The Department of Trade and Industry said it had received petitions from food companies for price increases in food products such as canned goods, and bread makers.
The Department of Trade and Industry (DTI) said it had received the price increase appeal from manufacturers of canned goods, milk, coffee, and bread. The DTI Consumer Protection Group said it is now studying these petitions.
“We have petitions for canned meat, a prime commodity so in case of a price freeze they are not included because they are prime but we have petitions for canned sardines, for milk, coffee, and bread, which are of course part of our basic necessities,” Business Mirror quoted the group.
“We have a pending application for price increases and our message has always been that we are in active coordination with the manufacturers of these products and we are studying these petitions very carefully,” Assistant Secretary Ann Claire Cabochan said.
Last October 27, Jerome Ong, vice president of the Philippine Association of Meat Processors Inc. (Pampi) said they requested an increase in canned meat prices of about ₱1.50 – ₱2.
“We understand that everyone’s having a hard time right now. We are ready to make the sacrifice and ask for a smaller price increase compared to what we really need. The price increase that we need is P3 to P4 per can. But since we are also backing the DTI and the government’s goal of selling canned meat at cheaper prices in order to help consumers, our request only ranges from P1.50 to P2 per can,” Ong said.
Ong claimed that some of their group members are bearing the brunt of surging production costs, and some have resorted to cutting down operations.
“We do have some members who used to operate six days a week, but now operate three to four times a week either because their materials are not enough or sales is bad because of the higher production cost,” he explained.
Cabochan, however, rejected the group’s arguments. He pointed out that
“as it is, the government has already reduced tariff temporarily to avoid cost of production from rising further. So, for as long as that remains manageable, we do not see [any basis for] any adjustments based on the prices of mechanically deboned meat MDM.”
“There are other factors of production we can also look into,” he added.
Two weeks ago, the Philippine Baking Industry Group (Phil Baking) led by president Jerry Lao said that some of their members have reduced production due to the rise in flour prices.
“But as members, we still have to produce the Pinoy Tasty for the consumer but the problem is now,” Pinoy Tasty gets gobbled up quickly from shelves. “So, in order for our members to continue producing Pinoy Tasty and help them with the cost of the flour, DTI will come in here to help us. So, we’re asking for a ₱4, very minimal increase,” Lao said.
Lao emphasized the industry’s price-increase request has been delayed for “six months already” because, he said, they wanted to help consumers stretch their purchasing power. Lao said, however, the industry can no longer hold on with the effect of the price increase in sugar and fuel.
Based on the Suggested Retail Price (SRP) bulletin posted last August 12, 2022, Pinoy Tasty currently sells at ₱38.50 per 450-gram pack while Pinoy Pandesal costs ₱23.50 for a pack of 10 pieces.
Meanwhile, Executive Director Francisco Buencamino of the Canned Sardines Association of the Philippines (CSAP) said they filed a petition last July for a price increase in canned sardines by ₱3.
“The P3 proposed increase is a very small portion of the finished canned prices. That is very small despite the fact that we have maintained our prices for two years now,” Buencamino explained.
CSAP explained last week that their petition to increase canned sardines’ prices was driven by the rising cost of materials like imported tin cans and tomato paste, as well as fuel due to the weakening of the peso and the consequences of the Ukraine-Russia war.
Tags: #DTI, #foodmanufacturers