April 30, 2024

 

Philippines meat importers raise concerns over limited supplies amid rising costs and ASF threat

Philippines-based Meat Importers and Traders Association (Mita) has sounded the alarm over the tightening supply chain from abroad, citing escalating production expenses and the persistent threat of African swine fever (ASF), Philippine Daily Inquirer reported.

 

Jesus Cham, Mita president emeritus, said that dwindling supply options and anticipated cost hikes could pose significant challenges unless conditions change.

 

Despite a 3.1% increase in meat imports to the Philippines, totalling 273.6 million kg in the first quarter of this year compared to the same period last year, Cham cautioned against premature conclusions, attributing the surge to importers' strategic manoeuvres to anticipate robust Christmas sales and replenish stock.

 

Mita underscored apprehensions over the Philippines' Department of Agriculture's suspension of the minimum access volume (MAV) for pork, which allows importers to bring in certain goods at reduced tariff rates. The absence of MAV distribution in January added to uncertainties, exacerbating concerns in the industry.

 

Cham highlighted the exclusion of essential pork cuts, such as pork belly, loin, and boneless leg and shoulder cuts from the list of importable items accredited meat establishments in Brazil, Hungary, Germany, and Poland, further straining the supply chain.

 

Moreover, ASF outbreaks and subsequent bans in various countries have contributed to reduced production globally, leading to supply constraints and upward price pressures, Cham noted.

 

A strong US dollar, if sustained, could amplify landed costs, the expenses associated with importing goods, potentially inflating import prices further, Cham warned, citing ongoing global conflicts bolstering the dollar's strength.

 

Mita proposed measures to the economic managers of Philippines' President Ferdinand Marcos Jr, advocating for the extension of low pork tariffs for the administration's duration or at least two years while expanding the MAV for pork and poultry to mitigate inflation.

 

Despite challenges, pork remains the most sought-after meat product, comprising nearly half of the total imports during the first quarter, with a notable 11.9% increase in volume.

 

-      Philippine Daily Inquirer