By Beatriz Marie D. Cruz, Senior Reporter
THE Department of Agriculture (DA) said the gap between the farmgate and retail price of pork has increased by 38% since 2021, as it made the case for raising import tariffs to support hog raisers.
“Historically, we believe that the gap between market and farmgate prices should be around P150 but now, the gap is at P173,” Agriculture Undersecretary Asis G. Perez said in briefing Congress on Monday.
The DA said that as of June, the farmgate price for pork was P172 per kilogram while retail prices averaged P345.
Between 2021 and June 2026, the national average gap in the price paid to farmers and the price paid by consumers grew 38%, Mr. Perez noted.
“There is obviously some inefficiency in the market chain,” he added.
The DA is proposing to increase pork tariffs by 10 percentage points to 25% for shipments within the minimum access volume quota and to 35% for shipments exceeding the quota by 2027. At present, import duties are at 15% within the quota and 25% exceeding it.
Under the DA’s proposal, pork tariffs would return to 30% for shipments within the quota and 40% for those beyond it by 2028.
Mr. Perez noted that imports of pork have remained elevated in the last decade.
The volume of pork imports totaled 323,057 metric tons (MT) in the first eight months, more than triple the 93,439 MT worth of imports booked in 2017.
Pork meat and offal imports have nearly tripled compared to pre-African Swine Fever (ASF) levels to 552,949 MT at the end of August.
Demand is projected at 1.59 million MT this year, well below the projected supply of 1.99 MT, Mr. Perez said.
“If we continue at the same trajectory, by the end of this year, we will have a huge balance of 92 days (of consumption),” he said.
“This tells us that we have too much (supply). It’s a good thing for local production; unfortunately, the import balance is still high,” Mr. Perez added.
Domestic hog production has improving since last year, which is expected to increase with the rollout of the ASF vaccines.
The DA noted that hog production has increased 6% year on year to 841,206 MT in the first half.
Mr. Perez said the DA has submitted to the Tariff Commission a proposal for a staggered increase in pork tariffs.
Hog producers have called for immediate tariff increases and a temporary import ban, noting that the drop in farmgate prices has been threatening the industry’s viability.
They estimated that farmgate prices have declined to P90 to P120 per kilo, with the industry’s estimated losses at P50 to P90 per kilo, or about P5,000 to P9,000 for every hog raised.