Why carabeef imports hurt

The difference of opinion between the National Federation of Hog Farmers Inc. (NFHFI) and the Philippine Association of Meat Processors Inc. (PAMPI) on the question of carabeef (murah bull meat) importation from (foot-and-mouth disease) FMD-risk India continues to boil over.

The confrontation of ideas has reached the halls of Congress where Sen. Manuel Villar had filed Senate Bill 1004 seeking to limit the sourcing of meat imports to FMD-free countries. The approval of the bill into law will halt carabeef importation from India because this source is not certified by the Office Internationale des Epizooties (OIE) as FMD-free.

According to PAMPI, importing only from FMD-free country – in this case manufacturing grade meat from Australia at a high price – will jack up consumer prices by 30-45 percent.

Not so, says NFHFI chairman Nemesio Co: "Senate Bill 1004 which we support allows meat importation from a wide number of FMD-free countries aside from Australia. There are 57 other OIE-recognized FMD-free countries without vaccination and five countries with FMD-free zones without vaccination. Some of these countries are Costa Rica, Cuba, Canada, Denmark, Argentina, Germany, Indonesia, Ireland, Korea, Mexico, Netherlands, Namibia, Colombia, South Africa, New Zealand, Panama, Portugal, Spain, USA and Vanuatu."

NFHFI president Albert R. T. Lim Jr. said: "We are puzzled why PAMPI can project such a price increase so swiftly and confidently. Has carabeef been so crucial in keeping production cost of processed meat down? If so, why is local corned beef (a mixture of carabeef and beef) more expensive than imported corned beef (pure beef with import duties). Both local and imported brands are popular hereabout. Is this a question of inefficient production? Do we need the advantage of cheaper meat in order to produce a "competitive product."

In the midst of the controversy, Agriculture Secretary Luis P. Lorenzo Jr., is targeting an FMD-free Philippines in year 2004. To date only Luzon is FMD-risk, Visayas, Mindanao and Palawan being FMD-free from way back.

"It is one more reason," explains Co, "why Senate Bill 1004 should be passed now. For how can we achieve an FMD-free status if we do not take all precautions necessary against the disease, including a law regulating meat importation from FMD-risk country, particularly India."

A long, long time ago, imported meat from Hong Kong caused the first cases of FMD in the country in 1902 and the first significant outbreak occurred in 1995. Japan and Korea, countries with strict rules on meat importation were infected with FMD after being free from it in several decades, England and other countries in Europe were also once hit hard by the dreaded disease. Hog industry leaders asks, "does PAMPI’s confidence mean that we are more vigilant, better equipped and prepared than these countries."

To most of the commercial hog raisers, carabeef importation is hurting them. Add to that the problem of over-importation and technical smuggling with some of the meat finding their way into the wet markets resulting in low farm gate prices for hog products.

PAMPI, for its part says, Indian carabeef has not been pinpointed as the culprit in FMD outbreaks in the country. Also, they are not involved in over-importation. They go through the long waiting process in securing import permits (veterinary quarantine certificates).

Hog industry leaders, however, say two years after the start of carabeef importation in 1993, there was a huge outbreak lasting three years from 1995 to 1998 in the Philippines. In fact, Luzon still cannot escape from the clutches of FMD. The Department of Agriculture is doing its best to finally eradicate the deadly disease by 2004.

Albert R. T. Lim Jr. is optimistic that with the passage of Senate Bill No. 1004 into law, consumers will be also be benefitted, with easily affordable prices. "If PAMPI is worried about price increases, we can guarantee price decreases if we achieve FMD-free status resulting in the cost of hog production going down and, consequently, consumer price of pork going lower. We want to pass on the benefits of the law to the industry to millions of hog meat consumers."