The Philippines, with a population of more than 90 million people, is currently ranked as the eighth largest export market for Canadian pork. In 2012, Canada exported 40,545 tonnes of pork valued at $54.6 million. Exports are trending slightly ahead this year - for the period January to May 2013 Canada exported 22,779 tonnes of pork valued at $30.5 million compared to 12, 785 tonnes at $17.8 million for the same period in 2012.
Of the 40,545 tonnes of Canadian pork exported to the Philippines in 2012, 63% was frozen cuts and 15% was offal. In 2012, Canada was the main supplier of offal followed by the US.
Canada ranks as their third largest supplier of pork after the US and France. Other pork suppliers included Germany and Spain.
Pork is the second most important agriculture sector after rice in the Philippines and represents 80% of livestock production and 15% of overall agricultural production.
Total pork production for 2012 is estimated to be 1,940,000 tonnes, roughly equivalent to the size of Canada’s production. The hog population in 2013 is estimated to be 11.8 million heads, a slight decrease compared to the previous year. This meets about 95% to 98% of domestic consumption needs with imported product covering any shortfalls.
Pork is the favourite meat for people of the Philippines - in fact roasting a pig is associated with all major festivities. Annual per capita consumption is approximately 15 kg and increases tend to be driven by an increase in population, not by an increase in individual consumption.
City dwellers consume pork than people living in rural communities, however all consumers prefer freshly slaughtered pork. This preference for fresh pork provides advantage to local production.
Domestic production consists of about 65% backyard production, 35% commercial with a slow, but continual shift toward commercial production.
Backyard production is divided between:
1) subsistence farmers who raise pigs with limited care (pigs roam free, fed with food and agriculture waste, no shelter, limited veterinary care such as vaccination)
2) small landholders who replicate (on a smaller scale) more the modern methods of production found in commercial operations (pen, shelter, commercial feed, vaccination)
Although the government of the Philippines doesn’t offer subsidies for domestic pork production, government policy supports agriculture and rural development.
The Philippines government clearly wants to be seen as supporting the “small, traditional” producer, although most growth in production results from large-scale commercial operations.
Under the WTO Uruguay Round, the Philippines agreed to implement Tariff Rate Quotas and Minimum Access Volumes. These measures allow for a limited amount of pork (54,210 tonnes annually) to be imported into the country.
Pork coming from outside the Association of Southeast Asian Nations (ASEAN) region which includes Indonesia, Malaysia, the Philippines, Singapore and Thailand, is subject to an in-quota tariff of 30% and an out-quota tariff of 40%.
In addition to the relatively high tariff, foreign imports are subject to numerous, continually changing rules and regulations affecting the import, distribution, storage and sale of imported frozen products.
These regulations are often unpredictable and many have no scientific basis (an example is the claim that frozen meat represents a higher health and safety risk than fresh meat). The required paperwork is onerous, generally far more than is required by other countries and includes rules around things like limiting how many boxes can be stacked while in storage.
Philippines meat importers and processors are key allies in the goal to reduce the amount of paperwork and streamline regulations.
CPI continually monitors these regulations and will seek more information or request assistance from the Canadian government to act on our behalf, as required.
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