The Department of Agriculture (DA) will implement a maximum suggested retail price (MSRP) for pork in wet markets across Metro Manila beginning Monday, March 10, in a bid to lower prices.
The MSRP will be ₱380 per kilo for liempo (belly) and ₱350 per kilo for kasim (shoulder) and pigue (ham).
In a statement on Thursday, March 6, the DA said the price cap considers the ongoing challenges facing the pork industry, particularly the lingering effects of African swine fever (ASF).
Unlike the MSRP on rice, which applied for the imported variety, the MSRP on pork will be limited to locally produced meat.
This new pricing initiative will be piloted only in Metro Manila, with other regions currently under review.
So far, pork sold in facilities such as supermarkets and hypermarkets are exempted from the MSRP given their higher operating costs.
“This decision was made after consultations with industry stakeholders—from producers to wholesalers, traders, and retailers,” Agriculture Secretary Francisco Tiu Laurel said in a statement.
“We believe the MSRP will help ensure the sustainability of the pork industry, which continues to suffer from ASF’s adverse effects,” he added.
Win-win situation
While it was initially reported that pork industry players were against the MSRP, continued dialogue between the DA and stakeholders resulted in a mutually beneficial agreement that addressed their concerns while ensuring fair pricing for consumers.
In fact, Samahang Industriya ng Agrikultura (SINAG) Executive Director Jayson Cainglet said the decision made Thursday was “unanimous.”
“Ni walang binigay na figure ang DA, kundi ito yung kaisahan talaga ng industry para nga matulungan ang ating mga consumers na bumaba ang presyo ng baboy,” said Cainglet in a press briefing.
(The DA didn’t even give us a figure, but this is really the industry’s collective effort to help lower pork prices for our consumers.)
Last month, the DA flagged the huge disparity between farmgate prices and retail prices of pork. For instance, from an initial price of ₱250 per kilo, it was being sold up to ₱420.
Manny Pareja, president of United Vendors Las Piñas Public Market, said such prices brought about fewer earnings to vendors.
By employing the MSRP, he said this will help attract more consumers—ultimately helping vendors sustain their livelihood.
Compliance
To ensure that the entire supply chain in the pork industry follows suit, the DA will also be imposing a maximum suggested price (MSP) for “sabit ulo” or the price at which traders pass pork to retailers.
The agency has set the limit at ₱300 per kilo.
As farmgate prices continue to decline below ₱250, the pork industry sees no issue with following the MSRP.
Ideally, viajeros or traders should only impose as much as ₱70 per kilo, with retailers adding as high as ₱50.
DA spokesperson Arnel de Mesa said the MSRP will be subject to a regular periodic review to determine whether adjustments will have to be made.
“Ang sinabi naman palagi ni Secretary [Laurel] kapag wala na tayong problema, maayos na yung ganitong issue, itong imposisyon ng MSRP will eventually be removed,” said De Mesa.
(Secretary Laurel has always said that once there are no more issues and this matter is settled, the imposition of the MSRP will eventually be lifted.)
The official said the agency expects the majority of retailers to comply with the pricing limit on Monday, aside from those still selling off their remaining stock purchased at higher prices.
He added that there will be regular monitoring of wet markets to ensure that the MSRP will be imposed.
Earlier, the Philippine Statistics Authority (PSA) suggested that introducing an MSRP on pork could slow down inflation on the commodity, or even “[result] in negative inflation.”