Processed meat prices surge on rising pork, tin can rates

The continuous increase of raw material prices for pork-based products is expected to pump up prices of processed meat in the next 15 days, as announced during the opening of the 2nd WOFEX Visayas Food processing, packaging and food service expo at the Cebu International Convention Center.

Philippine Association of Meat Processors Inc. (PAMPI) executive director Francisco Buencamino said processed meat prices are expected to increase by 20 percent whereas prices for tin canned goods will also increase by 15 percent in the region.

However he stressed that the increase will not directly take effect in the retail market just yet as PAMPI is still disseminating the information about the hike among meat distributors.

“We are still making announcements maybe in around 15 days or two weeks time meat processors such as Virginia, Lami, Sunpride, and King’s and among others will carry the increase so within the next two weeks there should be no price increase in the retail market,” he said.

Buencamino said that right now, pork prices in the market have already reached to P200 per kilo. He added that even food chains such as McDonalds and Jollibee have already adjusted their prices inclined to the increase last week.

He also said that the increase in the prices of processed meat products could also partly be accounted for the rise in the cost of tin cans.

The tin can manufacturers in the country have increased their rates by 30 percent and since tin cans comprise around 47 to 50 percent of the product’s end price, it resulted to a 15 percent increase of prices for tin-canned goods in the market such as corned beef, meat loaf, sardines and others, said Buencamino.

The shortage of the manufacturing-grade meat supply in the country, said Buencamino, has also caused the increase of processed meat prices. And regarding this shortage, he added that PAMPI is willing to go into a dialogue with hog raisers to address the issue.

Meanwhile in a phone interview with Stanley L. Go, the VP for sales and marketing of Cebu-based meat processor Virginia Food, Inc., he told The Freeman that they, as opposed to their competitors, have tried to hold-off with increasing their product prices despite the pressures of the continues increase in the cost of raw materials in the past months.

However, he added that because of the overwhelming rise of raw materials they are deliberating a possible minimal increase of about five to 10 percent on both their frozen and canned products but these prices would differ for each brand and product category they have which might take effect this May.

“We held-off as long as we can, but it’s not easy because it has been hurting us and everyone else has already done their price increases. Now its inevitable to increase because of the high prices of raw materials so we will try to impose only a minimal increase that won’t have huge impact for the consumers,” stressed Go.

And although there have been increases in processed product prices in the local market, he pointed out that the hike will not reach as high as 20 percent as what Buencamino said.

At the moment, the prices of Virginia’s frozen products are as low as P80 for low cost items and can go as high as P400 for high cost premium. Whereas for their canned products, it is currently priced as low as nine pesos per tin can and can go as high as P70 pesos for 400 grams. — Rhia de Pablo