Meat processors eyeing infra support under PPP

CEBU, Philippines -  Although meat processing companies have already employed ASEAN-ready system in their respective firms, industry players are now calling on the government to complement their efforts with proper infrastructure and friendly regulations.

In a press conference yesterday, Philippine Association of Meat Processors, Inc. (PAMPI) president Felix O. Tiukinhoy, Jr., announced that the organization already sent a position letter to the Department of Agriculture (DA) livestock division to address the absence of slaughter houses at par with international standards.

Tiukinkoy, who is also the president of Virginia Foods Inc, (VFI), said that the government does not have to spend for this particular facility, but it could be done through private-public partnership.

He added that what is important is that having such facility could strengthen the players' hold in the tougher regional competition in the ASEAN Integration.

"While we are investing to prepare for the integration, the government is not doing its share in improving our competitiveness," said PAMPI vice president Jerome O. Ong, who is also the president of CDO Foodsphere, Inc.

Because of the absence of "AAA" abattoirs, meat processors have to import most of their meat requirements, and if this will not be addressed, there is a big possibility that the Philippines will lag behind and miss the opportunity of capturing the growing 600 million consumer-base in the ASEAN region, due to high cost of meat processing.

Aside from the huge potential of the ASEAN market for the Philippine meat processing industry, Ong said other countries and continents like the Middle East are also considered as sure-target-market for Philippine-made processed meat products.

At present, the industry is supplying about 90 percent of the country's total consumption of fresh and processed meat products in the Philippines, while the remaining 10 percent is supplied by small backyard livestock farmers.

"We urge the Department of Agriculture to establish 'AAA' abattoirs and slaughterhouse facilities that are world-class and globally competitive," said Tiukinhoy.

He said modern meat plants are needed to prepare the meat processing industry to enable the domestic sector to complete head on with neighboring countries with the onset of the ASEAN economic integration.

"Modern abattoirs are crucial components of our preparation for the ASEAN integration," he said emphasizing that the slaughterhouses program of the government is equally important to the livestock producers as they will give them the competitive advantage.

Livestock growers should have access to "AAA" abattoirs and modern fabrication floors and laboratories as well as refrigerated holding rooms to protect the quality of their meat products, he said.

Ong said the Philippines could be one of the major exporters of meat products, if the livestock sector can only meet the international standards.

At present, the meat processors in the Philippines largely depend on the importation of raw materials to support their production requirements, with total imports of 394,526 metric tons worth P40 billion in 2012. These included 151,084 pork imports, 134,768 chicken meat imports and high volume of beef and buffalo meats.

PAMPI is set to induct its new set of officers in July at the Crimson Resort in Mactan island.

Of the 48 members of the organization eight are based in Cebu, these are VFI, King's Quality Foods, Belcris Foods, Gold Ribbon Inc., Judpilan Foods Corporation, Lami Food Products Corporation and Sunpride Foods, Inc.

PAMPI is a P200 billion sector that groups together 48 companies involved in the meat processing business. (FREEMAN)