September 28,  2020

Less beef consumed by wealthier citizens of Philippines

The wealthier segment of the Philippines' populace were consuming less beef during the COVID-19 pandemic and this had led to significantly lower production nationwide as prolonged lockdowns forced local restaurant to temporarily shut operations.

The latest Global Agricultural Information Network (GAIN) report, USDA's Foreign Agricultural Service (FAS) Manila said the country's demand for beef, which is generally considered a luxury in the Philippines due to high prices relative to income, has gone down during the pandemic.

"Local beef production has dropped significantly, with slaughter rates down by 21% and inventory up 1%," FAS Manila said.

Farmgate and retail prices in the National Capital Region (NCR) for beef also remain high due to tight supply, even with the decline in demand from the closure of restaurants and other COVID-19 restrictions.

However, the FAS Manila report stated that beef production and imports may recover next year as demand for the meat improves due to restaurants increasing dine-in capacity and the tourism sector starting its recovery.

The Philippines' cattle sector is categorised as being 94% backyard, which is composed of farms with fewer than 20 adult animals and fewer than 40 young animals.

From January to May, the country saw a 1% increase in beef exports, supported by shipments for the meat processing sector.

 "Traders are hoping for a strong fourth quarter when imports in the run-up to the holidays are typically high. FAS Manila sees 2020 imports reaching about the same level as 2019, or approximately 185,000 tonnes in carcass weight equivalent (CWE)," FAS Manila said.         

The report also forecasts beef imports growing close to 3% to 190,000 tonnes in 2021, driven by the Philippines' economic recovery and relaxed quarantine restrictions.

- Manila Bulletin