Increasing pork import quotas may create unfair competition – industry groups

MANILA, Philippines — Various industry groups cautioned that increasing the government’s allocation of pork import quotas could create unfair market competition and hamper the local hog sector’s recovery.

President Ferdinand Marcos Je. issued Executive Order No. 116 increasing the 2026 minimum access volume (MAV) for pork to 204,210 metric tons (MT) from 54,210 MT. It aims to ensure the continued availability and affordability of pork and processed meat products.

“There is an urgent need to address the existing supply gap in pork, ensure adequate and affordable food for consumers, and mitigate inflationary pressures,” based on the EO dated May 19, which was made public on Friday.

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The directive states that the continued spread of African Swine Fever (ASF) has significantly reduced the swine inventory, resulting in substantial supply shortfalls and persistently elevated pork prices.

Based on the EO, the MAV Management Committee is directed to ensure fair import volume allocation: 30,000 MT for processors and 120,000 MT for state-run Food Terminal Inc. (FTI) or the Kadiwa ng Pangulo program.

Meat Importers and Traders Association (MITA) President Emeritus Jesus Cham said providing a higher import quota to the government could distort market competition and eventually displace private traders.

“Apparently, the government wants to take over the pork import trade. FTI or other State Trading Enterprise does not need MAV since they can import duty-free. This creates unfair competition,” Cham told the Inquirer in a Viber message on Friday.

Cham said the latest EO is contradictory to the MAV principle of market consistency that “the mechanism should entail the least government intervention.”

“Obviously, this fosters a situation wherein the private sector cannot compete. Many traders/importers already dismayed will likely drop out of the market,” he said.

Cham also said this would create a domino effect across the supply chain, affecting food service and retailers in supermarkets and wet markets.

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National Federation of Hog Farmers Inc. Vice Chair Alfred Ng said they were not consulted on the planned increase in the MAV quota, which would lead to lower tariffs on additional pork imports.

“There was no consultation with MAV increase, and this will lower tariffs from 25 percent to 15 percent for an additional 150 million kilograms,” Ng told the Inquirer in a Viber message on Friday.

“Again, this will make a handful of importers richer by 10 percent. Again, another blow to a recovering industry with millions of livelihood dependent on them,” added Ng.

Philippine Association of Meat Processors Inc. Director Jet Ambalada said the government should immediately release the increased pork import quotas to help ease price and inflation pressures.

“We’re happy that the government recognizes the need to increase the MAV for pork. We’re happy about it, whether the allocation works or not,” Ambalada said in a phone interview, referring to the higher allocation for meat processors.

“It should be distributed immediately so we can use it and ease the inflationary measures this year, so it can take effect,” he added.

Currently, tariffs on swine, fresh, chilled, or frozen meat are set at 15 percent for in-quota and 25 percent for out-quota shipments or those not covered by the MAV scheme.

MAV is a trade scheme allowing the importation of specific quantities of agricultural products at reduced tariffs, as committed by the Philippines to the World Trade Organization. /atm