Food Terminals Inc. (FTI), a government corporation under the Department of Agriculture (DA), took a bold step by signing a memorandum of agreement with the local unit of Thailand’s Charoen Pokphand Foods PLC (CP Foods).
This partnership aims to stabilize pork prices in Metro Manila, where consumers have been grappling with rising food costs.
The memorandum, signed by FTI President, Joseph Lo and CP Foods Chief Operating Officer, Nattakorn Sujipittham, outlines a pilot program where CP Foods will supply 100 live hogs per day at a discounted price.
These hogs will be sent directly to a slaughterhouse in Caloocan, where the Distributor and Viajeros will simply receive the live hogs directly rather than transporting them from various farms. The hogs will then be processed for fresh pork carcasses, which will be delivered to different retailers in various wet markets.
FTI’s Lo expressed optimism about the potential impact of the program.
“If this pilot proves successful, we will extend it to other hog raisers, creating a broader solution to ensure pork remains affordably priced.”
“If this pilot proves successful, we will extend it to other hog raisers, creating a broader solution to ensure pork remains affordably priced, with minimal shock to the industry,” he said.
The decision to partner with CP Foods was driven by the company’s capacity to supply the volume needed for the pilot.
Lo also noted CP’s swift response to FTI’s call for private sector collaboration in addressing the nation’s pork supply challenges.
“We needed a company that could guarantee the volume we need at the price we were looking at to achieve our goals,” he explained.
CP Foods, a leading integrated agro-industrial and food company, has invested heavily in expanding its operations in the Philippines. Last November, the company unveiled a P10-billion plan to build 20 new breeding farms and increase local pork production. This initiative aligns with the company’s long-term goal of ensuring a stable and sustainable pork supply in the country.
On March 10, the DA implemented a maximum suggested retail price on pork, with a price P300 per kilo set for fresh carcass or “sabit ulo,” P350 a kilo for kasim and pigue, and P380 per kilo for liempo. Compliance with the MSRP on pork has remained low, with stakeholders citing various reasons for the break of the suggest price ceiling.
Agriculture Secretary Francisco Tiu Laurel Jr. praised the agreement, calling it a significant step toward modernizing the local pork industry.
“We need creative approaches like this deal between FTI and CP to modernize the pork industry’s supply chain, stabilize prices, and ensure food security.”
“We need creative approaches like this deal between FTI and CP to modernize the pork industry’s supply chain, stabilize prices, and ensure food security,” Tiu Laurel said.
The collaboration between FTI and CP Foods reflects a broader government initiative to enhance food security and stabilize prices, in line with the vision of President Ferdinand Marcos Jr. to strengthen the agriculture sector and protect consumers from volatile market conditions.
