GIVING, OR GRIEVING? HOLIDAY FARE MAY BE BEYOND MOST HOMES
‘TIS should be the season of giving, but ‘tis could be the season of grieving, too. How the Covid-19 pandemic flushed cash out of people’s wallets will show at the dining table on Christmas eve. Families may be slicing luncheon meat instead of ham, carving cheese food instead of queso de bola and sautéing pasta with corned beef instead of ground meat.
Trade Undersecretary Ruth B. Castelo told the Businessmirror prices of noche buena products, particularly hams, will likely go up this year.
“Prices of some noche buena items are likely to increase by a small percentage like it has been for the past years,” Castelo said. “Supply is not an issue as we have sufficient inventory of both finished products and raw materials.”
Last year consumers had to spend more for their ham during Christmas. Meat processors then were battling the spread of the African swine fever, a disease that infects and kills pigs and has no known vaccine nor cure yet. As such, manufacturers were struggling to find new sources of pork, as the illness dried up the supply of hogs globally.
Likewise, meat processors had to raise prices of ham to recoup additional costs shelled out on changes in the packaging of their products.
Buyers had to pay nearly P57 more to bring home a kilo of ham last year, as the average price of a 1 kilo shot up 11.35 percent to P558, from P501.08 in 2018, based on the suggested retail price (SRP) list of the Department of Trade and Industry. They also had to spend an additional P5.5 for an 800 gram variant and P8.17 for the 150 gram option.
Minimum-wage earners of P537 in Metro Manila had to squander all of a day’s pay just to buy a ham last year, and their families may just miss the Christmas staple this year if prices of noche buena items balloon beyond their reach.
Intervention needed
STEVEN T. CUA, president of the Philippine Amalgamated Supermarkets Association Inc., argued the government has to step in to force people to buy during the holidays. Without intervention, families will keep their cash in their pockets and spend only for basic needs, he added.
“Technically speaking, it looks like we’re headed for bleak Christmas sales,” Cua admitted in an interview with the Businessmirror.
Cua suggested the government distribute a Christmas round of social amelioration funds to encourage consumers to spend for their noche buena. He emphasized the economy depends on consumption spending; therefore, he said it’s just right to inject cash in households.
“This may be helped if the government is able to schedule another round of social amelioration program or a form of soft loan nearing Christmas Day to inject some life into our consumer-led economy,” Cua explained.
If the government lacks the funds to do so, business owners and families alike may need to get creative during the holidays just to get by.
“The latter [buyers] will have to highlight substitute products for Christmas celebration: canned luncheon meat vis-a-vis ham, cheese food for real cheese, mayo substitute for real mayo,” Cua said. “Retailers have to showcase items/recipes with value for money.”
Frabelle Corp. President Fay T. Bernardo also disclosed the firm is expecting holiday sales this year to decrease from last year’s due to the economic impact of the pandemic and the protocol for physical distancing.
“As to our market forecast for this Christmas season, we continue to believe that there will be a strong demand,” Bernardo explained. “Admittedly, maybe not quite as strong as previous years due to the challenges brought about by Covid-19 and the need for social distancing.”
Frabelle projects demand for hot dogs to increase in the days leading up to Christmas eve, as the meat product’s versatility—can be eaten on its own, can be topped on spaghetti, can be fused in tomato-based dishes— bring value to a buyer’s money.
According to Bernardo, there are no plans yet on Frabelle’s end to raise prices. She is keeping her fingers crossed on their demand outlook, praying the Filipino’s love for Christmas will boost consumption during the holidays.
“Family and a love of food have always been at the core of our culture. With that in mind, we believe that Filipinos will still find a way to celebrate the season in a meaningful and safe way,” Bernardo told the Businessmirror. “This will keep demand strong.”
Is Bernardo’s optimism a misplaced hope? In three months she can tell.