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By Kyle Aristophere T. Atienza, <\/b><\/span>Reporter<\/i><\/p>\n THE Department of Agriculture (DA) announced on Wednesday that it will remove the maximum suggested retail price (MSRP) for pork, which saw a surge in demand during the election period, within 24 hours due to inadequate compliance among suppliers.<\/p>\n \u201cIt\u2019s termed one step back and two steps forward,\u201d Agriculture Undersecretary for Livestock Constante J. Palabrica informed journalists on the margins of an industry gathering on Wednesday. The agency is exploring a more effective approach to address elevated pork prices, he remarked.<\/p>\n \u201cWe are going to remove it, we\u2019re going to analyze it and then develop an updated program,\u201d he stated.<\/p>\n The MSRP was established at P300 per kilo for whole pig, P350 per kilo for pork shoulder and hind leg, and P380 per kilo for pork belly.<\/span><\/p>\n However, the agency has raised concerns regarding minimal adherence to the MSRP since the initial week of enforcement, currently below 30%.<\/p>\n Mr. Palabrica linked high pork retail costs to elevated farmgate prices, which have reached as much as P290 per kilo.<\/p>\n He remarked that the increased demand during the election period surpassed the limited domestic supply caused by the African Swine Fever (ASF). \u201cIt\u2019s the principle of supply and demand.\u201d<\/span><\/p>\n \u201cThus, anticipate a potential adjustment of MSRP, temporarily pausing it while we are evaluating how to make it truly effective,\u201d he added.<\/span><\/p>\n For the time being, the agency will concentrate on purchasing hogs from pig farms at a lower rate \u2014 fixed at P230 per kilo \u2014 and distributing these to prominent slaughterhouses.<\/p>\n He was referencing a direct-sourcing initiative trialed by the Food Terminal, Inc. (FTI) in collaboration with Thai company Charoen Pokphand Foods PLC (CP Foods). The FTI is providing a Caloocan slaughterhouse with 100 live hogs daily from CP Foods under a pilot initiative that commenced in April.<\/p>\n \u201cThe initial request was for 100 pigs daily,\u201d Mr. Palabrica explained. \u201cAnd then by the following month, it will be 200. Ultimately, our goal is around 500 pigs [a month].\u201d<\/p>\n He added that the government is also investigating a similar approach employed by other agricultural companies, including Pilmico Foods Corp.<\/p>\n \u201cWe are seeking other farms that can provide us with our own pricing,\u201d he stated. \u201cIf we can secure a price of P230, we can then offer at a lower price in the market.\u201d<\/p>\n The Agriculture official indicated that approximately P5-7 billion is allocated for the direct-sourcing initiative, which does not incur costs for the FTI since it sells the hogs at the same price, while the delivery expenses to slaughterhouses are covered by the partner company.<\/span><\/p>\n \u201cIf we acquire it at P230, you will also purchase at P230. For logistics, we have negotiated a discounted rate,\u201d he added.<\/p>\n Mr. Palabrica mentioned that the Philippine pork supply remains stable. \u201cWe have an adequate supply of pork. However, the limited amount pertains to local pork. Regarding imported pork, there is ample supply.\u201d<\/p>\n Pork imports totaled 53.598 million kilos in February, an increase from 38.994 million kilos in the same month last year.<\/p>\n Forty-two Philippine communities reported ASF cases as of March 28, rising from 39 barangays as of March 14, according to data from the Bureau of Animal Industry. Over 6,200 villages have experienced ASF cases since the first outbreak in 2019.<\/span><\/p>\n Mr. Palabrica stated that they expect the commercial deployment of a Vietnamese ASF vaccine by the end of the year.<\/span><\/p>\n The Agriculture department previously mentioned that it is collaborating with the hog industry to increase their herds by at least two million hogs annually through 2028 to return to pre-ASF levels.<\/p>\n REGIONALIZATION AGREEMENT Thailand, Taiwan, Paraguay, and Chile are seeking to be included in the agreement which aims to eliminate a nationwide ban on a trading partner affected by bird flu outbreaks, he noted.<\/p>\n Under the agreement, the Philippines will impose restrictions on poultry imports only from specific regions impacted by avian influenza, allowing imports from zones or areas certified free from the animal disease.<\/p>\n The US, Poland, Spain, Portugal, Brazil, and the Netherlands are among the nations accredited by the Philippine government, Mr. Palabrica stated.<\/p>\n The DA earlier indicated that a nationwide ban restricts the availability of day-old chicks, breeding stocks, and poultry meat, resulting in elevated prices.<\/p>\n The three-step process for inclusion in the agreement necessitates the submission of documents regarding veterinary oversight, disease monitoring, traceability, control measures, and zoning protocols by the exporting nation.<\/p>\n The application will be assessed by a risk evaluation team.<\/p>\n A regionalization agreement will then be drafted and finalized after an affirmative evaluation, detailing the import terms and conditions, alongside revised veterinary certificates.<\/p>\n
\n<\/b>Meanwhile, Mr. Palabrica stated that the Philippines is engaging in discussions with various countries as it enforces a regionalization agreement for the imports of live chickens and their products.<\/p>\n