Meat importers back lower tariff on pork

MANILA, Philippines — Meat importers are reiterating their support for a proposal to lower tariff rates on pork imports, stressing that the Ukraine-Russia conflict has already caused increases in the cost of production and transport of meat globally.

In a letter to Tariff Commission chairperson Marilou Mendoza, the Meat Importers and Traders Association (MITA) said they support the extension of the in-quota tariff rates of 15 percent and out-quota rate of 25 percent for pork imports under executive order 134 until the end of the year.

“We recommend, however, that the lower rates be further extended and incorporated into the 2021-2025 Schedule of Tariffs,” the group said.

The group stressed that prices of oil, fertilizers and feed – particularly corn and wheat – have all increased globally since Russia invaded Ukraine.

“Consequently, the cost to grow pigs to market weight, slaughter, and transport the meat across the world has increased sharply in just the few short weeks since the Russian incursion. Already, packers are withdrawing offers and reluctant to re-quote,” MITA said.

“In one extreme case, Tonnies, the largest pork slaughterhouse in Germany, is invoking force majeure and canceling forward contracts,” it said.

MITA also shared that the European Union has re-introduced the private-storage aid scheme for pigmeat, which is usually implementented to mop up excess inventory and support prices.

“In the present situation, however, there is hardly any need to prop up pork prices. We therefore believe the EU is stockpiling meat because they are predicting a huge shortage in the summer,” MITA said.

As prices increase globally, MITA stressed that the Philippines will not be spared.

Socioeconomic Planning Secretary Karl Chua earlier proposed the extension of the lower tariffs under Executive Order 134 along with the additional minimum access volume plus of 200,000 metric tons volume, which expires in May, to be extended until December, as part of the government’s measures to cushion the impact of the Ukraine-Russia conflict on domestic food prices.

Local hog raisers earlier opposed the extension of the proposeThe Public-Private Partnership (PPP) Center and Singapore-based Infrastructure Asia are expanding their collaboration to improve the country’s local infrastructure development.d measures, emphasizing that it was not successful in bringing the retail prices of pork down.