October 14, 2013

 

 

Due to large inventory in farms and cold storages nationwide, the Philippine pork producers have assured the public that there is enough supply of pork ahead of the holidays.

 

Pork Producers Federation of the Philippines (Propork) president Edwin Chen said there are currently 10 million kilogrammes of pork stored in various cold storages nationwide as of last week. Propork is an association of 48 small pork producers.

 

Chen said current demand for pork is weak, as is traditional during the third quarter of the year, causing inventories to build up in cold storages and farms.

 

"Demand is lower so there are inventories in farms that are not sold," he said in an interview on the sidelines of the 20th International Agribusiness Exhibition and Seminar held at the World Trade Centre.

 

In the second quarter of the year, live weight prices reached a peak of PHP118/kilogramme (US$2.73) to PHP120/kilogramme (US$2.78) live weight for prime fatteners.

 

Chen said that because of the consumption driven by the upcoming barangay elections, demand is expected to pick up late this month. He also said local pork producers currently enjoy good market conditions because of the institution of new protective measures for the industry.

 

The National Meat Inspection Service (NMIS) this year imposed stricter requirements for meat importers to prevent technical smuggling and eliminate fly-by-night traders. NMIS has also raised the minimum capital requirements for meat importers to PHP5 million (US$116,000). No capitalisation requirement was required before.

 

Chen said the government recently raised the duties imposed on imported meat at US$2/kilogramme for prime cuts from US$0.80/kilogramme. Duties on offals have been raised to US$1/kilogramme from US$0.40/kilogramme.

 

He said that while the local pork industry is confident of growth prospects in the country, producers are getting jitters about the upcoming economic integration in the ASEAN region by 2015.

 

The Philippines' meat industry is currently free from foot-and-mouth disease that slighted the animal industries of neighbouring Asian countries.

 

Agriculture Secretary Proceso Alcala said the government is still scouting for appropriate locations for two AAA slaughterhouses (export oriented abbatoirs) that would be established north and south of Manila.