CSAP would not withdraw its prior request to increase the price of sardines by P3 due to input costs.
Canned sardine manufacturers won’t retract their earlier request to increase the price ceiling on their products due to increases in their input cost because of fuel price hikes and a weak peso against the US dollar.
Francisco Buencamino, the executive director of the Canned Sardines Association of the Philippines (CSAP), gave a resounding “no” when asked if the group would retract its request to raise their products' suggested retail price (SRP).
“The P3 increase is a very small portion of the finished canned prices. What we are asking for is a meager price increase in spite of the fact that our SRP request at the DTI [Department of Trade and Industry] [has been] pending for two years.” Inquirer quoted Buencamino.
The petition to increase by P3 the SRP for canned sardine was filed by CSAP last July, months before the group warned of a “looming” raw material shortage in the latter part of the year.
New SRP list
Canned goods producers had previously requested DTI approval for a higher price adjustment on sardines.
Last August, DTI released a new SRP list for the basic good and prime commodities with the price of canned sardines in tomato sauce higher by 6 percent.
A 130-gram canned sardine costs P15.25, while 155-gram variants range from P13.25 to P19.58 per piece.
CSAP President Benjamin Sy said that many of the products they use to make canned foods, such as tin cans and tomato paste, are imported.
“The peso devaluation has resulted in a 15-percent increase just because of the weakening against the [US] dollar. We are hoping that we can try to do our best.” He said.
CSAP signed a memorandum of agreement (MOA) with the Bureau of Fisheries and Aquatic Resources (BFAR) that would allow municipal fishermen groups or cooperatives to supply sardines directly to sardine canneries.
This would cut costs when canneries are shuttered for three months due to the closed fishing season, which begins in December. It would be extremely beneficial, as well as potentially cost-effective.
Commercial fishing vessels are not permitted to catch fish during the restricted fishing season to allow for spawning and restocking. Municipal fishers, on the other hand, are permitted to continue operations, making them the most realistic choice for sourcing the needs of sardine canners.
The MOA signed by both parties will help ensure sufficient raw materials for canneries for the entire year, especially during the fishing ban.
It will also improve the livelihoods of local fishermen while providing jobs for thousands of manufacturing workers during the three-month fishing ban.
Tags: #CannedSardines, #CSAP, #DTI, #FishBan, #MOA, #BFAR