GOVT ASKED TO ALLOW HOG PRODUCERS TO IMPORT PORK TO STABILIZE PRICES

We will discuss the lowering of tariffs for both imports inside MAV and outside MAV. We will study and discuss this at the CTRM meeting to what extent we are going to reduce tariffs.

Agriculture Secretary William D. Dar

THE Philippine Association of Meat Processors Inc. (Pampi) on Tuesday asked the government to allow hog producers to import at least 50,000 metric tons (MT) of pork at zero tariff to boost domestic supply and stabilize retail prices.

In a letter addressed to Agriculture Secretary William D. Dar and other officials, Pampi said this measure will help address the current high retail prices of pork in the market.

The letter was also sent to the Pork Producers Federation of the Philippines and National Federation of Hog Farmers.

Pampi’s other proposed measures include provision of financing or trade credit to qualified hog raisers and producers at concessional rates by the Land Bank of the Philippines (Landbank), and allowing the sale of frozen meat in public markets not equipped with refrigeration facilities during the duration of the shortage.

Pampi said these are “alternative” recommendations to the Minimum Access Volume (MAV) plus mechanism to import pork. The MAV plus mechanism is the expansion of MAV to allow more imports to enter at a lower tariff rate.

Pork imports that enter within 54,000 MT MAV are slapped with 30-percent tariff, while those outside the MAV are levied with 40percent tariff.

The DA earlier disclosed that they are now in the process of tripling that MAV to 162,000 MT to increase domestic supply in a bid to arrest rising prices.

“The foregoing is intended to provide fiscal support to hog farmers/producers to afford them the opportunity to generate income and compensate for huge losses arising from the ASF [African swine fever] decimation of their hog farms,” Pampi said.

“Our recommendation, we believe, is a much better way of alleviating the plight of the hog sector at no cost to the government rather than giving them financial dole-outs,” it added.

Pampi said it is not unusual for hog producers to “import goods in emergency situations during which they are unable to produce them so that they can continue providing supply to consumers and the general public as well.”

“It is incumbent on the national government, and the meat processing industry which is a partner of the livestock sector and which Pampi represents, to support and ensure the survival and rehabilitation of hog farms,” Pampi added.

In a virtual press briefing on Tuesday, Dar said the Cabinet-level Committee on Tariff and Related Matters (CTRM) is set to meet on January 27 to discuss the possible reduction of pork tariffs.

Dar added that Pampi’s proposal would be discussed during the high-level meeting.

“We will discuss the lowering of tariffs for both imports inside MAV and outside MAV. We will study and discuss this at the CTRM meeting to what extent we are going to reduce tariffs,” he said.

The Businessmirror first broke the story that the DA has been considering tariff reduction for pork imports to facilitate the entry of cheaper imported supply. (Related story: https://businessmirror.com.ph/2021/01/21/government-targets-below-p300pork-price/).

In a letter submitted to economic managers and Dar last week, the Meat Importers Association of the Philippines (Mita) argued that expanding the MAV alone would not make a significant impact on pork prices.

Mita President Jesus C. Cham said the tariff on pork imports should be reduced to 10 percent for in-quota imports and to 20 percent for out-quota imports in order to bring down pork prices below P300 per kilogram.

“The reduction of pork duty by a nominal 10 percent will translate into a reduction in landed cost by P15 per kg at current CIF and Forex rates, which savings can be easily passed on to consumers,” he said in the letter obtained by the Businessmirror.

“This way SRP for pork liempo, kasim and pigue below P300 per kg becomes attainable!” he added.