The Philippines’ Department of Agriculture (DA) and major hog industry groups have agreed to set a minimum farmgate price of P210 per kilogram for live hogs to staunch losses among local raisers who are struggling with plummeting prices and an influx of imports.
The DA and industry representatives, including the Samahang Industriya ng Agrikultura (SINAG), National Federation of Hog Farmers Inc. (NFHFI) and the Pork Producers Federation of the Philippines (PROPORK) noted that farmgate prices have dropped to between P150 and P180 per kg. This range is well below the financial breakeven levels for both backyard and commercial farms, they said.
Despite the sharp fall in farm prices, consumers have not seen corresponding relief, according to Agriculture Secretary Francisco Tiu Laurel Jr. He pointed out that pork belly (liempo) continues to retail for about P400 per kg.
To further support local producers, the DA and industry groups will push to revert the pork import tariff to 40 percent from the reduced 25 percent rate set under Executive Order 62.
Tiu Laurel said the lower import duties have spurred “over-importation,” which has “flooded the market, squeezed local producers and endangered both our food security and farmers’ livelihoods.”
SINAG executive director Jayson Cainglet drew a parallel between the hog situation and the pressure rice farmers are enduring due to excessive imports.
The DA said it is prepared to reinstate a suggested retail price (SRP) for key pork cuts and would also issue an administrative order to reclassify pork jowls, which are frequently used in samgyupsal and meat processing, to a higher tax bracket.
Pork jowls are currently taxed at a lower rate as offal but have become a growing import item.
Tiu Laurel said he directed the Agribusiness and Marketing Assistance Service (AMAS) and the National Meat Inspection Service (NMIS) to enhance market monitoring.
He also urged supermarkets to accurately label frozen pork and avoid selling it as “fresh,” and mandated that retailers handling frozen products maintain proper refrigeration.
