MANILA, Philippines - The increase in prices of raw materials has pressured the market to jack up prices of milk products and corned beef as early as two weeks ago, the Department of Trade and Industry (DTI) said.
Based on monitoring, Trade Secretary Gregory Domingo revealed increases of up to 9% for milk products and 10% for corned beef.
Domingo explained that the market was trying to offset costs incurred due to the increase of prices of raw materials.
"It's a two-pronged increase. The reason is, they are trying to catch up with the higher prices of milk solids and tin prices," he said.
The more popular products refrained from reflecting the prices initially out of fear they would lose demand.
The move followed a price hike notice of Alaska Milk Corp, a key milk producer in the country.
Domingo, however, noted that the current prices of both milk products and corned beef remain within the department’s suggested retail price index.
"They are still okay," he said.
Meanwhile, aside from milk and corned beef, Domingo said steel prices have also increased by 20%.