24/04/2019
DA meeting with Meat Importers
1. Meeting was called by importers regarding DA’s non issuance of SPS for meat imports.
2. DA gave update of supply and demand of pork and poultry.
3. For poultry, 2019 supply is estimated at 1.424B MT (including imports), demand at 1.288B MT, or excess of 136M kgs.
4. Excess supply per quarter is 1Q 16.657 MT, 2Q 59.281 MT, 3Q 16.974 MT, 4Q 42.939 MT
5. 2018 MAV utilization is 92% at 21642 MT (vs MAV of 23490). MAV is only for fresh, chilled and frozen poultry.
6. In August 2018, DA lifted SSG for MDM to ease inflation, but later DA secretary rescinded the order, therefore tariff on MDM should be back to 40% after reverting to tariff commission. Upon checking, tariff is not yet implemented as the BOC waiting for letter from tariff commission to return the tariff to 40%.
7. DA secretary voiced the concern of producers about low prices. Banks also complaining of increased default payment of bank loans.
8. Jesus Cham of MITA mentioned the ‘pro-poor’ advocacy of the group to help reduce prices and alleviate inflation. Sec Pinol countered that there is a big disconnect, that despite pork and poultry imports, meat prices at the supermarket and wet market has not gone down (140-150 for poultry) while farm gate prices remain low. He said the businessmen need to temper profit for the security of the agricultural producers.
9. DA introduced /proposed new measures to control technical smuggling of poultry meat, which includes 100% checking of frozen inventory upon arrival, and checking of release of poultry meat from warehouses upon withdrawal for customer delivery. Plan is eventually to check also at port of origin, especially meat sourced from ‘weak’ countries (not strict in recording and reporting system) like Brazil, China, Eastern Europe. ‘Strong’ countries include US, Canada, Australia, western EU countries.
10. DA mentioned cases where registered approved import volume is lower than what is declared at the warehouses.
11. DA wanted to revisit law on bonded warehouses, where importers get meat for further processing with low tariff, but need to export. Loophole is the law where it states up to 30% of meat can be sold locally but subject to tariff, but no one is checking if this is being implemented.
12. Sec Pinol said he is bound by executive order to release SPS within 7 working days from submission of documents. So all SPS will be released next week, whether approved or disapproved.
13. DA is proposing a meeting with both producers and importers to discuss issues, and maybe link local suppliers with end users.