March 4, 2019

Philippines' meat import glut threatens local producers' livelihood

A glut of meat imports entering the Philippines could have serious impact for the livelihood of backyard hog and chicken raisers in the country, according to Rosendo So, chairperson of Samahang Industriya ng Agrikultura.

Last year, the entry of the Philippines' meat imports have exceeded past the minimum access volume (MAV) as established by the World Trade Organization (WTO), The Philippine Star reported. These products have overwhelmed local markets by more than 300 million kilos of pork and 270 million kilos of chicken.

In 2018, total pork imports were at 387.89 million kilos - close to 700% above the MAV set by the WTO. At 310.85 million kilos, total imported chicken was around 1,100% more than the WTO-set volume.

Although the glut has resulted in falling meat prices, local production could help meet demand in the country, So said. The import glut had sparked a decline in farm gate prices of poultry products to PHP70 (US$1.35) and pork to about PHP 120 (US$2.32) per kilo.

"Backyard raisers will fold up because their earnings have fallen below break-even," So warned. He also commented that "the gap that needs to be addressed through importation is minimal."

So highlighted that both local chicken and pork production are sufficient, at 1.3 billion kilos and 1.8 billion kilos, respectively. These factors are "why the MAV set by the WTO is only 54.21 million kilos for pork and 23.49 million kilos for chicken," he explained.

In other words, the Philippines is capable of meeting local demand "without importing," So said.

- The Philippine Star