Required Report - public distribution

**Date:** 9/7/2005

**GAIN Report Number:** RP5034

RP5034

**Philippines**

**Livestock and Products**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)David C. Miller

FAS Manila

**Prepared by:**

Pia Abuel-Ang

**Report Highlights:**

Philippine swine production is forecast to decline in 2005 as a result
of sporadic outbreaks of animal disease throughout the country and a
continuing rise in production costs. Cattle production is expected to
remain flat in 2005 as the breeder base stock continues to fall. Due to
sluggish domestic cattle production, imports of carabeef are expected to
continue growing mainly for use by the food processing industry. The
projected slowdown of the Philippine economy, along with the continued
rise in meat prices, will likely dampen consumption of beef and pork in
the near term.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Manila \[RP1\]

\[RP\]

**Production**

**SWINE:** According to the Bureau of Agricultural Statistics (BAS), the
Philippines' swine inventory as of January 1, 2005 was estimated at
12.14 million head, down compared to last year's level. Although animal
inventory in commercial farms increased slightly, the decrease in hog
numbers in backyard farms contributed to the decline in total stock of
swine.

The Philippine hog industry is comprised mostly of backyard operations
in contrast to other neighboring Southeast Asian countries. At present,
about 76 percent of total swine stocks are raised in backyard operations
while only 24 percent come from commercial farms.

In 2004, the output of the domestic swine industry, which contributes
about 80 percent to total Philippine livestock production receipts,
declined minimally after enjoying several years of continued growth, due
in part to the closure of some backyard operations, the availability of
inputs and rising production costs. This low level of hog production was
reflected in the drop in animal and slaughter numbers recorded last
year. Hog production is expected to decline once again in 2005 due in
part to reported sporadic outbreaks of animal disease throughout the
country as well as the continuing rise in production costs. However, a
slight improvement in output is forecast for 2006 as farmgate prices of
hogs continue to climb, giving industry an incentive to increase
production.

+------------------+-------------------+---------------+---------------+
| ####             |                   |               |               |
| ### Prices Table |                   |               |               |
+------------------+-------------------+---------------+---------------+
| **Country**      | Philippines       |               |               |
+------------------+-------------------+---------------+---------------+
| **Commodity**    | Animal Numbers,   |               |               |
|                  | Swine             |               |               |
+------------------+-------------------+---------------+---------------+
| Prices in        | Pesos             | per uom       | Kilogram      |
+------------------+-------------------+---------------+---------------+
| Year             | 2003              | 2004          | \% Change     |
+------------------+-------------------+---------------+---------------+
| Jan              | 50.00             | 61.03         | 22            |
+------------------+-------------------+---------------+---------------+
| Feb              | 50.68             | 65.89         | 30            |
+------------------+-------------------+---------------+---------------+
| Mar              | 51.06             | 69.93         | 37            |
+------------------+-------------------+---------------+---------------+
| Apr              | 51.30             | 70.16         | 37            |
+------------------+-------------------+---------------+---------------+
| May              | 51.72             | 70.35         | 36            |
+------------------+-------------------+---------------+---------------+
| Jun              | 51.24             | 70.45         | 37            |
+------------------+-------------------+---------------+---------------+
| Jul              | 50.90             | 67.77         | 33            |
+------------------+-------------------+---------------+---------------+
| Aug              | 50.97             | 66.21         | 30            |
+------------------+-------------------+---------------+---------------+
| Sep              | 50.66             | 65.34         | 29            |
+------------------+-------------------+---------------+---------------+
| Oct              | 51.61             | 67.16         | 30            |
+------------------+-------------------+---------------+---------------+
| Nov              | 51.26             | 70.22         | 37            |
+------------------+-------------------+---------------+---------------+
| Dec              | 53.45             | 81.79         | 53            |
+------------------+-------------------+---------------+---------------+
| Avg.             | 51.29             | 68.86         | 34            |
+------------------+-------------------+---------------+---------------+

> Source: Bureau of Agricultural Statistics

The average farmgate price of swine in 2004 rose by a significant 34
percent from the previous year. The rise in farmgate prices, which began
in the third quarter of 2003, has been mainly attributed by hog farmers
to increased feed cost, particularly of corn and imported soybean meal,
high costs of animal biologics and the rise in transportation costs. At
present, ex-farm hog prices (as well as retail) remain at an all time
high despite assurances from the domestic hog industry of adequate
stocks for the rest of the year.

According to traders, unlike 2004, yellow corn and soybean meal (SBM)
prices have remained quite stable throughout the year due to ample
supply.

+--------+---------------------+--------------------------------------+
| **PHIL |                     |                                      |
| IPPINE |                     |                                      |
| CORN   |                     |                                      |
| PROD   |                     |                                      |
| UCTION |                     |                                      |
| AND    |                     |                                      |
| PR     |                     |                                      |
| ICES** |                     |                                      |
+--------+---------------------+--------------------------------------+
| **     | **VOLUME (MMT)**    | **AVG. YELLOW CORN PRICES**          |
| YEAR** |                     |                                      |
|        |                     | **(Pesos/kg)**                       |
+--------+---------------------+--------------------------------------+
| 2001   | 4.5                 | 8.63                                 |
+--------+---------------------+--------------------------------------+
| 2002   | 4.3                 | 8.21                                 |
+--------+---------------------+--------------------------------------+
| 2003   | 4.6                 | 8.62                                 |
+--------+---------------------+--------------------------------------+
| 2004   | 5.6                 | 10.35                                |
+--------+---------------------+--------------------------------------+
| 2005   | 5.3[^1]             | 8.99[^2]                             |
+--------+---------------------+--------------------------------------+

> Source: Philippine Department of Agriculture

Despite lower SBM prices, smaller quantities of SBM were imported last
year and reduced imports are forecast for this year, which indicates a
possible slowdown in livestock and poultry production. The Philippines
does not produce any soybeans, and with the exception of a few crushing
facilities, the country relies almost entirely on imports for its SBM
requirements.

