Philippines Scraps Pork Price Cap Amid Industry Pressure and Supply Woes

In a significant policy reversal, the Philippine Department of Agriculture (DA) has abolished the maximum suggested retail price (MSRP) for pork, effective May 16, 2025, bowing to mounting pressure from industry groups grappling with supply shortages and the lingering effects of African swine fever (ASF). The decision, announced by Agriculture Secretary Francisco Tiu Laurel, comes as compliance with the price cap remained abysmally low, with less than 10 percent of vendors adhering to the guidelines set in March. This move raises critical questions about food security, consumer affordability, and the government’s ability to balance stakeholder interests in a crisis-hit sector.

Immediate Policy Shift and Industry Clamor

The DA’s decision to lift the MSRP was prompted by vocal demands from pork producers and vendors who argued that the suggested price limits were untenable given the current market dynamics. Introduced on March 10, 2025, the MSRP aimed to curb excessive pricing, setting caps at 350 Philippine Pesos (US$6) per kilogram for cuts like pigue (leg/ham) and kasim (shoulder), and 300 Philippine Pesos (US$5) per kilogram for freshly slaughtered carcass. However, market inspections revealed that prices often exceeded these limits, with pork ham retailing between 370 and 400 Philippine Pesos (US$6.50–US$7) per kilogram in Metro Manila as of May 15, compared to 340–410 Philippine Pesos (US$6–US$7.20) when the policy was first enforced.

“The lifting of the MSRP for pork is effective today” said Agriculture Secretary Tiu Laurel on May 16, speaking on the sidelines of the Benteng Bigas Meron Na program launch in Manila. He cited the industry’s plea to allow farm-gate prices above 230 Philippine Pesos (US$4) per kilogram, driven by severe supply constraints exacerbated by ASF outbreaks. The disease, which has decimated hog populations across the country since 2019, continues to hinder production, making it nearly impossible for farmers to meet demand at lower price points.

Low Compliance and Market Realities

One of the primary reasons for scrapping the MSRP was the stark lack of adherence among market stakeholders. According to the DA’s recent inspections, fewer than one in ten vendors complied with the suggested price limits. This low compliance rate underscored the policy’s ineffectiveness, as prices for pork belly ranged from 390 to 470 Philippine Pesos (US$6.80–US$8.20) per kilogram, barely shifting from pre-MSRP levels. Frozen pork cuts, often seen as a more affordable option, also showed price inconsistencies, with kasim priced between 200 and 300 Philippine Pesos (US$3.50–US$5.20) per kilogram and liempo between 290 and 350 Philippine Pesos (US$5–US$6) per kilogram.

Tiu Laurel acknowledged that the reliance on moral suasion—encouraging voluntary compliance rather than enforcing strict penalties—failed to yield results. “The main reason is there is also a clamor from the industry saying the supply is extremely low” he told reporters, highlighting how production challenges and strong consumer demand created a perfect storm for price spikes at the retail level. The DA now faces the daunting task of reevaluating its approach to stabilize the market without alienating producers or burdening consumers.

African Swine Fever: A Persistent Threat

At the heart of the pork crisis lies the devastating impact of African swine fever, a highly contagious viral disease with no vaccine or cure, which has ravaged the Philippine hog industry for over half a decade. The disease has led to the culling of millions of pigs, drastically reducing supply and forcing the country to rely heavily on imports. According to recent DA reports, meat imports surged by 26 percent in the first quarter of 2025, a clear indicator of the domestic shortfall. Yet, even with increased imports, retail prices remain high, reflecting logistical costs and persistent demand for locally sourced pork, which many Filipino consumers prefer for its perceived freshness.

Industry representatives have expressed frustration over the lack of adequate support for farmers hit by ASF. Alfred Ng, vice chair of the National Federation of Hog Farmers Inc., emphasized the sacrifices made by producers in attempting to comply with earlier DA requests to lower farm-gate prices. “For the longest time, farmers are not supported when ASF hits the farm, so the request of DA for farms to lower their farm gate price is a difficult sacrifice asked of farmers” Ng said in a Viber message on May 15. He added that while farmers cooperated for the sake of consumers and in deference to Secretary Tiu Laurel, controlling producer prices alone is not a sustainable solution.

