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Philippines Mulls Higher Pork Tariffs to Protect Local Producers
The Philippines' Department of Agriculture is considering higher pork tariffs as local hog raisers struggle with falling farmgate prices due to rising imports and pork inventories. Proposed increases are set to be implemented gradually starting in 2027.
The Department of Agriculture (DA) is considering higher pork tariffs as local hog raisers grapple with plunging farmgate prices, a situation exacerbated by rising imports and substantial pork inventories. Agriculture Secretary Francisco Tiu Laurel Jr. stated that he has discussed with President Ferdinand Marcos Jr. a proposal to restore pork tariffs to pre-African Swine Fever (ASF) levels as domestic production stages a recovery. The DA is proposing a 10-percentage-point increase in pork tariffs, from the current in-quota rate of 15% and out-quota rate of 25% to 25% and 35%, respectively, starting in 2027. These rates are slated to further climb to 30% in-quota and 40% out-quota by 2028, according to the DA chief. These proposed tariff hikes come at a time when local hog production saw a 6% rise in the first half of 2026, while pork imports and overall inventories also reached high levels, as per DA data. Farmgate prices have significantly dropped to P150 per kilogram in August 2026 from P215 per kilogram in June 2025, severely squeezing raisers' margins and hindering their ability to repopulate their farms. Secretary Tiu Laurel met with various hog industry groups, including representatives from the Pork Producers Federation of the Philippines, Samahang Industriya ng Agrikultura, National Federation of Hog Farmers, and AGAP Party-list. The industry groups collectively proposed several measures: time-bound quantitative restrictions on imports, local shipping permits and testing for imported frozen meat, stricter scrutiny of shipments declared under lower tariff categories, and an updated reference value for imported meat to combat undervaluation. Furthermore, the industry is advocating for a separate tariff line for frozen pork jowls, which have become a significant import item due to their preferential lower tariff treatment and increasing competition with locally produced pork. Secretary Tiu Laurel has voiced his opposition to further tariff cuts on imported meat and corn, emphasizing that short-term efforts to lower food prices must be balanced against the imperative to sustain domestic livestock production. The industry also sought financial assistance from the DA and the Development Bank of the Philippines to access a U.S. Department of Agriculture facility for importing feed raw materials such as corn, wheat, and soybeans. This situation highlights the structural challenges facing the Philippine agricultural sector, particularly the hog industry. The balance between government protectionist measures and market liberalization, along with ensuring the livelihoods of domestic producers, will be critical moving forward.
Original source
GMA Money Philippines