6 days ago
4
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Agriculture Secretary Francisco Tiu Laurel Jr. confirmed to The STAR that the DA is proposing to expand the minimum access volume (MAV) on pork by 150,000 metric tons (MT).
STAR / Jesse Bustos
MANILA, Philippines — The Department of Agriculture (DA) is looking to expand the volume of pork imports levied with a lower tariff rate to boost domestic supply and pull down retail prices that have skyrocketed to as much as P500 per kilo.
Agriculture Secretary Francisco Tiu Laurel Jr. confirmed to The STAR that the DA is proposing to expand the minimum access volume (MAV) on pork by 150,000 metric tons (MT).
Tiu Laurel said the proposal aims “to lower pork prices.” The increase in pork MAV will be for two years, sources told The STAR.
Under existing laws, the MAV can be adjusted or modified in times of shortages or abnormal price increases in agricultural commodities.
The STAR learned that the MAV advisory council (MAV-AC) convened last May 27 to discuss a proposal of the DA to increase the MAV allocation for pork imports, which is also known as MAV plus.
The MAV-AC is composed of various agriculture industry representatives recommending matters about the MAV. The MAV is a mechanism that allows the entry of commodities under a lower tariff rate.
At present, pork imports under MAV are levied with a 15 percent tariff while those outside the mechanism are slapped with a 25 percent tariff.
The last time the pork MAV plus was implemented was in 2021 with the goal of boosting local stocks and decreasing retail prices due to the detrimental effects of African swine fever on domestic pig production. The pork MAV was raised by 200,000 MT that year.
Jesus Cham, president emeritus of the Meat Importers and Traders Association (MITA), said he supports the pork MAV plus proposal and even suggested increasing the volume to at least 200,000 MT for the remaining three MAV years of the Marcos administration.
Last year, MITA already pitched a pork MAV plus of 500,000 MT annually until such time that local production ramps up and the country’s supply deficit thins.
The United States Department of Agriculture (USDA) estimated that Philippine pork output this year will reach 1.02 million MT, some 635,000 MT lower than its total domestic consumption of 1.66 million MT.
The country is expected to import a record-high of 630,000 MT of pork this year, based on USDA figures.
The price of fresh pork liempo in Metro Manila markets is now ranging from P390 to P500 per kilo with an average price of P440 per kilo, based on DA monitoring reports. Last year, fresh pork liempo ranged from P340 to P420 per kilo.
The implementation of the pork MAV plus will involve a string of bureaucratic procedures beginning with the recommendation of the MAV-AC on the proposal made by the DA.
The MAV-AC’s recommendation will be raised to the six-man MAV management committee (MAV-MC), chaired by the agriculture secretary, that will have the final say on any matters regarding MAV.
The members of the MAV-MC are the secretaries of the Departments of Finance, Trade and Industry, Agrarian Reform, Science and Technology and Economy, Planning and Development.
The decision and recommendation of the MAV-MC will be submitted to the President for proper action and decision. Under existing laws, the President is required to submit any adjustments or modifications to the MAV to Congress, which is given 15 days to act on the Chief Executive’s proposal.
In the event that Congress fails to act after 15 days, the President’s proposal to adjust the MAV of a commodity will be automatically approved. The President can then issue an Executive Order reflecting the adjustments in a commodity’s MAV.
