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May 19, 2017

 

Philippines emerging as major pig meat importer

 

 

The Philippines has emerged as a significant importer of pig meat with a steady growth in trade of both pork and pig offals in the last 10 years, AHDB Pork said.

 

It added that even the UK now has a small but significant share of the market, especially in offals.

 

In 2016 imports of pork were up one third on 2015 to 78,000 tonnes compared with a little over 4,000 tonnes in 2006. In 2016, Germany and Canada were the largest suppliers with a 55% market share. Other significant EU suppliers were France and Spain. The UK has emerged as a small exporter to this market and shipments almost trebled in 2016 to 1,500 tonnes. However, UK export figures indicate a somewhat higher level of 3,200 tonnes in 2016.

 

The pig offal trade is even larger than for pork, and imports in 2016 have more than doubled in the last four years, the pork division of the UK Horticulture & Agriculture Development Board said. Germany and Spain were the largest suppliers accounting for 44% of total imports. The UK shipped 6,200 tonnes in 2016, up nearly 40% on a year earlier. In contrast, only 130 tonnes were shipped in 2008 and 2009.

 

In the first two months this year, there was some slowdown in Philippine imports of both pork and offals. Trade was down by around 2% in both cases. However, this did not prevent trade with the UK from rising further.

 

"Overall, opportunities to export pig products to the Philippines remain positive," AHDB Pork said, noting that the latest US Department of Agriculture forecasts anticipate a 10% increase in shipments this year compared with 2016. "This is partly due to domestic consumption outpacing improvements to Philippine production systems, despite a 5% production growth anticipated this year", it said.

 

Imported product is also reportedly required by processors to meet quality and presentation demands. AHDB Pork said the dominance of small "backyard" systems in the domestic industry means Philippine product is struggling to consistently meet these requirements.

 

The Philippine Department of Agriculture also recently announced the addition of an extra 7,000 tonnes of pork, which AHDB Pork said is understood to come under the existing minimum access arrangements.

 

Under the annual quota of 54,000 tonnes, product can be imported at the lower (30%) tariff rate. The move is designed to prevent pork retail prices rising to levels deemed unacceptable. However, the Philippines must already import significant volumes of pork out of quota, which is subject to a 40% tariff, given the 78,000 tonnes imported in 2016, AHDB Pork said.
 
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