DA: Suggested retail price is “site specific”

CEBU, Philippines - The regional Department of Agriculture has said the recently approved suggested retail price for chicken and pork will not be imposed in various Cebu public markets yet.

Gerry Avila of DA Central Visayas said the agency has yet to provide final guidelines on how it would come up with SRP for local markets in various regions because cost structure is mainly “site specific”.

“So far, I think the SRP is for Metro Manila pa (sa pagkakaron),” Avila told The FREEMAN yesterday. “In fact, our retail price in wet markets is even lower than the SRP set in Manila.”

The DA has initially set an SRP for fresh pork and chicken goods in Manila to ensure enough supply and to keep prices stable during the holiday season.

The government has still to review and look at the possibility of expanding the SRP coverage to the local markets of different regions in the country, said Avila, who is chief of Agribusiness and Marketing Assistance Division.

During the recent government's consultation with chicken and pork suppliers, stakeholders have agreed that SRP for liempo (belly) should be at P185, pigue (loin) at P175 and chicken at P135. These suggested prices is initially being imposed in the National Capital Region.

Prices remain high

At Cebu City’s Carbon Market, one whole dressed chicken sells at P125 - P130 while various chicken cuts are sold at P140 to P155 per kilo. On the other hand, prices of both lean pork and pork belly range from P185 to P210.

Avila explained suggested prices for meat products would only last for weeks until such time when prices normalize and that the SRP mandate should then be lifted.

“Dili ni siya permanent kay raw agri products man ni. Tan-awon na siya kanus-a pwede hunungon ang pag-impose. (Dinhi sa ato sa Cebu) and other regions, before ta maka-come up with SRP, we have to consider the cost structure first,” Avila said.

The chief also noted they still have to finalize the implementing rules and regulations in setting SRP for raw fresh products especially in the regional level.

Poultry and livestock growers, integrators and producers have to determine how much the production would cost and how much profit would be decided in manufacturing their products.

While some groups have lauded the government’s decision to impose SRP for the said meat products, Avila said some growers and producers have also questioned the directive as it only protects the consumers.

He added an economist must be consulted about the economic impact of imposing SRP on raw agricultural products whose prices regularly changes.

Based on the latest data, farm gate prices of live hogs are at P106 to P120 per kilo while for chicken, costs range between P75 to P82 kilo.

Vendors appeal

Meat vendors at the Carbon Market have also expressed that if the SRP coverage would be imposed in Cebu's wet markets, they would eventually have a hard time achieving a reasonable profit.

Mely Maniego, 56-year-old chicken retailer, said vendors have to impose a 20 percent profit margin on their goods to cover their operational costs including the stall rent fee.

Vendors told The FREEMAN they would like to appeal that the government should also consider their situation and also regulate how suppliers control prices.

However, the Agriculture Department have already reiterated there is no enough basis for prices of meat products to remain high ahead of the holiday season.

Various groups recently appealed to the DA and the National  Price Coordinating Council to act on the continuing high retail costs of chicken and pork even if farm gate prices have already dropped. (FREEMAN)