Philippine Hog News:

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Philippines to import pork to stabilise prices
[28 April 2010] Philippine President Gloria Arroyo has approved the importation of up to 5,000 tonnes of pork over the next two months to ensure pork supply and stabilise pork prices. The Philippine Department of Agriculture expects pork shortage to top 31 tonnes after a series of storms and diseases hit hog farms in the latter part of 2009. Under Executive Order 875, the Food Terminal Inc (FTI) has been tasked to ensure that people have continuous access to pork and other commodities, “considering its capability and experience in the marketing of pork.” Mrs Arroyo said the FTI is to use its funds and government-guaranteed credit lines to finance its pork importation. She also authorised the Agriculture Department to determine the volumes to be imported, provided it does not exceed 5,000 tonnes.

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Government defends pork importation
[4 May 2010] The Philippine government has defended its decision to import additional pork at zero duty even as hog raisers and meat processors question the need for it. Agriculture Undersecretary Salvador Salacup said that the shortage in production and high retail prices of pork prompted the importation order. Pork currently sells between PHP 180-190/kg (USD 4.04-4.27) in the wet markets. Earlier, hog raisers, meat processors and slaughterhouse operators, through the Swine Board, urged the government to scrap the additional imports saying that when they arrive around June and July, pork prices will be at their traditionally lowest level, and will “most certainly disturb and distort the market.” Meanwhile, the National Federation of Hog Farmers Inc also expressed fears that any pork imports might possibly affect the government’s efforts to get its FMD-free status for Luzon, as the imports might come from FMD-infected countries.

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MFC, PIC Sign Long-term Partnership Agreement
PHILIPPINES - Monterey Foods Corporation (MFC), the Philippine’s largest pork producer and quality meat retailer, recently signed a 6-year Supply Partnership Agreement with global swine genetics leader, PIC, on Friday, 14 May at the Palms Country Club in Alabang, Muntinlupa.

 
The new contract is set to update and maintain more than 70 per cent of the growing MFC swine breeding herds across the nation with the latest in PIC’s improved genetic technology for maximum productivity and meat quality.

A subsidiary of San Miguel Pure Foods Company, Inc., MFC has been continuously improving their operations to satisfy the need of consumers for quality pork. Representing MFC were Dr Leo Obviar, General Manager for Poultry & Meats, Dr Rey Zamora, VP and Live Operations Manager, and Dr Jay Molina. On behalf of UK based genetic technology supplier, PIC, Andrew Bateson, Asia Regional Director, Vincent Borromeo, Philippines General Manager and Dr Angel Manabat, Technical Manager penned the deal.

“We are excited with this new phase of our relationship with Monterey. Over the years, we have enjoyed working with them to serve the growing need of consumers for quality, healthy pork. In line with this, we have never stopped improving our products and services to meet their strict standards on productivity, health and meat quality,” disclosed Mr Borromeo.

A relationship that began in 1994 when 2,062 PIC breeders were imported from Australia to stock Monterey’s first farms in Mindanao, this now marks 16 years of working hand in hand to improve each segment of the MFC pork chain, from farm to market. This partnership gives MFC access to the latest PIC technologies from around the globe, as it enters another decade of bringing affordable quality meats to every meal.

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Flat growth in Philippine hog production 
[28 May 2010] Philippine hog production barely grew in the first three months of 2010, as output increased by only 0.35%. Data from the Bureau of Agricultural Statistics (BAS) showed that from January to March, total hog production was 455,480 tonnes, just slightly higher than the 453,890 tonnes posted last year. The subpar performance has been attributed to lower stocks of finisher pigs and a tight supply of piglets. Industry observers also noted that diseases continued to plague the hog sector adversely affecting production. Valuewise, the hog industry grossed PHP 42.66 billion (USD 936 million) during the period, up 9.5% from PHP 39.96 billion (USD 836.99 million) in 2009. Meanwhile, average farm prices of live hogs averaged PHP 93.67 (USD 2.01)/kg, up 9.12% from the yearago level of PHP 85.84 (USD 1.84).

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 Meat traders unlikely to import pork
[4 June 2010] Meat traders in the Philippines are unlikely to import pork cuts this year following a sharp increase in world market prices. According to Pork Producers Federation of the Philippines Inc President Albert Lim Jr, the average price of pork from traditional meat exporting countries like the US in April was USD 0.78/lb, up from USD 0.56/lb during the same time in 2009. He said this made imports prohibitive and is likely to discourage meat traders from bringing in pork. Meanwhile, although the government has authorised the importation of 5000 tonnes of pork meat to stabilise prices, none of the meat has arrived so far, and industry stakeholders say it is looking like there will be no pork meat coming in. 
 