Supply Chain Challenges and Proposed Solutions

Beyond production woes, inefficiencies in the supply chain have compounded the pork pricing dilemma. Ng urged the DA to shift its focus from producers to the broader network of intermediaries, including agents and viajeros (middlemen who transport goods to markets). “DA should be able to find all these agents, viajeros, and register them so that they can always keep a tag on them” he suggested, pointing to the need for tighter monitoring and supervision to prevent price gouging at various stages of distribution. Without such oversight, efforts to control retail prices are likely to remain superficial, failing to address the root causes of market distortions.

Secretary Tiu Laurel hinted at a potential shift toward an actual price ceiling—a mandatory cap enforced by penalties—rather than a suggested limit. However, he refrained from providing a specific timeline, stating that the policy would depend on the DA’s ongoing evaluation. This cautious approach reflects the complexity of balancing consumer affordability with the economic realities faced by producers, many of whom are still reeling from the financial fallout of ASF-related losses.

Consumer Impact and Alternative Proteins

For Filipino consumers, the scrapping of the MSRP signals higher pork prices in the short term, a bitter pill to swallow in a country where pork is a dietary staple, integral to dishes like adobo and lechon. With inflation already straining household budgets, the DA has appealed to the public to consider more affordable protein sources. “We urge our consumers to buy other protein sources instead, or frozen pork that are a lot cheaper than freshly slaughtered hogs” Tiu Laurel said in a statement on May 16. Chicken and fish, often priced lower than pork, are being positioned as viable alternatives, though cultural preferences and taste may slow their adoption.

Frozen pork, which retails at significantly lower rates than fresh cuts, is another option the DA is promoting. Yet, consumer hesitance remains, as frozen products are often perceived as less desirable in terms of quality and flavor. The government’s challenge lies not only in managing supply and price but also in shifting public perceptions to ease demand pressure on a constrained pork market.

Broader Economic and Policy Implications

The pork pricing debacle is emblematic of broader challenges in the Philippine agricultural sector, where policy interventions often struggle to keep pace with on-the-ground realities. Food security, a perennial concern in a nation prone to natural disasters and disease outbreaks, is once again under the spotlight. The DA’s inability to enforce the MSRP highlights the limits of soft regulatory measures in a fragmented market, raising questions about whether stricter controls or alternative strategies, such as subsidies for ASF-affected farmers, might yield better outcomes.

Economically, the ripple effects of high pork prices extend beyond household budgets to inflation metrics. As a key component of the consumer price index, pork price fluctuations can influence monetary policy decisions by the Bangko Sentral ng Pilipinas (BSP), the country’s central bank. Persistent food inflation could prompt tighter interest rates, potentially slowing economic recovery in a post-pandemic landscape still marked by uneven growth.

From a policy perspective, the DA’s next steps will be closely watched by both industry players and the public. Implementing a mandatory price ceiling, if pursued, could risk backlash from producers already operating on thin margins. Conversely, failing to act decisively might exacerbate consumer discontent, particularly among low-income families for whom protein affordability is a daily struggle. The government must also contend with the long-term challenge of rebuilding the hog industry, a process that requires investment in biosecurity measures, research into ASF-resistant breeds, and possibly a national vaccination strategy if global breakthroughs emerge.

Looking Ahead: A Delicate Balancing Act

As the Philippine government navigates this complex crisis, the scrapping of the pork MSRP serves as a stark reminder of the fragility of food supply chains in the face of disease and market pressures. While industry groups have welcomed the policy shift as a necessary reprieve, the path to stabilizing prices and ensuring supply remains fraught with uncertainty. For now, consumers are left to adapt to higher costs or seek alternatives, while the DA scrambles to craft a more effective strategy.

The coming months will test the agency’s ability to reconcile the competing interests of producers, vendors, and the public. Whether through stricter price controls, enhanced supply chain oversight, or support for ASF recovery, the solutions pursued will shape not only the pork market but also broader perceptions of agricultural governance in the Philippines. As Secretary Tiu Laurel and his team weigh their options, one thing is clear: the stakes for food security and economic stability could not be higher.