March 4, 2004
 
 
Philippines Consider Duty Free Pork Imports To Ease Tight Supply

The Philippine Department of Agriculture is considering allowing pork imports at zero-tariff to ease the current tight supply and prevent prices from skyrocketing.
 
Agriculture Secretary Luis Lorenzo said the department is consulting with hog farmers, processors and meat importers "in order to come up with a common agreement on how best to address the tight supply of pork."
 
In a statement, Lorenzo said the Meat and Hog Dealers Association of the Philippines had requested allowing importing duty-free pork products to soften domestic prices of hog meat.
 
Pork prices are hovering between 140 to 160 pesos ($1=PHP56.20) a kilogram, up from PHP120-PHP130 in January. The tight supply has been attributed mainly to a shift in consumer demand due to the bird flu scare.
 
Lorenzo said hog farmers have agreed to the proposed duty-free imports of pork products on the condition that the volume doesn't exceed 5,000 metric tons. Imported pork products currently have a tariff of 30%-40%.
 
In a press briefing, meat dealers, however, said there's no actual shortage in supply, accusing hog farmers of engaging into profiteering by hoarding supply.
 
Hog farmers earlier told the agriculture department they won't sell more than PHP82/kg to avert further increases in pork prices at the retail market.
 
However, meat dealers have accused hog farmers of selling at PHP92/kg.
 
The agriculture department has accredited South Korean meat processing plants in anticipation of increased pork imports this year.
 
Around 50,000 tons of pork imports are allowed to enter the country at the preferential tariff duty of 30% under the minimum access volume mechanism.