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>> Sunday, October 5, 2008

Hog raisers seek cut in market pork prices; hit traders for much profit
By George Trillo

TARLAC CITY, Tarlac -- Hundreds of hog farmers in this province urged the national government to take market-intervention actions aimed at reducing the prices of pork in wet markets and groceries. They said the market prices of pork should be only between P85 and P90 per kilo, instead of the prevailing P165 and P200 in wet markets and supermarkets, respectively.

Hog raisers asked the national government to stop importation of pork because this further reduces the earnings of hog raisers and traders.

Antonio dela Torre, a hog farmer in this province, said prices of pork in the wet and grocery markets still average at P165 and P200 per kilo, respectively, despite the fact that the hog raisers sell live pig at P80 per kilo to the traders.

"Masyado naman mataas ang tubo ang mga hog traders na ito, sa kabila na bumaba na ang presyo sa karneng baboy mula sa P90-P85 hanggang sa P80 per kilo ang buhay na baboy ayaw pa rin nilang ibaba para naman matulungan ang marami nating mamimiling mamamayan," Dela Torre said.

The price of pork at groceries and supermarkets is P200 per kilo, and this is too high to consumers, Dela Torre said. Grocery and supermarket owners are reportedly earning big profits from selling imported frozen pork than selling local pork.

"The current situation is unprecedented, and has significantly affected the whole hog industry," said Albert Lim Jr., president of the National Federation of Hog Farmers Inc.

Lim decried the low demand and the increase in pork importation by meat traders, saying that these are the primary causes of the industry’s problems.

He said that while farm gate prices have gone down significantly, this is not reflected in the prices at the markets. Farm gate prices currently averages at a high of P82 per kilo and a low of P78 per kilo. Before the Holy Week, the average price was between P115 and P117 per kilo.


However, Lim said that pork is still selling in the wet markets at an average of between P150 and P175 per kilo, "turning off many consumers who are already suffering from the hike in the prices of other basic commodities." While it is traditional for farm gate prices to go down after the Holy Week, it has not stopped going down. "It did go down, slowly in the beginning, but we did not expect it to continue until now," Lim said.

In a meeting with Agriculture Secretary Arthur Yap, the members of the NFHFI’s Council of Presidents suggested that the Department of Agriculture come out with a campaign to inform consumers of the right pricing for pork products.

Lim said the suggestion is similar to the suggested retail price practice of manufacturing companies.

DA can post the SRP of pork products outside the wet markets so that consumers are aware of the prices of pork and can themselves call the attention of the retailers.

"We have no control over the traders and the retailers, but as consumers, we can tell retailers that they should be selling their products at the right price," he said. "This way, everyone comes out a winner as consumers get lower prices and will buy more pork and producers can sell more hogs."

Lim said if the current trend of low farm gate prices is not addressed, it would have a domino effect in pork production all over the country.

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