HOG raisers criticized meat processors for their claims that the price of canned goods and processed meat products will increase by as much as 20 percent due to a new policy of the Department of Agriculture (DA) restricting importation of pork products.

The National Federation of Hog Farmers Inc. (NFHFI) said the projected price increase of canned goods and processed meat has no basis, judging from the importation history of meat processors belonging to the Philippine Association of Meat Processors Inc. (Pampi).

“[Meat processors] are just dramatizing the issue. Also, nothing is definite yet as we are still in discussions about the changes in importing rules under the minimum access volume [MAV] scheme,” said NFHFI president Albert Lim Jr. in a phone interview.

Lim issued the statement in reaction to Pampi’s announcement about price increases. Pampi executive director Francisco Buencamino issued a warning that the refusal of the DA to issue MAV import clearances (Mavic) could result in higher prices of canned goods and processed meat products.

MAV refers to the minimum volume for specific agricultural products that member-countries of the World Trade Organization (WTO) can import with lower tariff. Importations in excess of MAV are still allowed albeit at a higher tariff rate.

“Because the Mavics have refused us, the added costs of our importations will now definitely lead to price increases almost at all levels,” said Buencamino.

Minus the Mavic, meat processors will have to pay the out-quota rate of 40 percent slapped on pork products. The in-quota tariff rate for pork products is set at 30 percent.

For 2008, Buencamino said the government will allow 53,000 metric tons of pork products to enter the Philippines at a reduced tariff rate.

The increase in canned meat and processed food products, Buencamino noted, will be aggravated by the increase in the price of tin can. He said the cost of tin cans has increased by 30 percent.

However, Lim noted that meat processors have not been using pork products judging from official government data on MAV.

Data from the MAV Management Committee of the Philippines-Department of Agriculture shows that in 2007, utilization rates of tariff rate-quotas or MAV for pork increased from 5 percent in 2006 to 19 percent in 2007, indicating more imports of higher-value pork cuts, such as bellies and other unspecified prime cuts.

In a report, the United States Department of Agriculture (USDA) noted that MAV usage for pork has been relatively low, due in part to the entry of large quantities of buffalo meat, with a low tariff rate of 10 percent and illegally imported pork in the market.

Buffalo meat, from India, has been traditionally used in the Philippines as a substitute for pork by the local meat processing industry.

“MAV utilization is expected to remain low due to the high in-quota duties for pork as well as high pork prices in the world market relative to the price of local pork. Majority of the pork imported in the Philippines is pork rind and pork fat,” said the USDA report.

As of press time, Pampi officials could not be reached for comment.

As for the allocation of 50 percent of the MAV to livestock producers, Lim said nothing is final yet and that industry stakeholders are still in discussions with the DA.

Earlier, Pampi said granting livestock producers a MAV license would result in these groups managing the situation to produce a shortage of a MAV product for the purpose of pushing final cost of products in the market higher, or to purposely block any product to create a domestic market shortage.

Teodoro, Esperon push pardon

DEFENSE Secretary Gilbert Teodoro and Gen. Hermogenes Esperon Jr., Armed Forces chief of staff, would recommend to President Arroyo the granting of executive clemency to the nine junior officers who were convicted last week by the Regional Trial Court in Makati for coup d’état.

ZAMBOANGA CITY—Two explosions rocked this city early Sunday morning amid tight security as national games are being held here.
No casualties were reported.

HOG raisers criticized meat processors for their claims that the price of canned goods and processed meat products will increase by as much as 20 percent due to a new policy of the Department of Agriculture (DA) restricting importation of pork products.

HOUSE leaders have vowed the swift passage of two important bills—one that would promote food production through corporate farming and one that would impose higher penalties to hoarders of prime commodities—when Congress resumes session on April 21 to address the prolonged rice problem until 2010 as projected by the International Rice Research Institute (IRRI).

With just one more day to go before the April 15 deadline for filing of income-tax returns (ITRs), the Bureau of Internal Revenue (BIR) had advised all electronic filers (e-filers) belonging to the Large Taxpayers Group and the top 10,000 under the revenue district offices (RDO) to declare their true income for 2007 and refrain from making “No-Payment” or “No-Operation” declarations in their returns; otherwise, they face stiff penalties and possible criminal charges for tax evasion.