Philippines pork imports may reach 425,000 MT this year — USDA

MANILA, Philippines — The Philippines is expected to import over 400,000 metric tons (MT) of pork this year, driven by improved market access, according to the United States Department of Agriculture (USDA).

In a report by its Foreign Agricultural Service (FAS), the USDA said it is adjusting upward its 2021 pork importation forecast for the Philippines to 425,000 MT from its earlier projection of 350,000 MT.

The USDA earlier adjusted its pork importation forecast for the Philippines in April to 350,000 MT from its initial projection of 200,000 MT in January, amid a shortfall in supply due to African swine fever (ASF) as well as adjustments to the country’s tariff rate system.

The latest pork importation forecast figure is more than double the 167,000 MT pork imports in 2020.

According to the USDA, the latest revisions were driven by current trade trends and improved market access.

“Through April 2021, foreign pork supplies reached 195,300 MT, up 400 percent year-over-year,” the USDA said.

In May, President Duterte issued Executive Order (EO) 133, which increases the minimum access volume (MAV) for pork meat to 254,210 MT from 54,210 MT as part of measures to augment local pork supply and stabilize prices in the market.

Duterte also signed EO 134 in May, which provides that in-quota pork imports or those under the MAV are imposed a 10 percent tariff for three months and will be increased to 15 percent in the remaining months. This is lower than the original rate of 30 percent.

Out quota pork imports are slapped with a 20 percent tariff for the first three months, which will be raised to 25 percent in the remaining months. This is lower than the original tariff of 40 percent.

The remaining 30 percent or 60,000 MT will be distributed from November to January 2022.

The USDA earlier said domestic pork consumption was forecast to rise to 1.35 million MT this year.

It cited data from the Philippine Statistics Authority (PSA) showing that total pork production declined by nearly 26 percent in the first quarter to 295,000 MT CWE.

“Industry contacts report the decline in local production has stabilized while future prospects remain tentative. DA (Department of Agriculture) reports indicate a decline in active ASF cases, although many parts of the country remain categorized as infected,” the USDA said.

“As some attempts to repopulate are being made, producers have generally remained cautious absent a commercially-available vaccine, which remains in trial,” it said.

In the same report, the USDA revised its chicken meat import forecast to 330,000 MT, lower than its earlier projection of 350,000 MT due to increasingly stressed supply chains.

USDA data showed that chicken meat imports grew by 25.6 percent in January to April to 155,064 MT.

Source markets such as the United States and Canada posted gains in imports of 151.12 percent and 127.06 percent, respectively.

In contrast, markets such as Australia and the United Kingdom registered declines of 100 percent and 88.7 percent, respectively.