DA defers imposing MSRP for pork for two weeks

The Department of Agriculture has postponed for two weeks the implementation of a maximum suggested retail price (MSRP) for pork.

In Glen Juego’s report on Super Radyo dzBB Tuesday, the DA made the decision after it consulted various stakeholders, including officials of the agriculture industry, pork producers, retailers, importers, and commuters.

The DA had planned to impose MSRP after receiving reports that prices of pork reached P450-P480 per kilo, which is considered overpriced.

DA spokesperson Arnel de Mesa said there is a need to study the expenses of retailers before pork reaches the market.

He added that despite varying expenses, the per kilo price of pork should not reach P450-P480.

Sellers were also given two weeks to fix pork prices since there were no increases in farmgate prices. 

Review of cost structure

In a separate statement, Agriculture Secretary Francisco Tiu Laurel Jr. said that following a consultative meeting with key stakeholders, pork producers, traders, and retailers have agreed to review their cost structures in an effort to reduce prices.

The Agriculture chief said among the cost structures under review are those of viajeros, or traders, which is now estimated to add P80 per kilo of pork.

"We all agreed that high pork prices are a short-term problem that should soon be resolved," Tiu Laurel said, noting that the issue of high pork prices would be addressed in the near future, particularly after the commercial availability of the African Swine Fever vaccine.

The Bureau of Animal Industry is hopeful that positive results of the government-led ASF vaccination will convince the Food and Drug Administration (FDA) to allow the commercial use of the vaccine.

"We are trying to strike a balance between the interests of consumers and those involved in the pork industry," Tiu Laurel said.

"The clamor to bring the price of pork down is coming not just from consumers but from retailers as well; their sales are going down,” the Agriculture chief added.

During the meeting, the DA and key stakeholders sought to identify the factors driving the rising cost of pork and assess whether an MSRP should be imposed to alleviate the burden on consumers.

Jason Cainglet, executive director of the agricultural group SINAG, advised the DA to temporarily refrain from imposing an MSRP, noting that farmgate prices for pork have already started to drop from P250 per kilo.

Tiu Laurel acknowledged the industry's interest in making pork more affordable to consumers, especially as the price gap between locally produced and imported pork widens.

Imported frozen pork is currently priced around P250 per kilo, while local pork is sold for P400 per kilo. —Mariel Celine Serquiña and Ted Cordero/AOL/VBL, GMA Integrated News