Mega Prime Foods Inc. (MPFI), owner of Mega Sardines, said surging diesel is putting pressure on its production costs, which could make it challenging for the firm to maintain current prices.
MPFI Chief Executive Officer Michelle Tiu Lim-Chan told the BusinessMirror the surging costs of fuel necessary to run its boats is weighing on the company, which produces the Philippine sardines brand.
‘Our problem right now is the soaring diesel prices, since we use it to catch (fish),’ she told this newspaper on the sidelines of MPFI’s museum relaunch in Sto.Tomas, Batangas on Wednesday.
While the firm could still absorb the added cost, Lim-Chan said a prolonged upsurge in pump prices could squeeze its margins, which could prompt them to eventually pass the cost to consumers.
‘As of now, we’re trying to absorb it as much as possible because we really don’t want to pass it (on to consumers), but at a certain point, if (diesel costs) really get too high, we won’t be able to handle it either, so maybe (we’ll raise prices).’
Meanwhile, Lim-Chan said the company also wants to penetrate other markets, such as India and Mexico. The MPFI currently exports to 40 countries.
‘I’ll be going to India where we’ll offer curry masala sardines at the end of this month,’ she said. ‘While we have (exports) to Central America, it’s still small. So, we want to explore other markets like Mexico.’
The company recently expanded into the mainstream United States grocery market, with Lim-Chan noting that products cover Kroger and its banners Mariano’s, Fry’s, Dillons and Pick ‘n Save.
MPFI said its sardines brand has also recently entered Azerbaijan, Kenya and Jordan.