Required Report - public distribution

**Date:** 9/1/2004

**GAIN Report Number:** RP4042

RP4042

**Philippines**

**Livestock and Products**

**Annual**

**2004**

**Approved by:**

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

FAS Manila

**Prepared by:**

Pia Abuel-Ang

**Report Highlights:**

The Philippine livestock industry grew by about 3 percent in 2003, with
the swine sector, as the major contributor, growing by 4 percent. Due to
strong domestic consumption of pork, hog production will likely continue
to grow at a similar rate in 2004. The growth of the cattle industry
will likely remain flat in 2004 due to a decline in live cattle imports
and a stagnation in calf production. Domestic prices of pork and beef
are forecast to remain high in the near term mainly as a result of
increased feed costs. After a sharp decline in US beef exports to the
Philippines immediately following the US BSE case, imports of US beef
rebounded in March of this year. US data show that the export value of
US beef to the Philippines was higher in April 2004 than for the same
period last year.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Manila \[RP1\]

\[RP\]

# Production

According to the Philippine Bureau of Agricultural Statistics, the
livestock industry grew by about 3 percent in 2003, with the hog sector
as the major contributor. Hog production represents about 80 percent of
the total Philippine livestock industry. In 2003, the swine sector grew
by 4 percent. Due to continued strong domestic consumption of pork, hog
production will likely continue to grow at a rate of 3 to 4 percent in
2004 and beyond despite increased feed cost in the world market.
Filipinos are large consumers of swine meat and are known to generally
prefer pork to chicken or beef.

Farmgate price of hogs during the first quarter of 2004 increased by an
average of 20 percent, compared with the nearly 3 percent decline
recorded during the same period a year ago. The rise in farmgate prices,
which began in the third quarter of 2003, is mainly attributed to
increased feed cost, particularly that of imported soybean meal and
corn. The Food and Agriculture Organization (FAO) has reported that
prices of pork in world markets will continue its upward trend as demand
for poultry and beef substitutes increase due to consumer apprehension
of animal diseases like avian influenza and BSE.

+-----------------------+-----------------+-------------+-------------+
| ###### Prices Table   |                 |             |             |
+-----------------------+-----------------+-------------+-------------+
| **Country**           | Philippines     |             |             |
+-----------------------+-----------------+-------------+-------------+
| **Commodity**         | Animal Numbers, |             |             |
|                       | Swine           |             |             |
+-----------------------+-----------------+-------------+-------------+
| Prices in             | Pesos           | per uom     | Kg          |
+-----------------------+-----------------+-------------+-------------+
| Year                  | 2002            | 2003        | \% Change   |
+-----------------------+-----------------+-------------+-------------+
| Jan                   | 51.68           | 50.00       | -3          |
+-----------------------+-----------------+-------------+-------------+
| Feb                   | 52.35           | 50.68       | -3          |
+-----------------------+-----------------+-------------+-------------+
| Mar                   | 52.09           | 51.06       | -2          |
+-----------------------+-----------------+-------------+-------------+
| Apr                   | 52.66           | 51.90       | -1          |
+-----------------------+-----------------+-------------+-------------+
| May                   | 52.27           | 51.92       | -1          |
+-----------------------+-----------------+-------------+-------------+
| Jun                   | 51.70           | 51.24       | -1          |
+-----------------------+-----------------+-------------+-------------+
| Jul                   | 50.89           | 50.90       | 0           |
+-----------------------+-----------------+-------------+-------------+
| Aug                   | 50.23           | 50.97       | 1           |
+-----------------------+-----------------+-------------+-------------+
| Sep                   | 49.96           | 50.66       | 1           |
+-----------------------+-----------------+-------------+-------------+
| Oct                   | 49.99           | 51.61       | 3           |
+-----------------------+-----------------+-------------+-------------+
| Nov                   | 49.76           | 51.26       | 3           |
+-----------------------+-----------------+-------------+-------------+
| Dec                   | 49.44           | 53.45       | 8           |
+-----------------------+-----------------+-------------+-------------+
| Exchange Rate         | 55.85           | Local       |             |
|                       |                 | Currency/US |             |
|                       |                 | \$          |             |
+-----------------------+-----------------+-------------+-------------+
| Date of Quote         | 7/15/2004       | MM/DD/YYYY  |             |
+-----------------------+-----------------+-------------+-------------+

As the Philippine population grows at an estimated rate of 2.36 percent
annually, one of the challenges for the pork industry in the next two
decades will be to triple pork production to meet the projected increase
in demand. To date, the industry faces a number of obstacles including
the spread of economically devastating diseases such as FMD, high
marketing and transaction costs, erratic supply of imported feed
ingredients, supplements and biologics, and the limited availability of
genetically superior breeding stock.