+-------+-------------------+------------------+----------------------+
| **Y   | **SOYBEAN MEAL**  | **SOYBEAN**      | **Average U.S. SBM** |
| EAR** |                   |                  |                      |
|       | **IMPORTS (MT)**  | **IMPORTS (MT)** | **FOB Prices         |
|       |                   |                  | (\$/kg)**            |
+-------+-------------------+------------------+----------------------+
| 2001  | 1,061             | 316              | 0.18                 |
+-------+-------------------+------------------+----------------------+
| 2002  | 1,291             | 264              | 0.19                 |
+-------+-------------------+------------------+----------------------+
| 2003  | 1,251             | 289              | 0.19                 |
+-------+-------------------+------------------+----------------------+
| 2004  | 1,160             | 284              | 0.25                 |
+-------+-------------------+------------------+----------------------+
| 200   | 318               | 51               | 0.20                 |
| 5[^3] |                   |                  |                      |
+-------+-------------------+------------------+----------------------+

> Source: Philippine National Statistics Office

Last year, more than half of the total swine population came from the
top five producing regions namely: Central Luzon (13.7 percent),
CALABARZON[^4] (13 percent), Western Visayas (9.5 percent), Central
Visayas (7.6 percent) and Davao Region (7.4 percent)

The supply chain for the Philippine hog industry starts with input
procurement of feed ingredients sourced either domestically or from
imports, with feed milling activities integrated with operations of
medium and large commercial farms. Live hogs are then brought to
slaughter houses and eventually are sold through wholesale and retail
distribution channels. Large integrators also have grandparent (GP)
stock farms supplying their sow fattener operations, either by contract
breeding for sows or contract growing for fatteners.

**CATTLE:** Official government statistics report a slight decline in
cattle production in 2004 due mainly to the low live birth rates
achieved. Despite a slight increase in water buffalo (carabao) live
births in 2004, total supply of live cattle as of January 2005 declined
due to low calf crop output and a decrease in live cattle importation
throughout the year. Expansion of the cattle sector is forecast to
remain flat in 2005 and beyond as rising costs for imported feeder
cattle and a low domestic animal base is expected to limit the growth of
the cattle industry. Cattle production remains small at only 20 percent
of total livestock production.

For carabaos, Cagayan Valley registered the highest carabao population
(10.5 percent), followed by Western Visayas (9.74 percent) and Central
Mindanao (8.62 percent). On the other hand, beef cattle located in the
Ilocos Region, Southern Tagalog, Central Visayas, Northern Mindanao,
Cagayan Valley and Zamboanga Peninsula account for 63 percent of total
beef cattle population.

Of the total cattle population, about 94 percent is raised in backyard
farms and only 6 percent come from commercial operations. Several
studies have noted the continued decline in the share of commercial
farms vs. backyard operation. Several factors that have contributed to
the decline include: the Comprehensive Agrarian Reform Program (CARP);
land conversion; unstable peace and order situation; marketing problems;
low profit margins on breeding operations; high interest rates and lack
of credit.

Moreover, due to the high cost of imported feeder cattle, many feedlots
that emerged in the 1990s have scaled down operations or are no longer
in business today, further affecting domestic production.

The tight beef supply situation, as well as increasing input and
transportation costs, pushed up average farmgate prices of live cattle
by 13 percent in 2004. Ex-farm prices of live cattle remain high in 2005
and are likely to remain high throughout the rest of the year due to the
current supply situation.

  -------------------- ---------------- ------------------ ---------------
  **Prices Table**                                         

  **Commodity**        Animal Numbers,                     
                       Cattle                              

  Prices in            Pesos            per uom            Kilogram

  Year                 **2003**         **2004**           \% Change

  Jan                  51.28            50.00              -2

  Feb                  51.61            51.36              0

  Mar                  51.87            52.40              1

  Apr                  51.69            56.35              9

  May                  51.95            57.63              11

  Jun                  51.79            58.64              13

  Jul                  51.76            62.01              20

  Aug                  52.90            62.56              18

  Sep                  51.74            62.55              21

  Oct                  52.60            61.66              17

  Nov                  52.95            62.51              18

  Dec                  52.65            70.30              34

  Avg.                 52.04            59.00              13
  -------------------- ---------------- ------------------ ---------------

Source: Bureau of Agricultural Statistics

# 

# Consumption

The National Economic Development Authority (NEDA) still forecasts GDP
to grow at 5.3 percent in 2005 despite record high world oil prices.
According to several analysts, GDP growth in 2005 is expected slowdown
to about 5 percent from 6.1 percent last year, due to projected weak
agricultural growth, sluggish exports and high oil prices. Moreover, new
taxes such as the Expanded Value Added Tax and additional excise taxes
are most likely to dampen consumer spending. However, remittance from
overseas Filipino workers is expected to augment consumer spending.

Filipinos are relatively large consumers of pork and are known to
generally prefer pork to chicken or beef. However, as a result of the
all time high retail price of pork and beef, a slowdown in total red
meat consumption for 2005/06 is predicted, as consumers shift to other
lower priced protein substitutes such as chicken and seafood.

While per capita consumption of beef increased in 2004 due to growing
demand for processed meat products, there was a slight decline in per
capita pork consumption observed during the same period.

+--------------------+---------------+---------------+---------------+
| **PER CAPITA MEAT  |               |               |               |
| CONSUMPTION**      |               |               |               |
|                    |               |               |               |
| **2002-2004        |               |               |               |
| (Kg.)**            |               |               |               |
+--------------------+---------------+---------------+---------------+
|                    | **2002**      | **2003**      | **2004**      |
+--------------------+---------------+---------------+---------------+
| Beef               | 3.64          | 3.58          | 3.83          |
+--------------------+---------------+---------------+---------------+
| Pork               | 13.85         | 14.12         | 13.67         |
+--------------------+---------------+---------------+---------------+
| Chicken            | 8.04          | 8.00          | 8.20          |
+--------------------+---------------+---------------+---------------+

Source: Bureau of Agricultural Statistics

**PORK:** In 2004, the retail price of pork recorded an average annual
increase of 20.85 percent over 2003. Wholesale prices also registered a
significant increase averaging 26.97 percent in 2004 compared to
previous year's level. High prices of pork are likely to continue with
supply of pork quite tight due to a decline in first quarter output.

+--------------------+-------------------+-------------+--------------+
| ###### Pri         |                   |             |              |
| ces Table (Retail) |                   |             |              |
+--------------------+-------------------+-------------+--------------+
| **Country**        | Philippines       |             |              |
+--------------------+-------------------+-------------+--------------+
| **Commodity**      | Meat, Swine       |             |              |
+--------------------+-------------------+-------------+--------------+
| Prices in          | Pesos             | per uom     | Kilogram     |
+--------------------+-------------------+-------------+--------------+
| Year               | **2003**          | **2004**    | \% Change    |
+--------------------+-------------------+-------------+--------------+
| Jan                | 110.30            | 128.33      | 16           |
+--------------------+-------------------+-------------+--------------+
| Feb                | 112.85            | 136.79      | 21           |
+--------------------+-------------------+-------------+--------------+
| Mar                | 114.47            | 142.69      | 25           |
+--------------------+-------------------+-------------+--------------+
| Apr                | 114.76            | 141.65      | 23           |
+--------------------+-------------------+-------------+--------------+
| May                | 114.90            | 139.03      | 21           |
+--------------------+-------------------+-------------+--------------+
| Jun                | 114.62            | 136.86      | 19           |
+--------------------+-------------------+-------------+--------------+
| Jul                | 112.38            | 134.95      | 20           |
+--------------------+-------------------+-------------+--------------+
| Aug                | 111.27            | 133.21      | 20           |
+--------------------+-------------------+-------------+--------------+
| Sep                | 109.47            | 131.13      | 20           |
+--------------------+-------------------+-------------+--------------+
| Oct                | 108.53            | 130.60      | 20           |
+--------------------+-------------------+-------------+--------------+
| Nov                | 110.11            | 137.52      | 25           |
+--------------------+-------------------+-------------+--------------+
| Dec                | 118.96            | 143.81      | 21           |
+--------------------+-------------------+-------------+--------------+
| Avg.               | 112.72            | 136.22      | 21           |
+--------------------+-------------------+-------------+--------------+

