April 27, 2012

 

Philippines' meat over-importation, smuggling unstoppable

 

 

Due to lack of "statutory authority", the Aquino administration has admitted it is helpless in stopping the over-importation and smuggling of pork and chicken meat, and that importation is a requirement of the World Trade Organisation.

 

Hog growers immediately called the administration's explanation as "baloney."

 

In a letter to Abono chairman and director of the Swine Development Council Rosendo So, Bureau of Animal Industry Director Efren Nuestro said the hog industry's problem was "a decades-long problem" and that "pork importation is not affecting the retail price" of pork

 

In a separate letter to Batangas Rep. Mark Llandro Mendoza, chairman of the House committee on agriculture and food, Agriculture Secretary Proceso Alcala defended Nuestro and said the BAI lacked "statutory authority to curb unfair market and trade practices."

 

The hog raisers on Wednesday (Apr 25) asked the national government to stop using their sector as a "bargaining chip" to expand the protection of the rice industry under World Trade Organisation's policy of quantitative restriction.

 

They said the cut in the tariff on pork offal to 5% was one of the concessions made by the Philippines so it could have the quantitative restriction on rice extended in 2007. They want that tariff restored to 40%, saying it will protect them.

 

Alcala said the government had yet to draw up plans on how to stop the selling of smuggled agricultural products in the local markets. That angered the hog growers, who held a meeting Wednesday night to firm up their resolve to proceed with the pork and chicken holiday "anytime soon."

 

"The suggestion to limit the signing power of the BAI director for the purpose of limiting the volume of animals and meat entering the Philippines would be a violation of the Philippines' obligation to the WTO," said Nuestro in a bid to contest the call for his removal.

 

His resignation is being sought by the SDC, So, Agap Rep. Nicanor Briones, former Pangasinan Rep. Mark Cojuangco, Agham Rep. Angelo Palmones, National Federation of Hog Farmers Inc. chairman Daniel Javellana Jr., and Pork Producers Federation of the Philippines president Edwin Chen. They claim Nuestro has been allowing the rampant smuggling of pork into the country.

 

"What proof did this government want?" So said. "The records are staring at them. The backyard industry, which comprises 70% of the 4.4 million kilogrammes supply of pork and 2.2 million kilogrammes of chicken, has already lost PHP25 billion (US$589 million) in three years," So said.

 

Freddie Dy, SDC director and president of the United Agri Producers Group, said that for the past one-and-a-half years Agriculture officials and President Benigno Aquino III had been ignoring their pleas to curb smuggling and the over-importation of meat that was already killing hog and poultry sectors.

 

"President Aquino cannot blame us anymore if holding the pork and chicken holiday [a strike in which hog and poultry raisers will stop supplying markets with their produce] is the way to show this government that we are hurting already, and we are seriously protesting the unfair business practice," Dy said.

 

"So said Nuestro's "flimsy excuses" were an insult to the hog and chicken industries. He said the WTO's minimum access volume for pork was pegged at 54 million kilogrammes annually, but the pork meat that Nuestro and the government had allowed to flood even the wet markets was recorded at 169.27 million kilogrammes in 2011.

 

For chicken, So said, the WTO's minimum access volume was only 23.5 million kilogrammes, but the total importation recorded was 127.22 million kilogrammes in the same year.

 

"These are not our records," So said. "These are records culled from the government. And they simply tell us they are helpless to stop the over-importation?"

 

So said only 38 million of the 54-million kilogramme MAV for pork was used up because there was more than enough supply of pork. He said the Aquino administration refused to heed their call to conduct a 100-% inspection because the importers were declaring prime cuts of meat as offal, skin and rind. Choice cuts are taxed 40% and offal 5%.

 

"As a result, the unscrupulous importers, in connivance with Agriculture and Customs officials, are raking in so much profit because they can sell the pork at PHP170 (US$4) a kilogramme and chicken at PHP130 (US$3.06) a kilogramme and pass these off as fresh meat even if they only paid a tariff of US$0.54 a kilogramme," So said.