CEBU CITY – An official from the Philippine Association of Meat Processors of the Philippines Inc. (PAMPI) voiced strong apprehension on the alleged practice of some meat processors who pay “millions of pesos” to gain exclusivity of their products in prime display shelves of supermarket chains nationwide.

“The problem now is that the big ones are buying space in the supermarket for exclusivity of their products, and they pay millions of pesos for it” claimed PAMPI President Felix Tiukinhoy, which he vehemently calls as an “unfair trade practice.”

While declining to name these meat processing companies as well as its partner supermarket chains, Tiukinhoy however noted that the practice of having to monopolize the display shelves in supermarkets is hurting the smaller players whose companies do not have enough financial resources to buy spaces on the supermarket.

As a result, he said consumers are left with minimal choices for processed food brands.

“PAMPI will try to dig in on the problem because this clearly concerns the local industry. There is room for growth but if this unfair business practice continues and government does not intervene, then we might see the smaller players close shop,” Tiukinhoy said in an interview.

He revealed the organization will seek the help of the government, specifically in asking members of the House of Representatives to take legislative action on the issue.

“We don’t object to how these brands improve their marketing strategies. All we want is a level playing field and if it needs the assistance of Congress to achieve that, then we will ask for their help,” Tiukinhoy added.

Another pressing concern, he bared, is the growing monopoly in the country’s meat processing industry, which is now dominated by giant companies who are buying out the smaller players. If this persists, Tiukinhoy fears of a possible price cartel.

“Competition is stiff in this industry. Those who are surviving must continue to innovate,” he advised those in the business.

Tiukinhoy, who is also chief executive officer and president of the Virginia Foods Inc. (VFI) announced capital expenditure of about R80 million this year to expand its operations and improve product quality.

VFI is the maker of the Virginia, El Rancho, Winner, Champion, and Australian Brands of canned goods and frozen processed meat.