Source: Bureau of Agricultural Statistics

**BEEF:** Last year, the annual average wholesale and retail prices of
beef increased by 14.2 percent and 11.17 percent, respectively. Prices
of beef are likely to remain high throughout 2005 and next year as
domestic production remains flat.

+----------------+--------------------------+-----------+------------+
| ###### Prices  |                          |           |            |
| Table (RETAIL) |                          |           |            |
+----------------+--------------------------+-----------+------------+
| **Country**    | Philippines              |           |            |
+----------------+--------------------------+-----------+------------+
| **Commodity**  | Meat, Beef and Veal      |           |            |
+----------------+--------------------------+-----------+------------+
| Prices in      | Pesos                    | per uom   | Kilogram   |
+----------------+--------------------------+-----------+------------+
| Year           | **2003**                 | **2004**  | \% Change  |
+----------------+--------------------------+-----------+------------+
| Jan            | 168.94                   | 171.56    | 2          |
+----------------+--------------------------+-----------+------------+
| Feb            | 169.91                   | 180.34    | 6          |
+----------------+--------------------------+-----------+------------+
| Mar            | 170.88                   | 187.22    | 10         |
+----------------+--------------------------+-----------+------------+
| Apr            | 170.28                   | 190.86    | 12         |
+----------------+--------------------------+-----------+------------+
| May            | 170.46                   | 188.04    | 10         |
+----------------+--------------------------+-----------+------------+
| Jun            | 169.61                   | 188.33    | 11         |
+----------------+--------------------------+-----------+------------+
| Jul            | 169.75                   | 187.59    | 11         |
+----------------+--------------------------+-----------+------------+
| Aug            | 170.04                   | 190.72    | 12         |
+----------------+--------------------------+-----------+------------+
| Sep            | 170.29                   | 194.68    | 14         |
+----------------+--------------------------+-----------+------------+
| Oct            | 170.65                   | 195.91    | 15         |
+----------------+--------------------------+-----------+------------+
| Nov            | 170.20                   | 196.47    | 15         |
+----------------+--------------------------+-----------+------------+
| Dec            | 172.29                   | 200.25    | 16         |
+----------------+--------------------------+-----------+------------+
| Avg.           | 170.28                   | 189.30    | 11         |
+----------------+--------------------------+-----------+------------+

Source: Bureau of Agricultural Statistics

# 

# Trade

In 2004, beef and carabeef imports were much higher than earlier
projected by Post. The increase in imports was mainly to compensate for
the slowdown in domestic beef production. Beef imports, particularly of
carabeef which is used mainly in food processing, are forecast to
continue growing in 2005 and beyond due to the projected sluggish growth
of the domestic cattle industry. The main country suppliers of beef, the
majority of which is manufacturing grade beef, are India (carabeef) and
Brazil (beef).

+------------------------+--------------+------------------+----------+
| # Import Trade Matrix  |              |                  |          |
+------------------------+--------------+------------------+----------+
| **Country**            | #########    |                  |          |
|                        |  Philippines |                  |          |
+------------------------+--------------+------------------+----------+
| **Commodity**          | Meat, Beef   |                  |          |
|                        | and Veal     |                  |          |
+------------------------+--------------+------------------+----------+
| Time Period            |              | Units:           |  MT      |
+------------------------+--------------+------------------+----------+
| Imports for:           | 2003         |                  | **2004** |
+------------------------+--------------+------------------+----------+
| U.S.                   | 1172         | U.S.             | 1207     |
+------------------------+--------------+------------------+----------+
| Others                 |              | Others           |          |
+------------------------+--------------+------------------+----------+
| India                  | 75263        | India            | 76061    |
+------------------------+--------------+------------------+----------+
| Brazil                 | 21607        | Brazil           | 29386    |
+------------------------+--------------+------------------+----------+
| Australia              | 20239        | Australia        | 11682    |
+------------------------+--------------+------------------+----------+
| New Zealand            | 2331         | New Zealand      | 3430     |
+------------------------+--------------+------------------+----------+
| Total for Others       | 119440       |                  | 120559   |
+------------------------+--------------+------------------+----------+
| Others not Listed      | 1871         |                  | 3461     |
+------------------------+--------------+------------------+----------+
| Grand Total            | 121311       |                  | 124020   |
+------------------------+--------------+------------------+----------+

Source: National Statistics Office

About 99 percent of Philippine beef imports are boneless beef, mostly of
manufacturing grade used in processed meat products. In 2004, the top
suppliers of beef to the Philippines were India (58 percent), Brazil (31
percent), New Zealand (4 percent) and Australia (3 percent). With
sluggish domestic production, importation of beef is forecast to
continue growing in the short term to augment the domestic beef supply.
Currently, over 40 percent of the total domestic beef supply is sourced
from other countries.

As a result of the Philippine government's sustained efforts to
encourage and explore alternative meat sources, the share of beef
imports from Brazil has continued to grow. This initiative has resulted
in a considerable market share loss for traditional Philippine beef
supplier, Australia.

Last year, importation of both breeder and feeder cattle contracted
significantly, which contributed to lower slaughter numbers and
subsequent smaller domestic beef production. The decrease in live cattle
importation is a direct result of high cattle prices, the weakness of
the Philippine peso and the slowdown of the Philippine economy.

In 1990s, commercial feedlot fattening operations emerged and
proliferated on account of the huge demand for meat and meat products
brought about by the growing Philippine population, changing food
preferences and import liberalization. However, the industry was heavily
dependent on the importation of feeder stocks coming mostly from
Australia and New Zealand. From 1990 to 1999, feeder cattle importation
totaled 1.16 million head against breeder cattle importation of only
46,213 head. With the high dollar-peso exchange rate, importation
decreased tremendously from 253,032 head in 1999 to only 55,0000 head in
2004.

