Philippines Weighs Higher Pork Tariffs and Import Freeze as Farmers Report Heavy Losses

Falling Farm Prices Put Pork Trade Policy Under Pressure

The Philippine Department of Agriculture is seeking higher pork import tariffs and a suspension lasting 60 days on selected pork imports as local hog raisers report selling animals below production cost. The proposals would change how the country balances relief for struggling farmers with the supply of affordable meat for households.

Senate Majority Leader Juan Miguel F. Zubiri told a hearing on the department's proposed 2027 budget that live hog prices had fallen from P185 per kilogram in 2024 to P90-P120. He put production costs at P130-P140 per kilogram. Those figures mean farmers would lose between P10 and P50 per kilogram, depending on their costs and selling prices.

The agricultural group Samahang Industriya ng Agrikultura, known as SINAG, gives a higher loss estimate of P50-P90 per kilogram, or roughly P5,000-P9,000 per hog. Its chairman, Rosendo So, argues that imports have depressed farm prices without delivering cheaper pork at market stalls.

Importers and the British Chamber of Commerce Philippines oppose the proposed restrictions. They warn that higher import taxes and fewer incoming shipments could raise food prices while leaving disease, production costs and other problems on farms unresolved.

What Would Change at the Border?

The current pork tariffs are 15 percent for imports within the minimum access volume, or MAV, and 25 percent for imports outside it. The MAV is a quota that allows a specified quantity of meat to enter at the lower tax rate. Executive Order 62 extended these reduced rates through 2028.

The department's stated target is 30 percent within the quota and 40 percent outside it. A phased proposal described in the Meat Importers and Traders Association's position paper would first raise the rates to 25 percent and 35 percent in 2027, followed by 30 percent and 40 percent in 2028. SINAG wants the 30 percent and 40 percent rates restored immediately.

A tariff is a tax on imported goods. For a shipment with a customs value of P100, a 15 percent tariff adds P15, while a 30 percent tariff adds P30, before other charges. An importer facing the higher bill could accept a smaller margin, negotiate a lower supplier price or charge buyers more.

The proposed import suspension is a separate measure. The department has discussed stopping the issuance of import permits for 60 days beginning in November, covering kasim, or shoulder, pigue, or ham, and liempo, or belly. A final implementation date and the treatment of shipments already approved have not been announced.

Why Hog Raisers Want Immediate Relief

SINAG says successive tariff reductions encouraged heavy imports over the previous two years, leaving domestic producers competing against plentiful foreign supplies while feed and other expenses continued to rise. The group argues that a temporary suspension would give farmers room to sell their animals and recover.

So, the group's chairman, described the role he believes imports should play in the Philippine food supply:

Imports should complement domestic production, not replace it. They should fill genuine supply gaps, not create an oversupply that destroys local producers.

Zubiri said farmers in Bukidnon and other agricultural provinces were under severe pressure. According to his figures, backyard farmers account for 80 percent of pork producers, compared with 20 percent for large producers. Small operators can have less money available to keep feeding animals while waiting for prices to improve.

The fall from P185 per kilogram in 2024 to P90-P120 represents a decline of about 35 percent to 51 percent. For a farmer still paying for feed, fuel and animal care, that reduction can determine whether another batch of pigs is raised at all.

Why Importers Dispute the Diagnosis

The Meat Importers and Traders Association, or MITA, has asked the Tariff Commission to reject the proposed increases. It attributes falling farm prices to seasonal selling and fear of African swine fever, rather than a surge in imports.

African swine fever is a contagious disease that can kill pigs and cause major losses for farms. MITA says some raisers sell animals early during the rainy season to reduce their exposure to disease and severe weather. Others sell livestock to pay tuition and household expenses when the school year begins.

The association cites Philippine Statistics Authority data showing similar declines in the middle of the year following African swine fever outbreaks, regardless of import volumes. Its position is that raising import taxes would leave those pressures in place while making meat more expensive for buyers.

Jesus Cham, MITA's president emeritus, warned about the consequences for both consumers and businesses:

Premature tariff hikes will stoke food inflation, threaten the raw material supply of food manufacturers and impose unnecessary costs on consumers.

MITA wants the reduced rates retained beyond 2028. Its argument differs from SINAG's at the starting point: SINAG identifies excess imported supply as a central cause of losses, while MITA points to disease fears and seasonal decisions to sell.

Import Figures Show Pork's Large Share

Bureau of Animal Industry figures cited in the tariff debate put total meat imports at 1.14 billion kilograms from January to August, including 602.65 million kilograms of pork. Pork therefore accounted for about 53 percent of imported meat during that period.