Animal experts claim that these problems must be properly addressed if
the industry is to meet the challenges ahead. The backyard sector, which
makes up more than 75 percent of the industry, will play an important
role. For the industry to become efficient and productive, experts
stress the need for more government and private sector partnerships as
well as increased investment in research and development, particularly
in the areas of genetics improvement, animal nutrition, health
management and product and quality development.

Growth in cattle production is forecast to remain flat in 2004/05.
Cattle production remains small at only 20 percent of total livestock
production. The decline in imports of feeder cattle during 2003 and
throughout the first quarter of this year will also likely keep the
growth in total supply of cattle to a minimum. Due to a standstill in
imports of cattle and a stagnation in calf production, growth in cattle
production is likely to remain minimal in 2004/05.

+-----------------------+-----------------+-------------+-------------+
| ###### Prices Table   |                 |             |             |
+-----------------------+-----------------+-------------+-------------+
| Country               | Philippines     |             |             |
+-----------------------+-----------------+-------------+-------------+
| **Commodity**         | Animal Numbers, |             |             |
|                       | Cattle          |             |             |
+-----------------------+-----------------+-------------+-------------+
| Prices in             | Pesos           | per uom     | Kg          |
+-----------------------+-----------------+-------------+-------------+
| Year                  | 2002            | 2003        | \% Change   |
+-----------------------+-----------------+-------------+-------------+
| Jan                   | 50.74           | 51.28       | 1           |
+-----------------------+-----------------+-------------+-------------+
| Feb                   | 50.73           | 51.61       | 2           |
+-----------------------+-----------------+-------------+-------------+
| Mar                   | 51.73           | 51.87       | 0           |
+-----------------------+-----------------+-------------+-------------+
| Apr                   | 51.38           | 51.69       | 1           |
+-----------------------+-----------------+-------------+-------------+
| May                   | 51.87           | 51.95       | 0           |
+-----------------------+-----------------+-------------+-------------+
| Jun                   | 51.14           | 51.79       | 1           |
+-----------------------+-----------------+-------------+-------------+
| Jul                   | 50.40           | 51.76       | 3           |
+-----------------------+-----------------+-------------+-------------+
| Aug                   | 50.68           | 52.90       | 4           |
+-----------------------+-----------------+-------------+-------------+
| Sep                   | 50.91           | 51.74       | 2           |
+-----------------------+-----------------+-------------+-------------+
| Oct                   | 51.12           | 52.60       | 3           |
+-----------------------+-----------------+-------------+-------------+
| Nov                   | 51.52           | 52.95       | 3           |
+-----------------------+-----------------+-------------+-------------+
| Dec                   | 51.42           | 52.65       | 2           |
+-----------------------+-----------------+-------------+-------------+
| Exchange Rate         | 55.85           | Local       |             |
|                       |                 | Currency/US |             |
|                       |                 | \$          |             |
+-----------------------+-----------------+-------------+-------------+
| Date of Quote         | 7/15/2004       | MM/DD/YYYY  |             |
+-----------------------+-----------------+-------------+-------------+

According to the Philippine Livestock Development Council (LDC),
backyard cattle farms still make up the largest share to total cattle
population averaging 91 percent during the last decade while commercial
farms only represent a 9 percent share. The share of backyard farms to
total inventory has increased while the share of commercial farms has
declined due to a combination of factors such as the Comprehensive
Agrarian Reform Program (CARP), land conversion, a deteriorating peace
and order situation, marketing problems, low returns on investments for
breeding operations, high cost of funds and the lack of credit.

The emergence of cattle feedlot operations that are more profitable than
cow-calf operations due to a shorter production cycle is also a threat
to the national cattle inventory and may result in a reduction in the
breeding base over the long term, as commercial raisers shift to feedlot
operations.

The Philippine Department of Agriculture (DA) announced a special
duty-free importation of corn and soybean meal during the early part of
the year in an effort to lower the production cost of meat. However, due
to increased prices of corn and soybean meal in international markets,
the import scheme was not fully utilized by local traders; only about
10,000 MT out of the announced 200,000 MT was imported.