In 2004, Minimum Access Volume (MAV) utilization for
fresh/frozen/chilled pork improved from 15 to 19 percent. Unlike beef
imports which comprise a significant portion of total supply,
fresh/frozen pork imports represent less than 10 percent of domestic
supply. Despite a MAV volume of 53,005 MT last year, imports of pork
have not been significant due primarily to prohibitive tariff rates of
35 percent (in-quota) and 40 percent (out-of-quota) for swine meat.
There have been no imports of pork outside the MAV.

+---+--------------------+-------+-----+-------+-----+-------+-----+
| * |                    |       |     |       |     |       |     |
| * |                    |       |     |       |     |       |     |
| M |                    |       |     |       |     |       |     |
| A |                    |       |     |       |     |       |     |
| V |                    |       |     |       |     |       |     |
| U |                    |       |     |       |     |       |     |
| T |                    |       |     |       |     |       |     |
| I |                    |       |     |       |     |       |     |
| L |                    |       |     |       |     |       |     |
| I |                    |       |     |       |     |       |     |
| Z |                    |       |     |       |     |       |     |
| A |                    |       |     |       |     |       |     |
| T |                    |       |     |       |     |       |     |
| I |                    |       |     |       |     |       |     |
| O |                    |       |     |       |     |       |     |
| N |                    |       |     |       |     |       |     |
| R |                    |       |     |       |     |       |     |
| A |                    |       |     |       |     |       |     |
| T |                    |       |     |       |     |       |     |
| E |                    |       |     |       |     |       |     |
| 2 |                    |       |     |       |     |       |     |
| 0 |                    |       |     |       |     |       |     |
| 0 |                    |       |     |       |     |       |     |
| 2 |                    |       |     |       |     |       |     |
| - |                    |       |     |       |     |       |     |
| 0 |                    |       |     |       |     |       |     |
| 4 |                    |       |     |       |     |       |     |
| * |                    |       |     |       |     |       |     |
| * |                    |       |     |       |     |       |     |
+---+--------------------+-------+-----+-------+-----+-------+-----+
| H | Description        | 2002  | P   | 2003  | P   | 2004  | P   |
| S |                    |       | erc |       | erc |       | erc |
|   |                    | MAV   | ent | MAV   | ent | MAV   | ent |
| C |                    | (MT)  |     | (MT)  |     | (MT)  |     |
| o |                    |       | U   |       | U   |       | U   |
| d |                    |       | sed |       | sed |       | sed |
| e |                    |       |     |       |     |       |     |
+---+--------------------+-------+-----+-------+-----+-------+-----+
| 0 | Fr                 | 4     | 13  | 5     | 15  | 5     | 19  |
| 2 | esh/Chilled/Frozen | 8,185 |     | 0,595 |     | 3,005 |     |
| 0 | Pork               |       |     |       |     |       |     |
| 3 |                    |       |     |       |     |       |     |
+---+--------------------+-------+-----+-------+-----+-------+-----+

Source: MAV Management Committee, Philippine Department of Agriculture

Another factor for the low level of pork imports is the preference of
most Filipinos for freshly slaughtered meat, as a significant majority
of consumers still buy their food from wet markets. However, recent
reforms in the retail sector, particularly the liberalization of the
retail market and the growth and development of the modern Philippine
supermarket, are slowly changing shopping patterns and food choices of
Filipino consumers.

In 2004, major country suppliers of pork were France (57 percent),
Germany (12 percent), South Korea (7 percent) and Denmark (7 percent).
France and Germany have displaced traditional Asian sources such as
China and South Korea. Over 45 percent of the country's total pork
imports last year were comprised of processed pork products.

+-----------------------+----------------+----------------+-----------+
| #######               |                |                |           |
| # Import Trade Matrix |                |                |           |
+-----------------------+----------------+----------------+-----------+
| **Country**           | #######        |                |           |
|                       | ## Philippines |                |           |
+-----------------------+----------------+----------------+-----------+
| **Commodity**         | Meat, Swine    |                |           |
+-----------------------+----------------+----------------+-----------+
| Time Period           |                | Units:         |  MT       |
+-----------------------+----------------+----------------+-----------+
| Imports for:          | 2003           |                | **2004**  |
+-----------------------+----------------+----------------+-----------+
| U.S.                  | 0              | U.S.           | 0         |
+-----------------------+----------------+----------------+-----------+
| Others                |                | Others         |           |
+-----------------------+----------------+----------------+-----------+
| China                 | 8,653          | France         | 13,888    |
+-----------------------+----------------+----------------+-----------+
| South Korea           | 5,271          | Germany        | 3,032     |
+-----------------------+----------------+----------------+-----------+
| France                | 1910           | South Korea    | 1,723     |
+-----------------------+----------------+----------------+-----------+
| Germany               | 1455           | Denmark        | 1,624     |
+-----------------------+----------------+----------------+-----------+
| Canada                | 1187           |                |           |
+-----------------------+----------------+----------------+-----------+
| Total for Others      | 18476          |                | 20267     |
+-----------------------+----------------+----------------+-----------+
| Others not Listed     | 3959           |                | 4,016     |
+-----------------------+----------------+----------------+-----------+
| Grand Total           | 22435          |                | 24283     |
+-----------------------+----------------+----------------+-----------+

Source: National Statistics Office

Pork imports (excluding pork fat & offals) increased slightly in 2004 to
reach 24,000 MT. Pork imports are likely to increase in 2005 to
compensate for the reported contraction of the livestock sector during
the first half of 2005.

# 

# Policy

The main regulatory agencies monitoring the safety aspects of imported
animals, meat and meat products are the Bureau of Animal Industry (BAI)
and the National Meat Inspection Service (NMIS) under the Philippine
Department of Agriculture. While BAI has jurisdiction over imports of
live animals, meat and meat products, NMIS also plays a key role in the
enforcement of the regulations over fresh, chilled and frozen meat and
poultry imports into the Philippines.

Republic Act No. 3639 (RA 3639) established BAI and empowered it to
prescribe safety standards including the importation, labeling and
distribution of livestock, poultry, meat products, poultry products,
dairy products and animal feeds and veterinary supplies. BAI is charged
with preventing, controlling, containing and eradicating communicable
animal diseases by regulating the flow of animals and animal products in
the country.

Presidential Decree No. 7 (PD 7) authorizes the National Meat Inspection
Commission (NMIC)[^5] to implement policies and procedures governing
post production flow of meat and meat products both locally produced and
imported. The Meat Import/Export Services of the NMIC ensures that
imported or exportable meat and meat products are produced under
acceptable conditions and systems.

