January 17, 2023

 

Philippines production and import of pork and poultry may rise in 2023

The US Department of Agriculture (USDA) said the Philippines may increase its production and imports of pork and poultry this year, driven by stable demand and the extension of lower import tariffs for pork, The Philippine Star reported.

 

The report by the USDA's Foreign Agricultural Service (FAS) showed production of pork in the Philippines could rise by 8% to 1 million metric tonnes this year from 925,000 metric tonnes last year.

 

While a resurgence of African swine fever (ASF) cases in Luzon and Mindanao limited production last year, producers are aiming to raise bigger swine in 2023. 

 

The US agency also predicts that there won't be a vaccine for ASF, but the industry sees a glimmer of hope after a local company filed a special permit application for an ASF vaccine with the Food and Drug Administration in collaboration with a Vietnamese company.

 

In line with an expanding economy, the poultry industry anticipates that chicken production will increase by 5%, from 1.3 million metric tonnes to 1.36 million metric tonnes.

 

Moreover, as egg prices rise due to the spread of highly pathogenic Avian Influenza (HPAI), also known as bird flu, coupled with high feed costs, demand for chicken will rise as it is the next readily available less expensive protein source.

 

A tray of 30 eggs have become more expensive than a kilo of dressed chicken by the middle of last year, as a result of a sharp increase in egg prices.

 

The USDA said FAS Manila expects chicken meat to pick up the slack as an alternative less expensive protein because HPAI problems in layers are resulting in decreased egg production.

 

The USDA also anticipated an increase in pork imports, from 575 million metric tonnes last year to 600 million metric tonnes in 2023.

 

The forecast for this year is higher than the 450 million metric tonnes previously estimated.

 

The USDA said the increased forecast is a result of the lower pork tariffs' extension through December 31 of this year.

 

Philippines' President Marcos signed Executive Order 10 late last month, extending the end of 2023 for the reduced tariff rates on coal, rice, and swine meat under EO 171.

 

Importers will benefit from 15% in-quota and 25% out-of-quota tariff rates for pork all year long.

 

This implies that the nation's stock of frozen pork will grow even more, bringing in less expensive imported pork.

 

According to information provided by the Department of Agriculture-National Meat Inspection Service (DA-NMIS), the USDA reported that for the first time ever, the frozen pork inventory in accredited cold storage facilities exceeded 100,000 metric tonnes.

 

Logistics issues brought on by prior COVID-19 restrictions and meat importers attempting to beat the expiration of the lower tariff rate for imported pork under EO 171 were cited as the causes of this.

 

The USDA said these two factors led to unprecedented levels of pork inventory in cold storage facilities.

 

The US agency increased its forecast for chicken imports from 450 million metric tonnes this year to 475 million metric tonnes next year. In comparison to last year, the new projection is unchanged, indicating steady demand.

 

Additionally, the government's decision on the meat processors' request to extend the five percent tariff on mechanically deboned meat (MDM) of chicken and turkey until 2025 is still pending.

 

The proposal, on which the government has not yet decided, calls for a return of MDM tariffs to a 30% in-quota and 40% out-quota system beginning this year.

 

Data from the Bureau of Animal Industry showed MDM made up 60% of all chicken imports from January to October 2022.

 

The USDA reported that given MDM's crucial role in the meat processing industry, the industry believes the lower tariffs will be maintained.

 

-      The Philippine Star