According to the DA, domestic prices of pork, beef and other meats are
forecast to remain high over the next two years as the price of feeds
remains high. The price of corn and other grains is expected to remain
high in the near term as a result of increased demand for feed grains in
developing economies such as China. Local farmers have been encouraged
to plant more corn to take advantage of this expectation of increasing
prices. Despite the recent limited program for duty-free importation of
corn, feed prices in the Philippines remain high. According to feed
millers, the landed price of imported corn is still at an average of
P11/kg while the current price of local corn is about P10 up from about
P7.50-P8/kg in early 2002.

# Consumption

Last year, the agricultural sector grew faster (3.8 percent) than
expected (3.4 percent) with total farm output rising 5.21 percent. The
performance of the farm sector helped achieve the country's GDP growth
target of 4.5 percent in 2003, exceeding the previous year's growth rate
of 4.4 percent. Farm sector growth for the first quarter of 2004 reach a
15-year high of 11 percent. Economic planners forecast GDP growth at
4.9 - 5.8 percent this year with farm production expected to improve
above its 2003 performance as no major weather disturbance (such as El
Nino) is expected. Inflation stood at 3.1 percent last year but is
forecast to increase in 2004 due mainly to the rise in oil prices. Good
agricultural production and overall growth of the economy will translate
into continued increases in meat consumption in 2004 and onwards.
According to the latest estimates, the population of the Philippines
will reach 84 million in 2004.

Consumption of swine meat is forecast to increase in 2004 due to
continued strong demand for pork as well as the temporary shift from
poultry to other meat over concerns about the avian influenza (AI)
outbreaks in Asia and in the United States. Strong demand for pork and
other meats, as substitutes for chicken meat, pulled up retail prices of
pork by as much as 20 percent in the first quarter of 2004. However, the
increased cost of feed will likely keep retail prices of pork and
products high for the rest of the year.

  ------------------------- --------------- ------------- ----------------
  Prices Table                                            

  Country                   Philippines                   

  **Commodity**             Meat, Swine                   

  Prices in                 Pesos           per uom       Kg

  Year                      2002            2003          \% Change

  Jan                       115.20          110.30        -4

  Feb                       116.37          112.85        -3

  Mar                       117.86          114.47        -3

  Apr                       118.27          114.76        -3

  May                       115.92          114.90        -1

  Jun                       113.69          114.62        1

  Jul                       112.72          112.38        0

  Aug                       111.32          111.27        0

  Sep                       108.70          109.47        1

  Oct                       108.13          108.53        0

  Nov                       108.45          110.11        2

  Dec                       109.19          118.96        9

  Exchange Rate             55.85           Local         
                                            Currency/US   
                                            \$            

  Date of Quote             7/15/2004       MM/DD/YYYY    
  ------------------------- --------------- ------------- ----------------

Growth in beef consumption is likely to be insignificant in 2004/05 due
to the relatively high price of beef compared with other protein
sources. Annual per capita consumption of beef remains very low at less
than 4 kilograms. With the growth of the Philippine population estimated
at 2.36 percent per year, annual increases in beef production are barely
enough to keep up with demand.

Like pork, retail prices of beef remained stable in 2003. However, in
2004, following the trend in pork prices, retail prices of beef also
increased by an average of 5.5 percent during the first two months. This
was the result of increased production costs as well a shift in demand
from chicken to other substitute meats such as beef due to consumer
concerns about the various AI outbreaks.

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

  **Country**               Philippines                    

  **Commodity**             Meat, Beef and                 
                            Veal                           

  Prices in                 Pesos            per uom       Kg

  Year                      2003             2004          \% Change

  Jan                       167.46           168.94        1

  Feb                       166.55           169.91        2

  Mar                       166.46           171.88        3

  Apr                       169.71           170.28        0

  May                       170.78           170.46        0

  Jun                       169.57           169.61        0

  Jul                       169.01           169.75        0

  Aug                       169.18           170.04        1

  Sep                       168.95           170.29        1

  Oct                       168.15           170.65        1

  Nov                       164.55           170.20        3

  Dec                       168.46           170.29        1

  Exchange Rate             55.85            Local         
                                             Currency/US   
                                             \$            

  Date of Quote             7/15/2004        MM/DD/YYYY    
  ------------------------- ---------------- ------------- ---------------

According to the Philippine Food and Nutrition Research Institute
(FNRI), the average Filipino diet is composed of mainly of rice, fish
and vegetables. Per capita intake of rice and products (282 grams)
constitute about a third of the total food consumed per day. Daily per
capita consumption of fish and fish products constitutes 99 grams (68
percent), while 48 grams (27 percent) are consumed in the form of meat
and poultry.

