DA urged to scrap MAV in poultry, pork imports
The private sector has urged the Department of Agriculture (DA) to eliminate the Minimum Access Volume (MAV) in poultry and pork imports.
Simultaneously, they emphasized the importance of redirecting fees collected from the implementation of the Safeguard Measures Act towards enhancing the competitiveness of the agriculture sector.
During a meeting with DA secretary Francisco Tiu Laurel, the Philippine Chamber of Agriculture and Food Inc., (PCAFI) highlighted that the MAV has lost its effectiveness, as the actual import volumes for chicken, pork, and corn have significantly surpassed the allocated MAV limits.
“The volume of importation for chicken is more than 15 times the MAV. Thus, our treaty commitment with the GATTWTO shows that with this condition, there is no longer need for a MAV,” said PCAFI President Danilo V. Fausto.
Philippines’ committed in 1995 to the General Agreement on Tariff and Trade-World Tade Organization (GATT-WTO) for an import volume of 23,500 metric tons (MT) for chicken with lower tariff of 40 percent under MAV.
Outside MAV, tariff commitment was at 50 percent. However, in 2005 tariff rate became equal for in and out of MAV volume.
Removing MAV will result in a “level playing field among importers and importers vis a vis local producers,” Fausto said.
PCAFI, according to Fausto is concerned that the farmgate price of chicken reported by the United Broilers and Raisers Association as of January 4 was P89.15 per kilo liveweight. This is way below the production cost per kilo. For imported chicken, the estimated cost was P84.83 per kilo within MAV and P90.83 per kilo outside MAV.
On the other hand, the retail price as per DA Bantay Presyo data on January 4 was P170 to P180 per kilo.
In 2023, total chicken importation stood at 426,620 kilos. The same situation is true for corn and pork where actual import volume far exceeds MAV.
In his Aide Memoire No. 2, Fausto also asked the government to strictly enforce Section 34, Chapter 4 of the Safeguard Measures Act (Republic Act 8800) which was aimed at protecting local farmers from any surge in imports.
This mandates that fees and safeguard duties from the implementation of RA 8800 totaling to 50 percent be allocated for the competitiveness of the agriculture sector adversely affected by the surge in imports.
“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.
As the coffee sector is negatively affected by excessive imports, PCAFI asked DA to use the RA 8800 fees to develop the coffee industry.
“The DA budget should provide for enough planting materials either through cuttings or tissue culture to wider coverage of farmer groups to generate at least five million coffee trees with a better yield from 700 kilos per hectare comparable to Vietnam production of 3-5 tons per hectare.”
DA coffee program should also provide training and better technology to farmers; encourage the
youth to participate in the project; encourage a wider participant granting National Seed Certification from the Bureau of Plant Industry; and prioritize coffee for intercropping with the coconut trees.
PCAFI also asked DA to simplify farmers’ access to the credit guarantee of the Philippine Guaranty Corp. The guarantee will ensure easier access for farmers to credit with banks.
Likewise, the Philippine Crop Insurance Corp. (PCIC) should insure crops, livestock, poultry, and dairy against climate change, pests, and diseases.
Likewise, PCIC should expedite the payment of insurance calls to provide confidence to investors and banks.
DA in collaboration with the Department of Finance (DOF) should encourage front-end or forward purchase of planted crops to provide a turn-around capital for farmerproducers. Such production contracts and warehouse receipts should enable farmers to use these as collaterals to avail of loans from the Land Bank and Development Bank of the Philippines.
Special safeguard funds must be put up to encourage banks, Land Bank of the Philippines and Development Bank of the Philippines to provide farmers easy access to credit.