Agri group: Lift MAV for pork, poultry

THE Philippine Chamber of Agriculture and Food Inc. (Pcafi) has suggested eliminating the minimum access volume (MAV) for poultry and pork imports, adding the measure has become useless.

“The volume of importation for chicken is more than 15 times the MAV. Thus, our treaty commitment with the GATT-WTO shows that with this condition, there is no longer a need for a MAV,” said Pcafi President Danilo Fausto,

He was referring to the General Agreement on Tariffs and TradeWorld Trade Organization.

In 1995, the Philippines pledged its commitment to the GATT-WTO, specifying an import volume of 23,500 metric tons for chicken with a reduced tariff of 40 percent under the MAV.

Initially, outside the MAV, the tariff commitment was set at 50 percent. Yet, in 2005, the tariff rates became uniform for both MAV and non-MAV volumes.

“Removing MAV will result in a level playing field among importers and importers vis a vis local producers,” Fausto said.

Citing a report from the United Broilers and Raisers Association (UBRA), the chamber expressed its concern about the declining farmgate prices of chicken.

As of Jan. 4, 2024, chicken was sold at P89.15 per kilo (kg) live weight, and according to Pcafi, “this is way below production cost per kilo.”

For imported chicken, the estimated cost was P84.83 per kg within MAV and P90.83 per kg outside MAV.

For its part, the Samahang Industriya ng Agrikultura (Sinag) said that poultry farmers have complained of farmgate prices “that [are] almost at the level of production cost because of the flooding of imported chicken.”

“Unfortunately, the decrease in farmgate prices is not being felt by consumers as chicken prices remain high,” Sinag Executive Director Jayson Cainglet said.

The retail price of chicken based on Department of Agriculture data was at P140 to P220 per kg as of January 19.

Fausto also urged the government to strengthen the implementation of Section 34, Chapter 4 of the Safeguard Measures Act (Republic Act 8800), designed to protect local farmers from sudden increases in imported goods.

“RA 8800 was approved last July 19, 2000. Two decades have passed, and we have yet to see where the money collected under the law was allocated. More particularly coffee, pork and chicken,” said Fausto.

The act mandates that 50 percent of the fees and safeguard duties collected through RA 8800 should be allocated for enhancing the competitiveness of agricultural commodities negatively impacted by the influx of imports.