 
 

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Thursday, June 03, 2010Print This Page
Hog-Raising Pushed to Boost Livelihood in Vizcaya
PHILIPPINES - At least 25 swine were distributed throughout a village in mountainous Dupax del Norte by the Philippine subsidiary of an Australian mining company.

Royalco Philippines gave out the swines in remote Yabbe village as part of their company’s socio-civic development, livelihood generation and corporate responsibility project that began in March this year. The activity began with an initial cost of P75,000, reports The Manila Times.net.

The project is aimed at providing alternative income sources for low-income families by providing them with a female piglet to raise until it is physically mature and ready for breeding.

“Any excess piglets the sow will have may be sold by the recipient, including the sow itself. Of course, it would be much better if the recipients continue to breed their swine,” said Gemma Segundo, Royalco’s Community Development Affairs officer.

The company said this would be “paying back” the community for the assistance given to them. Royalco Philippines is also hoping that the community would multiply the distributed number of swines by returning at least one female piglet to the company, which will be later donated to other members of Yabbe village for the same purpose.

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Monday, June 21, 2010Print This Page
TOPIGS Philippines Starts InGene Partnership
PHILIPPINES - TOPIGS Philippines and Monterey Foods Corporation (MFC), the biggest pig operation in the Philippines, have formally signed an InGene partnership agreement.

The InGene agreement was signed by (L-R) Dr Jose A. Molina II (Genetics Analysts, MFC) Dr Regalado Z. Zamora (Live Operations Manager, MFC), Dr Leo A. Obviar (General Manager, Poultry and Meat Business, MFC), Mr Rene ten Brinke (Regional Director, Asia- Pacific, TOPIGS International) and Dr Bryan M. Retales (COO, TOPIGS Philippines).Now TOPIGS can start to supply pig genetics to Monterey, starting in their South Mindanao Live Operations.

The InGene programme enables MFC to produce its own sows with the highest genetic potential using the genetics, knowledge and support of TOPIGS. A key element of InGene is the linking of MFC’s breeding herd to Pigbase, the world’s largest pig-breeding database that contains genetic information from more than 800 breeding farms worldwide. Pigbase contains data on more than 20 million pigs, which makes it a powerful tool for achieving genetic progress within the breeding programme of TOPIGS as well as on farms using the Ingene programme.

TOPIGS Philippines is a subsidiary of TOPIGS International and is a key genetic supplier in the Philippines. TOPIGS is a world leader in pig genetics and the absolute market leader in several countries. TOPIGS is the biggest genetic supplier in Europe. Excellent breeding programmes and the resulting customer commitment are the key to TOPIGS’ success.

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 News Press Philippines welcomes UK pig producers
Pig producers now have an important new market as the Philippines has re-opened its market to the UK.
Related

The market had been closed since the outbreak of Foot and Mouth Disease in 2007 and never formally re-opened.


Work by BPEX and Defra helped fast-track the approval from the country's veterinary authorities.


BPEX International Manager Peter Hardwick said: "This has all happened in the last four weeks and already two or three consignments have been exported.

"The Philippines is a very important market for the fifth quarter and offals and we have hopes the trade will grow rapidly.
 
"Fifth quarter is particularly important as it has a low value here - in some cases even a disposal cost - while it can command good prices in some overseas markets."
 

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 Philippine unlikely to export pork this year
[8 July 2010] The Philippines' plan to export pork is unlikely to happen this year as the country is still waiting for Mindanao to be declared free of the Ebola Reston Virus (ERV). The Bureau of Animal Industry (BAI) is still waiting for test and antigen kits for ERV to arrive from the Centre for Disease Control and Prevention in the US. Singapore has renewed its interest to resume talks on pork imports from the Philippines, sending a team of health experts to the country in March to inspect facilities in Mindanao. BAI officials said testing for ERV will increase the confidence of Singapore in the safety of pork products in the region, particularly in General Santos City, which the government has prioritised for the testing. The Philippines was all set to send its first pork shipments to Singapore in December 2008 when the Philippine Departments of Agriculture and of Health issued a hold order after announcing that the ERV had been found in blood samples from pigs in Luzon. 
 
