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Philippines: Canned goods makers to hike prices
MANILA, Philippines — Manufacturers of canned goods are expected to jack up prices of their products in the coming months in line with the rising prices of tinplates and foreign exchange movement.
“There is an indication to increase prices of canned products. There is a request submitted to us, anywhere from P1 to P2 per can increase,” Department of Trade and Industry (DTI) Secretary Ramon Lopez said yesterday.
“Their basis for increase is the increase in prices of the tinplates and other raw materials, which have a bigger percentage compared to the percent contribution of fuel in the production cost. There is also the change in forex since they import the tinplates,” Lopez added.
Lopez, however, said DTI estimates that any price adjustment due the factors cited should only result in an adjustment of between 36 centavos and 50 centavos per can.
Lopez said the proposed P1 to P2 per can increase of some manufacturers would be allowed even though it is higher than the DTI estimates, as long as not all players would implement it.
He said the agency would step in and investigate if all brands implement the similar P1 to P2 per can price hikes at the same time.
“So down the road that’s probably an adjustment we will see, anywhere between 50 cents to P1 in these canned products,” Lopez said, noting that companies are also weary of increasing their prices too much for fear of losing market share.
Last year, the DTI has scrapped the practice of pre-approval on the setting of suggested retail price (SRP) of basic necessities and prime commodities as it decided to hand over the control to manufacturers.
Manufacturers, however, are still required to submit updated SRPs of basic necessities and prime commodities and notify DTI Consumer Protection and Advocacy Bureau of any adjustments.
Based on its monitoring activities in recent months, Lopez said prices of basic necessities and prime commodities have so far remained stable, with most brands selling below the SRP.
Source: https://www.philstar.com/business/2018/03/07/1794165/canned-goods-makers-hike-prices#TjRBrYJz7lLK7uZP.99