CEBU-BASED swine producers warned that proposed tariff cuts on pork imports could intensify cost pressures on the domestic industry and pose long-term risks to food security, even as farmers continue to absorb rising expenses to keep prices stable.
Rolando Tambago, vice chairman of the Pork Producers Federation of the Philippines, said the planned reduction in import duties presents a “high-stakes gamble” between short-term price control and the long-term viability of local producers.
“The industry is already strained by high fuel costs and logistical hurdles. The outcome of this decision will have a profound and lasting impact on Cebu’s food security,” Tambago said.
Rising costs, squeezed margins
Tambago said producers in Cebu are grappling with elevated transport and input costs driven by global fuel price increases linked to geopolitical tensions in the Middle East.
Feeds transported from mills to farms, along with the delivery of live hogs to slaughterhouses and markets, have become significantly more expensive—particularly given Cebu’s dispersed production areas, from southern municipalities to northern zones such as Bantayan Island.
Despite these pressures, producers have kept farmgate prices relatively stable to cushion consumers from sharp increases.
Farmgate prices in Cebu average around P175 per kilogram, while pork in wet markets sells for about P330 per kilogram, suggesting that much of the cost build-up occurs along the supply chain.
Buy-back program supports small farmers
To help backyard hog raisers sustain operations amid challenging conditions, Virginia Farms Inc. (VFI) has rolled out a guaranteed buy-back program for small-scale producers.
Tambago, who is also VFI president, said that under the Virginia Feeds brand, the company offers partner farmers a fixed buy-back rate of P185 per kilo—higher than prevailing market prices—while purchasing hogs directly to eliminate middlemen or “byaheros.”
The program helps shield backyard farmers from market volatility by ensuring a predictable income and a ready market.
In Oslob, Cebu, partner farmer Ester Vasig expanded her operation from five to 40 sows after joining the program in 2020, turning hog raising into a sustainable family livelihood. VFI partners with farmers raising at least 10 fatteners, supporting them in scaling up operations while maintaining stable returns.
Tambago said such models are critical to keeping small producers in the industry, particularly as price volatility and policy uncertainty persist.
Import cap pushed
Tambago noted that Cebu’s role as a key import hub serving the wider Visayas and Mindanao complicates efforts to impose localized import limits, underscoring the need for a coordinated national policy.
He reiterated calls from industry groups, including the Pork Producers Federation of the Philippines, to cap pork imports at 500,000 metric tons annually to prevent oversupply and protect local producers.
Reducing import volumes to this level would allow domestic producers to ramp up output more quickly and restore balance between local and imported supply, he said.
“Local producers can fast-track production once imports are managed,” Tambago added. / KOC