April 28, 2010
Philippine meat traders question 5,000 tonnes of pork imports
Meat traders and food processors in the Philippines are questioning the decision of Malacañang to import an additional 5,000 tonnes of pork, duty-free, through the Food Terminal Inc. (FTI).
Jess Cham of the Meat Importers and Traders Association (MITA) warned that the additional importation would ''disturb'' the market, saying the annual meat import quota of 54,000 tonnes just took effect in February this year.
Of this volume, only 30 percent so far has been availed of, leaving 70 percent available for importation throughout the year, he added.
The additional 5,000 imports would only disturb the market and Cham said if meat importers, traders and food processors fail to avail of their annual quota allocation because of the excess pork importations, the quota holders would be penalized and could lose their allocation for the following year.
The MITA chief added that they were not consulted and clueless on the need to import.
There has been no increase in demand for pork since December last year, according to the Pork Producers Federation of the Philippines PPFP.
Albert Lim of the PPFP said ''the importation (of pork) is not necessary" as they are able to meet the requirement of consumers".
Lim pointed out that while the Department of Agriculture (DA) has noted a shortfall in the production of pork, the pork industry has noted that there has been no increase in demand or consumption of pork since December last year.
Even the forthcoming election, has not resulted in any appreciable increase in pork demand, Lim said as he noted that more likely pork demand would even drop further after the elections in May.
Thus, any additional importation that would come in by June and July would only cause local pork prices to drop further.
Lim said that while pork prices continue to remain high at PHP180 (US$4.03) to PHP190 (US$4.25) per kilo, it is not due to pork producers whose farmgate price hovers around PHP114 (US$2.55) to PHP115 (US$2.57) per kilo. Big producers like Foremost Farms, Lim said, even sell their live hogs cheaper at PHP105 (US$2.35) per kilo.
If the DA needs to investigate why pork prices remain high, Lim said, then it should look at the middlemen.
US$1 = PHP44.65 (April 28, 2010)
