Pork producers seeking duty-free corn importation

MANILA, Philippines—Industry Group Pork Producers Federation of the Phils. Inc. (ProPork) is asking the government to allow tariff-free corn importation for a limited period.

ProPork president Edwin Chen said in a phone interview that as of this week, corn prices had averaged P15 per kilogram nationwide, which was significantly higher than the P12 per kilo that hog farmers were usually paying for corn used as main ingredient in livestock feed.

“We are asking DA [Department of Agriculture] to give pork producers special importation permit at zero tariff for six months so we can buy corn where it is cheaper,” Chen said.

The import tariff for corn is 35 percent of shipment value. If imported without tariff, corn can be bought at a landed price of P12 to P13 per kilo, or closer to the previous price of local corn.

In an earlier letter to Agriculture Secretary Proceso J. Alcala, ProPork said pork producers needed help to cope with the surge in the prices of local corn.

“The unabated rise in corn prices would result in further losses for hog farmers who are still reeling from the devastating effects of natural calamities and pig diseases. The situation may force several hog farms to close, especially backyard producers who do not have the capital to shoulder the additional costs,” the letter stated.

The high corn price is taking its toll on the swine industry because of its domino effect on production cost, the industry group said.

“If the 35 percent tariff on imported corn is lifted for six months, our organization can purchase cheaper produce and distribute this to our members,” ProPork said.