Pork prices have risen past P400/kg

By Rose de la Cruz

Unbelievable but true. In my recent visit to a huge grocery in Quezon City, I was surprised, even shocked, to see that pork prices have risen beyond P400 per kilogram, depending on choice cuts, some even reaching past P550.

Even the usual panggisa (saute) item giniling na baboy fetched beyond P380 or P400– depending on the volume of fat in it (with lean meat costing even more) that I could not help think how about the low income families, can they even buy this usual meat?

Even the Department of Agriculture reported that on May 22 (a Wednesday) predicted pork prices going up when the National Meat Inspection Service reported a dip in its inventory. The DA confirmed that indeed retail prices have gone as high as P420 per kilogram in Metro Manila– a sharp increase from recent weeks P340 per kilogram.

At the opening of the Livestock Philippines and Aquatic Philippines 2024 trade fair in Pasay City, DA Undersecretary for Livestock Deogracias Victor Savellano said that concerned agencies– DA and the Department of Trade and Industry– should conduct inspections to identify the traders involved in overpricing.

He said the farmgate prices of pork remained stable and that “we have enough supply and the retail price of pork should be low. There are only traders who take advantage in certain areas.”

Based on the monitoring of the DA in Metro Manila markets, the retail price of pork belly or liempo ranged from P340 to P420 per kilo yesterday compared to the previous level of up to P400 per kilo on May 20.

“We should inform the people that there are areas where they can buy (pork) at lower retail prices,” Savellano added.

No doubt, the meat retailers are taking advantage of the expected short production because of the African Swine Fever which has been plaguing the country for months. The expected arrival of anti ASF vaccines is being looked at as the solution to the shortage of pork.

At the same time, he assured the public that there is enough supply of pork despite an increase in areas affected by African swine fever, the DA said.

In a related development, analysts said a weak Philippine peso has led to higher food and oil costs, thereby quickening the rise in inflation which in July hit 4.4 percent.

A bank economist told Business Mirror that “[a] weaker peso [will] increase importation costs/prices and would lead to some pick up in overall prices/inflation.”.

“[This will also be] due to normalizing base/denominator effects, but 2024 average could still be within the BSP [Bangko Sentral ng Pilipinas] inflation target range of 2 percent- 4 percent,” the economist added.

But Jonathan L. Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., said if inflation remains elevated, hopes of an earlier rate cut could be delayed by the BSP.

Ravelas said while their earlier inflation forecasts did not see inflation breaching 4 percent, the increase in commodity prices between May and July are seen higher.

What is clear right now for Unionbank Chief Econonist Ruben Carlo Asuncion is that the BSP’s recent pronouncements seem to point to allowing the peso to “weaken for a while.”

“I think that this is a momentary weakness and I believe that the BSP seems to be willing to let the USDPHP weaken for a while. The medium-term expectation is that of strengthening as interest rates expected to ease still toward the end of this year,” Asuncion said.

Ateneo economist Leonardo Lanzona said the depreciation of currencies such as what is happening to the Philippine peso could lead to a “depreciation-price spiral.”

A depreciation-price spiral, he explained, happens in four stages. The first is for the domestic currency to depreciate due to market forces and second, lead to an increase in imported commodity prices or higher inflation.

Third is when higher inflation places a downward pressure on the currency “as the demand for the Philippine peso declines. And lastly, is the further depreciation of the local currency and the continuation of the spiral, Lanzona said.