MANILA – With the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN), prices of local and imported meats in the market may also go up.
The Bureau of Animal Industry (BAI) said suppliers and meat dealers are expected to pass on to consumers the additional costs arising from fuel excise taxes under the tax reform package that took effect Jan. 1, such as higher costs for transporting the meat and for storing them, given the impact on electricity rates.
According to Simeon Amurao, BAI assistant director, “Logistics ang epekto kasi wala naman tinaas na taxes sa feeds, e bale indirect effect [The impact is on logistics since taxes on feeds were not raised; in effect, the impact is indirect].”
He said the impact on the livestock industry “is the use of fuel gasoline or diesel,” citing as example the costs of the so-called “byahero” who buy live pigs or chicken from the farm and bring them to the slaughterhouse or market. They use trucks and jeepneys, the higher fuel price for which will be tucked onto meat products. There is, he added, a “domino effect.”
Jess Cham, head of the Meat Importers and Traders Association, said majority of jmporters have to pass on their higher costs, as “they make small margins.”
His association estimates that anywhere from 10 to 20 centavos per kilo of meat priced at P100 will be imposed as the additional price, if the higher cost of transportation were to be factored in.
This could be higher, though, if additional cost for cold storage were included.
BROILER RAISERS TO ABSORB HIGHER COST
Other stakeholders won’t see costs of meat going up significantly, adding they will absorb as much of the new costs as they can.
For the United Broilers Raisers Association (UBRA), they will absorb the new costs, since prices of broilers or chicken used as food are based mainly on supply and demand and not so much on production cost.
Elias Inciong, UBRA president, said in a phone interview: ‘Di naman mararamdaman ng consumers pero sa amin, malaki effect niyan sa cleaning cost mo, kung ginagamit mo pump na gasoline-powered. [Kung] gamit mo [yun], malaki laki din ‘yun [Consumers won’t feel the impact but we will feel it, especially in terms of cleaning cost, if one is using gasoline-powered pumps for such].”
Still, he said, their members will absorb the additional cost and will not pass it on, as they are governed more by “market forces and [we’re not based on] cost plus.”
The BAI, meanwhile, said the impact of new costs won’t be felt immediately because there are still old stocks in the market, or supplies brought in before TRAIN took effect.
The Department of Agriculture may lay down new policies to help producers once the higher costs start to be felt.
“Right now there is no definite policy yet to help stakeholders because it will affect consumers, but the DA will come up with a policy to help stakeholders and livestock raisers,” said BAI’s Amurao.
