September 21, 2023

Philippines' meat imports decline by 4% in 2023 amid rising global prices

A decrease in pork and beef consumption by Filipinos in response to global price hikes led to a 4% reduction in Philippines' meat imports during the first eight months of the year, Philippine Daily Inquirer reported.

The volume of meat imports from January to August in 2023 fell to 817.35 million kg compared to 851.84 million kg during the same period in the previous year, as per data from the country's Bureau of Animal Industry.

Jesus Cham, president of the Meat Importers and Traders Association, explained, "Importers are now feeling the effects of the low consumption coupled with high prices abroad." He further noted that the market has become challenging, leading many importers to adopt a more cautious approach.

In August alone, the Philippines imported 115.11 million kg of meat, marking a 1.5% decline from the previous year. However, this volume was an improvement from July, ending a three-month downward trend.

During the eight-month period, pork imports constituted nearly 50% of the total volume, experiencing a 12.7% decrease. Chicken followed at 35.4%, with an 18.3% increase. Beef imports amounted to 91.68 million kg, down by 16.7%. Buffalo accounted for 29.31 million kg, while the country purchased 563,298 kg of lamb, 229,302 kg of duck, and 168,697 kg of turkey.

According to BAI data, Brazil remained the leading source of imported meat for the Philippines, with a 32.2% share. The majority of Brazil's exports to the Philippines consisted of chicken, totalling 166.15 million kg. The US came next with 142.25 million kg, primarily chicken, followed by Spain with 102.41 million kg, primarily pork.

The United Nations' Food and Agriculture Organization (FAO) had previously projected that the Philippines would likely import less pork and more poultry meat in 2023 due to increasing domestic demand driven by tight local supplies, high prices, active food service sales, and relative affordability. However, the rising availability of local supply and declining consumer purchasing power, combined with high food prices and economic challenges, are anticipated to reduce demand from most meat-importing countries, partially offsetting price increases, according to the FAO.

Lower tariffs on certain food items in the Philippines have been extended until December this year. "Most favoured nation" rates on fresh, chilled, or frozen meat remain at 15% (in-quota) and 25% (out-quota).

-      Philippine Daily Inquirer