The National Economic and Development Authority (NEDA) said lower tariff rates and a higher in minimum access volume on imported pork products will bring back the retail price of the meat to P224 per kilo.
“At 30 to 40 percent, the landed cost of imported pork based on the prevailing price by the FAO (Food and Agriculture Organization) is estimated to range between P252 to P267 per kilo. This is way above the normal price of P224 per kilo. Importing at this cost would not lead to lower retail price which the people badly need now…If we lower the tariff rate temporarily to 5 to 10 percent, that would lead to lower landed cost of around P215 to P220 per kilo, closer to the pork retail price,” NEDA Acting Secretary Karl Kendrik Chua told the Senate Committee of the Whole yesterday on its second day of hybrid hearing on the shortage of pork products due to the impact of the African swine fever.
Chua said temporarily increasing the importation of pork products will not “kill” the local hog industry after President Duterte issued Executive Order 128, which lowers tariff rates and increases the minimum access volume on pork importation from 54,000 metric tons (MT) to more than 400,000 MT.
Under the EO, tariff rates for in-quota imported pork products will be pegged at five percent for the first three months of the order’s effectivity, and 10 percent for the fourth to the 12th month.
Tariffs will revert to original level after a year.
“The temporary increase in pork will not kill the local hog industry as imports would potentially account for up to 22.8 percent of total consumption,” Chua said, adding that imported pork products will not flood the local market since other countries are also affected by the ASF.
Chua said the limited cold chain facilities in the country will also hinder the importation of pork products.
“We think that 404,000 metric tons proposed for importation will only gradually enter the country as needed instead of being imported as the same time contrary to industry concerns,” he added.
Sen. Panfilo Lacson asked Chua if NEDA considered the closure of hotels and restaurants due to the pandemic in justifying the recommendation to increase MAV in pork importation to more than 400,000 MT.
Lacson said there is a 50-percent contraction in the operations of hotels and restaurants that should have been considered in the projection on the demand for pork.
Chua said per capita consumption of pork will still be around 15 kilos whether it is taken from home or some hotels or restaurants.
Chua said lower tariff rates on pork imports will help reduce and stabilize its retail price.
“We need to help 95 million consumers of pork by reducing tariff and increasing MAV temporarily to help fill the deficit, reduce food prices and ensure our food supply is adequate and affordable so we can prevent higher malnutrition and poverty,” Chua said.
