MANILA, Philippines — In response to the continuous rise in pork prices, the Department of Agriculture (DA) is weighing the implementation of a maximum farmgate price for pork as a potential alternative to the imposition of a maximum suggested retail price, an agency official revealed yesterday.
In an interview with The STAR, DA spokesman Arnel de Mesa said the proposal surfaced after both retailers and pork producers expressed opposition to the imposition of maximum SRP during consultations, citing concerns over market dynamics and supply chain expenses.
Based on data from the hog producers, the cost of pork production has reached P180 per kilo, while the farmgate price stands between P230 to P250 per kilo, yielding a P70-per-kilo profit and a 38-percent increase from their production cost.
De Mesa noted that farmgate prices have started to decline as cases of African swine fever decrease and production improves.
Traders, or biyaheros, on the other hand, reportedly spend at least P80 per kilo on transportation and logistics, while retailers incur an additional P50 per kilo in costs.
Based on these figures, De Mesa estimates that pork should retail at P380 per kilo.
Maximum farmgate pork price mulled
Bella Cariaso
MANILA, Philippines — In response to the continuous rise in pork prices, the Department of Agriculture (DA) is weighing the implementation of a maximum farmgate price for pork as a potential alternative to the imposition of a maximum suggested retail price, an agency official revealed yesterday.
In an interview with The STAR, DA spokesman Arnel de Mesa said the proposal surfaced after both retailers and pork producers expressed opposition to the imposition of maximum SRP during consultations, citing concerns over market dynamics and supply chain expenses.
Based on data from the hog producers, the cost of pork production has reached P180 per kilo, while the farmgate price stands between P230 to P250 per kilo, yielding a P70-per-kilo profit and a 38-percent increase from their production cost.
De Mesa noted that farmgate prices have started to decline as cases of African swine fever decrease and production improves.
Traders, or biyaheros, on the other hand, reportedly spend at least P80 per kilo on transportation and logistics, while retailers incur an additional P50 per kilo in costs.
Based on these figures, De Mesa estimates that pork should retail at P380 per kilo.