DA to pork industry: Explain low compliance to price ceiling

Metro Manila, Philippines - The Department of Agriculture (DA) will ask stakeholders in the pork industry to explain the low compliance to a price ceiling order, an official said on Monday, April 21.

Agriculture Assistant Secretary Genevieve Gueverra said the notices to explain may be issued within the week.

“Nu’ng nakipag-usap tayo with industry stakeholders, baka magsulat na tayo ng ‘love letters’ kasi ‘yun ‘yung susunod na step para ma-explain nila rin,” Guevarra said in a chance interview.

“Although alam naman na po namin, pero for them to really take it seriously na meron po tayong pinapatupad ng MSRP,” she added, referring to the maximum suggested retail price, which is based on producer cost.

[Translation: When we talked with industry stakeholders, we said we might have to write ‘love letters’ because that would be the next step for them to explain. Although we know the reasons, this is for them to really take the MSRP implementation seriously.]

Guevarra said compliance to the pork MSRP in Metro Manila markets was 20 percent to 25 percent.

In March, the DA imposed a price ceiling for liempo (belly) at P380 per kilogram, kasim (shoulder) and pigue (ham) at P350/kg. A maximum suggested price for “sabit-ulo” or freshly slaughtered carcass was also set for P300/kg to ensure compliance.

But agriculture officials said some pork producers still have a farmgate price of up to P255/kg, higher than the agreed upon P230/kg.

In a statement on Sunday, the DA said the agency and stakeholders have agreed to intensify the pork MSRP enforcement, “with the private sector pledging to police its ranks and prevent profiteering at the expense of consumers.”

“Anything above P230 is profiteering,” Food Terminal Inc. president and CEO Joseph Lo said, even as the DA is still appealing to farms and traders to temper prices.

Lo said the DA is studying the proposed tracking cards to follow the pork throughout the supply chain. He said details may be finalized by May as the DA consults with legal experts.