said the local hog industry does not have the capability to supply their members with manufacturing-grade meat required for their operations. At the same time, local pork prices are more expensive compared to carabeef from India.

The landed cost of carabeef is about P90 per kilo compared to local pork priced at P120 per kilo at the distributor’s level. At the retail level, this goes up to about P140 to P160 per kilo.

"If PAMPI members get all their supplies from local hog raisers, how much could they sell their hotdogs, corned beef and other processed meat," Francisco J. Buencamino, executive director of PAMPI, asked.

"Why should we, when pork prices have skyrocketed and continue to run away at P140 to P160 a kilo now for the past six to eight weeks," he added.