Meat importers seek expansion of pork MAV to allow new entrants

MEAT IMPORTERS said the Department of Agriculture (DA) needs to raise the minimum access volume (MAV) for pork imports, in order to allow more entrants to participate in the import trade.

In a letter to the DA, the Meat Importers and Traders Association (MITA) said the department’s decision to retain the MAV at 55,000 metric tons (MT) limits opportunities for new entrants and fails to reflect current market needs.

According to MITA, pre-MAV, pork production in 1994 was roughly 1 million MT (MMT) and peaked at 1.9 MMT in 2019. Following the African Swine Fever (ASF) outbreak, production reverted to 1994 levels despite an almost doubling of the Philippine population.

MITA said the hog industry’s recovery will take years and that the proposed reallocation, particularly the portion earmarked for state-owned enterprises, which already import duty-free, will not increase total supply.

The MAV is a commitment to the World Trade Organization to allow certain quantities of goods for import. Shipments within the MAV quota are charged a most favored nation tariff, while volumes beyond that pay higher rates.

Pork shipments within the MAV quota are subject to a 15% tariff, while volumes exceeding the MAV are charged the regular 25% rate.

Agriculture Secretary Francisco Tiu Laurel, Jr. has said that the department will review MAV rules after finding that only a handful of importers cornered a significant portion of the quota. MITA said the DA’s proposed rules would allocate 50% of import quotas to processors, 30% to state-owned enterprises, and 20% to other sectors. 

MITA noted that the problem lies not with the existing allocation scheme but with the overall MAV available for importers.

“Those without quota often argue that the system is unfair to them… The challenge arises when new entrants seek to participate but available volumes are insufficient,” MITA President Emeritus Jesus C. Cham said in the letter.

The DA said it intends to maintain the total MAV under the new scheme as increased volumes would hurt the already-low farmgate prices of hog.

“Right now, we can’t raise the MAV because of the low farmgate price. It’s not the right time,” Mr. Tiu Laurel has told reporters.

In November, the DA froze applications for MAV quotas while the new policy was being worked out. MITA said the DA told it that the allocations will be finalized in January.

“The abruptness of this announcement caught licensees entirely by surprise. Orders have already been placed and buying decisions finalized. These sudden shifts have created substantial uncertainty, as imports may now fall under out-quota rates, significantly affecting landed cost and contractual commitments,” Mr. Cham said.

Earlier this year, MITA said it recommended increasing the pork MAV by 500,000 MT to offset the 900,000-MT production lost due to the ASF outbreak. The MAV Advisory Council later proposed an initial MAV Plus of 250,000 MT until 2028. Neither recommendation has been implemented.

MITA urged the government to retain the current MAV Guidelines and activate the MAV Plus mechanism for both pork and poultry, prioritizing existing licensees while designating part of the volume for first-come-first-served allocation.

The group also recommended referring the matter to the MAV Advisory Council, which they said has historically represented all stakeholders. — Vonn Andrei E. Villamiel