March 11, 2004

Philippines To Allow Duty Free Pork and Feed Imports

The Philippine government will allow duty free imports of pork and corn and soybean feeds for a limited period to ease pressure on rising domestic pork prices.

President Gloria Macapagal-Arroyo announced that the Cabinet-level Tariff and Related Matters had endorsed the duty-free importation of 10,000 metric tons of pork from the Netherlands and 350,000 metric tons of corn feeds up to end-2004, and unlimited amounts of soybeans for the next six months.

At present, a duty of between 35 percent (for the special quota program) and 50 percent is slapped on port imports; 3 percent on corn feeds duty; and 30 percent on soybeans.

The President is expected to sign the Executive Order implementing the tariff incentives next week. The pork imports would be coursed through the Department of Agriculture.

Ms Macapagal said this should bring down pork prices that have shot up to as much as 160 pesos per kilo and address the low pork supply after hog raisers cut down production due to insufficient supply of corn feeds.

Meat dealers have protested the high pork prices by recently declaring a "pig holiday."

Trade and Industry Secretary Cesar Purisima said the initial batch of pork imports could be raised depending on the demand. This batch represents only two percent of the country's annual pork consumption of 500,000 metric tons, he said.