Published April 27, 2021, 12:13 PM
The United States (US) is funding two separate agriculture projects in the Philippines with combined investment of P1.6 billion.
In a letter to Philippine Agriculture Secretary William Dar, US Department of Agriculture (USDA) Secretary Thomas J. Vilsack said his agency is committed to making “historic investments” in the agriculture sector not just in the US but also in other countries like the Philippines.
This was in response to Dar’s letter congratulating Vilsack for his appointment as the USDA chief. In the letter, Dar also urged for “strengthening collaborative efforts between the Philippines and the US on agricultural trade, technical cooperation, and other partnership opportunities.”
African swine fever (ASF) has dramatically impacted pork production in the Philippines. According to the Philippine Statistics Authority, the country’s total swine inventory opened 2021 at 9.72 million head, down 24% from a year ago. Pork production was down by a USDA-estimated 30% in 2020, and this drop in domestic output has led to very tight pork supplies and high pork and hog prices. But high prices are doing little to incentivize herd rebuilding, with persistent ASF outbreaks creating a high level of risk for both commercial and backyard operations.
While the Philippines has historically been largely self-sufficient in pork production, it is still a significant importer of pork – especially for cuts used in further processing. However, the Philippines has the highest tariff rates of any major importer in the world – 30% on pork cuts within a 54,000 metric ton (mt) quota, and 40% for volumes imported beyond the quota. These high tariff rates have made it impossible for imp