DTI warns retailers to follow milk SRPs

CEBU, Philippines - The Department of Trade and Industry has warned retail stores to follow the Suggested Retail Prices (SRPs) of milk products, which have increased as much as eight percent this month.

Or else they may face charges of profiteering or receive show cause order from the agency.

So far, at least two Cebu City supermarkets, which The FREEMAN visited yesterday, have exceeded the SRPs for some of their milk goods.

For instance, a known supermarket in Cebu's downtown area is selling a certain branded 150g powdered milk at P74.75, slightly higher than the product's SRP at P73.30.

Another branded 150g powdered milk is also sold at P48.80, higher than its SRP at P45.15.

The following are the new SRPs

for milk brands as of July 1, 2014:

300mL Condensed Alaska Sweetened Filled Milk - P53

300mL Condensed Milkmaid Full Cream Milk - P65.85

370mL Evaporated Alaska Filled Milk - P38.20

370mL Evaporated Alpine Full Cream Milk - P52.60

410mL Evaporated Angel Filled Milk - P38.15

150g Powdered Alaska Milk Drink - P45.15

150g Powdered Bear Brand - P51

160g Powdered Nido Fortified - P77.42

150g Powdered Anchor Full Cream Milk - P73.30

150g Powdered Birch Tree Full Cream Milk - P58.10

Some evaporated and condensed milk products though only surpassed the SRPs by a few centavos, such as a certain 410mL branded evaporated milk pegged at P38.85, a little higher than its SRP (P38.15).

"If that is the case, we have to write the establishments to explain nganong nilapas sila sa SRP," DTI-7 Consumer  Welfare and Business Regulation Chief Zaide Bation told The FREEMAN. "We'll send them show cause letters."

The SRPs set for milk products are already agreed by manufacturers and that retailers too are informed regularly on the prevailing retail prices of basic commodities, the chief explained.

At the start of July, milk price increases are between P0.40 - P4.30 or a percentage range of 0.55 percent - 7.99 percent.

Bation said that producers of some milk brands asked for SRP adjustments because of the increasing world prices of skimmed milk and whole milk powder. The two are main ingredients for evaporated, condensed and powdered milk.

`This month, the price of skimmed milk per metric ton from New Zealand has soared by 40.12 percent while whole milk has risen by 48.64 percent.

Although these milk manufacturers requested for 9 percent - 12 percent SRP changes but the agency only allowed increases of up to 8 percent based on its data review and evaluation, the DTI official said.

However, at least four milk brands in a Cebu supermarket are sold at prices higher than their SRPs.

On the other hand, the DTI dispelled reports that bread prices will also increase after the prices of egg and sugar have gone up recently.

Bation emphasized that price hikes of bread ingredients such as egg, sugar and milk have minimal effect on prices, adding that flour millers have assured that no increase on prices of flour bags to expect this month. Milk and sugar only contain 10 - 12 percent production cost of bread.

In addition, the department also rejected the appeal to increase SRPs of canned goods because prices of raw materials of these goods are declining.

Bation added they also declined the call to hike SRPs of bottled water saying reasons are invalid.  But they are currently evaluating a request from a bottled water manufacturer who has said prices of the bottle cap and resin are rising.

In a meeting last month, President Noynoy Aquino ordered the various agencies especially DTI and Agriculture Department to strictly monitor the prices of basic commodities in the market.

The president reiterated that monitoring teams can charge retailers and manufacturers when found violating the Price Act. (FREEMAN)