FTI ties up with Thailand's CP Foods to stabilize pork price, supply

Food Terminal Inc. (FTI), a state-owned firm under the Department of Agriculture, has partnered with the local unit of Thailand's Charoen Pokphand Foods PLC (CP Foods) to stabilize pork prices in Metro Manila.

In a news release on Tuesday, the DA said FTI president Joseph Lo and CP Foods chief operating officer Nattakorn Sujipittham signed a memorandum of agreement (MOA) last Friday, March 28.

The Agriculture Department said the partnership outlines a pilot program where CP Foods will supply 100 live hogs per day at a discounted price.

The pilot program will run for three months—from April to June—in the National Capital Region (NCR), Rizal, and Cavite.

CP Foods' hogs will be sent directly to a slaughterhouse in Caloocan, "where the distributor and viajeros will simply receive the live hogs directly rather than transporting them from various farms."

The hogs will then be processed for fresh pork carcasses, which will be delivered to different retailers in various wet markets, according to the DA.

"If this pilot proves successful, we will extend it to other hog raisers, creating a broader solution to ensure pork remains affordably priced, with minimal shock to the industry," said Lo.

The decision to partner with CP Foods was driven by the company's capacity to supply the volume needed for the pilot, the FTI chief said.

"We needed a company that could guarantee the volume we need at the price we were looking at to achieve our goals," said Lo.

Agriculture Secretary Francisco Tiu Laurel Jr. welcomed the partnership between FTI and CP Foods.

"We need creative approaches like this deal between FTI and CP to modernize the pork industry's supply chain, stabilize prices, and ensure food security," said Tiu Laurel.

The Agriculture chief said the collaboration between FTI and CP Foods reflects a broader government initiative to enhance food security and stabilize prices, in line with the vision of President Ferdinand "Bongbong" Marcos Jr. to strengthen the agriculture sector and protect consumers from volatile market conditions.

CP Foods is a leading integrated agro-industrial and food company and has invested heavily in expanding its operations in the Philippines.

Last November, CP Foods unveiled a P10-billion plan to build 20 new breeding farms and increase local pork production.

In order to ease rising pork prices, the DA on March 10 implemented a maximum suggested retail price (MSRP) on pork—P300 per kilo for fresh carcass or "sabit ulo," P350 a kilo for kasim and pigue, and P380 per kilo for liempo.

Three weeks after its implementation, however, pork retailers in Metro Manila have admitted difficulties in complying with the DA's MSRP, with many still selling above the mandated rates. — VDV, GMA Integrated News