October 4, 2021

Philippine inventory of imported pork grows to yearly highs

Inventory of frozen pork in the Philippines is at record highs amid the constant entry of imported pork while local pork output remains flat, Manila Bulletin reported, citing data from the National Meat Inspection Service (NMIS).

From September 20 to 27, inventories of frozen pork in accredited cold storages in the Philippines recorded 79,390.78 tonnes. While this is slightly lower than the peak of 83,197.70 tonnes in the previous week, it is more than twofold of the 39,004.51 tonnes recorded in the same period last year.

According to United States Department of Agriculture's (USDA) Foreign Agricultural Service (FAS) in Manila (Post), the sharp increase was due to the "intensifying [pressure] on these facilities to ensure they adequately supply markets in the absence of freshly slaughtered domestic pork".

"The strict implementation of the minimum labeling requirements for imported meat and poultry also contributed to the build-up, as some supplies were unable to be cleared amid labeling discrepancies," the USDA added.

The USDA also raised its forecast for pork imports to 500,000 tonnes amid reduced hog output due to the continuing spread of African swine fever (ASF).

The Philippines' top sources for imported pork are the European Union, Canada, and the United States.

In May President Rodrigo Duterte's Executive Order (EO) 134 became effective, cutting both the in-quota and out-quota tariff for pork for a one-year period.

EO 134, which amended EO 128, set the tariffs on pork imports under the minimum access volume (MAV) to 10% for the first three months, and 15%  in the next nine months.

EO 133 was also issued, raising the MAV allocation for pork imports by 200,000 tonnes, up from its previous level of 54,210 tonnes.

MAV refers to the volume of a specific agricultural product that is is allowed to be imported with a lower tariff as committed by the Philippines to the World Trade Organization.

For 2021, the USDA maintained its production outlook at 1.0 million tonnes, as the recent ASF outbreaks in Cagayan Province and Ilocos Norte are offset by active repopulation efforts of a few commercial pig farms in Tarlac. Some ASF-free areas in Mindanao and the Visayas have also raised their production.

Top-producing regions the first half of 2021 were the Central Visayas, Northern Mindanao, and Western Visayas.