As Metro Manila and some of its neighboring provinces go into another lockdown that can put more pressure on food supply, Senator Kiko Pangilinan pleaded with Malacañang to declare a state of calamity to help hog raisers recover from the devastating effects of the African swine fever (ASF) and not allow pork imports to flood the market.
“Baka mali ang naibigay na impormasyon sa Presidente. Dadapa pa lalo ang ating lokal na pagbababoy pag pinayagan ang mas maraming imported na baboy (The President was probably misinformed by his advisers. This act of raising the MAV [minimum access volume, or cap on imports] will further weaken our local pork producers),” Pangilinan said.
The former food security secretary’s statement came after President Rodrigo Duterte asked Congress to increase the cap on pork imports purchased under lower tariffs to address a supply problem after millions of local pigs have been culled due to ASF.
“Sa ngalan ng ating mga magbababoy, nakikiusap po kami na mag-declare ng state of calamity para sa agarang tulong na pondo sa indemnification at dagdag na cash assistance para sa kanila (In behalf of our local hog raisers, we are asking for a declaration of a state of calamity so that funds for indemnification and additional cash assistance may immediately be tapped for them),” the veteran legislator said.
On March 15, senators adopted Pangilinan’s Senate Resolution No. 676 which urges the Department of Agriculture (DA) to “recommend to the President to declare a state of national calamity” due to the “severe impact” of the ASF on the hog industry.
The resolution noted that the declaration would trigger the use of the National Disaster Risk Reduction and Management Fund and Quick Response Fund to supplement the Department of Agriculture’s (DA) efforts to contain and manage ASF. For 2021, it is estimated that P8 billion is needed to do this.
“Importers already earn off the current cap on pork imports.”
Senate hearings on rising pork prices also revealed that importers already earn off the current cap on pork imports.
“Hindi na kailangan pang i-expand ang MAV at/o pababain ang taripa. Pinapayagan ng sistema natin ngayon ang pag-import ng baboy (There is no need to expand MAV and/or lower the tariff rates. If we want to import pork, our present system allows importers to import pork),” the seasoned lawmaker stressed.
As per data from the Senate hearings, current international price for choice pork cuts like belly (liempo), ham (pigue), and shoulder (kasim) average at 2 dollars per kilo, the senator said.
“Mga P98 per kilo yan. Idagdag mo ang taripa ng 40 percent, mga P138 per kilo. Idagdag mo pa ang P12 na storage fee, P150 per kilo ang landed cost para sa importer (That’s P98 per kilo. Add tariff of 40 percent, that’s P138 per kilo. Add P12 and that’s P150 per kilo landed cost for importers),” he explained.
“Sa presyong P250 per kilo pa lang sa palengke, tiba-tiba na ang importer. Hindi na kailangang palawigin pa ang MAV. Kita niyo naman, mas malaki pa ang kita ng importer sa local hog-raiser (At P250 per kilo at retail, importers already earn a lot. There is no need to expand the MAV. As you can see, imported pork is still very competitive than local price). Any importer can import using the out-quota tariff of 40 percent. There is no quantitative restriction,” Pangilinan added.
Senators also noted in the hearings that a small group of importers already amass billions in earnings due to the government policy of importation rather than helping local hog-raisers overcome ASF to supply the local market.
“There’s a small group that’s earning billions while consumers go hungry and the local hog industry is battered.”
“May maliit na grupo na kikita ng limpak limpak at bilyun-bilyong salapi habang mananatiling gutom ang mamimili at bugbog-sarado ang lokal na industriya ng magbababoy (There’s a small group that’s earning billions while consumers go hungry and the local hog industry is battered),” he concluded.