By Rose de la Cruz
Imported frozen meats and fisheries products, just like rice, are being held in the country’s ports for reasons like incomplete documentation; 100 percent inspection for safety reasons, and the failure of importers to show appropriate import clearances for such items.
For this the government– through the Bureaus of Customs, the Philippine Ports Authority, and regulatory agencies of the Department of Agriculture– are blaming each other for the gridlock in the piers.
The stalled shipments which were hoped to augment local food stocks in the market to tame inflation could not make a dent in this goal because they are left in the piers, which hopefully would not cause them to rot.
Port congestion is also delaying the unloading of frozen meat potentially adding another imported commodity to the list of items that cannot be brought to the market on time to mitigate high prices, said the Meat Importers and Traders Association.
MITA President Emeritus Jesus C. Cham told Business World that “one of the reasons for port congestion is that the containers are not released and unloaded immediately.”
Last week, DA Secretary Francisco P. Tiu Laurel, Jr. cited a long-term solution to the port congestion that is to “fast-track more ports” for landing of imported farm goods.
Cham added that the requirement that shipments bear the seals of the National Meat Inspection Service, and the Bureau of Customs is another cause of delays in the release of such goods.
“(Now) they are talking about pre-border inspection, cross-border electronic invoicing, and then you have the cold examination facilities in agriculture (CEFA), these are additional (requirements),” he said.
The CEFAs are intended to ensure that imports are disease-free and to mitigate the risks from smuggled farm goods, which is really good since the consumers (which include all of us) and the farmers are protected and safe.
All imported agri-fishery products must undergo a 100% examination by the various food regulators overseeing the animal industry, plant industry, fisheries and aquatic resources, and meat.
Meat imports rose 9.64 percent in volume year on year in the first six months, led by pork (whose production has been stymied by the African Swine Fever), chicken, and beef, the Bureau of Animal Industry (BAI) reported.
The first six months saw shipments of 647.75 million kilograms of imported meat.
Laurel is blaming port congestion for the delayed release of rice imports from reaching the market, blunting the intended impact of lower tariffs in containing rice prices.
He called the Philippine Ports Authority to fast-track the release of container vans stalled in Manila. About 888 shipping containers holding about 20,000 metric tons of rice have not yet been released.
“The delay in releasing the imported rice has raised concerns over food security, especially as the country faces ongoing inflation pressures,” the DA statement said..
In June, President Ferdinand R. Marcos, Jr. signed Executive Order No. 62 lowering the tariff on imported rice and other products to 15 percent from 35 percent until 2028, citing the need to stabilize rice prices. The order took effect in July.
Farmers doubt that importing 20 million kilos or 20,000 MT now held at the pier would have any impact on prices. “It is less than 4 percent of the 530,000 MT that arrived in July-August at 15 percent tariff; 96 percent of them are already out in the market, yet rice prices remain high,” said Federation of Free Farmers National Manager Raul Q. Montemayor to Business World.
Rice imports have totaled 3.01 MMT as of Sept. 12, according to data from the Bureau of Plant Industry.
Economics Prof. Leonardo A. Lanzona of Ateneo de Manila said that the delay in landing goods is due partly to importers waiting for more favorable prices.
“Importers seem to have contributed little to the price decreases as their goods are stuck in ports. If the government subsidizes the farmers, instead of lowering tariffs and improving port infrastructure, the rice producers and consumers are protected from these importers who wish to manipulate prices,” he said.
Laurel claimed the DA is eyeing the construction of 17 ports with private partners that will specialize in handling agricultural shipments.
Montemayor added that prices could drop with the influx of palay (unmilled rice) during the dry season harvest.