A traceability system that will enforce the strict accreditation of livestock and poultry traders and retailers in the country will be established in an attempt to curb potential price manipulation in the meat and poultry sectors, the Department of Agriculture (DA) said.
DA Secretary William Dar said the traceability system is now undergoing a “process of strengthening".
"This will address the information gap in the supply chain, which is often being exploited by unscrupulous traders and wholesalers to manipulate both supply and prices of the commodities," Dar explained.
The secretary further said that the lack of records of middlemen and traders have made it difficult for government agencies to impose strict regulations on the movement of farm animals as well as meat and its by-products. Addressing supply fluctuation and price manipulation have also been a nightmare for authorities.
“We recognize the need to identify the legitimate traders in order to establish a feasible traceability system and pinpoint exactly at a certain level of the supply chain where the manipulation occurred,” he added.
The system will be carried out via a more robust and inter-connected registration and accreditation process involving local government units (LGUs) and concerned national agencies such as DA's Bureau of Animal Industry (BAI) and the National Meat Inspection Service (NMIS).
BAI Director Reildrin Morales said they currently issue “handlers'” licenses to livestock traders. However, they are now looking into the potential role of LGUs in this area.
The NMIS, on the other hand, accredits and registers meat transport vehicles. At present, the BAI is also looking at how this can be strengthened and expanded to further impact the supply chain, Morales added.
"The draft DA administrative order governing trader registration is currently being reviewed by the BAI to effect the needed changes to ensure that the system will bring about transparency and subsequently benefit the consuming public,” Dar said.
The trader registration initiative will also complement the ongoing registration process for swine and poultry growers under the Registry System for Basic Sectors in Agriculture (RSBSA).
The DA chief agreed with the suggestions made by the Philippine Competition Commission (PCC) during the recent joint hearings of the ommittees on agriculture and food, and trade and industry, of the House of Representatives where the antitrust body cited the need for a trader database and identification of participants at each level of the supply chain.
Director Orlando Polinar of the PCC enforcement office said that the DA should provide a traceability database of the commodities, as it is important to know where the supply comes from and where it ends up.
“It is necessary in matching farmgate and retail prices, and identifying where the manipulation occurs,” Polinar said.