December 26, 2023

 

Philippines hog industry not hopeful of increasing local production next year

 

The Philippines hog industry is less confident about boosting local production in 2024 following the extension of reduced tariffs on vital food items for another year.

 

Pork Producers Federation of the Philippines Inc. president Rolando Tambago said domestic pork output is estimated to remain the same as this year "with possible overall year-end negative growth."

 

"Generally, local producers' confidence to increase output is further affected due to recent extension of reduced tariff for pork," Tambago noted. "(The) government should be forewarned of… reducing pork production and increasing price in Europe and other traditional import sources."

 

According to Tambago, the sector is disappointed over Philippines President Ferdinand Marcos Jr's decision to approve the extension but expressed hope that Agriculture Secretary Francisco Laurel Jr. will be "true to his direction" of prioritising local food production.

 

He said the government should address domestic production "seriously" and only embark on importation to balance supply.

 

"We are with the government to tame inflation but they should also make tangible efforts on improving local production," Tambago added. "Reduced tariff did not translate to cheaper pork to consumers, only traders and importers gain from it while (affecting) the local producers."

 

In accordance to the Philippines' Executive Order No. 10 signed in December last year, all meat imports (fresh, chilled, or frozen) are subject to a tariff rate of 5% for in-quota and 25% for out-quota.

 

Recently, the National Economic and Development Authority board led by Marcos extended the implementation of lower tariffs on key commodities for another year or until December 2024.

 

The Philippines purchased 1.02 billion kilogrammes of meat imports in the first 10 months of the year, down by 9.7% from 1.13 billion kilogrammes in the same period a year ago, based on the data from the Bureau of Animal Industry.

 

Pork remains the most imported commodity among meat products with a share of almost 50%, totaling 504.3 million kilogrammes. The volume, however, was lower by 16.9% year-on-year.

 

On the other hand, hog production reached 1.31 million metric tonnes as of end-September, an increase of 3.13% from 1.27 million metric tonnes previously, according to the Philippine Statistics Authority.

- Inquirer