DA: Lowering of pork import tariff needed to keep prices within gov’t price cap

The Department of Agriculture (DA) has stood firm with its proposal to reduce tariff on pork imports, insisting that augmenting local supply with importation to stabilize prices will be in vain if tariffs will not be reduced.

During the House joint committees on Agriculture and Food and Trade and Industry hearing on rising pork prices on Tuesday, Agriculture Secretary William Dar said if pork import tariff will be reduced, retail prices will fall within the government’s mandated price ceiling.

“Kung hindi bababaan ang tariff [ang presyo] ay beyond [the price ceiling],” Dar said.

The DA is proposing to reduce tariff for pork imports under the minimum access volume (MAV) scheme from 30% to 5% this year.

Albay Representative Joey Salceda, however, pointed out that while direct importation of meat products may lower prices, it is “unsustainable” given the growing global demand for pork and slower growth in global pork supply.

In the same hearing, Salceda said the long-term solution in this issue is better feed supply and more modern support systems.

“The problem with livestock is feeds, feeds, feeds. We must explore options to expand our feed supply and diversify our sources of feed, including developing root crops,” Salceda said.

“Only then can we acquire cost-competitiveness and comparative advantages in producing meat. In other words, to solve the issue of pork supply security even after the African Swine Fever crisis is over, it’s all about feeds,” he added.

Salceda also encouraged the DA to give importance on cold storage facilities that will extend shelf life of surpluses “to smooth over fluctuations in supply.”

He warned that the problem of food prices could worsen in the following years.

“My point is that the problem of food prices now is merely a symptom of the vulnerabilities in our food sector. As I have mentioned earlier, unless we address these structural vulnerabilities, we will always face price issues,” Salceda said.

Duterte approval

Meanwhile, the DA is also eyeing to increase MAV to 404,210 metric tons (MT) this year from the current 54,000 MT to augment local supply as it expects a deficit of almost 400,000 MT. The proposal is awaiting the approval of President Rodrigo Duterte. 

“Kahit may import ka kung hindi naman with lower tariff ay hindi rin umeepekto ‘yon,” Dar said.

Prices of pork in Metro Manila wet markets rose to as much as P420 per kilo for liempo, and P400 per kilo for pigue and kasim last month as supply ran low due to the African swine fever. 

To address the issue, Duterte imposed a price ceiling in the capital region for 60 days starting Monday upon the recommendation of the Department of Agriculture.

The price ceiling is P300 per kilo for liempo, P270 per kilo for kasim and pigue, and P160 per kilo for dressed chicken. — RSJ, GMA News