May 25, 2009

Philippine meat production is estimated to have dropped by 15 percent in the first three months due to dampened demand amid the economic crisis and fears fanned by disease outbreaks, the head of the industry group said.

Philippine Association of Meat Processors, Inc. (PAMPI) executive director Francisco J. Buencamino said production is affected by the crisis, as jobs losses and insecurity of job tenures, consumers are trying to save and are buying less expensive food.

PAMPI data show that imports of pork, buffalo meat, beef and chicken in the first quarter dropped by a tenth to 59.225 million kilogrammes from 66.011 million kilogrammes during the same period last year.

Moreover, Buencamino said confidence in pork products slipped due to the spreading AH1N1 flu virus, which had initially been tagged as "swine flu."

According to the World Health Organisation (WHO), as of May 23, 43 countries have officially reported 12,022 cases of AH1N1 flu infection, including 86 deaths.

Buencamino said that even if there is no direct impact of the AH1N1 flu virus on pork, the damage from misinformation and misperception is still affecting demand for pork and pork products.

Still, he said the industry's 8-10 percent output growth target is possible up to year-end.

The PHP90-billion meat processing industry cut its growth target this year to 8-10 percent from the pre-crisis annual average expansion of 12-15 percent due the economic slowdown.

US$1 = PHP47.125 (May 25)