BAI: TRAIN may push meat prices up
The Bureau of Animal Industry has warned of a possible hike in prices of both localand imported meat due to higher petroleum costs expected upon the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN).
“Definitely, [higher fuel prices] will add to the cost of our meat products. Imported meat products will also be affected, as trucking rates may also go up,” Bureau of Animal Industry Assistant Director Simeon S. Amurao Jr. was quoted in a news report.
“This is more of a logistical concern because there is no expected hike in the raw ingredients used by the livestock sector.”
Meat Importers and Traders Association (Mita) President Jesus C. Cham said the hike in the excise tax of petroleum and the possible increase in electricity rates would mean higher operating costs for meat business players, adding he cannot yet determine how big an increase will be slapped on meat prices when the tax reform is carried out.
“Well, for the majority of the meat importers, they will have to pass it on because they make very, very little margins,” Cham said.