The Department of Agriculture (DA) plans to revise the pork import allocation under the minimum access volume (MAV) scheme, allowing meat processors to manage 40,000 metric tons (MT) from the 55,000 MT quota, while the remaining share would be assigned to Food Terminals Inc. (FTI) to help stabilize prices.
Agriculture Secretary Francisco Tiu Laurel Jr. said the government is pushing for an overhaul of the MAV system for pork, citing outdated rules that have remained unchanged for nearly three decades and primarily benefited a small group of accredited importers.
“We are reformulating the MAV rules. The Department of Agriculture’s Policy and Planning Office is already working on it and must deliver an output by October. The current rules, written in 1996, leave a lot of room for improvement. A revision is necessary,” he said at the 31st National Hog Convention in Pasay City.
Pork imports under the MAV quota are subject to a lower tariff of 15 percent, compared to the regular 25 percent.
Data showed that of the total 55,000-MT allocation, 30,000 MT is set aside for meat processors to help keep processed meat prices low.
Tiu Laurel said that upon reviewing the MAV system, he found that of the 130 quota holders, 47 receive 80 percent of the total allocation. Of these, 22 account for 70 percent of the share.
“In reality, these 22 quota holders control 55 percent of the total MAV,” he said.
He also raised concerns that many MAV quotas are frequently reused, artificially inflating pork import volumes while failing to translate into lower prices for consumers.
Despite the DA setting a maximum suggested retail price (MSRP) of P380 per kilogram for liempo, P350 for pigue and kasim and P300 for fresh carcass or sabit ulo, compliance by meat retailers remains slow, he said.