“₱190/kg LIVE HOGS, ₱280/kg PORK”- City Vet recommends reference prices in Tabuk

TABUK CITY, Kalinga — The City Veterinary Services Office has recommended a ₱190-per-kilogram reference price for liveweight hogs and ₱280 per kilogram for pork in Tabuk City, based on production costs, prevailing market conditions and reasonable returns for hog raisers and meat vendors.

The recommendation was contained in a position paper dated August 12 addressed to Councilor Juan Thomas T. Duyan, chairman of the Sangguniang Panlungsod Committee on Trade and Industry.

Based on the copy of the position paper obtained by GURU Press Cordillera, City Veterinarian Dr. Carmen D. Wanas said the proposed prices were based on the office’s regular monitoring of hog supply, production costs, buying prices from raisers, and pork prices in barangays and public markets.

Why ₱190 for live hogs?

The City Vet said the proposed ₱190/kg liveweight price takes into account the expenses incurred in raising a hog until it is ready for sale.

These include the cost of piglets, feeds, medicines and vaccines, labor, utilities, farm maintenance, housing and equipment, transportation, and other expenses related to hog production and sale.

The computation also provides an estimated 10 percent return on investment (ROI) for a hog raised for four months.

The proposed price is intended to allow raisers to recover their production costs while earning a reasonable return for their labor, capital and the risks involved in raising hogs.

The office said the proposed reference price also considers actual market conditions and could provide a more objective basis for pricing rather than relying solely on negotiations between buyers and sellers.

It noted that if hog raisers fail to earn a reasonable return, they may reduce production or leave the industry, which could eventually affect the local supply and increase dependence on hogs brought in from outside the city.

Why ₱280 for pork?

For pork, the City Vet recommended a ₱280/kg reference price, taking into account expenses incurred after the live hog is purchased and processed for consumers.

These include slaughtering, meat preparation, transportation, handling, market fees, labor, possible losses and spoilage, and other expenses incurred by meat vendors.

According to the position paper, the computation provides meat vendors with an estimated 48 percent return for one day after considering production, slaughtering, handling and marketing costs.

Thus, the proposed ₱280 pork price is not based solely on the ₱190 liveweight price. It also factors in the additional costs involved in converting a live hog into pork and bringing the meat to consumers.

The City Vet said the proposed price aims to provide meat vendors with a reasonable return while keeping pork prices within a justifiable range for consumers.

Live hog, pork prices should move together

The City Vet also recommended that liveweight and pork prices should move together.

If the justified price of live hogs increases, the corresponding pork price may also be adjusted upward. Conversely, if the liveweight price decreases, the pork price should also be adjusted downward, subject to actual processing and selling costs.

The office said this approach could help prevent a situation where hog raisers receive significantly lower farmgate prices while retail pork prices remain high.

At the same time, any increase in pork prices should be supported by corresponding increases in farmgate prices, production costs or other legitimate expenses.

Prices subject to review

The proposed ₱190 liveweight and ₱280 pork prices are not intended to be permanent.

The City Vet recommended that the reference prices be regularly reviewed based on changes in feed costs, animal diseases, transportation expenses, seasonal demand and hog supply.

The office said establishing reference prices would provide the city with a starting point for future adjustments and a clearer basis for pricing rather than allowing prices to be dictated solely by bargaining power or market pressure.

Balancing raisers, vendors and consumers

The position paper emphasized the need to balance the interests of the three major sectors involved in the hog and meat trade: hog raisers, meat vendors and consumers.

Hog raisers need fair returns for their investment and labor, while meat vendors need to recover legitimate operating costs and risks. Consumers, meanwhile, need reasonable prices and safe meat.

The recommendation comes as the City Council continues its review of proposed ordinances seeking to regulate prices in the local hog and meat trade.

During the September 3 joint hearing of the Committees on Agriculture and Trade and Industry, Councilor Atty. Errol B. Comafay Jr. also called on hog raisers and meat vendors to submit position papers detailing their actual expenses and recommended prices.

The position papers from the affected sectors are still being awaited.

Once submitted, the council will consider the figures and recommendations from hog raisers and meat vendors, together with the City Vet’s computation and other available data, in further reviewing and determining the appropriate prices to be included in the proposed ordinances.