Friday, April 18, 2008 WTO quota not cause of increase in processed meat prices - NFHFI
AN official from the hog raisers group said it is unfair for the meat processing sector to blame the minimum access volume (MAV) policy for the increase in the prices of processed meat products.
“I feel it’s unfair for them to use the MAV as the reason for their price increase,” said Alberto Lim Jr., president of the National Federation of Hog Farmers, Inc. (NFHFI), in a phone interview with Sun.Star Cebu yesterday.
Lim was reacting to a statement made by Francisco Buencamino, executive director of the Philippine Association of Meat Processors Inc. (Pampi).
Buencamino earlier announced that processed meat prices will go up 20 percent in the next two weeks as fresh meat and tin cans have become more expensive. He also blamed the MAV policy, which imposes additional tariffs on imported meat volumes that are beyond the quota.
Lim said while the MAV protects local meat producers, the policy should not hurt the meat processing industry, especially when the meat processors were not able to maximize the quota set for last year.
“So why are they complaining?,” said Lim.
According to the United States Department of Agriculture (USDA), which posted in its website the MAV utilization rates of imported meat in the Philippines, the country was only able to use 19 percent of the 54,210-metric tons quota, or 10,299 metric tons.
However, the USDA report also noted that the 2007 figure is significantly higher than the five-percent quota usage in 2006.
The MAV is a policy imposed by World Trade Organization member-countries.
Feeds
Lim confirmed, though, that fresh meat prices increased due to the rise in the prices of hog feeds, particularly corn and soya. Since 2000, corn and soya prices have increased by over 50 percent, he said.
He said NFHFI is open to go into a dialogue with Pampi, considering that the two organizations are industry partners.
Lim also said that Pampi should tell meat producers what kind of products they need for meat processing so that NFHFI can address it.
NFHFI will hold its annual hog convention and trade exhibit in Cebu next week. This year’s theme for the convention is central to the enhancement of pork production for the export market.
The event is in line with NFHFI’s goal to promote the interest of hog farmers and discover opportunities for growth, efficiency and sustainability of the industry.
Hog farmers from Luzon, Visayas and Mindanao are expected to attend the convention as it will also feature a Backyard Hog Farmers Congress sponsored by Universal Robina Corp.
There will also be a series of seminars on swine management and production as well as forums on how to eradicate common swine diseases.
Buencamino earlier said the increase in processed meat prices in the Luzon retail market has already taken effect, while in Central Visayas it should be reflected in the next 15 days since Pampi is still disseminating the information to its distributors.
Some fastfood chains in the country have also increased prices starting last week. (DME)