![](media/image2.wmf)

# Trade

In 2003, Minimum Access Volume (MAV) utilization for
fresh/frozen/chilled pork improved slightly from 13 to 15 percent.
Unlike beef imports which comprise a significant portion of total
supply, pork imports represent less than 10 percent of domestic supply.
Despite a MAV volume of 50,595 MT last year, imports of pork have not
been significant due primarily to the 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.

In 2003, major country suppliers of pork included China (39 percent),
Republic of Korea (ROK, 23 percent), France (9 percent) and Germany (6
percent). Nearly half of the country's 25,000 MT (CWE) of pork imports
in 2003 were comprised of processed pork meats, mostly from China. Post
numbers for swine meat imports for 2003 have been raised to 22,000 MT to
include other HTS codes as instructed by FAS Washington. Post estimates
for 2004 and 2005 have also been raised to reflect the new methodology.

  -------------------------- ------------- ------------------------- ----------
  Import Trade Matrix                                                

  **Country**                Philippines                             

  **Commodity**              Meat, Swine                             

  Time Period                              Units:                    MT

  Imports for:               **2002**                                **2003**

  U.S.                       1339          U.S.                      0

  Others                                   Others                    

  China                      17809         China                     8653

  Republic of Korea          2748          Republic of Korea         5271

  Germany                    2610          France                    1910

  Canada                     1663          Germany                   1455

  France                     1581          Canada                    1187

  Total for Others           26411                                   18476

  Others not Listed          5244                                    3959

  Grand Total                32994                                   22435
  -------------------------- ------------- ------------------------- ----------

Source: Philippine National Statistics Office

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.

+---+---------------------+-------+-----+-------+-----+-------+-----+
| * |                     |       |     |       |     |       |     |
| * |                     |       |     |       |     |       |     |
| M |                     |       |     |       |     |       |     |
| A |                     |       |     |       |     |       |     |
| V |                     |       |     |       |     |       |     |
| U |                     |       |     |       |     |       |     |
| T |                     |       |     |       |     |       |     |
| I |                     |       |     |       |     |       |     |
| L |                     |       |     |       |     |       |     |
| I |                     |       |     |       |     |       |     |
| Z |                     |       |     |       |     |       |     |
| A |                     |       |     |       |     |       |     |
| T |                     |       |     |       |     |       |     |
| I |                     |       |     |       |     |       |     |
| O |                     |       |     |       |     |       |     |
| N |                     |       |     |       |     |       |     |
| R |                     |       |     |       |     |       |     |
| A |                     |       |     |       |     |       |     |
| T |                     |       |     |       |     |       |     |
| E |                     |       |     |       |     |       |     |
| 2 |                     |       |     |       |     |       |     |
| 0 |                     |       |     |       |     |       |     |
| 0 |                     |       |     |       |     |       |     |
| 1 |                     |       |     |       |     |       |     |
| ‑ |                     |       |     |       |     |       |     |
| 2 |                     |       |     |       |     |       |     |
| 0 |                     |       |     |       |     |       |     |
| 0 |                     |       |     |       |     |       |     |
| 3 |                     |       |     |       |     |       |     |
| * |                     |       |     |       |     |       |     |
| * |                     |       |     |       |     |       |     |
+---+---------------------+-------+-----+-------+-----+-------+-----+
| H | Description         | 2001  | P   | 2002  | P   | 2003  | 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 | Fresh/ Chilled/     | 4     | 19  | 4     | 13  | 5     | 15  |
| 2 | Frozen Pork         | 5,775 |     | 8,185 |     | 0,595 |     |
| 0 |                     |       |     |       |     |       |     |
| 3 |                     |       |     |       |     |       |     |
+---+---------------------+-------+-----+-------+-----+-------+-----+

Source: Philippine Department of Agriculture

MAV utilization is likely to improve in 2004 as retail prices of local
pork remain high. The Philippine government also implemented a
short-term reduced-duty importation program for pork to lower prices.
This incentive will likely result in an increase in pork imports.

