Food Terminals Inc. (FTI), a government corporation under the Department of Agriculture, signed on Friday a memorandum of agreement with the local unit of Thailand’s Charoen Pokphand Foods PLC (CP Foods).
The partnership aims to stabilize pork prices in Metro Manila, where consumers have been grappling with rising food costs.
The memorandum, signed by FTI president Joseph Lo and CP Foods chief operating officer Nattakorn Sujipittham, outlines a pilot program where CP Foods will supply 100 live hogs per day at a discounted price.
The hogs will be sent directly to a slaughterhouse in Caloocan, where the distributor and viajeros will simply receive the live hogs directly rather than transporting them from various farms.
The hogs will then be processed for fresh pork carcasses, which will be delivered to different retailers in various wet markets.
Lo expressed optimism about the potential impact of the program.
“If this pilot proves successful, we will extend it to other hog raisers, creating a broader solution to ensure pork remains affordably priced, with minimal shock to the industry,” he said.
The decision to team up with CP Foods was driven by the company’s capacity to supply the volume needed for the pilot.
Lo also noted CP’s swift response to FTI’s call for private sector collaboration in addressing the nation’s pork supply challenges.
“We needed a company that could guarantee the volume we need at the price we were looking at to achieve our goals,” said Lo.
CP Foods, a leading integrated agro-industrial and food company, has invested heavily in expanding its operations in the Philippines.
The company unveiled a P10-billion plan in November to build 20 new breeding farms and increase local pork production.
The initiative aligns with the company’s long-term goal of ensuring a stable and sustainable pork supply in the country.
Agriculture Secretary Francisco Tiu Laurel Jr. lauded the agreement, calling it a significant step toward modernizing the local pork industry.
“We need creative approaches like this deal between FTI and CP to modernize the pork industry’s supply chain, stabilize prices, and ensure food security,” he said.