High pork prices not due to imports, says DA official

The economic slowdown, increased smuggling and the shift in consumer demand resulted in depressed pork prices in recent months, the Department of Agriculture (DA) said yesterday.

Bureau of Animal Industry (BAI) animal quarantine division chief Ronel Avila said these factors contributed to the continued decline in local pork prices.

"These factors were the primary reasons for depressed pork prices, not importation as is what is being claimed by the local hog industry, said Avila.

Various groups such as the Southern Luzon-based Limcoma Multipurpose Cooperative and the Agriculture Sector Alliance of the Philippines are blaming the DA for the industry’s setback, saying the department has been lax in giving licenses to meat processors and meat importers.

Limcoma president Nicanor Briones said the DA is not only allowing the unrestrained entry of pork imports, carabeef and other meat imports, but it is also "collaborating" with meat processors and importers by accrediting new suppliers from Brazil and Argentina.

These groups are now initiating moves to oust DA Undersecretary Cesar Drilon, BAI director Jose Molina, National Meat Inspection Commission head Efren Nuestro, and Livestock Development Council chief Pete Ocampo. They are also threatening to stage a food blockade next month and stop deliveries to Metro Manila.

The hog producers said the drop in farm gate prices of hogs and pork is due to massive importation of pork and meat, including carabeef which is used by meat processors as substitute for pork parts.

Avila noted however, that while liveweight prices for hogs last year were lower than in 2001, prices in 1999 were higher than in both 2002 and 2001. In 2002, liveweight hog per kilo was P64.35 from P70.02 in 2001, P63.19 in 2000 and P65.08 in 1999. Pork prices last year averaged P86.19 per kilo from P90.30 in 2001, P82.94 in 2000 and P84.52 in 1999.

"In 2001, pork prices went up because consumers shifted demand because of the mad cow scare and people were staying away from beef and substituting it with either pork or chicken. Last year though, prices dropped because of the slowdown in the economy, people were not consuming as much as their purchasing power also dropped," said Avila.

Importation of pork is not a major factor for the drop in pork prices, said Avila noting that imports accounts for only four percent of total domestic supply.