Usec. Drilon as head of the MAV Advisory Committee informed the group during the meeting that a letter to the DOJ is being drafted by the OSEC Legal Adviser for the issuance of its legal interpretation. Related to this, Director Ocampo suggested for the different sectors to articulate their positions regarding the extension of MAV while waiting for the legal interpretation.

     In connection to E.O. 376 Mr. Francis Wong of the National Federation of Hog Farmers suggested for the review of the new Implementing Rules and Regulations (IRR) which favors the big companies and had negative effect on small groups who cannot import.

     Incidentally, NMIS Deputy Executive Director Minda Manantan informed the group about the NMIS preparation of the formal Residue Monitoring Program, for submission to Secretary Arthur C. Yap. This residue monitoring program is to be adopted nationwide as part of the NMIS compliance to Hongkong requirements for importation.

     To clear the Value Added Tax (VAT) interpretation as applied to livestock and the whole of agriculture, the group agreed to organize a seminar to answer the many inquiries that arises during the meeting. Related to this, LDC scheduled workshops to be held during the occasion of the LDC’s 29th anniversary on March 28, 2005.

     While, Mr. Wong requested LDC to sponsor a resolution to accelerate the approval of the revised Administrative Order (AO) 39. Undersecretary Drilon encouraged Mr. Wong to attend the hearing of the Committee of Senator Mar Roxas. Director Ocampo on the other hand, said that the DA had to come up with a position paper to reduce the tariff on importation of pork for a certain volume like 10% from 30% should a trigger price of P150/kilo in the wet
market is reach.

Director said the DA program called “Pork in a Box” (PIB) may substitute pork and pork product imports totaling to 55, 570 metric tons (MT) as of 2004 and may eventually lead the Philippines to export chilled or frozen pork.

     This is because the slaughtering and packaging of pork right in the rural farms make the Philippines at P140 per kilo for certain cuts while the local pork is targeted to cost wholesale at only P103 per kilo.

     “If it will be slaughtered and prepared in hog-producing areas like General Santos or Cagayan de Oro, the cost of the carcass will be P95 per kilo. Our importation of choice cuts under MAV (minimum access volume) is at P140 per kilo.” But the MAV is not being utilized at all,” said Nuestro in an interview.

     Nuestro explained that if the lower-taxed MAV, about 27,000 MT for 2005, is not being tapped, this is because import price is not too competitive.

     By transforming carcass into choice cut, cost may only amount ot P120 to P130 per kilo, he said.

     The government is pilot-testing PIB in General Santos which produces 24,111 heads per month or 1,435 MT in cut form; Iloilo which produces 1.6 MT; Zamboanga, 1.6 MT; and Cotabato, two MT.

     Ocampo said PIB will also educate consumers that frozen pork is as just safe and tasty as fresh pork in the wet market.

     “Chilled meat is not yet accepted in the market, but it’s just as good as the fresh meat in the wet market. We'll make our

products safer and cleaner,” he said.

     Government through the Agricultural Competitiveness Enhancement Fund (ACEF) will lend to hog producers so they can acquire slaughtering facilities of about 300 per day capacity, cutting facilities, and freezing facilitites.

     For General Santos, blast freezing facilities are abundant due to its being center for the country’s tuna processing. The PIB also opens opportunity for export as the NMIS is now accrediting Triple A slaughterhouses that comply with the Codex Alimentarius’ Hazard Analysis Critical Control Point (HACCP).

     “If we have to export, we have to clean the area, accredit the farm, accredit the processing plant, and certify the products. Nenita Farms in Davao has been required by the Singapore importer to obtain an antibiotic residue record for five years. They’re just waiting for two years more,” said Ocampo.

     PIB also reduces risk of disease contamination between regions since transport of live animals is stopped.

     A DA study indicated that at present, retail cost of pork from General Santos goes up to as high as P160 per kilo when live hog is shipped to Manila’s wet markets. The cost is broken down into farm gate cost of P74, shipping charge of P9.96, slaughter and related expense of P21.03; and selling cost of P29.25.