Rationalization not Protectionism!

The adverse reaction of the meat importers to the proposed Rationalization Program of the Pork and Poultry Supply in the country by the Department of Agriculture (DA) is a bit premature as they have not fully understood the intent of the initiative.

Let me clarify that the move is not directed at meat importers alone because this will also affect local producers.

Over the last two years, prices of pork and poultry products showed erratic movement and this was attributed largely to the lack of information on the absorptive capacity of the market.

There was a surge in the volume of imports which was hurting the otherwise vibrant and growing hog and poultry industry.

Local producers, encouraged by good prices in 2017 and early part of 2018 and aided by easily accessible bank loans with low interests, also blindly increased their production level.

The surplus supply of chicken in the cold storage facilities is about 27-million kilos while pork is about 34-million kilos.

Due to the low farm gate prices of hogs and chicken, banks are now starting to report defaults in the payment of loans by local producers.

The purpose of the Rationalization Program for Pork and Poultry Supply (RPPPS) is simply what the name suggests – Rationalize.

This will start with the Department of Agriculture conducting an actual on-farm validation of the production level of local farmers and properly identifying them and geotagging their farms.

This information will be uploaded to a computerized database which will be used by the DA in a monitoring production levels.

The DA will also engage a private study group to conduct a scientific analysis on the absorptive capacity of the market.

This will be used in “advising” local producers to be conscious of the market demand, especially on specific periods of the year, and the meat traders who will be expected to “temper” their importation so as not to cause a glut in the market.

That is all that there is to it.

It is simply using a scientific study to stabilize the supply and demand of these commodities in the market.

By the way, part of the study will also include questions on why, in spite of the huge volume of imports, prices of pork and chicken remain high in the market while farm gate prices have collapsed.

Also, the DA would like to determine whether meat and chicken importations which go straight to the bonded warehouses for processing and export are really exported.

Only the heartless and the greedy will stand in the way of these reforms which will benefit everybody, especially the consumers who will no longer suffer from the volatility of prices in the market.

#RationalizingTheMarket!
#LahatKayoMakikinabang!
#MatitigilNaAngPalusot!
#TulongTulongTayo!

(Article taken from the Official FB Page of DA Secretary Manny Piñol)