THE Cold Chain Association of the Philippines (CCAP) warned of possible port congestion if local government units (LGUs) continue to block the entry of pork-related products, particularly imported ones, as such may result in more containers parked in ports.
CCAP President Anthony S. Dizon said the continuous ban by LGUs on the entry of pork-related items such as processed meat products, have a “far-reaching effect on overall local economic activity” due to the limited distribution of goods.
Since meat processors, from small-scale to big firms, have limited distribution of products, then their imported raw materials could be left parked in ports, Dizon explained.
“Manila is still the central point of receiving for pork products from abroad and the most important stepping stone for distribution of locally-manufactured products,” he told the BusinessMirror in a recent interview.
“The biggest problem is that pork products are not moving, especially between province to province [due to the bans]. Further, this time of the year we are supposed to move products intended for the holiday season, but we cannot,” he added.
If the current market situation persists, then port congestion is probable in the next two to three months, Dizon said.
“If this happens for much longer and LGUs continue to impose lockdowns and strangle, then there’s a possibility that containers that arrived in Manila may not be able [to go] to their respective destinations. There would be port congestion,” he said.
Meanwhile, he said, “a lot of shipments” are still arriving. “The estimated arrivals of pork products is roughly at least 500 containers a month. And if all of those are stalled, then the cumulative effect would be we…a port congestion situation in 60 or 90 days.”
The real concern, he said, stems from the defiance of the LGUs to abide by the Department of the Interior and Local Government (DILG) order to lift the ban on processed meat products containing pork materials.
Due to this, Dizon said manufacturers may not even be able to transport their cargo from the ports to cold storages, majority of which are located in areas that have imposed lockdowns, like Laguna and Cavite.
Dizon said meat processors are also left with few options to address the issue, which he pointed out could be costly for them.
“Presumably you’ll store your imported goods in Manila because it doesn’t have a tight lockdown. But that would represent additional logistical costs for you in the future once the bans are lifted because your goods are farther away [from] destinations,” he said.
Dizon explained that meat processors and manufacturers, either small-scale or big firms, are now feeling the impact of the LGU bans since they cannot distribute their products stored in cold storages.
The BusinessMirror first reported last month that processed meat such as hot dogs and bacon, from big firms like San Miguel Food and Beverage, CDO Foodsphere Inc. (CDO) and Pampanga’s Best, were disallowed in some Luzon provinces amid ASF scare.
Recently, the DILG issued an order that urged LGUs to lift the bans imposed on processed meat products as long as international conditions are met.
However, LGUs, such as those in Bohol and Cebu, have pronounced that they will not comply with the order in order to protect their local hog industries from the dreaded ASF.
Meat Importers and Traders Association (Mita) President Jesus C. Cham said their distribution of meat products, particularly pork-related items, is limited to areas which do not have standing bans.
The ASF is a fatal disease to hogs with a mortality of up to 100 percent, with no known vaccine yet, and no cure. However, the ASF poses no threat to human health.