**National Meat Inspection Code:** In 2004, Republic Act 9296 (RA 9296)
entitled "An Act Strengthening the Meat Inspection System in the
Country" was signed into law. According to DA, the law was crafted to
harmonize Philippine meat inspection laws with international standards
to enable the domestic meat processing industry to participate in global
trade. Certain provisions in the new law make it unlawful for shipping
lines, airlines and agents to ship meat and meat products to the
Philippines without an accompanying Philippine Veterinary Quarantine
Clearance (VQC) certificate. Several local meat traders and meat
processors oppose this law as being unduly trade restrictive. The Code
took effect on June 18, but its Implementing Rules and Regulations (IRR)
have only recently been completed. Without IRRs, a law may not be
implemented. A public consultation will be scheduled to hear
stakeholders' views on the proposed IRRs. Domestic meat processors are
expected to oppose the approval of the IRRs.

**Pork-in-a-Box Program:** To increase accessibility and reduce price of
pork products in the market the Philippine Department of Agriculture
launched in 2005 the "Pork-in-a-Box" program. A meat post-production
system, this project is expected ensure safety, economy, efficiency and
environmental soundness in all aspects of the pork supply chain.

Under this program, instead of transporting live hogs, the hogs will be
processed at the point of origin in the Visayas and Mindanao, and only
carcass and cut products will be transported directly to markets in
Metro Manila. Aside from minimizing transport costs, the program is
expected to provide access to ready markets, and reduce layers of
middlemen that result in add-on-costs in the marketing of pork products.

In addition to cutting post-production losses and transport costs, the
program aims to reduce the risk of disease transmission, improve meat
quality and safety of pork and pork products. The program is also
anticipated to spur the growth of the hog industry. The immediate target
of the program is to establish hog trade between the Visayas/Mindanao
and Metro Manila. In the long run, the program seeks to institutionalize
hog trade in all areas of the country.

To assure the Pork-in-a-Box program's success, DA will conduct an
information campaign to promote the benefits of production and
consumption of chilled pork for the producers, markets and consumers.
The success of Pork-in-a-Box will lie in the development of strong
inter-island linkages and cold chain systems.

**Lifting the Ban on US Beef:** On July 28, the Philippine Department of
Agriculture (DA) issued Memorandum Order 13 (MO#13) authorizing the
resumption of imports of U.S. boneless beef and beef products coming
from healthy, ambulatory cattle not older than 30 months and devoid of
SRMs. On the same day, the DA followed-up with a press release
announcing the lifting of restrictions on U.S. beef. MO#13 was issued by
the DA despite being notified about the announcement made by USDA of the
non-definite test results of another cow in the United States.

MO#13 lifted the temporary restriction imposed on the importation of
live cattle, beef and their products from the United States imposed by
DA's Memorandum Order 10 which became effective June 27, 2005, after the
detection of the 2^nd^ instance of an animal testing positive for BSE in
the United States.

**Tariffs:** The 2005 MFN and Common Effective Preferential Tariff
(CEPT) rates for ASEAN countries for all beef and pork and their
products follow:

  ------------------- ------------------------- ------------- ------------
  **HS Code**         **Description**           **2005**      

  ** **               ** **                     **MFN**       **CEPT**

  **Beef - Fresh,                                              
  Chilled or Frozen,                                          
  Dried or Smoked**                                           

  0201.10.00          Carcasses and             10            5
                      half-carcasses, of bovine               
                      animals, fresh or chilled               

  0201.20.00          Other cuts with bone in,  10            5
                      of bovine animals, fresh                
                      or chilled                              

  0201.30.10          Meat of bovine animals,   10            5
                      boneless, manufacturing                 
                      grade cuts, fresh or                    
                      chilled                                 

  0201.30.90          Meat of bovine animals,   10            5
                      boneless, other than                    
                      manufacturing grade cuts,               
                      fresh or chilled                        

  0202.10.00          Carcasses and             10            5
                      half-carcasses of bovine                
                      animals, frozen                         

  0202.20.00          Other cuts with bone in,  10            5
                      of bovine animals, frozen               

  0202.30.10          Meat of bovine animals,   10            5
                      boneless, manufacturing                 
                      grade cuts, frozen                      

  0202.30.90          Meat of bovine animals,   10            5
                      boneless, other than                    
                      manufacturing grade cuts,               
                      frozen                                  

  0210.20.00          Meat of bovine animals,   7             0
                      salted, in brine, dried                 
                      or smoked                               
  ------------------- ------------------------- ------------- ------------

  ------------------- ------------------------- ------------- ------------
  **Beef Edible Offal                                          
  & Edible Fat**                                              

  0206.10.00          Edible offal of bovine    7             0
                      animals, fresh or chilled               

  0206.21.00          Tongues of bovine         7             0
                      animals, frozen                         

  0206.22.00          Livers of bovine animals, 5             0
                      frozen                                  

  0206.29.00          Other edible offal of     7             0
                      bovine animals, frozen                  

  **Beef, Processed**                                          

  1601.10.00          Sausages of all kinds,    40            5
                      whether or not in                       
                      airtight containers                     

  1602.50.10          Meat and meat offal of    35            5
                      bovine animals, prepared                
                      or preserved, in airtight               
                      containers                              

  1602.50.90          Meat and meat offal of    35            5
                      bovine animals, prepared                
                      or preserved, other than                
                      in airtight containers                  
  ------------------- ------------------------- ------------- ------------

  ------------ ------------------- -------------- --------------- -------------- ---------------
  **HS Code**  **Description**     **2005**                                      

                                   **MFN**                        **CEPT**       

  ** **        ** **               **In-quota**   **Out-quota**   **In-quota**   **Out-quota**

  **Pork -                                                                        
  Fresh,                                                                         
  Chilled or                                                                     
  Frozen,                                                                        
  Dried or                                                                       
  Smoked**                                                                       

  0203.11.00   Carcasses and       30             40              30             40
               half-carcasses, of                                                
               swine, fresh or                                                   
               chilled                                                           

  0203.12.00   Hams, shoulders and 30             40              30             40
               cuts thereof with                                                 
               bone in, of swine,                                                
               fresh or chilled                                                  

  0203.19.00   Other meat of swine 30             40              30             40
               fresh or chilled                                                  

  0203.21.00   Carcasses and       30             40              30             40
               half-carcasses of                                                 
               swine, frozen                                                     

  0203.22.00   Hams, shoulders and 30             40              30             40
               cuts thereof with                                                 
               bone in, of swine,                                                
               frozen                                                            

  0203.29.00   Other meat of       30             40              30             40
               swine, frozen                                                     
  ------------ ------------------- -------------- --------------- -------------- ---------------

