San Juanico Bridge rehab may affect pork prices

MANILA, Philippines, June 26 ------ Hog raisers are urging the government to fast-track the repair of San Juanico Bridge to prevent pork prices from increasing as industry players are incurring additional costs to transport pigs.

Chester Tan, chairman and president of the National Federation of Hog Farmers Inc., said the repair of the 53-year old bridge has resulted in higher logistical costs for hog raisers, especially those in Mindanao. The bridge has been closed to all vehicles exceeding three tons since May due to repair works.

Hog raisers from Mindanao used to transport 80 pigs in one truck with an estimated weight of between 9.6 tons and 10.4 tons. But since the weight limit was imposed on San Juanico Bridge, farmers have been compelled to hire at least three trucks, which resulted in additional cost of about P40,000 to P60,000. “The additional cost translates to a P4- to P6-per-kilo price increase at farm level, which is absorbed by hog raisers,” Tan said, adding their “sacrifice” may only last for a week or two before the added cost is passed on across the value chain.

Tan said the additional cost may lead to higher retail pork prices, which will not be felt yet next week since hog raisers can still absorb it. He said that in order to absorb the additional cost, hog raisers did not raise the live weight price of hogs, in support of government’s efforts to keep prices of commodities stable.

The current live weight price ranges from P230 to P250 per kilo, which is still above the P180 to P200 per kilo break-even cost in efficient farms, but still relatively tight compared to the break-even cost in small-hold farms.

Source: philstar.com