Hike in prices of canned food products feared

Prices of processed canned meat and fish products could cost almost twice their current retail level if the government pursues plans to raise tariffs on imported steel products like tinplates and impose more stringent meat import rules.

The Philippine Association of Meat Processors Inc. (PAMPI) which include Foodsphere, San Miguel Foods and Swifts Food Inc. said   imposing new meat import rules under the revised Administrative Order 39 (AO39) of the  Department of  Agriculture (DA) and the proposal of Global Steelworks (formerly) the National Steel Corp.) to hike tariffs on imported steel by as much as 30 percent will impact heavily on the retail prices of their products.

"Our estimates show that our costs will increase substantially, and subsequently, retail prices can go up by as much as 70 to even 90 percent if these two measures are approved by the government," said PAMPI executive director Francisco Buencamino.

The DA is set to issue shortly the revised version of AO39 which among others, require meat importers to secure a veterinary quarantine clearance (VQC)prior to the shipment of the commodity into the Philippines. The VQC is issued by the Bureau of  Animal Industry granting a permit to  import meat and meat products as provided for in AO 39 .

Prior to  AO 39, the VQC was routinely issued to importers to authorize the release of covered imported goods from the piers prior to payment of corresponding duties and taxes to the Bureau of Customs.  The VQC was issued regardless of transport status of  the shipment – before loading, in transit or arrived at port of destination. However, the revised AO 39 requires the issuance of VQCs at the port of origin.

On the other hand, the new owners of  Global Steelworks, the Indian company Global Infrastructure Holdings Ltd. which won the bidding for the NSC, are seeking tariff protection while the company undergoes rehabilitation.

PAMPI estimated that for the highly popular canned beef which is sold at the current retail price of P10 per can, will soar to P16 to P18. 

PAMPI is fighting to thwart the implementation of the revised AO39 saying the VQC will be used to restrict trade since this will make it difficult for its members to continue importing cheap buffalo meat from India, the major sources of its raw material for the manufacture of canned meat products such as corned beef and sausages.

Earlier, the  Filipino Galvanizers Institute (FGI) said that prices of canned milk, cooking oil and liquefied petroleum gas will  increase under the tariff modification proposal.

If Global Steelworks’ petition is approved, the cost of sardines will go up from P9 per 155-gram can to P10.20 while a 300-mililiter can of condensed filled milk will go up by P6 to P8 or from P32 to P38-40. A can of evaporated milk will cost P5.40 more per can from P27 to P32.40.