+--------------+--------------------------------+------------+--------+
| **HS Code**  | **Description**                | **2005**   |        |
+--------------+--------------------------------+------------+--------+
|              |                                | **MFN**    | **     |
|              |                                |            | CEPT** |
+--------------+--------------------------------+------------+--------+
| **Pork       |                                |            |        |
| Edible Offal |                                |            |        |
| & Edible     |                                |            |        |
| Fat**        |                                |            |        |
|              |                                |            |        |
|              |                                |            |        |
+--------------+--------------------------------+------------+--------+
| 0210.11.00   | Hams, shoulders and cuts       | 40         | 5      |
|              | thereof, with bone in, of      |            |        |
|              | swine, salted, in brine, dried |            |        |
|              | or smoked                      |            |        |
+--------------+--------------------------------+------------+--------+
| 0210.12.00   | Bellies (streaky) and cuts     | 40         | 5      |
|              | thereof of swine, salted in    |            |        |
|              | brine, dried or smoked         |            |        |
+--------------+--------------------------------+------------+--------+
| 0210.19.00   | Other meat and edible meat     | 40         | 5      |
|              | offal of swine, salted, in     |            |        |
|              | brine, dried or smoked         |            |        |
+--------------+--------------------------------+------------+--------+
| 0206.30.00   | Edible offal of swine, fresh   | 7          | 5      |
|              | or chilled                     |            |        |
+--------------+--------------------------------+------------+--------+
| 0206.41.00   | Livers of swine, frozen        | 5          | 3      |
+--------------+--------------------------------+------------+--------+
| 0206.49.00   | Other edible offal of swine,   | 10         | 5      |
|              | frozen                         |            |        |
+--------------+--------------------------------+------------+--------+
| 0209.00.00   | Pig fat free of lean meat and  | 5          | 0      |
|              | poultry fat (not rendered),    |            |        |
|              | fresh, chilled, frozen,        |            |        |
|              | salted, in brine, dried or     |            |        |
|              | smoked                         |            |        |
+--------------+--------------------------------+------------+--------+
| **Pork       |                                |            |        |
| Processed**  |                                |            |        |
|              |                                |            |        |
|              |                                |            |        |
+--------------+--------------------------------+------------+--------+
| 1601.10.00   | Sausages of all kinds, whether | 40         | 5      |
|              | or not in airtight containers  |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.41.10   | Hams and cuts thereof of       | 40         | 5      |
|              | swine, prepared or preserved,  |            |        |
|              | in airtight containers         |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.41.90   | Hams and cuts thereof of       | 40         | 5      |
|              | swine, prepared or preserved,  |            |        |
|              | other than in airtight         |            |        |
|              | containers                     |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.42.00   | Shoulders and cuts thereof, of | 40         | 5      |
|              | swine, prepared or preserved   |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.49.00   | Other prepared or preserved    | 40         | 5      |
|              | meat and offal of swine,       |            |        |
|              | including mixtures             |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.50.90   | Meat and meat offal of bovine  | 40         | 5      |
|              | animals, prepared or           |            |        |
|              | preserved, other than in       |            |        |
|              | airtight containers            |            |        |
+--------------+--------------------------------+------------+--------+
| **HS Code**  | **Description**                | **2005**   |        |
+--------------+--------------------------------+------------+--------+
|              |                                | **MFN**    | **     |
|              |                                |            | CEPT** |
+--------------+--------------------------------+------------+--------+
| **Pork       |                                |            |        |
| Edible Offal |                                |            |        |
| & Edible     |                                |            |        |
| Fat**        |                                |            |        |
|              |                                |            |        |
|              |                                |            |        |
+--------------+--------------------------------+------------+--------+
| 0210.11.00   | Hams, shoulders and cuts       | 40         | 5      |
|              | thereof, with bone in, of      |            |        |
|              | swine, salted, in brine, dried |            |        |
|              | or smoked                      |            |        |
+--------------+--------------------------------+------------+--------+
| 0210.12.00   | Bellies (streaky) and cuts     | 40         | 5      |
|              | thereof of swine, salted in    |            |        |
|              | brine, dried or smoked         |            |        |
+--------------+--------------------------------+------------+--------+
| 0210.19.00   | Other meat and edible meat     | 40         | 5      |
|              | offal of swine, salted, in     |            |        |
|              | brine, dried or smoked         |            |        |
+--------------+--------------------------------+------------+--------+
| 0206.30.00   | Edible offal of swine, fresh   | 7          | 5      |
|              | or chilled                     |            |        |
+--------------+--------------------------------+------------+--------+
| 0206.41.00   | Livers of swine, frozen        | 5          | 3      |
+--------------+--------------------------------+------------+--------+
| 0206.49.00   | Other edible offal of swine,   | 10         | 5      |
|              | frozen                         |            |        |
+--------------+--------------------------------+------------+--------+
| 0209.00.00   | Pig fat free of lean meat and  | 5          | 0      |
|              | poultry fat (not rendered),    |            |        |
|              | fresh, chilled, frozen,        |            |        |
|              | salted, in brine, dried or     |            |        |
|              | smoked                         |            |        |
+--------------+--------------------------------+------------+--------+
| **Pork       |                                |            |        |
| Processed**  |                                |            |        |
|              |                                |            |        |
|              |                                |            |        |
+--------------+--------------------------------+------------+--------+
| 1601.10.00   | Sausages of all kinds, whether | 40         | 5      |
|              | or not in airtight containers  |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.41.10   | Hams and cuts thereof of       | 40         | 5      |
|              | swine, prepared or preserved,  |            |        |
|              | in airtight containers         |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.41.90   | Hams and cuts thereof of       | 40         | 5      |
|              | swine, prepared or preserved,  |            |        |
|              | other than in airtight         |            |        |
|              | containers                     |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.42.00   | Shoulders and cuts thereof, of | 40         | 5      |
|              | swine, prepared or preserved   |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.49.00   | Other prepared or preserved    | 40         | 5      |
|              | meat and offal of swine,       |            |        |
|              | including mixtures             |            |        |
+--------------+--------------------------------+------------+--------+
| 1602.50.90   | Meat and meat offal of bovine  | 40         | 5      |
|              | animals, prepared or           |            |        |
|              | preserved, other than in       |            |        |
|              | airtight containers            |            |        |
+--------------+--------------------------------+------------+--------+

Source: Philippine Tariff & Customs Code

The average applied tariffs for 2005 are 10 percent for beef, and 30
percent (in-quota) to 40 percent (out-of-quota) for pork. Applied
tariffs for meat sausages and prepared meats are 40 percent.