+-----------------------+------+------+------+-------+-------+-------+
| **MAV Importation     | 2004 |      |      |       |       |       |
| (0203)**              |      |      |      |       |       |       |
|                       |      |      |      |       |       |       |
| **(in metric tons)**  |      |      |      |       |       |       |
+-----------------------+------+------+------+-------+-------+-------+
|                       | **J  | **F  | **M  | **    | **    | **To  |
|                       | an** | eb** | ar** | Apr** | May** | tal** |
+-----------------------+------+------+------+-------+-------+-------+
| 1.  Belgium           |  0   |  0   | 54   | 12    | 2     | 20    |
|                       |      |      | .425 | 6.530 | 5.406 | 6.361 |
+-----------------------+------+------+------+-------+-------+-------+
| 2.  Canada            | 66   | 0    | 94   | 3     | 32    | 52    |
|                       | .530 |      | .876 | 9.719 | 2.359 | 3.484 |
+-----------------------+------+------+------+-------+-------+-------+
| 3.  Denmark           | 23   |  0   | 180  | 41    | 21    | 82    |
|                       | .550 |      | .724 | 0.125 | 2.441 | 6.840 |
+-----------------------+------+------+------+-------+-------+-------+
| 4.  France            | 50   | 135  | 171  | 116   | 74    | 226   |
|                       | .163 | .065 | .319 | 1.519 | 4.369 | 2.435 |
+-----------------------+------+------+------+-------+-------+-------+
| 5.  Germany           | 27   | 161  | 249  | 68    | 89    | 201   |
|                       | .626 | .143 | .609 | 5.055 | 2.848 | 6.281 |
+-----------------------+------+------+------+-------+-------+-------+
| 6.  Republic of Korea | 606  | 291  | 58   | 10    | 5     | 111   |
|                       | .626 | .952 | .082 | 8.575 | 4.454 | 9.689 |
+-----------------------+------+------+------+-------+-------+-------+
| 7.  Netherlands       |  0   |  0   | 47   | 5     | 5     | 14    |
|                       |      |      | .572 | 1.057 | 0.000 | 8.629 |
+-----------------------+------+------+------+-------+-------+-------+
| 8.  Spain             |  0   |  0   |      | 4     | 1     | 5     |
|                       |      |      |      | 7.895 | 1.040 | 8.935 |
+-----------------------+------+------+------+-------+-------+-------+
| 9.  Others            | 0    | 0    | 0    | 0     | 0     | 0     |
+-----------------------+------+------+------+-------+-------+-------+
| 10. Total             | 774  | 594  | 856  | 268   | 231   | 722   |
|                       | .495 | .160 | .607 | 4.475 | 2.917 | 2.654 |
+-----------------------+------+------+------+-------+-------+-------+

Source: Philippine Department of Agriculture

About 98 percent of all Philippine beef imports are boneless beef,
mostly of manufacturing grade for use in processed meat products. In
2003, the top suppliers of beef to the Philippines were India (61
percent), Brazil (23 percent) and Australia (10 percent). With domestic
beef production growing at about one percent annually, less than
population growth of 2.36 percent, importation of beef is forecast to
grow in 2004 and beyond in order to augment the domestic beef supply.
Currently, nearly 35 percent of total domestic beef supply is sourced
from other countries.

  ------------------------- --------------- ------------------ -----------
  **Import Trade Matrix**                                      

  **Country**               Philippines                        

  **Commodity**             Meat, Beef and                     
                            Veal                               

  Time Period                               Units:              MT

  Imports for:              **2002**                           **2003**

  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         1870                               3461

  Grand Total               122482                             125227
  ------------------------- --------------- ------------------ -----------

Source: Philippine National Statistics Office

Traditionally, imported beef has been sourced from India, Australia and
New Zealand, but the share of imports of beef from Brazil has been
growing in the last two years likely as a result of Philippine DA's
efforts to encourage and explore alternative meat sources. While India
and New Zealand's market share has remained relatively stable,
Australia's market share dropped significantly in 2003.

Imports from India, Brazil and New Zealand are likely to remain steady
while imports from Australia may continue to decline. A tightness in
supply of Australian beef has developed as a result of a surge in demand
from the Japanese and Korean (ROK) markets. As a result of BSE import
restrictions on US and Canadian beef by Japan and the ROK, Australian
beef exports to Japan and the ROK are up sharply in the first five
months of 2004, while exports to other Asian markets have dipped.
Australian beef shipments to the Philippines during the first five
months of 2004 have reportedly dipped 72 percent, likely due to the
diversion of some beef to the Japanese and ROK markets.

