AMID calls from lawmakers to revoke Executive Order 128, the Meat Importers and Traders Association (Mita) on Thursday vowed to supply the country with 100 full-container load of headless carcass at P200 per kilogram.
In a letter to Agriculture Secretary William Dar, the association’s President Jesus Cham made this commitment for as long as the 5-percent import duty for pork is maintained and in order to dispel any doubts and concerns on EO 128. Lawmakers in both chambers want the order revoked on fears it would wipe out the local hog sector already reeling from the impact of the African Swine Fever (ASF).
Mita’s commitment was apparently meant to ease concern that the low-tariff, higher-MAV strategy will not really solve the problem of tight supply and spiralling prices of pork, while causing local pork producers to go out of business.
“We commit to supply 100 FCL [full container load] Headless Carcass 6 way cut at P200/kg [excluding cold storage warehouse costs]. Each container is roughly equivalent to 250 heads,” Cham said.
“Price is for a whole set comprising of two fore ends, two middles and two whole legs; P200 is roughly equivalent to a liveweight price of P150 or better,” he added.
According to Cham, traders and retailers can purchase and pick up products at designated Cold Storage Warehouses.
“This price allows the retailer to sell at/below suggested retail price or SRP,” he added. Cham said the association will leave to DA to look after downstream pricing to keep retail prices in line with SRP.
“This is an initial offer and we will have more loads as more members and importers are enlisted to support this endeavor,” he said.
Meanwhile, Cham said opposition against EO lowering tariff rates on pork only adds “confusion and uncertainty” that will break the momentum of falling prices.
‘Prices are dropping’
Cham expressed dismay at the reactions of the hog raisers and lawmakers to the reduction of import duty and the expansion of the Minimum Access Volume (MAV).
He claimed that a few days after the announcement of the EO, prices of imported pork have started dropping.
“We are further dismayed at the misgivings of the senators with regard to the benefits that can be achieved through the duty reduction. The actions of the Senate only add confusion and uncertainty that will break the momentum of falling prices,” Cham said.
Members of the Senate and the House of Representatives are seeking to revoke Executive Order 128, temporarily modifying the rates of import duty on fresh, chilled or frozen pork meat and rejecting the staggering expansion of the MAV.
Lawmakers cited Section 1608 (f) of R.A. 10863 or the Customs Modernization and Tariff Act, saying Congress has the power to withdraw or terminate the delegated power of the President to reduce existing rates of import duties.
Image credits: PNA/Ben Briones