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China’s decision to ban pork shipments from Germany following Berlin’s confirmation of the first outbreak of African swine fever (ASF) in the European nation could put the Philippine pork supply at risk.
The president of the Association of Importers and Traders of Meat, Jesus C. Cham, said that China’s blanket ban on German pork would put pressure on world supply and international prices.
“The Philippines, being a poor country, is not in a position to match the prices that China is willing to pay,” Cham told BusinessMirror on Sunday. “We already see price increases in countries like the United States.”
The Department of Agriculture (DA) recently imposed a blanket ban on German pork imports after Berlin confirmed an outbreak of African swine fever involving a wild boar in Schenkendöbern, Spree-Neiße, Brandenburg, on the border with Poland , whose wild boar population was affected by African swine fever.
However, the borders of the Philippines have been closed to German pork shipments since July 2019 following the involvement of German Foreign Meat Establishments (FMEs) in a mixing problem.
However, sources familiar with the matter told BusinessMirror that the latest blanket ban in Germany came as Berlin was about to get a new accreditation for its pork exports to the Philippines after a year-long dialogue to resolve the issue. mixing problem. (See “Lifting the ban on the import of pork, says Germany to the Philippines”, in the Business mirror, August 9, 2019).
The sources also said that the meat processing industry has been in constant communication with the German Embassy on the matter.
Impact on consumers
Cham said higher international pork prices would be detrimental to CDE segments “that cannot afford local meat and rely on imported pork offal and processed meat products.” He added that small meat processors and street food consumers would also be “severely affected.”
“Production around the world has not returned to pre-Covid 19 levels. We will have a difficult time finding pork that is affordable for our huge 80 percent CDE economy class,” he said.
Because of this, Cham again called on the DA to reconsider its blanket bans and adhere to the scientific principles and guidelines set out by international organizations.
He said one of the approaches the DA could take is regionalization in which countries will impose an import ban only on a specific area affected by outbreaks of animal diseases.
Cham noted that the pork trade in the European Union continues despite confirmation of African swine fever in some member countries, as long as shipments are certified free of the deadly pig disease.
Another example, Cham said, is the approach taken by Canada, which agreed to continue accepting pork from the EU as long as shipments are certified free from African swine fever.
Cham noted that the local pork inventory is “not abundant”, while imported supplies are “normal” compared to previous years due to reduced consumption during the shutdown.
“Our strategy should not only be to protect pig farms and pig production, but also to ensure the availability of affordable meat for consumers. Keeping out healthy pork that is certified ASF-free only deprives our consumers and the economy of affordable meat and nutrition, ”he said.
“We need to review our strategy and change our focus. In a way, it’s like Covid-19: we have to live with it while we wait for a vaccine. We must not isolate ourselves. “
The country’s pork imports from January to August plummeted 36.83 percent to 137,131,272 metric tons (MT) from 217,102,929 MT last year, the latest data from the Bureau of Animal Industry (BAI) showed.
Last year, the Philippines imported 335,786.89 MT of pork products, more than half of which are by-products and cuts of pork that are used by the meat processing industry.
Meanwhile, the country’s frozen pork inventory as of August 31 was estimated at 43,124.13 MT, of which 80 percent is imported, the latest data from the National Meat Inspection Service (NMIS) showed.
NMIS data also showed that the frozen pork inventory for August was higher than 40,085.47 MT in July and higher than 36,448.23 MT last year.
‘Double hit’
An industry source familiar with the matter told BusinessMirror that a prolonged blanket ban by China on German pork is a “double whammy” for meat processors as they would have to pay more for their raw materials. imported.
The source, who has been following the development since Berlin confirmed its outbreak of African swine fever, said producers of chicharon, longganisa, bacon and even liver spread can be affected by higher world prices.
The source said that meat processors that produce liver propagated and chicharon They use imported pork skin / rind, liver, sirloin, and shoulders to make their products affordable.
EU countries, particularly Germany and Spain, the Philippines’ main suppliers of pork, offer cheaper prices compared to the United States and Canada, according to the source.
“Prices may have to rise in the international market considering that the United States, Germany and Spain account for roughly half of the world’s pork exports,” the source said.
However, the source said he does not believe that China’s blanket ban on German pork will have an immediate impact on the Philippines.
There is also the possibility, the source said, that China will reconsider the blanket ban and opt for the regionalized approach to plug the shortfall in its pork supply.
