Philippines prods pork imports on supply shortage

The government is encouraging the importation of up to 5,000 tonnes of pork up to the end of June under a tax subsidy scheme to cover a supply shortage due to unfavourable weather conditions since last year.

The move, however, was met with criticism by the associations of pork producers and meat importers and traders.

President Gloria M. Arroyo last April 12 signed Executive Order No. 875, which authorises the Food Terminal Inc. (FTI) to auction off to interested private traders the right to import the commodity under a tax subsidy scheme, by which the government assumes the cost of duties and taxes of the covered imports.

The volume of imports, to be set by the Agriculture secretary, should not exceed 5,000 tonnes, the order stated. The authority given to the FTI on this matter will remain valid until June 30, it added.

Data from the Bureau of Agricultural Statistics (BAS) showed that prices of pork averaged PHP180 per kilogramme as of April 24, PHP10/kg more than in December last year.

However, leaders of the associations of pork producers and meat importers and traders opposed the government move.

Albert R. T. Lim Jr., president of the Pork Producers Federation of the Philippines Inc., said that an expected shortfall in pork production this quarter is balanced by a shortfall in demand.

Jesus C. Cham, president of the Meat Importers and Traders Association, concurred, noting that only about 30% of some 54,000 tonnes of pork covered this year by the minimum access volume which are slapped a lower 30% tariff rate have been imported as of this month, so far.