The Department of Agriculture (DA) is studying the possible reimposition of a suggested retail price (SRP) on pork nearly four months after the government lifted the price cap intended to temper soaring meat costs.
Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday that the department would review the matter and adjust profit margins to make them more reasonable and ensure they remain worthwhile for retailers and producers.
‘What the DA was planning when prices went out of control was to implement an MSRP (manufacturer’s suggested retail price) on pork, especially on imported pork. That is still an option,’ Tiu Laurel told lawmakers during the budget hearing of the agency for 2026.
To illustrate, Tiu Laurel said the landed cost of imported frozen liempo is at around P220 per kilo, while retail prices in local markets is P315 per kg.
He added that pork imports charged with lower tariffs cost around P250 per kg, while those taxed at higher rates are priced between P268 and P279 per kg.
The gap between import and retail prices shows a margin of roughly P65 per kilo.
‘I used to do this business. That (price markup) is high. It should just be around P260 per kg (instead of P315 per kg),’ said the agriculture chief.
Last May, the DA scrapped the MSRP on pork after traders and meat processors appealed for its suspension, citing the continuing shortage of hogs due to African swine fever (ASF).
The agency said market conditions at the time made it difficult for retailers to comply with the price ceiling as supply tightened while demand stayed strong.
Before the price cap was lifted, the DA had set the MSRP at P380 per kilo for liempo, P350 for pigue and kasim and P300 for sabit-ulo or fresh carcass.
The DA said these rates were meant to balance fair returns for producers and traders while shielding consumers from steep markups in wet markets.
The country’s hog inventory has fallen sharply to just about eight million as of this year from around 13 million heads in 2019, according to the DA, leaving local production well below pre-outbreak levels.