January 25, 2023

 

Philippines extends lower import tariff on deboned poultry meat until next year

The Philippines has extended its 5% import tariff on mechanically deboned meat (MDM) of chicken and turkey until 2024 after President Marcos signed Executive Order (EO) 13, The Philippine Star reported.

 

MDM tariffs will revert to 30% in-quota in 2025, and 40% out-quota starting this year.

 

The EO said it is necessary to maintain the lower tariff rates on MDM chicken and turkey to ensure continued supply of essential food products at affordable prices, diversify the country's market sources, and assist businesses in recovering and maintaining their operations.

 

The COVID-19 pandemic's continuing effects and other factors that affected the supply of the aforementioned commodity were mentioned, along with high inflation brought on by supply constraints, an anticipated shortage in the world's supply, and an increase in commodity prices globally.

 

On December 28, 2022, the National Economic and Development Authority (NEDA) board approved maintaining the 5% tariff rate on MDM.

 

After a year, the MFN tariff rates will be reviewed, and NEDA will once again submit its findings and suggestions.

 

The Philippine Association of Meat Processors Inc (PAMPI), which petitioned the Tariff Commission to maintain the 5% tariff on MDM of chicken and turkey until 2025, applauded the President's decision and said it would support maintaining stable and reasonable prices for processed meat products.

 

Local producers fought to have the plan rejected when it was initially put forth, allowing the struggling regional poultry industry to compete.

 

The industry has been battling the bird flu, also known as highly pathogenic avian influenza (HPAI), as well as rising feed prices.

 

PAMPI president Felix Tiukinhoy said they look forward to the day when domestic producers will be able to produce MDM in commercial volumes.

 

President of the United Broiler Raisers Association (UBRA), Elias Jose Inciong, said that the government still needs to assess the benefits of the extended low tariff on consumers versus lost tax revenue.

 

Jayson Cainglet, executive director of Samahang Industriya ng Agrikultura (SINAG), said the price of processed and canned meat products has not decreased as a result of the MDM tariff being lowered over the past two years.

 

Data from the Philippines' Bureau of Animal Industry showed MDM made up 59% of all chicken imports in the previous year.

 

The United States Department of Agriculture (USDA) increased its forecast for chicken imports this year from 450 million to 475 million metric tonnes.

 

-      The Philippine Star