The pork figure was 5.2 percent above 573.09 million kilograms a year earlier, an increase of about 29.56 million kilograms. Another set of Bureau of Animal Industry figures cited in the debate gives January to August pork imports as 573,091 metric tons, equivalent to about 573.09 million kilograms, rather than 602.65 million kilograms.

The government also raised the pork MAV in May from 54,210 metric tons to 204,210 metric tons. That was an increase of 150,000 metric tons, making the quota about 3.8 times its previous size. More pork could consequently qualify for the lower tariff.

British Chamber of Commerce Philippines executive vice chairman Chris Nelson said some traders had struggled to obtain allocations under the expanded quota. The chamber wants clearer allocation arrangements, alongside continued access to imports until domestic production can meet demand.

Why Cheap Farm Prices May Not Reach Shoppers

Zubiri pointed to live hog prices as low as P100 per kilogram in Mindanao while pork belly sold for as much as P380 per kilogram in urban centers. He called for agriculture and trade inspectors to examine market pricing and middleman markups.

Farm prices and retail prices cover different stages of the food chain. A kilogram of live animal includes parts that will not become a kilogram of saleable meat. Slaughter, transport, refrigeration, handling and retail operations add costs, and individual cuts command different prices. Understanding the gap requires examining those stages and the margins charged along the way.

SINAG says imported pork has a landed cost of P100-P160 per kilogram and argues that cheaper imports have failed to bring corresponding relief to consumers. Landed cost refers to the cost of bringing goods into the destination country; further distribution and retail expenses follow.

The group's criticism puts consumer prices at the center of the dispute alongside farmer income. If farmers receive less while shoppers continue paying high prices, government action on imports alone leaves the distribution chain and market pricing as subjects for investigation.

Businesses Warn About Supply and Food Bills

The British chamber has submitted a position paper to the Tariff Commission opposing tariff increases until local supply can meet growing demand. It argues that an import suspension could tighten supply and weaken household purchasing power.

Nelson also called for predictable trading conditions, explaining the chamber's concern about sudden interruptions:

We want to work in a way where conditions or trading is clear, not where somebody can say that they can ban something for two months.

Food manufacturers using imported shoulder and belly would face higher ingredient costs if tariffs rose, according to MITA. Restaurants would face a choice between absorbing higher costs and increasing menu prices. Households could encounter the effect through both fresh pork purchases and prepared food.

MITA also warns that tariff increases could affect negotiations for a Philippines-European Union free trade agreement and accession talks involving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Its concern adds trade policy to a dispute already involving farm survival, retail prices and disease control.

What the Government Is Considering Next

Agriculture Secretary Francisco Tiu Laurel Jr. told the Senate hearing that the government was considering suspending imports of shoulder, ham and belly for 60 days or stopping new Sanitary and Phytosanitary Import Clearances. These clearances, commonly called SPSICs, are health and safety permits required for agricultural imports.

Zubiri urged Laurel to act against predatory pricing and agricultural smuggling as well as excessive imports. He argued that visible enforcement was needed to protect farmers receiving low prices while consumers continued paying much more in public markets.

The dates and proposed changes at the center of the debate are:

• 2024: Zubiri's comparison places live hog farm prices at P185 per kilogram.
• May: The government increased the pork MAV from 54,210 to 204,210 metric tons.
• November: The department proposed beginning a suspension lasting 60 days on permits for selected pork cuts.
• 2027: The phased tariff proposal would set rates at 25 percent within the quota and 35 percent outside it.
• 2028: The phased proposal would raise those rates to 30 percent and 40 percent, while Executive Order 62 currently extends reduced tariffs through that year.

Economic officials expect domestic output to improve in the year's final quarter, supported by holiday spending and catch-up government spending. The proposed November restriction would coincide with the approach to the holiday buying season, making the availability and price of pork central to the government's decision.

Farmers want prices that cover the cost of raising animals. Consumers want affordable meat, while processors and traders want reliable supplies. The government's immediate task is to decide whether tighter imports can support local production while keeping enough pork moving into markets.

Key Points

• The agriculture department is seeking higher pork tariffs and a suspension lasting 60 days on selected imports.
• Current tariffs are 15 percent within the import quota and 25 percent outside it.
• A phased proposal would raise tariffs in 2027 and again in 2028, reaching 30 percent and 40 percent.
• Zubiri says live hog prices have fallen to P90-P120 per kilogram, below his estimated production costs of P130-P140.
• SINAG blames heavy imports for farmer losses; MITA points to seasonal selling and African swine fever fears.
• Importers and the British chamber warn that restrictions could raise consumer prices and disrupt supply.
• The final terms and implementation date of the proposed import suspension have not been announced.