New FTI system coming to track pork supply chain, curb profiteering
CHOICE CUTS Consumers buy pork at a stall in Commonwealth Market in Quezon City. —Grig C. Montegrande
MANILA, Philippines — The Food Terminal Inc. (FTI) is aiming to complete by May a system that will help track the movement of hogs from farms to retailers for the benefit of both producers and consumers.
Developing this system is one of the measures adopted by the agency to lower retail prices and curb profiteering within the supply chain.
“The goal is to ensure each player in the supply chain earns a fair return, while shielding consumers from unjustified markups,” the DA said in a statement.
Before this, the DA instituted a price ceiling for pork “to prevent excessive pricing and ensure affordability for consumers.” The maximum suggested retail price (MSRP) for pork liempo is set at P380 per kilogram for liempo and P350 a kilo for pigue and kasim.
However, the DA pointed out the low compliance among industry players due to farm-gate prices exceeding the agreed level of P230 per kg and multiple layers of added costs before the pork reaches retailers.
“We believe a farm-gate price above P230 per kilo is already an indication of profiteering,” FTI president and chief executive officer Joseph Rudolph Lo said.
Lo said a margin ranging between P50 and P65 per kg—or roughly P5,000 to P6,500 per 100-kilo pig—“is already a fair return.”
“This week, we will begin issuing notices to stakeholders, requesting them to explain their inability to comply with the MSRP,” Agriculture Assistant Secretary Genevieve Velicaria-Guevarra said.
Guevarra said the agency would closely coordinate with the Department of Trade and Industry, which holds the enforcement authority on pricing matters.
Increasing supply
READ: PH imported 20.8% more pork, beef in 2024
Aside from the MSRP, the FTI has partnered with the local entity of Thai firm Charoen Pokphand Foods PLC (CP Foods) to work on a pilot program to drive down retail pork prices.
Under the accord, Charoen Pokphand Foods (CPF) Philippines Corp. will supply 100 live hogs daily to a Caloocan slaughterhouse at discounted prices from April to June.
READ: Thai firm to supply PH with 100 live hogs daily
Lo said the pilot test has been “very successful” since its launch on March 31, as it allowed participating retailers to offer pork cuts at prices at least P20 below the MSRP.
“Over the first 21 days, we’ve handled more than 2,000 pigs, and participating sellers have been able to price liempo at P360 per kilo, and kasim and pigue between P330 and P340 per kilo,” he said.
The FTI wants more hog farms to participate in this initiative to achieve the goal of lowering retail prices of pork.
