THE Philippines has temporarily closed its borders for Dutch poultry products over concerns of bird flu outbreaks in the Netherlands, dealing another blow to local meat processors as they lose a huge supplier of mechanically deboned meat (MDM) of chicken.
Agriculture Secretary William D. Dar told the BusinessMirror that he signed on Thursday a memorandum order (MO) that slaps a temporary ban on the importation of domestic, wild birds, and their products including poultry meat, from the Netherlands.
As early as October 30, the Bureau of Animal Industry (BAI) had recommended certain actions the Department of Agriculture (DA) could take following the reported bird flu outbreak in two mute swans in the Netherlands, a high-ranking official told the BusinessMirror.
However, on October 30, the Netherlands confirmed a second bird flu outbreak affecting 35,750 broiler parent stock in Altforst, Gelderland, one week after it reported the mute swan incident in Kockengen, Utrecht to the World Organisation for Animal Health (OIE).
Both outbreaks were confirmed to be caused by highly pathogenic avian influenza (HPAI) H5N8, based on the Netherlands’ reports to the OIE.
The second bird flu outbreak was the basis of the import ban by the DA, based on a document obtained by the BusinessMirror.
The Philippines imposes temporary import bans on countries that have confirmed bird flu outbreaks to protect the local industry from animal diseases such as bird flu.
With the temporary ban, the BAI has suspended the issuance of sanitary and phytosanitary (SPS) import clearance for Dutch poultry products.
Major loss of supply
The loss of Dutch poultry supplies is a major blow to the local meat processors as the Netherlands accounts for about 40 percent of their annual volume of imported chicken MDM, a raw material used to produce hot dogs and siomai, among others.
Latest BAI data showed that the Philippines’s chicken MDM imports from January to September reached 208,208.645 MT, with 42 percent —or about 86,943.415 MT—coming from the Netherlands.
Meat processing industry sources said the loss of the Netherlands supply worsens their current situation as they scramble for new sources of chicken MDM, as Brazil continues to refuse to ship to the Philippines despite the partial lifting of the ban on the Brazilian chicken MDM. Brazil is the country’s second-largest chicken MDM supplier.
Worse, chicken MDM prices in Poland, which was recently allowed to export again to the Philippines, have already equaled or are even higher than the European Union’s current price, a source said.
Given the current situation, the meat processing industry is left with no viable chicken MDM supplier as prices in European Union —of $800 per metric ton (MT)—are closing out US and Canadian prices of about $900 per MT, another source said.
A highly knowledgeable industry source, who has been following the recent trade developments, said the only way to salvage the industry’s supply pool is if Brazil resumes its exports of chicken MDM to the Philippines.
And that would only happen, the source pointed out, if the Philippines fully lifts the temporary import ban slapped on Brazilian poultry products.
The Philippines has already allowed the entry of Brazilian chicken MDM but Brazil’s government is not allowing the export of the product unless Manila lifts the remaining ban on other poultry products.
Manila’s borders have been closed for almost three months now for Brazilian poultry products due to Covid-19 concerns in their shipments and meat-packing plants. (Related Story: https://businessmirror.com.ph/2020/10/26/da-firm-on-poultry-ban-as-brazil-goes-to-wto/)
“Brazil refused to sell to, they really refused to sell despite attempts to buy from them since the ban on MDM was lifted,” the source told the BusinessMirror.