May 21, 2004

Philippine Agriculture Dept Won't Support Tariff Cut On Chicken Imports

The Philippine Department of Agriculture is not willing to support a reduction of tariffs on chicken imports despite an upward trend in local prices due to strong demand, a senior official said Thursday.
 
Agriculture Undersecretary Cesar Drilon said importers may continue to buy chicken from other countries, but they will have to pay the 40% import duty.
 
Earlier this week, The Department of Trade and Industry proposed a tariff cut on imported chicken products to help stabilize the supply and prices in the domestic market.
 
Local prices of chicken have risen to 110 to 155 pesos ($1=PHP55.82) a kilogram, from a price level of PHP90 - PHP95/kg a month ago, due to higher demand.
 
Drilon said consumers have shifted back to chicken as pork prices have remained at high levels of around PHP 140/kg following a bird flu scare early this year.
 
But Drilon said the upward trend in prices may be temporary and poultry supply may soon stabilize at a sufficient level.
 
The country's 2004 minimum access volume, or MAV, for chicken has been set at 22,968 metric tons, approximately 33% of which has been utilized.
 
The MAV is the minimum volume of agricultural imports that a member country of the World Trade Organization must bring in at a lower tariff rate.