Manila: Local hog producers are set to benefit from the PHP210 per kg minimum farmgate price for live hogs, the Department of Agriculture (DA) announced on Tuesday. This decision follows an agreement between the DA and stakeholders to set a minimum buying price to support the recovery of the local hog industry from the adverse effects of African swine fever (ASF).

According to Philippines News Agency, DA spokesperson Assistant Secretary Arnel de Mesa explained that the DA and local hog producers have agreed to establish this minimum price to help hog raisers recover from their losses. Monitoring reports by the Samahang Industriya ng Agrikultura (SINAG), National Federation of Hog Farmers Inc. (NFHFI), and the Pork Producers Federation of the Philippines (PROPORK) indicate that farmgate prices have dropped to PHP150 to PHP180 per kg. This is almost equal to or even lower than the average production costs of PHP170 to PHP180 per kg for backyard and commercial hog raisers.

Agriculture Secretary Francisco Tiu Laurel Jr. noted that despite the sharp decline in farmgate prices, retail prices have not decreased. He highlighted that liempo is still selling for around PHP400 per kilo during his market visits. The DA aims to implement the new minimum farmgate price for live hogs within the year.

In addition to addressing farmgate prices, the agriculture chief raised concerns about the “over-importation” of pork due to lowered tariffs, which has flooded the market, squeezed local producers, and threatened both food security and farmers’ livelihoods. Executive Order 62 reduced duties on pork from 40 percent to 25 percent, prompting stakeholders to urge the government to revert to the original tariff rate to aid sector recovery.

Jayson Cainglet, SINAG Executive Director, expressed gratitude to the DA for its efforts to support the hog industry, drawing parallels to the challenges faced by rice farmers due to excessive imports. The DA is also considering reimposing a maximum suggested retail price (MSRP) for pork to protect consumers from unreasonable prices and ensure balanced profitability across the value chain. However, the DA and stakeholders have yet to agree on a new MSRP for pork.

Previously, the DA set the pork MSRP at PHP380 per kg for liempo, PHP350 per kg for kasim and pigue, and PHP300 per kg for sabit-ulo.