 
 

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Philippines hog output to drop
[29 July 2010] Hog production in the Philippines is expected to dip by 3% this year due to the lingering impact of damage to commercial and backyard farms caused by storms that hit the country late last year. The government, on the other hand, expects at least a 1% growth this year, citing recovery of some backyard farms from the storm damage. Some 70% of the swine population is raised in backyard farms

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 Philippines hopes to export pork by year end
[30 July 2010] The Philippine government is hoping to push through with pork exports by the end of this year, however industry members believe it may take another year or two before this can be realised. Dr Rieldrin Morales of the Bureau of Animal Industry’s Animal Health Division expects testing for the Ebola Reston Virus to happen in the third quarter of the year, which might lead to pork exports later in the year. However, Mr Albert Lim of the Pork Producers Federation of the Philippines Inc said the local hog raisers still need to increase their production capacity to cover domestic demand before they can provide for the export market. 
 
 
 

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Shortage could jack up pork prices in December
[4 August 2010] A pork shortage is likely to push up prices in December this year if the new Philippine government administration does not address the continuing shortfall in hog production. Federation of Pork Producers of the Philippines Inc President Albert Lim said there is still a shortfall in hog output and the only reason this isn’t reflected in market prices is because demand for pork has been weak. He said had pork production been adequate, pork prices would have been lower than the current prices that hover between PHP 150-175 (USD 3.28-3.84)/kg in wet markets. However, farm price has gone down to PHP 108 (USD 2.36)/kg in Luzon and even lower in the Vis-Min region. He urged the government to distribute piglets to backyard farmers to help ensure enough supply in the latter part of the year, when pork demand shoots up because of the Christmas holidays.

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Philippines - Hog Industry Updates
Pig production increased by more than 1.1 per cent in value terms in 2009 while per-capita pork consumption declined, according to Pia A. Ang in the latest GAIN report from the USDA Foreign Agricultural Service. 

Annual Summary

Report Highlights
Philippine hog production, valued at 161 billion pesos (PHP; $3.5 billion), increased by 1.16 per cent in 2009. Consumption of pork, estimated at 1.357 million metric tons last year, continued to decline on a per-capita basis. Imports of pork, on the other hand, rose by five per cent in 2009, comprised mostly of pork fats, rind and assorted pork cuts and offal, mainly from Canada (37 per cent) and the United States (32 per cent). Tariff rates of pork imports from the ASEAN region were lowered to zero to five per cent from 1 January 2010. In May 2010, Zones 1 and 3 in the Luzon area were recognised by the Office International des Epizooties as FMD-free without vaccination.

Production
In 2009, Philippine hog production was valued at over PHP161 billion [1] ($3.5 billion), increased by 1.16 per cent in liveweight basis from the previous year or 1.357 million metric tons (MMT) in carcass weight equivalent (CWE).

The local hog industry accounts for about 83 per cent of the total livestock production and is equivalent to almost 15 per cent of total value of agricultural production. As of January 2010, the total number of pigs is about 13.4 million head, of which 71 per cent are from backyard farms and 29 per cent are being raised by commercial farms. The highest number of pigs can be found in the CALABARZON Cavite-Laguna-Batangas (1.76 million), followed by Western Visayas (1.65 million) and Central Luzon (1.43 million).

From January to March 2010, hog production inched up by 0.35 percent. This slowdown was manifested in the lower stocks of fatteners and tight supply of piglets as observed in Cagayan Valley, Central Luzon and CALABARZON, according to the Bureau of Agricultural Statistics (BAS).

[1] Current Prices; US$1=PHP46.36 as of 8 July 2010


Consumption
Total demand for pork in 2009 reached almost 1.357 million metric tons (CWE), of which 97 per cent was produced locally and the remaining three per cent was imported. Pork supply is mostly for domestic food consumption which is about 98 per cent, and the balance is manufactured into canned or processed meat. The derived consumption of pork (excluding offal and processed meats) in 2009 was 14.87kg, lower that the previous two years.

According to BAS, higher prices offered by traders pushed farm-gate hog prices up by 4.70 per cent in 2009.


Trade
Pork imports increased by five per cent in 2009, comprised mostly of pork fats and rind for processing, as well as various pork cuts (i.e., hams and shoulders) and offal. Main country sources for pork were Canada, 37 per cent and the United States, 32 per cent. Imports from the United States nearly tripled from 10,351MT in 2007 to 36,809MT last year.

Policy
Foot and Mouth Disease (FMD): In May 2010, the Philippine Department of Agriculture (DA) secured a certification from Paris-based Office International des Epizooties (OIE) recognizing two of the three zones (Zones 1 and 3) in Luzon as FMD-free without vaccination. The DA announced that the provinces in North and South Luzon have been recognized by the OIE as ‘free from foot and mouth disease where vaccination is not practiced.’ The application for an FMD-free declaration without vaccination for Luzon’s Zone 2 is now pending with the OIE.

