Philippines Moves to Reinstate Pork Price Caps Amid Rising Costs

In a bid to curb escalating retail prices, the Philippines’ Department of Agriculture (DA) has announced plans to reinstate the maximum suggested retail price (MSRP) for pork by early August. The move comes as Filipino consumers grapple with the soaring cost of this staple meat, a key component of the national diet, amid ongoing challenges like African swine fever and supply chain inefficiencies.

Price Caps Return to Tackle Inflation

The DA, under Secretary Francisco Tiu Laurel Jr., aims to restore price limits for various pork cuts, setting caps at 350 Philippine Pesos (US$6) per kilogram for pigue (leg/ham) and kasim, and 380 Pesos (US$7) per kilogram for liempo. For sabit ulo (fresh carcass), the limit will be 300 Pesos (US$5) per kilogram. Speaking on the sidelines of an inspection of smuggled goods on May 30, 2025, Tiu Laurel emphasized the urgency of the measure, though he cautioned that delays could push the implementation beyond the initial target of late July or early August. “That is our target for pork, to restore the MSRP by the end of July or early August. But it depends, it may be delayed a little” he said.

The reinstatement follows the DA’s decision to scrap the MSRP on May 15, 2025, at the request of industry stakeholders who argued that the cap was unsustainable. Production challenges, compounded by African swine fever—a viral disease devastating pig populations across the country—along with heightened demand during the midterm elections, had driven prices beyond the set limits. This led to widespread non-compliance among vendors, prompting the DA to rethink its approach to stabilizing retail costs.

African Swine Fever and Market Pressures

African swine fever (ASF) remains a significant hurdle for the Philippine pork industry. Since its first outbreak in 2019, the disease has decimated local hog populations, slashing supply and pushing prices upward. Despite government efforts to contain the virus through culling and biosecurity measures, sporadic outbreaks continue to disrupt production. The DA estimates that ASF has caused billions of pesos in losses, affecting not only farmers but also consumers who rely on pork as an affordable protein source.

Strong consumer demand, particularly during politically charged periods like the recent midterm elections, has further strained the market. Election seasons often see increased household spending on food for gatherings and campaign events, exacerbating price spikes. Tiu Laurel acknowledged these dynamics, noting that the combination of supply constraints and demand surges made it nearly impossible to enforce the earlier MSRP without alienating vendors or risking shortages.

Government Intervention Through Direct Sales

Beyond price caps, the DA is exploring innovative mechanisms to bring costs down. A key player in this strategy is Food Terminal Inc. (FTI), a government corporation under the DA’s purview. FTI plans to purchase hogs directly from farms in regions like Tarlac and Pampanga, targeting 150,000 metric tons between now and January 2026, and sell them to retailers at a modest margin of 30 to 50 Pesos (US$0.50-0.90) per kilogram. This approach aims to bypass multiple layers of middlemen, whose markups significantly inflate retail prices.

“I’m thinking of something that doesn’t need to be subsidized by the government, something sustainable because the margins are really big. The middleman has an agent, another middleman, and wholesaler… That’s what we are trying to eliminate” Tiu Laurel explained during a market visit in Muntinlupa on May 30. He added that President Ferdinand Marcos Jr. has explicitly directed the DA to reduce the role of intermediaries in the supply chain, though not eliminate them entirely. “We’re trying to cut out the middleman. That’s one of the directives of the President” he said.

To support this ambitious rollout, the DA has requested 500 million Pesos (US$8.9 million) as “standby money” for FTI’s operations, though Tiu Laurel stressed that the corporation has its own budget to execute the program without incurring losses. The specifics of the sales mechanism are still being finalized, but the goal is clear: create competition with traditional market vendors to drive prices down while ensuring farmers receive fair compensation.

Consumer Impact and Market Dynamics

For Filipino consumers, pork is more than just food—it’s a cultural cornerstone, featured in dishes like adobo and lechon. But with prices climbing, many households, especially in lower-income brackets, have been forced to turn to alternatives like fish and vegetables. Reports from provinces like Antique highlight this shift, with residents increasingly opting for cheaper protein sources as pork becomes a luxury item. The reinstatement of the MSRP, if effective, could provide much-needed relief, though skepticism remains among vendors and analysts about compliance and enforcement.

Market vendors, particularly in bustling hubs like Divisoria in Manila, have historically resisted price caps, arguing that they fail to account for fluctuating input costs such as feed and transportation. When the MSRP was first introduced on March 10, 2025, via Administrative Circular No. 06, the DA framed it as a tool “to prevent excessive pricing and ensure affordability for consumers, stabilize market prices, promote fair trade practices, and support both producers and consumers amid supply constraints.” Yet, compliance was low, as vendors struggled to maintain margins under the imposed limits.

Broader Economic Implications

The pork price saga reflects broader challenges in the Philippines’ agricultural sector, where policy interventions often clash with market realities. Food inflation, of which pork is a significant driver, has been a persistent concern for the government, contributing to overall inflation rates that affect the cost of living. The Bangko Sentral ng Pilipinas (BSP), the country’s central bank, closely monitors food prices as part of its monetary policy framework, and sustained high costs could prompt tighter measures that impact economic growth.

Moreover, the reliance on imports to supplement local pork supply—necessitated by ASF-related losses—exposes the country to global price volatility and currency fluctuations. While the DA has not detailed plans to boost imports alongside the MSRP reinstatement, past strategies suggest that tariff adjustments or import quotas could be on the table if domestic efforts fall short. Such measures, however, risk angering local farmers who already feel squeezed by low prices for their hogs and competition from cheaper foreign meat.

Looking Ahead: Sustainability and Food Security

The DA’s dual approach of price caps and direct sales through FTI signals a broader ambition to reshape the agricultural supply chain in the Philippines. By targeting middlemen and fostering competition, the government hopes to create a more equitable market where both producers and consumers benefit. Yet, the success of these initiatives hinges on execution—ensuring FTI’s operations are efficient, transparent, and scalable, and that price caps are enforced without alienating key stakeholders.

Equally critical is addressing the root causes of supply shortages, particularly African swine fever. Investments in vaccine development, farm biosecurity, and disease surveillance are essential to rebuild the hog industry and reduce reliance on stopgap measures like price controls. International cooperation, such as partnerships with veterinary research bodies in neighboring countries, could accelerate progress, though funding and coordination remain obstacles.

For now, Filipino consumers and vendors alike await the MSRP’s return with a mix of hope and uncertainty. As the DA navigates these turbulent waters, the question looms: can short-term fixes pave the way for long-term food security, or will the cycle of price spikes and policy reversals persist?