The Philippines: DoF blames pork for inflation blowout, backs more imports

• THE Department of Finance (DoF) said meat prices pushed inflation beyond the government target range in 2021, and pressed for more pork imports and a drawdown of the pork inventory held in cold storage.
• “The 16.8% meat price inflation in 2021 accounted for 1.1 percentage points (of) the 4.4% overall inflation,” Finance Undersecretary Gil S. Beltran said in an economic bulletin.
• “Had meat price inflation been half as high, the upper level of the 2-4% inflation target range would not have been breached.” Beltran said meat price inflation in 2021 was the highest of any major food item since 2012.
• The lingering effects of African Swine Fever (ASF) have drastically cut the hog population, pressuring pork prices higher, he said. Mr. Beltran said the Philippines will need to continue importing pork to meet demand and compensate for the supply shortfall.
• Other interventions may include the regular release of pork held in cold storage and their continuous replenishment from local or imported supply, he said.
• Finance Secretary Carlos G. Dominguez III supports the proposal by the National Economic and Development Authority to extend the validity of an executive order increasing import volumes until the end of 2022.
• Executive Order No. 133 in May 21 temporarily raised the pork import quota, known as the minimum access volume, to 254,210 metric tons from 54,210 to address increasing pork prices. EO133 expired at the close of 2021.
• The hog and meat industry had opposed the proposed extension, asking the government to instead support local producers to improve supply.
• Also, the finance official said the Department of Agriculture’s National Meat Inspection Service (NMIS) should exert efforts to prop up the utilization rate of the expanded MAV.
• Based on records from NEDA, only 46.4% of the expanded MAV was utilized in 2021. The NMIS, Beltran said, should deliver on its commitment to remove non-tariff barriers as instructed by the President himself in Administrative Order 13 in 2018.
• The country’s hog inventory has fallen by more than 12% to 9.87 million as of Sep 21, from 11.27 million in 2020, according to the Philippine Statistics Authority.

External Link : https://www.bworldonline.com/dof-blames-pork-for-inflation-blowout-backs-more-imports/

External Link : https://www.philstar.com/business/2022/01/14/2153706/dof-wants-higher-quota-pork-imports-extended