Amid the continuing rise in retail prices of pork, President Duterte declared a nationwide state of calamity in the country due to the spread of African swine fever (ASF).
The President also raised the minimum access volume (MAV), or the amount that will be pegged lower tariff, on imported pork.
The actions were contained in an executive order (EO) and a proclamation dated May 10, 2021.
Under Proclamation No. 1143, the state of calamity will cover a period of one year from the date of the issuance of the order unless lifted earlier or extended as circumstances may warrant.
Duterte in his order said this would enable the national government and local government units (LGUs) to tap appropriate budgets , including the quick reaction fund for the containment of the spread of the ASF and the return to normalcy of affected areas.
“There is an urgent need to address the continued spread of ASF and its adverse impacts, to jumpstart the rehabilitation of the local hog industry, and ensure the availability, adequacy and affordability of pork products, all for the purpose of attaining food security,” he said in the order.
The proclamation enjoins all government agencies and LGUs to render full assistance and cooperation and mobilize the necessary resources to undertake critical, urgent and appropriate measures in a timely manner to curtail the further spread of ASF, address supply deficit, reduce retail prices and jumpstart the rehabilitation of the local hog industry.
It also directed law enforcement agencies with the support of the Armed Forces of the Philippines to undertake measures to ensure peace and order during the observance of the state of calamity.
EO 133 meanwhile approved the increase of the MAV on imported pork for this year to 254,210 metric tons (MT) from the current 54,210 MT with a specific note to not carry over to 2022 the unused balance at the end of 2021.
The EO also said Malacanang submitted to Congress a proposal to increase the 2021 MAV for pork meat to 350,000 MT or to 404,210 MT from 54,210 MT to quell existing shortage, reduce retail prices and stabilize inflation but the latter has “not acted on the proposal to increase the MAV for pork meat within the prescribed period.”
Presidential spokesman Harry Roque said it was not mentioned in the latest EO if the additional imported pork would also be covered by the lower tariff on imported pork that was imposed through the earlier issued EO 128 which is yet to be implemented.
Under EO 128, tariff on pork imports within the MAV quota was supposed to go down to 5 percent in the first three months from the current 30 percent and would go up to 10 percent in the succeeding nine months before reverting to 30 percent after a year. Tariff rates on out-of-quota pork imports are supposed to go down to 15 percent from the current 40 percent in the first three months and raised to 20 percent in the succeeding nine months, and back to 40 percent after the 12th month.
However, the said rates are still under review for adjustments to amend the EO.
The government said ASF has affected 38 provinces and 437 municipalities in the country that resulted in the drop in swine inventory by 24.1 percent or about 3 million heads.
This is equivalent to losses of P100 billion to the hog industry.
The Philippine Association of Meat Processors Inc. (PAMPI) assured government of its support but said the declaration of a state of calamity effectively freezes proposed adjustments in prices of pork products “in spite of a three-fold increase in the prices of imported raw material.”
“Nevertheless, we will need to tighten our belts further until we can get relief by the middle of this year just to help ensure that inflation will not rise any further. Meat products are major contributors to overall inflation. Thus, we deem it to the best interest of our industry, our consumers and the economy in general to keep prices of our products stable for as long as possible,” PAMPI said in a statement.
The group said if there is a shortfall after exhausting the MAV, out-quota importations at reduced tariffs of 20 percent for three months and 25 percent for nine months can help stabilize supply.
The Samahan ng Industriya ng Agrikultura lauded the new policies but said it is waiting for an order that will replace the rates set by EO 128.
The group also urged for the Department of Agriculture (DA) to revoke all sanitary and phytosanitary import clearances granted to importers using the order.
Based on data from DA’s Bantay Presyo, as of yesterday (May 11), prevailing price of pork kasim is P360 per kilogram (kg) and of liempo is P380 per kg. (with Jed Macapagal)