# Marketing

While the Philippine retail sector is increasing its role in supplying
fresh and frozen meats to consumers, most meat products (90 percent) are
still sold in wet markets while only 10 percent is currently sold at the
supermarket level. Domestically-produced pork and beef is generally
slaughtered at night and delivered "warm" to these wet markets.
Refrigeration in Philippine households stands at only 10 percent (2003
Annual Poverty Indicator Survey) and thus fresh beef and pork are cooked
very soon after slaughter.

Demand for processed meat products is expected to remain strong. Canned
food is very popular among Filipino households. Though canned meat/meat
products had been losing popularity in recent years due to increasing
awareness of healthy lifestyles, demand for such products is being
awakened by more aggressive campaigns by suppliers. Due to low
Philippine per capita income, demand for frozen food will remain,
however, extremely price-sensitive. Hotdogs, hams, sausages, salami and
meat patties for burger are favorite chilled processed meats among
consumers.

Demand for imported processed food products will remain relatively
strong given the following factors: the growing interest and preference
for western style cuisine, an increasing number of dual-income families
and the increasing popularity of branded processed products.
Additionally, a growing segment of young consumers is demanding imported
products as a growing urbanization of the Philippine population spurs
this growth.

**PROCESSED MEATS:** According to the Philippine Association of Meat
Processors Inc. (PAMPI), the domestic meat processing industry is
forecast to grow by 15 percent in 2005. The growing demand for processed
meat products, which is estimated to be about 60 percent of the domestic
meat market, is expected to drive this growth. Canned goods, in
particular, have strong growth potential due to wide distribution
prospects in both traditional retail outlets such as supermarkets and
groceries as well as remote neighborhood convenience stores or
"sari-sari" stores in rural areas.

PAMPI is looking to expand into the international market. With the
recognition of the Office International des Epizooties (OIE) that most
parts of the country are free from foot-and-mouth disease, PAMPI is
reportedly optimistic about the country's potential to export more
products and to become the regional production hub for processed meat
products.

However, the industry's growth and export potential are constrained by
the lack of new investment, an increasing global trend towards more
stringent sanitary and phytosanitary (SPS) measures, and a limited
source of raw materials, particularly beef, a base ingredient for most
canned meat products. Because of the relatively small domestic cattle
industry, local meat processors must source most of their meat
requirements from other countries such as India, and South America as
well as Australia, Europe and the United States.

In 2004, PAMPI imported some 194,000 MT (PWE) of meat worth \$350
million or 45 percent of the industry's raw material requirements. This
included 60,100 MT of carabeef, 55,400 MT of beef, 55,600 MT of pork,
and 22,900 MT of poultry.

Over the years, meat processing has become an important segment of the
Philippine economy, contributing over P70 billion to the gross domestic
product annually, providing 60,000 direct and indirect jobs and
providing support to allied businesses such as packaging, canning,
advertising, printing, media and retail trade.

  ------------------- ----------------- ---------- ---------- ---------- ---------- ----------
  **PSD Table**                                                                     

  **Country**         **Philippines**                                               

  **Commodity**       **Animal Numbers,                                  (1000      
                      Cattle**                                           HEAD)      

                      Revised           2004       Estimate   2005       Forecast   2006

                      Old               New        Old        New        Old        New

  **Market Year                         01/2004               01/2005               01/2006
  Begin**                                                                           

  Total Cattle Beg.   5567              5567       5562       5582       5572       5597
  Stks                                                                              

  Dairy Cows Beg.     0                 0          0          0          0          0
  Stks                                                                              

  Beef Cows Beg.      0                 0          0          0          0          0
  Stocks                                                                            

  Production (Calf    1195              1150       1200       1150       0          1160
  Crop)                                                                             

  Intra EC Imports    0                 0          0          0          0          0

  Total Imports       100               55         110        60         0          60

  TOTAL Imports       100               55         110        60         0          60

  **TOTAL SUPPLY**    **6862**          **6772**   **6872**   **6792**   **5572**   **6817**

  Intra EC Exports    0                 0          0          0          0          0

  Total Exports       0                 0          0          0          0          0

  TOTAL Exports       0                 0          0          0          0          0

  Cow Slaughter       0                 0          0          0          0          0

  Calf Slaughter      0                 0          0          0          0          0

  Other Slaughter     1250              1150       1250       1150       0          1150

  Total Slaughter     1250              1150       1250       1150       0          1150

  Loss                50                40         50         45         0          45

  Ending Inventories  5562              5582       5572       5597       0          5622

  **TOTAL             **6862**          **6772**   **6872**   **6792**   **0**      **6817**
  DISTRIBUTION**                                                                    

  Calendar Yr. Imp.   0                 0          0          0          0          0
  from U.S.                                                                         

  Calendar Yr. Exp.   0                 0          0          0          0          0
  to U.S.                                                                           
  ------------------- ----------------- ---------- ---------- ---------- ---------- ----------

