The prices of canned sardines may soon go up due to of a shortage in tomato paste which has caused the import price to rise.
Michelle Tiu Lim Chan, vice president for export of Mega Fishing Corp. the maker of Mega Sardines said tomato paste is a major component of sardine manufacturing. It comprise almost 80 percent of the contents in a can of sardines in tomato sauce.
Chan said the cost of tomato paste has more than doubled from $500 per metric ton in October 2006 to the current price of $1,100 per metric ton due to the shortage in supply.
She said local sardine manufacturers have to import tomato paste from China after the local supplier of tomato paste, Northern Foods Corp. shut down.
Even at $1,100/MT, Chan said manufacturers are lucky if they can get any stock of tomato paste. She said Mega is just fortunate to still have a some stockpile of tomato paste and has, thus, been able to maintain its price.
Likewise, the cost of soya oil, which is imported from Singapore, Chan said, has also been rising. However, soya oil is only a minor ingredient in sardine manufacturing and is still priced reasonably.
This time around, Chan said, tin can prices are not the major factor in the possible increase in price of sardines. Previously, the Tin Can Association of the Philippines had complained that the cost of canned food products is being driven up by the rising cost of tin cans.
Sardines are now part of the basic food staple of most Filipino households, along with rice, bread, milk and a few others.
Rising commodity prices of products such as wheat, which is used in bread and other bakery products, has already resulted in a new round or price increases – pinching the Filipino consumers anew.