Mindanao and Visayas along with the island provinces of Palawan and Masbate were already declared by the OIE as FMD-free without vaccination in 2001 and 2002 respectively. To facilitate the Philippines’ application for a FMD-free declaration by the OIE, the DA had subdivided Luzon into three areas. Zone 1 or North Luzon comprises the Cordillera Administrative Region, Region II, and the province of Aurora in Region III, Ilocos Norte, Ilocos Sur and La Union in Region I; Zone 2 or Mid-Luzon covers Region III except the province of Aurora, Region IVA, National Capital Region and the province of Pangasinan in Region I; and Zone 3 or South Luzon includes Region IV-B and Region V.

Minimum Access Volumes: Minimum Access Volumes (MAV) for pork and all other commodities subject to MAV or Tariff Rate Quotas (TRQ) have not increased since 2005, when the Philippines reach its 10th/last year commitment under the WTO Uruguay Round. In February 2009, after extensive and spirited consultations with local stakeholders and main trading partners, then Philippine Agriculture Secretary Arthur C. Yap announced that the current MAV system would remain in place and that no changes would be initiated under his watch. A new Secretary of Agriculture has been appointed in July 2010.

Data from the MAV Management Committee of the DA shows that in 2009, utilization rates of tariff-rate-quotas (TRQ) or MAV for pork increased from 58 per cent in 2008 to 69 per cent in 2009, indicating more imports of higher-value pork cuts, such as bellies and other cuts.

In the past, MAV usage for pork has been relatively low, due in part to the entry of large quantities of buffalo meat with a low tariff rate of 10 percent. Buffalo meat, from India, has been traditionally used in the Philippines as a substitute for pork by the local meat processing industry. MAV utilization increased significantly since 2008 due in part to the strength of the Philippine peso vis-à-vis the US dollar.

Tariff Rates: In-quota and out-of-quota tariff rates for MAV commodities have not changed since 2005. AFTA-CEPT tariff rates for frozen and chilled pork have been lowered to five per cent while AFTA-CEPT tariffs for processed pork products were eliminated starting January 2010 in full compliance with the AFTA.


Marketing:
San Miguel Corporation: On 31 May 2010, San Miguel Corporation (SMC) shareholders approved the sale of 51 per cent of its stakes in various core businesses, which include its poultry, livestock, feeds and packaging businesses for as much as $1 billion reportedly. During the shareholders meeting, SMC announced plans to further cut down the revenue share from its traditional food and beverage businesses and create a “more even” distribution with its power, infrastructure and energy portfolio. According its Chairman, SMC is still in talks with several buyers for the 49 percent stake in food subsidiary San Miguel Pure Foods.
 

July 2010

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Wednesday, August 11, 2010
Canada Secures Access to the Philippines
CANADA - Agriculture Minister Gerry Ritz has announced that Canadian exporters of rendered animal products have gained important access to Philippine markets that were previously closed to them. Canadian exports to the Philippines can begin immediately.



“Since coming to office, our Government has worked tirelessly to break down trade barriers around the world,” said Minister Ritz. “Our efforts are showing substantial results as Canadian farmers continue to gain access to new international markets to sell their top quality products”.

Following a concerted effort by government and industry, the Philippine government has agreed to open its market to Canadian rendered animal by-products including blood meal, poultry meal and fats.

The Canada Beef Export Federation estimates that the Philippine market for Canadian exporters of rendered products could reach $20 million.

“This announcement is great news for Canadian farmers who have gained expanded access to an important market of over 90 million people."

Last year, existing Canadian agri-food exports to the Philippines totalled $250 million.

The Government of Canada remains committed to creating trade opportunities and expanding international markets for Canadian farmers.

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BAI: Hog Farmers Asked to Try Low-cost Native Breed
PHILIPPINES - Hog producers who cannot cope with increasing prices of commercial feed might want to consider the alternative of raising native pigs, the Bureau of Animal Industry (BAI) said Wednesday.



“Native pigs can be raised without the use of chemical inputs and has high economic potential for those engaged in organic swine production," the bureau said in a statement.

BAI likewise said native pigs easily adapt to local conditions and can tolerate heat and cold environments better than imported swine.

“They can thrive well on locally-available feeds, including kitchen and farm refuse, and can cope with low quality feed and maintenance," it added.

According to GMA News.TV, the bureau said, without citing figures, that it hopes that the market for native pig — traditionally known as lechon or grilled pig — will expand.

Based on an ongoing study on the “Conservation, Evaluation, and Commercialisation of the Philippine Native Pigs," the bureau plans to establish a production system involving raising native pigs managed by farmers and with a view to propagating the practice as commerce.