China’s decision to ban pork shipments from Germany following Berlin’s confirmation of the first outbreak of African swine fever (ASF) in the European nation could put the Philippines’s pork supply at risk.
Meat Importers and Traders Association President Jesus C. Cham said China’s blanket ban on German pork would put pressure on global supply and international prices.
“The Philippines, being a poor country, is in no position to match the prices China is willing to pay,” Cham told the BusinessMirror on Sunday. “We already see price increases from countries such as the United States.”
The Department of Agriculture (DA) recently imposed a blanket ban on German pork imports after Berlin confirmed an ASF outbreak involving one wild boar in Schenkendöbern, Spree-Neiße, Brandenburg, which borders Poland whose wild boar population was struck by ASF.
However, the Philippines’s borders have been closed to German pork shipments since July 2019 following the involvement of German foreign meat establishments (FMEs) in a commingling issue.
Sources familiar with the matter, however, told the BusinessMirror that the latest blanket ban on Germany came as Berlin was about to obtain reaccreditation for its pork exports to the Philippines after a year-long dialogue to resolve the commingling issue (See “Lift pork-import ban, Germany tells Philippines,” in the BusinessMirror, August 9, 2019).
The sources also said the meat processing industry has been in constant communication with the German Embassy regarding the matter.
Impact on consumers
Cham said higher international pork prices would be detrimental to the CDE segments “who cannot afford local meat and relies on imported pork offal and processed meat products.” He added that small meat processors and consumers of street food would also be “badly affected.”
“Production worldwide has not gone back to pre-Covid 19 levels. We will have difficulty finding pork that is affordable to our massive 80 percent CDE economic class,” he said.
Because of this, Cham appealed anew to the DA to reconsider its blanket bans and conform to scientific principles and guidelines set by international organizations.
He said one of the approaches that the DA could adopt is regionalization wherein countries will impose an import ban only on a specific area struck by outbreaks of animal diseases.
Cham noted that pork trade in the European Union continues despite the confirmation of ASF in some member-countries as long as the shipments are certified free from the fatal hog disease.
Another example, Cham said, is the approach adopted by Canada which has agreed to continue accepting pork from the EU provided that the shipments are certified ASF-free.
Cham noted that local pork inventory is “not plentiful” while imported supplies are “normal” compared to previous years due to reduced consumption during the lockdown.
“Our strategy should not only be to protect pig farms and pork production but also to ensure availability of affordable meat to consumers. Keeping out wholesome pork meat that is certified ASF-free only deprives our consumers and economy of affordable meat and nutrition,” he said.
“We need to revisit our strategy and change our approach. In a way it is like Covid-19—we need to live with it while awaiting a vaccine. We should not isolate ourselves.”
The country’s pork imports from January to August plunged 36.83 percent to 137,131.272 metric tons (MT) from last year’s 217,102.929 MT, latest Bureau of Animal Industry (BAI) data showed.
Last year, the Philippines imported 335,786.89 MT of pork products, more than half of which being by-products and pork cuts that are used by the meat processing industry.
Meanwhile, the country’s frozen pork inventory as of August 31 was estimated at 43,124.13 MT, of which 80 percent is imported, latest National Meat Inspection Service (NMIS) data showed.
NMIS also data showed that the August frozen pork inventory was higher than July’s 40,085.47 MT and bigger than last year’s 36,448.23 MT.
‘Double whammy’
AN industry source familiar with the matter told the BusinessMirror that a prolonged blanket ban by China on German pork is a “double whammy” for meat processors as they would have to pay more for their imported raw materials.
The source, who has been following the development since Berlin confirmed its ASF outbreak, said producers of chicharon, longganisa, tocino and even liver spread may be affected by higher global prices.
The source said meat processors that produce liver spread and chicharon use imported pork skin/rind, liver, sirloin and shoulders to make their products affordable.
EU countries, particularly Germany and Spain—the top pork suppliers of the Philippines—offer cheaper prices compared to the US and Canada, according to the source.
“Prices may have to go up in the international market considering that the US, Germany and Spain account for about half of the world’s pork export,” the source said.
However, the source said he does not see the blanket ban imposed by China on German pork to have an immediate impact on the Philippines.
There is also the possibility, the source said, that China will reconsider the blanket ban and opt for the regionalized approach to plug the shortfall in its pork supply.