After a sharp decline in the exports of US beef immediately following
the detection of BSE in a single dairy cow last December, imports of US
beef began to rebound in March of this year. US Export Statistics show
that exports of US beef to the Philippines in April 2004 were higher
than that recorded last year for the same time period. Imports of high
quality, premium beef cuts have been increasing. Although relatively
small in value, US data has shown a steady increase in the exports of US
beef to the Philippines, indicating growing demand. US beef is mostly
sold in five star hotels, up-scale restaurants, delicatessens, and
American-style family restaurants.

Imports of processed meat products like corned beef and luncheon meats
are likely to continue increasing, particularly from other ASEAN
countries, due to the low Common Effective Preferential Tariff (CEPT)
rate of 5 percent accorded them compared to the 40 percent applied rate
levied on products from other countries. China is the largest supplier
of luncheon meats while the United States is the primary overseas
supplier of sausages in the country.

# 

# 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 Commission (NMIC) under the Philippine
Department of Agriculture. While the BAI has jurisdiction over the
import of both live animals and meat, the NMIC 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 the BAI and empowered it to
prescribe safety standards in the importation, labeling and distribution
livestock, poultry, meat products, dairy products and animal feeds and
veterinary supplies. The BAI is charged with preventing, controlling,
containing and eradicating communicable animal disease 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) 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.

Based on Executive Order No. 292 (EO 292) or the Philippine
Administrative Code of 1987, all administrative issuances of Department
Secretaries and heads of bureaus, offices or agencies should be in the
form of circulars or orders. Circulars refer to issuances prescribing
policies, rules and regulations, and procedures promulgated pursuant to
law, applicable to individuals and organizations outside the Government
and designed to supplement provisions of the law or to provide means for
carrying them out; while orders refer to issuances directed to
particular offices, officials, or employees, concerning specific matters
including assignments, detail and transfer of personnel, for observance
or compliance by all concerned.

Executive Orders are acts of the Philippine President providing for
rules of a general or permanent character in the implementation or
execution of constitutional or statutory powers. Republic Acts are
legislative issuances enacted by the Philippine President, which form
part of the country's formal laws and regulations. The following
Executive and Departmental issuances relating to the importation of meat
and meat products were promulgated in 2003 and 2004:

**Memorandum Order 33 (MO 33):** In January 2004, the Philippine
Department of Agriculture (DA) issued Memorandum Order No. 33 (MO 33),
which provided new requirements for beef and beef products imported from
the United States. This was in response to the detection of Bovine
Spongiform Encephalopathy (BSE) in a single dairy cow in the State of
Washington in December 2003. MO 33 states that only beef and beef
products derived from cattle 30 months of age or below will be allowed
entry into the country. Other specified requirements include: only
deboned and deglanded muscle cuts of beef from healthy and ambulatory
cattle devoid of nerves and any specified risk materials (SRMs) will be
allowed entry. Moreover, the production or slaughter date of the cattle
must be provided on the packaging label. All information must be
verified in writing by a USDA veterinarian. Complete USDA export
certification provisions are available at USDA/FSIS URL as follows:
<http://www.fsis.usda.gov/OFO/export/philippi.htm>.

While previously covering only frozen and chilled beef, the DA has
extended MO 33 requirements to all processed beef products (i.e., corned
beef, hotdogs, sausages, etc.) as well. DA now requires all processed
beef products to be certified as coming from cattle 30 months and below
and devoid of BSE specified risk materials.

**Memorandum Order 19 (MO 19):** In June 2004, DA issued MO 19 which
enumerates the entry requirement for beef tripe and ox tongues from the
United States and Canada. The DA will allow the importation of said
products provided they are derived from animals 30 months of age and
below and are devoid of BSE specified risk materials. The required
information must be certified by the USDA or a DA-accredited third party
certification agency.

**Executive Order No. 299 (EO 299):** On March 29, 2004, the Office of
the Philippine President issued Executive Order No. 299 (EO 299) which
authorizes the importation of 10,000 MT of swine meat at 10 percent
duty. The reduction of pork tariffs was recommended by the Cabinet-level
Tariff and Related Matters (TRM) committee in a bid to bring down meat
prices and ensure a stable supply of pork. EO 299 allowed the initial
importation of 5,000 MT of pork at 10 percent tariff provided that it be
brought in before June 7, 2004. The order also gives the Philippine DA
the standby authority to import an additional 5,000 MT of pork,
depending on the supply situation after June 7. The pork importation
must fall under the minimum access volume (MAV) mechanism. The MAV
allocation for fresh, chilled and frozen pork currently stands at 50,595
MT. Imports within MAV are assessed a tariff of 30 percent and those
outside MAV are charged 40 percent.

