Group warns tariff cuts may hurt hog sector

Group warns tariff cuts may hurt hog sector
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THE Pork Producers Federation of the Philippines Inc. (ProPork) has warned that proposed reductions or removal of import tariffs on pork and chicken could weaken domestic production, reduce government revenues, and heighten the country’s dependence on imports, posing risks to food security amid global uncertainties.

In a letter to Ferdinand Marcos Jr. and Agriculture Secretary Francisco Tiu Laurel Jr., the group opposed tariff cuts as a response to rising global tensions, including the ongoing Middle East crisis, saying such a move would have a limited impact on retail prices while creating broader economic distortions.

“Further reducing import tariffs on pork and chicken will have a disastrous effect on local production,” ProPork said, stressing that current domestic conditions—marked by adequate supply from both local producers and imports, and stable farmgate prices—do not warrant policy changes.

Economic risks

In a statement, the federation said lowering tariffs could result in revenue losses for the government without delivering meaningful savings to consumers, citing past instances where reduced duties failed to significantly bring down retail prices.

It also warned that cheaper imports could displace local producers already grappling with elevated production costs, particularly for feed and transport, potentially leading to lower farm output and job losses across the agricultural value chain.

ProPork added that increased reliance on imports could expose the market to oversupply and dumping risks, further destabilizing prices and discouraging investment in local livestock production.

Subsidies instead

Instead of tariff cuts, the group urged the government to implement targeted interventions to strengthen the domestic industry and address cost pressures.

Among its recommendations were subsidies for hog producers—particularly for transport and logistics costs—alongside support to offset rising feed prices driven by higher fuel costs. It also proposed regulating pork imports through a volume cap of 500,000 metric tons to prevent oversupply.

The federation further pushed for a government procurement program that would source fresh food directly from local producers, including meat, fish, and vegetables, for distribution to vulnerable communities.

Weak demand, rising costs

ProPork highlighted weakening consumer demand as a key issue affecting the sector, as high fuel and LPG prices continue to erode household purchasing power. Transport disruptions have also limited market access, with some operators scaling back due to financial losses.

“The government must step in to balance the market—ensuring producers can sell while consumers can access affordable food,” the group said.

The federation maintained that import-dependent measures such as tariff reductions would not address structural issues in the supply chain, urging instead policies that support local production, stabilize prices, and safeguard long-term food security. / KOC

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