October 26, 2021

Pork prices in Philippines stay high due to tight supply and delays in imports

The Philippines' pork supply would remain short by 278,600 tonnes by year-end and would keep prices elevated, due to delays in imports, said the state planning agency National Economic and Development Authority (Neda) .

"Pork supply is still expected to end the year in deficit, despite the arrival of imports under Executive Order Nos. 133 and 134. As of September 27, 2021, only 26.4% of the MAV (minimum access volume) Plus first tranche has been utilised," Neda added. "Delayed import arrivals and the low utilisation rate were attributed to international port closures and market restrictions in selling MAV Plus goods. To expedite the utilisation of the additional MAV, Neda recommends reducing restrictions in the MAV Plus so that imported pork can be sold in more areas. MAV Plus refers to imports under a lower tariff and quota structure.

"Neda also recommends unloading more pork stocks in cold storages to the markets. The average stocks of frozen pork in [the first three weeks of] September increased to 79,042 tonnes from 73,159 tonnes in August. The timely release of pork stocks will help address the supply gap and bring down pork prices."

Last month, Socioeconomic Planning Secretary and Neda chief Karl Kendrick Chua said imported pork, which were being brought into the country to augment domestic demand and address high prices, needed to be distributed across the country.

"Most pork supply is in [the National Capital Region], so we propose moving [it] outside NCR and [selling it] in wet markets. Most imported pork is also sold in supermarkets," Chua told the Inquirer.

Last week, Department of Finance Undersecretary and chief economist Gil Beltran said pork prices could have dropped much faster if not for the three-month delay in importation, which kept supply short.

- Inquirer.Net