+-------------------+---------+---------+-----+-----+----------+-----+
| **PSD Table**     |         |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| **Country**       | *       |         |     |     |          |     |
|                   | *Philip |         |     |     |          |     |
|                   | pines** |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| **Commodity**     | **Meat, |         |     |     | (1000 MT |     |
|                   | Beef    |         |     |     | CWE)     |     |
|                   | and     |         |     |     |          |     |
|                   | Veal**  |         |     |     | (1000    |     |
|                   |         |         |     |     | HEAD)    |     |
+-------------------+---------+---------+-----+-----+----------+-----+
|                   | Revised | 2004    | Es  | 2   | Forecast | 2   |
|                   |         |         | tim | 005 |          | 006 |
|                   |         |         | ate |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
|                   | Old     | New     | Old | New | Old      | New |
+-------------------+---------+---------+-----+-----+----------+-----+
| **Market Year     |         | 01/2004 |     | 0   |          | 0   |
| Begin**           |         |         |     | 1/2 |          | 1/2 |
|                   |         |         |     | 005 |          | 006 |
+-------------------+---------+---------+-----+-----+----------+-----+
| Slaughter         | 1250    | 1250    | 1   | 1   | 0        | 0   |
| (Reference)       |         |         | 250 | 250 |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| Beginning Stocks  | 0       | 0       | 0   | 0   | 0        | 0   |
+-------------------+---------+---------+-----+-----+----------+-----+
| Production        | 235     | 230     | 240 | 230 | 0        | 235 |
+-------------------+---------+---------+-----+-----+----------+-----+
| Intra EC Imports  | 0       | 0       | 0   | 0   | 0        | 0   |
+-------------------+---------+---------+-----+-----+----------+-----+
| Total Imports     | 125     | 160     | 130 | 160 | 0        | 160 |
+-------------------+---------+---------+-----+-----+----------+-----+
| TOTAL Imports     | 125     | 160     | 130 | 160 | 0        | 160 |
+-------------------+---------+---------+-----+-----+----------+-----+
| **TOTAL SUPPLY**  | **360** | **390** | *   | *   | **0**    | *   |
|                   |         |         | *37 | *39 |          | *39 |
|                   |         |         | 0** | 0** |          | 5** |
+-------------------+---------+---------+-----+-----+----------+-----+
| Intra EC Exports  | 0       | 0       | 0   | 0   | 0        | 0   |
+-------------------+---------+---------+-----+-----+----------+-----+
| Total Exports     | 0       | 0       | 0   | 0   | 0        | 0   |
+-------------------+---------+---------+-----+-----+----------+-----+
| TOTAL Exports     | 0       | 0       | 0   | 0   | 0        | 0   |
+-------------------+---------+---------+-----+-----+----------+-----+
| Human Dom.        | 350     | 380     | 360 | 380 | 0        | 385 |
| Consumption       |         |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| Other Use, Losses | 10      | 10      | 10  | 10  | 0        | 10  |
+-------------------+---------+---------+-----+-----+----------+-----+
| TOTAL Dom.        | 360     | 390     | 370 | 390 | 0        | 395 |
| Consumption       |         |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| Ending Stocks     | 0       | 0       | 0   | 0   | 0        | 0   |
+-------------------+---------+---------+-----+-----+----------+-----+
| TOTAL             | 360     | 390     | 370 | 390 | 0        | 395 |
| DISTRIBUTION      |         |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| Calendar Yr. Imp. | 0       | 0       | 0   | 0   | 0        | 0   |
| from U.S.         |         |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+
| Calendar Yr. Exp. | 0       | 0       | 0   | 0   | 0        | 0   |
| to U.S.           |         |         |     |     |          |     |
+-------------------+---------+---------+-----+-----+----------+-----+

  ------------------- ----------------- ----------- ----------- ----------- ----------- -----------
  **PSD Table**                                                                         

  **Country**         **Philippines**                                                   

  **Commodity**       **Animal Numbers,                                     (1000 HEAD) 
                      Swine**                                                           

                      Revised           2004        Estimate    2005        Forecast    2006

                      Old               New         Old         New         Old         New

  **Market Year                         01/2004                 01/2005                 01/2006
  Begin**                                                                               

  TOTAL Beginning     12518             12518       12669       12139       12670       12090
  Stocks                                                                                

  Sow Beginning       2115              2170        2170        2110        0           2042
  Stocks                                                                                

  Production (Pig     23600             22750       24200       22110       0           22465
  Crop)                                                                                 

  Intra EC Imports    0                 0           0           0           0           0

  Total Imports       1                 1           1           1           0           1

  TOTAL Imports       1                 1           1           1           0           1

  **TOTAL SUPPLY**    **36119**         **35269**   **36870**   **34250**   **12670**   **34556**

  Intra EC Exports    0                 0           0           0           0           0

  Total Exports       0                 0           0           0           0           0

  TOTAL Exports       0                 0           0           0           0           0

  Sow Slaughter       0                 0           0           0           0           0

  OTHER SLAUGHTER     21250             20250       22000       19200       0           19800

  Total Slaughter     21250             20250       22000       19200       0           19800

  Loss                2200              2880        2200        2960        0           2600

  Ending Inventories  12669             12139       12670       12090       0           12156

  **TOTAL             **36119**         **35269**   **36870**   **34250**   **0**       **34556**
  DISTRIBUTION**                                                                        

  Calendar Yr. Imp.   0                 0           0           0           0           0
  from U.S.                                                                             

  Calendar Yr. Exp.   0                 0           0           0           0           0
  to U.S.                                                                               
  ------------------- ----------------- ----------- ----------- ----------- ----------- -----------

+-------------------+-----------+-----+-----+-----+-----------+-----+
| **PSD Table**     |           |     |     |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **Country**       | **Phil    |     |     |     |           |     |
|                   | ippines** |     |     |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **Commodity**     | **Meat,   |     |     |     | (1000 MT  |     |
|                   | Swine**   |     |     |     | CWE)      |     |
|                   |           |     |     |     |           |     |
|                   |           |     |     |     | (1000     |     |
|                   |           |     |     |     | HEAD)     |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
|                   | Revised   | 2   | Es  | 2   | Forecast  | 2   |
|                   |           | 004 | tim | 005 |           | 006 |
|                   |           |     | ate |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
|                   | Old       | New | Old | New | Old       | New |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **Market Year     |           | 0   |     | 0   |           | 0   |
| Begin**           |           | 1/2 |     | 1/2 |           | 1/2 |
|                   |           | 004 |     | 005 |           | 006 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Slaughter         | 21250     | 21  | 22  | 22  | 0         | 0   |
| (Reference)       |           | 250 | 000 | 000 |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Beginning Stocks  | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Production        | 1175      | 1   | 1   | 1   | 0         | 1   |
|                   |           | 145 | 220 | 100 |           | 122 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Intra EC Imports  | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Total Imports     | 23        | 25  | 24  | 30  | 0         | 30  |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| TOTAL Imports     | 23        | 25  | 24  | 30  | 0         | 30  |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **TOTAL SUPPLY**  | **1198**  | **  | **  | **  | **0**     | **  |
|                   |           | 117 | 124 | 113 |           | 115 |
|                   |           | 0** | 4** | 0** |           | 2** |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Intra EC Exports  | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Total Exports     | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| TOTAL Exports     | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Human Dom.        | 1198      | 1   | 1   | 1   | 0         | 1   |
| Consumption       |           | 170 | 244 | 130 |           | 152 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Other Use, Losses | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| TOTAL Dom.        | 1198      | 1   | 1   | 1   | 0         | 1   |
| Consumption       |           | 170 | 244 | 130 |           | 152 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Ending Stocks     | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **TOTAL           | **1198**  | **  | **  | **  | **0**     | **  |
| DISTRIBUTION**    |           | 117 | 124 | 113 |           | 115 |
|                   |           | 0** | 4** | 0** |           | 2** |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Calendar Yr. Imp. | 0         | 0   | 0   | 0   | 0         | 0   |
| from U.S.         |           |     |     |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Calendar Yr. Exp. | 0         | 0   | 0   | 0   | 0         | 0   |
| to U.S.           |           |     |     |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+

[^1]: Forecast

[^2]: January to May 2005 only

[^3]: January to April 2005 only

[^4]: CALABARZON Cavite-Laguna-Batangas area

[^5]: NMIC was renamed NMIS in 2004