Hog industry chiefs issue glum 2024 production outlook

The hog industry is less confident about boosting local production in 2024 following the extension of reduced tariffs on vital food items for another year.

Pork Producers Federation of the Philippines Inc. president Rolando Tambago said domestic pork output is estimated to remain the same as this year “with possible overall year-end negative growth.”

“Generally, local producers’ confidence to increase output is further affected due to recent extension of reduced tariff for pork,” Tambago said.

“Government should be forewarned of the reducing pork production and increasing price in Europe and other traditional import sources,” he added.

Tambago said the sector is disappointed over the President’s decision to approve the extension but expressed hope that Agriculture Secretary Francisco Laurel Jr. will be “true to his direction” of prioritizing local food production.

He said the government should address domestic production “seriously” and only embark on importation to balance supply.“We are with the government to tame inflation but they should also make tangible efforts on improving local production,” he said.

“Reduced tariff did not translate to cheaper pork to consumers, only traders and importers gain from it while killing the local producers,” he added.

By virtue of Executive Order No. 10 signed in December last year, all meat imports (fresh, chilled, or frozen) are subject to a tariff rate of 5 percent for in-quota and 25 percent for out-quota.

Recently, the National Economic and Development Authority board led by President Marcos extended the implementation of reduced tariffs on key commodities for another year or until December 2024.

The country purchased 1.02 billion kilograms of meat imports in the first 10 months of the year, down by 9.7 percent from 1.13 billion in the same period a year ago, based on the data from the Bureau of Animal Industry.

Pork remains the most imported commodity among meat products with a share of almost 50 percent, totaling 504.3 million kg. The volume, however, was lower by 16.9 percent year-on-year.

On the other hand, hog production reached 1.31 million metric tons (MT) as of end-September, an increase of 3.13 percent from 1.27 million MT previously, according to the Philippine Statistics Authority.

In Metro Manila, pork ham (kasim) is sold from P260 to P370 per kg as of Friday compared to P300 per kg a year prior, based on the Department of Agriculture’s price monitoring.

Pork liempo is priced from P300 to P400 per kg against P370 per kg previously.