BECAUSE OF THEIR lowly stature in society, pork farmers are always the first to comply with regulations issued by the Department of Agriculture on ceiling prices for pork, but not the traders (which comprise viajeros, retailers and other traders).
At least this is what the Samahang Industriya ng Agrikultura (SINAG) is saying short of describing the farmers as the first ones to be compliant to government regulations because of fear arising for their marginal status in society.
SINAG likewise challenged the DA’s claim of low compliance with the maximum suggested retail price (MSRP) on pork, asserting that hog raisers have been fulfilling their part of the agreement.
The DA set the MSRP in March at P350 per kilogram kilo for kasim and pigue, and P380 per kg for liempo. It later reported that fewer than 10% of retailers were adhering to the price ceiling.
SINAG insisted that the DA based the MSRP on a farmgate price of P230/kg and added a margin of P120— of which P70 is allocated to traders and P50 to retailers.
THERE IS A DISCONNECT
SINAG executive director Jayson Cainglet said the DA should identify where the disconnect lies and not blame the compliant hog raisers.
“Kahit lugi ang maraming backyard farms, sumusunod pa rin sila sa napag-usapan,” Cainglet said.
The DA meantime warned that it and the Department of Trade will start running after pork retailers not complying with the agreed MSRP, said DA Assistant Secretary Genevieve Velicaria-Guevarra with notices to be issued this week.
She confirmed that compliance has been only at 20 percent of monitored retailers in 10 markets in Metro Manila.
“This week, we will begin issuing notices to stakeholders for them to explain their failure to comply with the MSRP. We are coordinating closely with DTI, which has enforcement authority on prices,” said Guevarra.
THE SUPPLY CHAIN
The DA implemented the MSRP in March, setting prices for locally slaughtered pork at P380 per kilo for liempo and P350 per kilo for pigue and kasim.
She attributed widespread non-compliance to elevated farm gate prices, which have risen above the agreed level of P230 per kilo.
Guevarra shared that multiple layers of middlemen in the supply chain have further pushed pork prices higher by the time the meat reaches public markets.
SINAG dared DA to pinpoint exactly where the problem lies, as hog raisers have been adhering to their commitment with the DA to keep the farmgate price of pork at P230 per kilo for kasim and pigue and P260 for liempo.
COMPLIANCE
Unlike rice, which passes through several middlemen, the pork supply chain involves only the hog raisers, traders, and vendors.
The DA had earlier noted that less than 10 percent of retailers are observing the pork MSRP.
The pork MSRP was based on the farmgate price of P230 per kilo for pigue and kasim and P260 for liempo, plus a margin of P120 that is split between traders and retailers at P70 and P50 per kilo, respectively.
SINAG also cited data from the Bureau of Animal Industry (BAI) showing that 93 percent of hog raisers complied with the P230/P260 per kilo farmgate price. The figures are based on invoice records.