PHL pork imports seen doubling on ASF impact
THE Philippines is expected to double its pork imports this year due to the shortfall in domestic supply caused by a deadly pig disease and changes to its tariff rate quota system, the United States Department of Agriculture (USDA) said.
In its latest report, the USDA projected that the country’s pork imports could reach 350,000 metric tons (MT), or more than double the 167,000 MT it purchased last year.
“The Philippines is expected to see imports more than double amid a domestic pork supply shortfall and changes to its tariff rate quota system,” it said.
Also, the USDA said the Philippines’s hog production this year could decline by 10 percent as African swine fever (ASF) continues to disrupt domestic output.
The USDA revised downwards its production forecast for the Philippines to 1 million MT (MMT), from its previous estimate of 1.075 MMT.
In its report, the USDA noted that ASF, which is fatal to pigs but not harmful to humans, continues to spread in key producing regions in the country.
The decline in output has prompted the government to lower import duties on pork meat from 40 percent to 15 percent for out-quota pork, and from 30 percent to 5 percent for inquota pork imports. The government is also raising the minimum access volume (MAV) for pork.
‘Full transparency’
SENATE Minority Leader Franklin M. Drilon pressed Duterte administration officials to enforce “full transparency” in the country’s pork importation scheme, prodding the Department of Agriculture (DA) to disclose the list of meat importers under the MAV scheme.
“I call for complete transparency,” Drilon said in a radio interview over the weekend, adding: “If we are transparent, we can avoid people’s perception that there is corruption in pork importation.”
Citing various allegations of “tongpats” or kickbacks in pork importation,” the Minority Leader said the people should be informed who are the major beneficiaries of the lucrative racket. “Sino ang makikinabang? Saan manggagaling ang imported pork? Sino ang importer?”
The opposition senator raised the issue in advance of Monday’s Senate Committee of the Whole inquiry into the reported food security crisis in the wake of the outbreak of ASF.
Drilon recalled that Senators adopted just last month Senate Resolution No. 97 prodding President Duterte to declare a State of National Emergency to address the severe impact of ASF and the opposition to the proposed reduction in tariff and increase in MAV for pork imports.
Citing allegations of corruption, Drilon pressed the DA to disclose the recipients of meat import certificates under the MAV scheme, recalling how a similar scheme in the country’s rice importation scheme is “also plagued with corruption allegations.”
Drilon added: “Noong panahon ng rice importation control, marami kang naririnig na commission na galing doon sa mga bansa na binibilhan natin ng bigas. The same situation here. Sino ba ang importer at saan manggagaling?”
The Minority Leader recalled that President Duterte issued Executive Order (EO) 128 reducing tariffs on fresh, chilled, or frozen pork meat under quota or the MAV to 5 percent for the first three months of the order’s validity and to 10 percent for the fourth to 12 months of the order’s effectivity. For pork imports outside the MAV, EO 128 reduces the tariff rate to 15 percent on the first three months and 20 percent on the fourth to 12th month of effectivity.
He noted that the government also seeks to increase the MAV to 350,000 MT from the current 150,000 MT. “How would the additional MAV be allocated? What are the guidelines?”
The minority leader said the senate should weigh the effects of the lowered tariff rates on pork and increased MAV on the local hog industry. He cited reports that the move could adversely affect local hog raisers.
He also pointed to around P11 billion in revenues that could be foregone as a result of the reduction of tariff rates on imported pork amid the country’s depleting resources due to the continuing Covid-19 pandemic.
While Drilon acknowledged that fixing tariff rates, when Congress is not in session, is within the power of the President, he said Duterte “may amend or revoke the EO once it is shown that lowering tariff on pork imports and increasing MAV will be harmful to local hog raisers and result in foregone revenues.”