December 1, 2010

Philippines' DA mulls higher import tariff on pork offals

The Philippines may seek an increase in the 5% duty it imposes on imported pork offals, in response to complaints from hog raisers over the heavy importation of pork offals which the hog industry says is harming their sector.

Agriculture Assistant Secretary, Davinio Catbagan, said that the Department of Agriculture is studying the feasibility of hiking tariffs on pork offals before recommending an increase to the Tariff and Related Matters (TRM) committee.

Catbagan explained that, "Increasing tariffs on pork offals cannot be done arbitrarily. It has to undergo a process."

Following a dialogue with hog raisers, Catbagan said that the DA had assured the hog raisers that the DA would consider the matter.

The tariffs on pork offals (except pork liver) have been brought down to 5% since January 1, 2004.

Hog raisers belonging to the National Federation of Hog Farmers, Inc. (NFHFI) had complained that the sale of imported pork offals - pig lips, cheeks, head and liver - in wet markets is dampening demand for local pork.

Aside from pork offals, the hog raisers said pork bellies and deboned are also entering the country, competing with local pork.

The imported pork offals are sold cheaper than local pork which sells at P170 (US$3.88) to P180 (US$4.11) per kilogramme.

Bureau of Animal Industry (BAI) records show that imports of pork offals amounted to 48.45 million kilogrammes or 48,450 tonnes as of November 18 this year.

BAI records also showed that as of November 18, the importation of various pork products has reached 162.84 million kilogrammes, 50 million kilogrammes more than the 114.36 million kilogrammes imported in 2009.