Pork producers urge consultations as retail prices surpass P400 per kilo despite price cap

MANILA, Philippines — After the Department of Agriculture (DA) found that only one in five pork retailers complied with the agreed maximum suggested retail price (MSRP), stakeholder groups are urging another round of consultations.  

The DA has set price caps at P380 per kilogram for liempo, P350 for kasim and pigue, and P300 for “sabit ulo,” or whole pig carcasses delivered to sellers.

Despite this, the agency’s monitoring shows that pork prices in Metro Manila wet markets still range from as low as P230 to as high as P470 per kilogram. The maximum suggested retail prices have been in effect since March 10.

So where does the problem lie? Pork producers said they have complied with the set farmgate price.

Farmers sell pork at P230 per kilo

In an interview with DZBB 594 on Tuesday, March 18, farmers group Samahang Industriya ng Agrikultura (SINAG) said producers are adhering to the farmgate price of around P230 per kilogram.  

This is already lower than the previous price of P260 to P265, SINAG Executive Director Jayson Cainglet said. He noted that for the past two weeks, producers have complied with the farmgate price of P230 per kilogram to help bring down retail prices.

Cainglet added that the 20% compliance rate cited by the DA does not reflect producers but may instead be an issue with retailers or traders, whom he calls the “biyahero.”

“Hindi talaga farmers ang nagsasabi talaga kung magkano niya bibilhin ang kanyang produkto,” he said. 

(It's not really the farmers who decide how much their products will be bought for.)

He also said that even if producers sell pork at P240 per kilogram — a P10 increase — retail prices for liempo should still not exceed P390 to P400 per kilogram.

“Ang assurance po ng producers kahit nalulugi, tumutupad po siya sa usapan para matulungan ng gobyerno na bumaba ang presyo,” Cainglet said. 

(The assurance from producers is that even if they are incurring losses, they are honoring the agreement to help the government lower prices.) 

However, in an interview with Teleradyo Serbisyo, Pork Producers Federation of the Philippines (PPFP) President Rolando Tambago explained that the P400 per kilogram retail price is already much lower than the previous rate of P480 for liempo. 

In the same radio program, DA spokesperson Arnel de Mesa said one issue is the P300 price cap for “sabit ulo,” which only has a compliance rate of 5% to 7%.

How the MSRP is calculated

SINAG explained that the maximum suggested retail price is determined by adding the farmgate price to the costs imposed by traders and retailers.

For example, at a farmgate price of P230 per kilogram, traders add P70, bringing it to P300 per kilogram. Retailers then add another P50, resulting in the agreed price cap of around P350 per kilogram.

Since pork passes through only “three hands” in the supply chain, Cainglet said it should be easier to identify where the issue lies. 

“From magbababoy yung biyahero trader, ipapakatay niya at ipapasa sa retailer. Kaya mas madali ang kwentahan,” he added. 

(From the hog raiser, the trader, they will have the [pigs] slaughtered, and then pass them on to the retailer. This makes the pricing calculations simpler.)

Start with retailers, another consultation

SINAG suggested that the DA begin by monitoring retailers and asking how much they purchased pork from traders, rather than starting at the farm level.

If pork producers are blamed, Cainglet warned that attempts to lower farmgate prices could hurt their earnings and even push them into losses, especially amid challenges like African swine fever.

“Dagdag gastos po talaga sa mangbababoy itong dinadanas ngayon. Despite that, sumusunod po tayo sa napagkaisahan para tulungan ang gobyerno na mapababa po natin ang presyo ng baboy,” he said. 

(This situation is an added expense for hog raisers. Despite that, we are honoring the agreement to help the government bring down pork prices.)

Meanwhile, Tambago said that if reports of non-compliance with price caps persist, the DA should convene another consultation with supply chain stakeholders.

“Kung may mga reports na hindi pa umaabot doon sa napagkasunduan, dapat pag-usapan ulit ng retailers, ng mga biyahero at saka mga sa hanay namin na co-producers kung saan nagkakaproblema … bakit ‘di nasusunod ‘yung maximum SRP natin,” he said. 

(If there are reports that the agreed price is not being met, retailers, traders and us co-producers should discuss where the problem lies… why the maximum SRP is not being followed)

On the DA’s part, De Mesa agreed that the MSRP should be reviewed with stakeholders. However, he noted that the agency had expected higher compliance in wet markets, given the extensive consultations and agreements that preceded the price cap.

“‘Yun ay unanimous among the different stakeholders,” he said.  

For now, the DA has not reprimanded anyone for failing to comply with the price cap. De Mesa emphasized that the agency's priority is to continue monitoring wet markets.