The Philippines’s imports of pork bellies and cuts this year are on-track to reach a record-high after January-to-May volume surged by nearly 330 percent to 98,369.608 metric tons (MT), surpassing total purchase last year.
Industry players attributed the increase to the need to plug the shortfall in domestic supply that raised pork retail prices to unprecedented levels. They also noted that the lowered pork tariffs contributed to the quadrupling of imports of prime cuts of pork.
Latest Bureau of Animal Industry (BAI) data showed imports of pork bellies and cuts during the five-month period was 75,406.896 MT higher than the 22,962.712 MT recorded in the same period of last year.
Historical BAI data analyzed by the BusinessMirror showed that the five-month import volume already surpassed the country’s total purchase of imported pork bellies and cuts last year that reached 92,442.7 MT.
The January-to-May figure also exceeded the volume recorded in 2019 at 96,425.386 MT, based on historical BAI data.
BAI data showed that the five-month figure is just 22,255 MT away from surpassing the record-high volume of 120,624.364 MT for imports of pork bellies and cuts that was recorded in 2018.
BAI data also showed that a total of 35,866.077 MT of pork bellies and pork cuts entered the country in May alone.
Shortage, hedging
Meat Importers and Traders Association President Jesus C. Cham told the BusinessMirror that the increase in imports was a reaction to the plunge in domestic pork supply caused by the devastation of African swine fever (ASF) on local hog farms.
Cham said the lowered tariffs only had a minimal impact during the five-month period since these volumes were contracted by importers and traders even before President Duterte ordered the lowering of tariffs.
“It has really something to do with the lack of supply. It was the shortage that drove the imports, especially when retail prices hit P400 per kilogram to P500 per kilogram,” Cham said in an interview. “And also, the importers and traders that hedged that tariffs would be lowered contributed to the increase.”
The Philippine Association of Meat Processors Inc. (Pampi) welcomed the quadrupling of the imports of pork bellies and cuts, pointing out that it helped them “manage” their costs and “minimize” price adjustments. Pampi attributed the expansion of imports to the lowering of pork tariffs.
“Please note that global pork prices remain high so the lower import duties mitigate the impact. But the ultimate victor here is the Filipino consumer who now has access to more affordable pork,” the group said in a statement on Thursday.
“Before the Executive Order was issued, people had to pay P400-P420 for a kilo of local pork, an amount that practically depletes their daily wage,” it added.
Industry sources told the BusinessMirror that the expansion in pork imports is unprecedented, with exporters remaining keen to sustain the hike in their shipments to the Philippines. With this situation, imports of pork bellies and pork cuts this year could post a new record-high volume.
The government is banking on its twin measures of reducing pork tariffs and hiking minimum access volume (MAV) for pork to boost domestic supply and pull-down retail prices.
Industry players noted that the increase in pork imports have started to influence market prices as retail pork prices in Metro Manila wet markets has declined by P20 to P30 per kilogram this month from previous months.
As of June 10, the average price of pork belly in Metro Manila wet markets was at P360 per kilogram, P20 lower than the P380 per kilogram recorded a month ago, the latest Department of Agriculture price monitoring report showed.
Image credits: Nonoy Lacza