The proposal of the Department of Agriculture (DA) to increase the minimum access volume (MAV) of pork imports from 54,000 metric tons to 404,000 metric tons is consistent with supply deficit as estimated by the National Economic Development Authority (NEDA).
Appearing before the Senate constituted as a Committee of the Whole undertaking a public hearing on food security issues, Thursday, April 15, NEDA chief Karl Chua assured senators that increasing the MAV and reducing tariffs in pork imports would not kill the hog industry.
Chua’s position meets head on a contrary stand of most senators led by Senate Minority Leader Franklin Drilon and Senators Panfilo Lacson and Imee Marcos.
Chua estimated that the African swine fever (ASF) detected in August, 2019 led to the pork production deficit.
Thus, the government objective is to boost production, adding that importation is done as a last resort, he said.
Chua said that the DA has allocated billions of pesos to support local hog raisers but after almost two years since ASF struck, data showed that the country could not meet local demand for pork thus triggering market price increases.
NEDA, according to Chua, supports the President’s executive order increasing the MAV on pork imports and decreasing their tariff rates on a temporary basis.
Citing a Philippine Statistics Authority (PSA) data, Chua said Philippine swine inventory decreased by 3 million heads of pig or 24 percent from 2020 to 2021 as ASF affected almost hit all regions.
Chua said pork importations would not flood the markets since ASF has also affected 32 other countries, including China, also producing pork.
He said that a five to 10 percent decrease in tariff means that the landed cost of pork will be P215 to P220 per kilo.
If the current 30 to 40 tariff rate is maintained, the landed cost of pork would be P252 to P267 per kilo, he pointed out.
The NEDA head explained that the country’s limited cold chain facilities also serve as a physical barrier to huge imports as the 404,000 metric tons of pork would gradually enter the Philippines as needed.
Chua said these facilities could only accommodate 268,000 metric tons of pork because there are other agricultural products that also need cold storage facilities.
He said a decrease in tariff rates would help reduce and stabilize retail prices.
About 95 million Filipinos rely on pork for their regular diet, he pointed out.
The pork imports are expected to gradually arrive in June.
Chua said meat has become the largest contributor to Philippine inflation even surpassing rice 2018.