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Fears of shortages may boost pork imports in The Philippines

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Fears of shortages may boost pork imports in The Philippines

By eupork

2023-10-11

0

According to most recent analysis[1], the swine industry in the Philippines during the third quarter of 2023 has shown a mix of challenges and opportunities. The industry continues to grapple with the aftermath of the African Swine Fever affecting production levels and pork supply. While efforts to control the disease have yielded some positive results, various factors such as feed prices, disease management, and market demand continue to influence the industry’s trajectory.

Pork supply remains constrained due to the lingering effects of ASF and ongoing challenges in rebuilding swine herds. The live weight price is also beginning to increase after plummeting on the 2nd quarter. Recent concerns[2] stemming from various factors causing shortages in major staples like rice or pork suggest that the government may consider importing these essential commodities.

In the first half of 2023, the European Union’s swine meat exports to the Philippines, while experiencing a decline in volume compared to the record year 2022, showcased a return to more typical levels. This drop of 54% in volume was counterbalanced by a 17% increase in the FOB prices of swine cuts exported to the Philippines. Meanwhile, Spain, despite seeing a more substantial decrease in volume (-70%), still managed to maintain a healthy position due to a 12% uptick in its FOB price. In any case, imports continue to grow steadily, for Spain and other EU members if looking to the long term. However, some uncertainty in the Philippines market remains, mainly concerning the pace of its recovery and questions about whether domestic production can adequately meet current demands.

In the first half of 2023, there were noteworthy considerations regarding pricing that influenced the dynamics of swine offal imports from the European Union to the Philippines. While there was a 30% reduction in the volume of swine offal shipments compared to the previous year, this shift was accompanied by a 23% increase in swine offal prices when measured as FOB from the European Union.

Despite Spain shipping 23% less volume in the first half of 2023 compared to the same period in 2022, it managed to maintain a total value for its offal shipments, reaching €60 million. This can be attributed to a substantial price increase of 29% for its offal products and suggests a positive trend of value-driven trade within the swine offal sector.

[1] Genesus Global Market Report: Southeast Asia, August 2023 | The Pig Site

[2] Food insecurity (mb.com.ph)

Tags: EU pork, exports, imports, market, The Philippines, The Smart Chocie, value

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