The Department of Agriculture (DA), through its marketing arm Food Terminal Inc. (FTI), is set to implement a cost-tracking system by May in a bid to promote price transparency and protect consumers from excessive pork markups.
FTI president Joseph Lo said the initiative aims to monitor hog costs from farm to retailer, ensuring fair profit margins for all supply chain players while discouraging profiteering. “A margin of P50 to P65 per kilogram, or P5,000 to P6,500 per 100-kg pig, we believe, is already a fair return,” Lo noted, citing current production costs ranging from P80 to P165 per kilogram.
Although FTI has yet to release full details of the tracking mechanism, Lo emphasized its potential to stabilize pork prices and minimize unjustified price hikes. He called on more market participants to offer cuts at prices at least P20 lower than the maximum suggested retail price (MSRP) — P380 per kg for liempo and P350 per kg for pigue and kasim.
Since 31 March, the local unit of Thailand’s Charoen Pokphand Foods has supplied 100 live hogs daily to a centralized Caloocan slaughterhouse, reducing logistics costs by streamlining distribution. “The pilot test has been very successful,” said Lo, adding that participating sellers have been able to price liempo at P360 per kg and kasim and pigue between P330 and P340.
Despite these efforts, DA assistant secretary for consumer affairs Genevieve Velicaria-Guevarra reported that only around 20 percent of vendors in ten jointly inspected markets comply with the MSRP. She attributed the weak adherence to high farm gate prices and added costs across the supply chain.
“This week, we will begin issuing notices to stakeholders,” Guevarra said, noting that enforcement of pricing regulations falls under the Department of Trade and Industry (DTI).
As of Monday, DA monitoring showed pork belly prices reaching up to P470 per kg in public markets across Metro Manila, well above the suggested ceilings.
