Saturday, May 4, 2024

D.A. panel: import 55% of MAV plus within July-September

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A DEPARTMENT of Agriculture (DA) interagency committee has recommended that 55 percent or about 110,000 metric tons (MT) of the pork minimum access volume (MAV) plus be imported within July to September to immediately boost domestic supply and temper retail pork prices.

The BusinessMirror learned that the interagency committee created by Agriculture Secretary William D. Dar and led by Agriculture Assistant Secretary Noel Padre has sent its recommendation for the pork MAV plus implementing guidelines to the MAV Management Committee (MAV-MC).

The recommendation includes allocating the additional 200,000 MT of pork MAV among existing MAV licensees, pork producers and other importers/new entrants.

Based on the panel’s recommendation, 25 percent of the total volume shall be allocated for existing MAV licensees, another 25 percent for pork producers and the remaining 50 percent for the new entrants.

The committee also recommended that 55 percent of the pork MAV plus volume be made to arrive within July to September and the remaining volume of 90,000 MT within October until January 2022.

This recommendation by the interagency committee differs from the recommendation made by the MAV Advisory Council to equally divide the importation of the additional pork MAV volume across 12 months. (Related story: https://businessmirror.com.ph/2021/05/20/higher-pork-mav-panel-pitches-1-year-period/)

The interagency committee also recommended that usage of the pork MAV plus shall be on a “first come, first serve” basis with a 500 MT limit per company or eligible importer.

High-ranking sources said the DA wants the bulk of the pork MAV plus volume to arrive the soonest possible time to have an immediate impact on the domestic market, long reeling from pork shortage and high pork prices.

Sources expressed hope that the pork MAV plus guidelines will be approved this week by the MAV-MC, three weeks after President Duterte issued Executive Order 133 authorizing the increase in pork MAV.

Agriculture Undersecretary for Livestock William C. Medrano told the BusinessMirror the pork MAV+ guidelines have yet to be approved by the MAV-MC.

The MAV-MC, which is chaired by Dar, has the final say on the implementing rules and regulations of the pork MAV plus. In his EO, Duterte ordered the MAV-MC to “ensure that the allocation of the volume importation is fair and open to all qualified importers of pork meat” and in accordance with existing rules and regulations regarding MAVs.

Industry sources told the BusinessMirror that they hope the MAV-MC will release the final guidelines as soon as possible so that they can place orders already and for export partners to be able to fulfill the deliveries amid global shipping and logistics problems.

Industry sources said the arrival of meat imports is now delayed by a month up to two months due to lack of vessels, higher freight costs and container imbalance, posing a threat to the proposed arrival of 110,000 MT of pork in the next three months.

As of June 1, the average price of pork liempo in Metro Manila markets remains elevated at P380 per kilogram, based on the latest price monitoring report of the DA.

Read full article on BusinessMirror

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