**Republic Act 9296 (RA 9296):** On May 12, 2004, Republic Act 9296
entitled "An Act Strengthening the Meat Inspection System in the
Country" was signed into law. According to the GRP, RA 9296 was crafted
to harmonize Philippine meat inspection laws with international
standards to enable the domestic meat processing industry to participate
in global trade. A provision in the new law makes it unlawful for
shipping lines and agents to ship meat and meat products to the
Philippines without an accompanying Philippine Veterinary Quarantine
Clearance certificate. Local meat traders and meat processors oppose
this new law as being unduly trade restrictive. The Code took effect on
June 18, but its Implementing Rules and Regulations (IRR) are currently
being drafted.

**Administrative Order 39 (AO 39):** In April 2004, DA solicited public
comments on proposed amendments to its Administrative Order 39 (AO39),
regarding rules governing the import of meat and meat products.
According to DA, the amendments are intended to provide a safeguard
against the introduction of diseases such as BSE and Avian Influenza,
and to stem rampant smuggling of agricultural products into the country.

There are several provisions of the draft amendment that may affect meat
export trade. For example, only meat-trading firms sourcing from
DA-accredited Foreign Meat Establishments will be allowed to export to
the Philippines. Each meat shipment entering the Philippines may be
subjected to a mandatory laboratory analysis. All packaging materials
used for exported meat products must be marked "FOR EXPORT TO THE
PHILIPPINES," which will put a costly burden on foreign meat packing
establishments. The DA will not issue its Veterinary import permits for
shipments that have already left the port of origin, which may be
inconsistent with the WTO Agreement on Import Licensing, as well as the
SPS Agreement. The new draft reiterates the need to secure a Veterinary
Quarantine Clearance (VQC) certificate prior to the shipment of meat and
meat products from the country of origin.

Local meat importing associations are opposed to the proposed
amendments, and have provided comments accordingly to DA. USDA and
Manila-based embassies of Australia, Canada, France and Spain have
likewise submitted comments to DA expressing concerns about the draft
amendments. The GRP has yet to notify the WTO of these proposed changes,
and DA is currently reviewing the draft.

**Administrative Order 3 (AO 3):** In February 2004, DA relaxed
restrictions on the importation of pork from the Republic of Korea
(ROK). DA now allows the importation of frozen pork and pork products
from the ROK provided the meat comes from accredited processing plants
and is not sourced from the provinces of Kyongbuk, Kyonggi or Chungbok
where there is still an outbreak of classical swine fever (CSF), or hog
cholera. This is expected to increase pork imports from the ROK, which
is currently the largest exporter of frozen pork to the Philippines.

**Tariff Policy:** In January 2003, the Philippine government announced
that it would undertake a comprehensive review of all tariff lines. In
early 2004, the Tariff Commission issued its recommendations for
increased tariffs in several sectors and a slowdown in tariff reduction
plans in others. While the majority of increased tariffs remain below
WTO bound rates, they represent a reversal of the hard-fought reforms of
previous Philippine administrations during the 1990s.

The GRP announced this year the tariff rates for 2004/05. The 2004/05
MFN and Common Effective Preferential Tariff (CEPT) rates for ASEAN
countries for all beef and pork and their products follow:

  ------------------- ------------------------- --------------- ------------
  **HS Code**         **Description**           **2004/2005**   

  ** **               ** **                     **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                     

  1602.41.10          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        40            5
                      thereof, of swine,                      
                      prepared or preserved                   

  1602.49.00          Other prepared or         40            5
                      preserved meat and offal                
                      of swine, including                     
                      mixtures                                

  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**     **2004/05**                                   

                                   **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**                | **2        |        |
|              |                                | 004/2005** |        |
+--------------+--------------------------------+------------+--------+
|              |                                | **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**                | **2        |        |
|              |                                | 004/2005** |        |
+--------------+--------------------------------+------------+--------+
|              |                                | **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 2004

The average applied tariffs for 2004 are 40 percent for chicken, 10
percent for beef and 30 (in-quota) to 40 (out-of-quota) percent for
pork. Applied tariffs for meat sausages were raised by 10 percentage
points from 30 percent to 40 percent, tariffs for prepared meats remain
unchanged at 40 percent.

