PRESIDENT Ferdinand Marcos Jr. has ordered a substantial increase in the country’s low-tariff pork import quota to ensure supplies and lower prices amid losses caused by African swine fever (ASF).
Executive Order (EO) 116, signed by Marcos through Executive Secretary Ralph Recto on Tuesday, raised the minimum access volume (MAV) for pork to 204,210 metric tons (MT) from 54,210 MT.
He cited a “substantial supply shortfall and persistently elevated pork price” due to ASF that has resulted in higher food costs, adversely affecting consumers.
“There is an urgent need to address the existing supply gap in pork, ensure adequate and affordable food for consumers, and mitigate inflationary pressures,” Marcos said in the EO.
The MAV Management Committee (MMC) is directed to ensure a fair allocation of imported pork volumes, with 30,000 MT allotted for processors and 120,000 MT designated for the Food Terminal Inc. or the Kadiwa ng Pangulo Program.
The committee was also directed to formulate and issue implementation guidelines within 30 days from effectivity of the order.
“The guidelines shall ensure that the allocations intended for the Food Terminal Inc. and the Kadiwa ng Pangulo Program are efficiently utilized and implemented in a manner consistent with the objectives of the MAV Plus mechanism, particularly in augmenting domestic supply, stabilizing market prices, and promoting consumer welfare,” the EO states.
EO 116, which was made public on Thursday, will take effect immediately upon publication in the Official Gazette or a newspaper of general circulation.
The MMC has recommended an increase in the MAV for pork by 150,000 MT annually for a period of two years “to address prevailing supply constraints and price pressures, in order to ensure the continued availability and affordability of pork and processed meat products and mitigate further inflationary pressures on basic commodities.”
The MAV allows the entry of limited volumes of agricultural commodities at a favorable tariff rate. Volumes exceeding the quota are charged a higher rate.
For pork, MAV shipments are subject to a 15-percent tariff, while volumes beyond the quota are charged the regular 25 percent rate.
Marcos earlier issued EO 110 declaring a state of national energy emergency and directing a whole-of-government approach to safeguard economic stability and mitigate price increases in essential goods.
Under EO 110, the Department of Agriculture was mandated to ensure the adequate supply and availability of food products at the lowest possible cost.
