Meat processors seek level playing field

MANILA, Philippines - The Philippine Association of Meat Processors Inc. (PAMPI) is seeking the help of the government to level the playing field in the industry.

PAMPI president Felix O. Tiukinhoy said the sector is going through a situation that may be described as “survival of the fittest” with bigger players spending huge money to gain exclusivity of their products in supermarkets.

Tiukinhoy, who is also the chief executive officer and president of Cebu-based Virginia Foods Inc. (VFI), said the entry of cheaper brands from other countries, which are now taking over the prime shelves location in huge supermarkets, have made the industry suffer more.

According to Tiukinhoy, the group may approach the House of Representatives to take legislative action on this matter. Otherwise, the industry will eventually be dominated by a few giants.

“The problem now is that the big ones are buying space in the supermarkets for exclusivity of their products,” Tiukinhoy said adding that this practice can kill the smaller ones, whose companies do not have enough financial resources to buy spaces on the supermarket.

“The industry is now very competitive. The margins are very low. That is why food processors have to continuously innovate in introducing new variant to the consumers,” he said.

Meanwhile, last year, VFI announced to pour in P80 million capital expenditure (capex) starting 2010 to expand its operations and improve product quality.

VFI is the maker of the Virginia, El Rancho, Winner, Champion, and Australian Brands of canned goods and frozen processed meat.

VFI vice president Stanley Go in an earlier interview said that the company is looking at other potential areas where it can expand its distribution network in the Visayas and Mindanao.

“VFI has a major penetration in the Visayas and Mindanao areas but we still intend to grow our market here. We still foresee the need to extend our consumer-base,” Go said.