Local food production shortfall blamed for Cebu’s high inflation rate

Local

CEBU'S elevated inflation is being tied to a persistent shortfall in local food production, with provincial officials acknowledging that output levels remain insufficient to meet rising demand.

Provincial Administrator Atty. Ace Durano said Philippine Statistics Authority (PSA) data showing Cebu’s 13.6-percent inflation in May reflects structural supply constraints, with food and transport identified as the main drivers of price increases.

Cebu’s inflation rose from 12.9 percent in April to 13.6 percent in May, remaining higher than Cebu City, Lapu-Lapu City, and Mandaue City.

Central Visayas also continued to post the highest inflation rate among all regions nationwide.

Durano said the province is coordinating with the PSA central office to further analyze inflation components, particularly those linked to food supply shortages and logistics costs.

Implications

PSA data showed food and non-alcoholic beverages accounted for the largest share of inflation pressure, while transport ranked second due to fuel price movements and distribution costs.

Durano said Cebu continues to rely heavily on supplies from outside the province, noting that local production is not yet sufficient to meet demand for key commodities such as pork, vegetables, and poultry.

He stressed that while local agriculture contributes to supply, output levels remain below consumption needs in a rapidly urbanizing province.

Transport costs were also cited as a major contributor to inflation, driven by fuel volatility and global disruptions affecting logistics.

The provincial government is implementing measures such as the Tabang Pangbiyahe program, planned electric bus deployment, and coordination on truck ban policies across Metro Cebu to improve the movement of goods and reduce distribution costs.

Officials said these interventions are aimed at easing supply chain bottlenecks and stabilizing prices over the long term.

Durano stressed that expanding local production remains central to addressing structural dependence on external suppliers.

“We don’t produce enough for our needs here whether vegetables, meats, chicken, pork, goods,” he said.

“We need to support our farmers to improve on food production,” he added.

Producing our own

A pork industry leader echoed the provincial government’s concerns, stressing that reliance on imports exposes the country to supply risks and reinforces the need for stronger domestic production.

Rolando Tambago, president of Virginia Farms Inc. and vice chairman of the Pork Producers Federation of the Philippines, said food security cannot depend on external supply chains, especially amid global disruptions.

He emphasized that local production is critical to ensuring stability during crises, warning that geopolitical tensions and transport disruptions can quickly affect supply availability.

“When there is war, no boats, we cannot eat pork anymore,” he said, underscoring the vulnerability of import-dependent systems.

Tambago said food security and sustainability “is something that you cannot outsource,” adding that production must be anchored within the country to ensure continuous supply.

High pork consumption

He also noted Cebu’s relatively high pork consumption, estimating per capita intake at around 20, compared to about 15 in the national average, highlighting stronger local demand driven by cuisine and eating habits.

He said this demand further underscores the need to strengthen domestic output, as supply gaps become more visible in high-consumption areas like Cebu.

"Especially Cebu, that Cebu eats more pork than any other province," he said, adding that Cebuanos prefer pork dishes like grilled foods, lechon, and pork humba.

His remarks came during the inauguration of a new piggery facility in Barangay Saksak, Aloguinsan town, on Thursday, June 18, which is part of a broader expansion program in the livestock sector.

The facility, operated by Virginia Farms Inc., was described as a high-biosecurity breeding farm with an investment value of about P2.8 billion covering ongoing expansion projects of the company this year.

The Aloguinsan site is designed as a breeder production facility capable of supplying breeder stocks for commercial hog operations, complementing other expansion areas including Asturias.

It features multi-layer fencing systems, strict sanitation protocols, and controlled entry procedures aimed at preventing disease outbreaks.

Tambago said local pork production is also being positioned to compete with imported pork in terms of quality, as the industry adopts improved genetics, technology, and farm management systems.

He said domestic pork is expected not only to expand supply but also to reach price and quality competitiveness against imports in the coming years.

Department of Agriculture Central Visayas Director Angel Enriquez, who attended the inauguration, said the continued expansion of commercial farms strengthens the region’s livestock industry and supports food security objectives.

Enriquez remains among the country’s top livestock-producing regions, particularly in swine, goat, and cattle, driven largely by private sector investment.(MyTVCebu)