Rising local demand buoys meat processing industry

CEBU, Philippines – The Philippine Association of Meat Processors Inc., (PAMPI) projects a good local demand for processed food in the Philippines this year, banking on the growing needs from institutional consumers, and improved purchasing power of Filipinos.

The industry played by 48 meat processing firms, is looking at hitting over 20 percent growth this year, said PAMPI president Felix Tiukinhoy.

The rising demand of institutional clients, like hotels, resorts, restaurants for locally manufactured processed meat gives players reason to expand and invest more, amid the influx of imported products, he said.

"The outlook is favorable, we have growing population. Most Filipinos have good purchasing power," said Tiukinhoy, who is also the president and chief executive officer of Virginia Foods Inc.

Tourism related institutions' demand is a big factor that aid the industry's performance in recent years, as these institutional clients prefer to order local products versus imported to save on cost.

In fact, he said most meat processing companies are expanding their production capacity to catch up with the rising local demand.

Pampi is a P200 billion sector composed of 48 companies involved in the meat processing business. Cebu-based processors include; Belcris Foods, Gold Ribbon Food Inc., Judphilan Foods Corp., King's Quality Foods, Lami Food Products Corp., Sunpride Foods Inc., and VFI.

However, what is keeping the local meat processing sector from increasing production capacity is the shortage of local meat supply, wherein companies have to import majority of their raw materials.

Tiukinhoy mentioned the inability of the government to help the sector in providing livestock farmers the capacity to grow.

Last year, the industry was able to take advantage of the hyper consumption-based economy in the country with 20 percent average growth.

This is expected to double starting this year, as the Philippine economy is projected to grow regardless of any political and external interventions that may pop-up along the way. (FREEMAN)