Tight supply pushing up pork prices

MANILA, Philippines - The Samahang Industriya ng Agrikultura (Sinag) is calling on the Department of Agriculture (DA) to study the industry gaps that are resulting in an increase in the prices of pork.

Supply of pork is tight due to the continuing decline in the number of backyard farmers over the past few years.

This has resulted in the significantly higher suggested retail price of the commodity in the local market.

At the current farm gate price, retail price should only be P195 per kilo, but it is now reaching as high as P210 per kilo.

The difference at the farm gate price of live weight hog to retail price of pork should only be P60 per kilo. This should cover transport, handling, storage, marketing and profit margins, but instead it is now reaching P80 to P90 per kilo.

“The DA should address the supply situation and how the system operates in the country, the whole value chain,” Sinag chairman Rosendo So told The STAR.

He said the DA should address the cost of production, which includes feeds such as corn to help farmers lower the price.

So also urged the DA to provide free gilts (young female swine) to allow famers to return to backyard hog raising.

Backyard hog raisers comprise 64 percent of the hog industry, while commercial hog producers only account for 36 percent.

Latest data show that backyard hog raisers went down four percent to 7.7 million raisers as of January from eight million in the same period last year.

So said the decrease in backyard raisers cannot be compensated by the commercial hog producers.

“The whole value chain should be looked into because the situation might be blown out of proportion which might justify the need for importation,” he warned.