April 29, 2013

 

Philippine meat processors hit government on accreditation procedure for meat importers

 

The Philippine Association of Meat Processors Inc. (PAMPI) protested the failure of the Department of Agriculture (DA) to consult the group on the supplemental guidelines for the accreditation of meat importers, saying that some of its members had to stop operations because of the stringent rules on meat imports.

In a report by local daily Business Mirror, PAMPI leaders are mobilizing workers and consumers in arguing for the scrapping of the guidelines in seriously seeking relief from Agriculture Secretary Proceso Alcala.

While PAMPI members have been forced to source their meat from hog raisers, several piggery owners are now venturing into meat processing, thus giving undue competition to the corporate members of their organization.

In its letter dated April 18, PAMPI told Alcala that there was no response to its plea for the guidelines in Administrative Order (AO) 26, Series of 2005, which covers the accreditation of meat importers, but it was apparent that the National Meat Inspection Service (NMIS) was already implementing the new requirements that the group had questioned earlier.

By doing so, PAMPI told Alcala, the NMIS was "virtually stopping the operations of some of our members, if not causing a slowdown of operations of meat processors who depend on [raw-meat] materials from accredited meat importers."

Worse, the group claimed, the agriculture chief himself had signed the guidelines and converted it into the new AO 9, Series of 2013.

"The member-companies of PAMPI herewith signify their protest to the implementation of the said AO 9 Re: Supplemental Guidelines to DA-AO 26, Series of 2005, Section III: Accreditation Procedures [for] Meat Importers," the group said.

The letter was signed by PAMPI President Felix Tiukinhoy Jr.; Vice President Jerome D. Ong; Secretary Jocelyn B. Alcoreza; Treasurer Philip V. Prieto; Rey C. Lapid; and Directors Enrico Ma. O. Hizon, Noel M. Tempongko Jr., Rex E. Agarrrado and Francis B. Dy.

PAMPI Executive Director Francisco Buencamino Jr. also signed the letter, which was officially received by Alcala's office on April 24.

The association's officers claimed that their complaints are not "empty" and pleaded with Alcala to consider the defects in the guidelines.

"Some of the provisions appear whimsical and arbitrary, and not furthering the true objectives of NMIS, i.e., to ensure meat to be safe, wholesome and sufficient for the consumption of the Filipino people," PAMPI said.

The group complained that the provisions in the new guidelines "make the rules highly restrictive of international trade on agricultural products, specifically meat and meat products, rendering the rules to be discriminatory, unjustified and unreasonable."

"What is clear is that the rules favour the monopoly of supply from local sources and this was further demonstrated by the market situation during Holy Week. That time of the year, although the demand for pork would be at its lowest, pork prices had gone right through the roof!" PAMPI said.

"There is a definite shortage of pork, but the NMIS continues to strangle our only other alternative-imported pork-by making importation of pork more difficult, and, in fact, impossible for new business entrants. Some of our members have labeled it to be anti-business or against the interest of companies engaged in food manufacturing/meat processing and import-export trade," it added.

"AO 9 covers procedures for accreditation and speaks nothing of product safety, wholesomeness or hygiene. We were totally surprised to hear in the news that AO 9 was promulgated to prevent diseases, block contaminated meat, prevent smuggling and promote food safety. If these were the main intent of AO 9, we do not see the provisions in it that will achieve this objective or intent," it added.

PAMPI also assailed the imposition of a de-facto three-year ban on importation for new entrants via the expediency of requiring companies to submit audited financial statements for the past three years, a condition the group tags as violating the rules of the World Trade Organization.

The group questioned the right of the NMIS to impose a minimum paid-up capital requirement of PHP5 million (US$121,447.03)  for new meat importers, noting that Republic Act 9296, which created the meat-inspection agency, does not empower it to impose such a requirement on companies. It said the rule is discriminatory, since it does not require local meat-related companies to have that requirement.

PAMPI also questioned the provision that prohibits the trade and distribution of Indian buffalo meat, arguing that it is effectively a "technical barrier to trade."

The group slammed the guidelines crafted by the NMIS, saying these do not simplify policies and rules that stimulate trade.

The meat processors' group criticized the guidelines for providing the NMIS powers beyond its mandate.

"If the NMIS is properly carrying out its main function 'as the national controlling authority on all matters pertaining to meat inspection and hygiene,' then the new provisions [in] the guidelines mean that the NMIS is already overstepping its mandate by playing the role of the Securities and Exchange Commission, the Bureau of Internal Revenue and the Bureau of Customs," the group said.

The letter also added, "we are also being required to submit our intended customers' list now and in the future, leading us to conclude that this is a suspicious requirement. We ask that the confidentiality of this information be respected. These are 'trade secrets' that cannot be disclosed and should not be asked to disclose. There are hog raisers who have slowly shifted to meat processing and are now selling to our customers that they did not have commercial relations with in the past, the group said."