THE pork industry blamed the high retail prices of pork on the reduced hog population due to the outbreak of African Swine Fever (ASF) in Luzon since September, and raised the prospect of further supply erosion as producers claim they can’t make money at the current suggested retail price (SRP) settings.

In a mobile phone message Monday, Meat Importers and Traders Association (MITA) President Jesus C. Cham said ASF created scarcity, driving prices up.

“Until ASF is eradicated or a vaccine becomes locally available, pork supply will remain affected,” Mr. Cham said.

As of June 8, the Bureau of Animal Industry (BAI) estimates that 297,287 pigs have been culled as a precaution against ASF.

In a mobile phone message Monday, Pork Producers Federation of the Philippines, Inc. President Edwin G. Chen added that money-losing hog raisers may not be able to recoup their losses because of the price controls.

“Many hog raisers lost money as a result of ASF,” Mr. Chen said.

Mr. Chen said the depleted pork population and the challenge of shipping pigs from the Visayas and Mindanao, have also raised pork prices in Luzon.

In addition, Mr. Chen said the current SRP for pork products leaves no room for hog raisers to make a profit.

As of June 11, the Department of Agriculture (DA) estimates that current retail prices for a kilogram of pork (kasim) are between P210 and P250, well above the SRP of P190, while pork belly (liempo) sells for P240-P280, against an SRP of P225.

“If the DA insists that the SRP for pork remains at P190, the producers would have no choice but to shut down their operations,” Mr. Chen said.

Mr. Chen said that the SRP should be adjusted to around P235 to P245 depending on the farmgate price in the area where the pork was sourced.

Mr. Chen said the current farmgate price for pork in Luzon ranges from P135 to P165 while pork from the Visayas and Mindanao fetches P90-P120.

“We want to increase the SRP because aside from the farmgate price, we need to take into account other expenses such as logistics costs from farm to slaughterhouse, slaughter fees, and government fees,” Mr. Chen said.

According to Mr. Chen, it could take five years for the pork supply to recover and return levels seen before the ASF outbreak.

“Without an ASF vaccine, pork producers will be on a wait and see,” Mr. Chen said.

MITA’s Mr. Cham said high retail prices will continue for some time because supply will take time to rebound.

Mr. Cham said that the DA may have to encourage imports to address rising retail prices, but warned that the commodity could be even more expensive with the approach of the holiday season.

“The pork products ordered from other countries in June only arrive in August, just before the start of ‘ber months’ or the holiday season,” Mr. Cham said.

As of June 7, the BAI estimated that pork imports in the year to date at 91,865 metric tons, 47% lower than the year-earlier total.

In a phone message Wednesday, University of Asia and the Pacific Center for Food and Agri-Business Executive Director Rolando T. Dy said the high price of pork can be traced to lack of production.

“Imports will only augment our pork supply (over) the short term,” Mr. Dy said.

In a virtual address Thursday, Agriculture Secretary William D. Dar said he has received petitions from hog raisers to increase the SRP to bring the retail price more in line with high farmgate prices.

In a phone message Sunday, DA Spokesperson Noel O. Reyes said the DA is currently reviewing the proposal about the SRP and a decision could be made within the week.

Imports of pork and poultry products remain a fraction of domestic production, MITA said.

In a letter sent to Mr. Dar on Monday, MITA’s Mr. Cham said meat imports are a vital source of raw material for meat processors, and are also relied upon by the hospitality and tourism industries.

“Without meat imports such as mechanically deboned meat and pork by-products for processed meat, the country may not have survived the lockdown,” Mr. Cham said. — Revin Mikhael D. Ochave

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