The Philippines will likely end 2020 with a record number of shipments of imported meat products due largely to the surge in demand for canned meat and processed meat products (See, “Meat imports seen surpassing 2019 record,” in the BusinessMirror, November 30, 2020). The lockdown imposed in March and the ensuing lack of transportation gave the impetus for consumers to stock up on canned food items, such as corned beef, luncheon meat, and sausages. These food items augmented fresh produce bought by residents from wet markets or groceries during the lockdown.
Data from the Bureau of Animal Industry showed that shipments in January to October expanded by 760,000 metric tons, as traders and processors bought more imported chicken meat and beef products. During the period, traders bought an average of 76,000 MT of imported meat products a month. According to BAI, nearly a third of the shipments during the period consisted of chicken MDM, a raw material used for making processed products.
As the economy opens up further next year and spending for the 2022 elections commences, the demand for processed meat and canned food items could expand, particularly since major urban areas in the country including the National Capital Region are still under quarantine. Even before the pandemic, the appetite of Filipino consumers for processed meat products and canned food items has been growing. Poor Filipinos particularly gravitate toward these products because processed meat and canned food are more affordable and are relatively easier to store.
Local manufacturers import the bulk of raw materials for canned food items because they cannot find them in the country. MDM, a paste-like and batter-like meat product produced by forcing bones, with attached edible meat, under high pressure through a sieve or similar device to separate the bone from the edible meat tissue, is abundant in countries that have invested heavily in its production. Manufacturing MDM in the Philippines would require the same attention and resources accorded by countries that are now profiting from it.
Traders shell out anywhere from $600 to $800 per metric ton of chicken MDM or as much as P4,000 at the current exchange rate (See, “DA asked to clarify ban on MDM; processed meat supply gaps seen,” in the BusinessMirror, August 18, 2020). At 200,000 metric tons, countries exporting this product earn a minimum of $120 million. The figure does not yet include other raw materials used by Philippine manufacturers, like beef fats.
Government should earnestly pursue its goal of jump-starting chicken MDM production here if it wants to achieve food security for the country and enable the agriculture sector to create more jobs (See, “Govt soon to have Triple A facility to produce MDM of chicken—Dar,” in the BusinessMirror, August 31, 2020 and “Govt to build cold storage warehouses in 3 provinces,” in the BusinessMirror, December 7, 2020). It must also encourage and facilitate the entry of private sector investors in this type of venture via incentives and the provision of technical support to finally get MDM chicken production in the Philippines off the ground. The government must see to it that Philippine canned goods manufacturers should not be forever buying raw materials from other countries. This is important for the country’s food security.