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Prices of Canned Meats to Go Up

by 5m Editor
14 October 2008, at 7:07am

PHILIPPINES - If ordinary consumers have been trying to get a sense of how the global economic crunch can affect them, now the impact is likely to hit their pockets – particularly where canned goods are concerned.

Processed meat manufacturers have explained that the financial crisis has caused the peso to weaken against the US dollar, and since they need more dollars to buy imported raw materials, prices of finished canned meat are likely to go up.

The pressure on prices to go up is further aggravated by the expected increase in demand due to the approaching holiday season.

“Yung pag-angkat ng raw materials...mahal ang dolyares, pag mahal ang dolares, mahal talaga pag-angkat,” Philippine Association of Meat Processors Executive Director Francisco Buencamino said.

From an exchange rate of P40.00 to a dollar in March this year, the peso has sunk to over P47.00 to $1.00 this month, reports ABS-CBN News.

Manufacturers and importers have expressed fear that the peso may even dip further as the financial crisis continues to ravage economies.

Even before prices of basic food items start to increase, the holiday staple cooked ham is already P20.00 more expensive compared to the price last year.

According to hog raisers, while pork prices are currently stable at P140.00 to P150.00 per kilo, it will surely go up to P180.00 during the holiday frenzy.

A well-known brand of canned meat has already advised a P1.50 to P2.00 price increase per can effective October 6, but the Department of Trade and Industry blocked the adjustment.

The Government also stopped a sardine brand from implementing a price spike last week.

Manufacturers have expressed opposition to government's intervention.

Even supermarket owners are worried that prices of other food products, especially imported ones, are going to increase due to the financial meltdown.

Without resorting to hoarding, grocery owners have advised consumers to check the expiration date of canned products.

5m Editor