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Philippines Pork Imports Expected to Reach Record Levels

14.07.2021 10:37 "Agro Perspectiva" (Kyiv) According to the report of the USDA Livestock and Poultry: World Markets and Trade (July 2021), Philippines pork production is expected at 1.0 million tons in 2021, nearly 40 percent below the levels prior to the spread of African swine fever (ASF). At the beginning of 2021, commercial operators hesitated to repopulate due to fear of further disease outbreaks and restrictions on hog marketing meant to control the spread of ASF. Furthermore, the government instituted temporary price ceilings on retail pork in an effort to control prices in a move that ultimately created disincentives for increasing hog production.

Pork imports have been robust this spring driven by a worsening pork supply deficit and correspondingly high prices. In an effort to combat the high levels of consumer inflation caused by high pork prices, the government temporarily lowered tariffs and increased quota volumes. This is expected to support trade during the remainder of the year, leading the pork import forecast to be revised up to a record 425,000 tons.

In 2020, Philippines total pork consumption reached its lowest level since 2005. A weak domestic economy limited purchasing power and record demand in China made competition for product fierce in the international market. These factors, coupled with restrictive import policies, prevented production shortfalls from being offset by trade. In 2021, higher imports have begun to allow pork consumption to recover despite continued production constraints.

Agro Perspectiva

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