Meat importers back lower pork tariffs
MANILA, Philippines — Meat importers are reiterating their support for a proposal to cut tariff rates on pork imports, pointing out that the Ukraine-Russia conflict has already driven up the costs of producing and transporting meat in the country. world.
In a letter to the President of the Tariff Commission, Marilou Mendoza, the Meat Importers and Traders Association (MITA) said it supports the extension of the 15% in-quota and 25% out-of-quota tariff rates for pork imports under Executive Order 134 until the end of the year.
“We recommend, however, that the lower rates be further extended and incorporated into the 2021-2025 fee schedule,” the group said.
The group pointed out that prices for oil, fertilizers and animal feed – especially corn and wheat – have all risen globally since Russia invaded Ukraine.
“As a result, the cost of raising pigs to market weight, slaughtering and transporting the meat around the world has risen sharply in just a few weeks since the Russian incursion. packers are withdrawing bids and reluctant to requote,” MITA said.
“In an extreme case, Tonnies, Germany’s largest pork slaughterhouse, invokes force majeure and cancels futures contracts,” he said.
MITA also reported that the European Union has reintroduced the private storage aid scheme for pigmeat, which is usually implemented to mop up excess stocks and support prices.
“In the current situation, however, there is little need to support pork prices. So we think the EU is stockpiling meat as they predict a huge shortage this summer,” MITA said.
As prices rise globally, MITA stressed that the Philippines will not be spared.
Socio-Economic Planning Secretary Karl Chua earlier proposed the extension of lower tariffs under Executive Order 134 along with the additional minimum access volume plus a volume of 200,000 metric tons, which expires in May , to be extended until December, as part of government measures to cushion the impact of the Ukraine-Russia conflict on domestic food prices.
Local pig farmers earlier opposed the extension of the proposal. The Public-Private Partnership (PPP) Center and Singapore-based Infrastructure Asia are expanding their collaboration to improve the country’s local infrastructure development measures, pointing out that it has failed to drive down retail prices. pork down.