Meat processors project 15% growth this year

The local meat processing industry led by the Philippine Association of Meat Processors Inc. (PAMPI) expects a modest growth of 15 percent and gross sales of about P46 billion this year as the weak economy will further soften market demand.

This year’s projected performance of meat processors such as Swift Foods Inc. and Purefoods-Hormel is expected to be weaker than 2001’s growth rate of 17 percent and last year’s estimated gross sales of P40 billion.

"The economy has not improved and the peso’s purchasing power is weaker. This will further scale down market demand as consumers look for cheaper substitutes for processed meat products such as fish, vegetables and chicken," said PAMPI executive director Francisco Buencamino.

The meat processing industry has been experiencing a flat growth of about 17 percent in the last two years, and does not expect to recover its peak growths of about 25 percent in 1998 and 1999.

The industry anticipates tougher times ahead, especially if the peso continues to weaken against the dollar. Meat processors import part of their requirements and an unstable peso will have an impact on their costs.

Buencamino added that the industry also has to contend with the persistent lobby of local livestock growers for government to curb meat imports.

PAMPI is locking horns with the strong block of the Southern Luzon-based Limcoma Multipurpose Cooperative and the Agricultural Sector Alliance of the Philippines which accused meat processors and the Department of Agriculture of causing the continued decline of local pork prices.

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

These groups said they are also getting a beating because government is allowing big meat processors to import cheap carabao meat to replace the pork component in their products.

Local hog raisers are now demanding a ban on the importation of carabeef which as a raw material ingredient for processed meat products comprises 40 percent of corned beef, 35 percent of hotdog, and 30 percent of meat loaf. The other processed meat ingredients are extenders such as a soy protein/water and other additives such as spices, flavorings and emulsifiers.

Limcoma, the Association of Feedmillers in Southern Tagalog (AFST), Batangas Egg Producers Association (BEPA) and the United Batangas Hog Farmers Inc. (UBHFI) are also blaming local meat processors of importing not just manufacturing grade meat but also table grade meat which they claimed is being traded by processors in the domestic market.

Data show that pork imports last year totaled 48.97 million kilos, up from 44.45 million kilos in 2001. However, PAMPI said imported pork accounts for less than four percent of total domestic supply.