Philippine hog farmers seek zero-duty on farm equipment imports

Swine farmers in the Philippines are seeking tax-free importation of all farm equipment in a bid in order to upgrade the country's deteriorating competitiveness amid rising production costs and stiffening trade.

 

The National Federation of Hog Farmers Inc. (NFHFI), headed by officials Alex Reyes and Gabriel Uy, is urging the Department of Agriculture (DA) for a moratorium on the taxes imposed on agricultural equipment imports, stating competitiveness and modernisation is badly needed by the sector despite high investment costs as it will bring down input cost over the long term.

 

According to NFHFI Vice Chairman Renato Eleria, the Agriculture and Fisheries Modernisation Act (AFMA) or Republic Act 8435 mandates none tax of imported equipment, however, executive orders are "confusing the regulations".

  

The tariff on equipment has made importation very prohibitive even as the hog farm of NFHFI Chairman Gabriel Uy paid P600,000 just for 15 percent tax plus value added tax for his last importation of slatted flooring.

 

Facilities that have to be imported are sanitary slatted flooring, silos, feeders (device where animals eat), cooling pads, and ventilation equipment which are all essential to safety, security, and productivity of animals.

 

Slatted flooring allows for waste of hogs to get eliminated at once so as to separate their sleeping area from the waste or else this will be grimy and very damp.

 

Tunnel ventilators or cooling cell equipment regulate humidity and temperature in the hog housing which ensures that mortality rate of animals is lessened as animal stress is reduced and that their productivity is raised.

 

These ventilators can reduce mortality by 20 percent and are sourced from the US, Canada, and Europe since local manufacturers can hardly produce durable quality that can have longer-lasting use.

 

Another critical input of hog raisers is genetic resources which can substantially raise or dampen productivity.

 

Reyes said swine raisers need imported bloodlines or breeds (normally bred for superiority in Netherlands, Denmark, France) which grow bigger and are more resistant to diseases. Tariff of these bloodlines (through frozen semen or breeder cells of male and female) have to be cut from 30 percent to zero. The superior imported variety can yield 12 offspring instead of just 10 at a time using local varieties.

  

With the availability of cheaper genetics sources, hog raisers will spend only P600 per semen dose needed in an artificial insemination (AI) such as from the Eagle AI Centre that will impregnate the sows with good breeds.