#  

# Marketing

While the emerging 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.

The 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 incomes, demand for frozen food will remain,
however, extremely price-sensitive. Hams, sausages, salami and meat
patties for burger are favorite chilled processed meats among consumers,
with almost equal shares for each.

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.

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

  **Country**             **Philippines**                                                

  **Commodity**           **Meat, Swine**                         (1000 MT               
                                                                  CWE)(1000              
                                                                  HEAD)                  

                          Revised           2003       Estimate   2004        Forecast   2005

                          Old               New        Old        New         Old        New

  **Market Year Begin**                     01/2003               01/2004                01/2005

  Slaughter (Reference)   20000             20000      20750      0           0          0

  Beginning Stocks        0                 0          0          0           0          0

  Production              1145              1145       1175       1175        0          1220

  Intra EC Imports        0                 0          0          0           0          0

  Total Imports           10                22         10         23          0          24

  TOTAL Imports           10                22         10         23          0          24

  **TOTAL SUPPLY**        **1155**          **1167**   **1185**   **1198**    **0**      **1244**

  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. Consumption  1155              1167       1185       1198        0          1244

  Other Use, Losses       0                 0          0          0           0          0

  TOTAL Dom. Consumption  1155              1167       1185       1198        0          1244

  Ending Stocks           0                 0          0          0           0          0

  **TOTAL DISTRIBUTION**  **1155**          **1157**   **1185**   **1198**    **0**      **1244**

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

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

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

  **Country**           **Philippines**                                                   

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

                        Revised           2003        Estimate    2004        Forecast    2005

                        Old               New         Old         New         Old         New

  **Market Year Begin**                   01/2003                 01/2004                 01/2005

  TOTAL Beginning       12218             12218       12620       12518       12800       12669
  Stocks                                                                                  

  Sow Beginning Stocks  2000              2000        2075        2115        0           2170

  Production (Pig Crop) 22000             23100       22550       23600       0           24200

  Intra EC Imports      0                 0           0           0           0           0

  Total Imports         2                 0           2           1           0           1

  TOTAL Imports         2                 0           2           1           0           1

  **TOTAL SUPPLY**      **34220**         **35318**   **35172**   **36119**   **12800**   **36870**

  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       20000             20500       20750       21250       0           22000

  Total Slaughter       20000             20500       20750       21250       0           22000

  Loss                  1600              2300        1622        2200        0           2200

  Ending Inventories    12620             12518       12800       12669       0           12670

  **TOTAL               **34220**         **35318**   **35172**   **36119**   **0**       **36870**
  DISTRIBUTION**                                                                          

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

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

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

  **Country**          **Philippines**                                                

  **Commodity**        **Meat, Beef and                        (1000 MT               
                       Veal**                                  CWE)(1000              
                                                               HEAD)                  

                       Revised           2003       Estimate   2004        Forecast   2005

                       Old               New        Old        New         Old        New

  **Market Year                          01/2003               01/2004                01/2005
  Begin**                                                                             

  Slaughter            1237              1275       1250       0           0          0
  (Reference)                                                                         

  Beginning Stocks     0                 0          0          0           0          0

  Production           230               230        235        235         0          240

  Intra EC Imports     0                 0          0          0           0          0

  Total Imports        120               120        125        125         0          130

  TOTAL Imports        120               120        125        125         0          130

  **TOTAL SUPPLY**     **350**           **350**    **360**    **360**     **0**      **370**

  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.           340               340        350        350         0          360
  Consumption                                                                         

  Other Use, Losses    10                10         10         10          0          10

  TOTAL Dom.           350               350        360        360         0          370
  Consumption                                                                         

  Ending Stocks        0                 0          0          0           0          0

  **TOTAL              **350**           **350**    **360**    **360**     **0**      **370**
  DISTRIBUTION**                                                                      

  Calendar Yr. Imp.    0                 1          0          1           0          1
  from U.S.                                                                           

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

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

  **Country**         **Philippines**                                                 

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

                      Revised           2003         Estimate   2004       Forecast   2005

                      Old               New          Old        New        Old        New

  **Market Year                         01/2003                 01/2004               01/2005
  Begin**                                                                             

  Total Cattle Beg.   5567              5567         5592       5567       5617       5562
  Stks                                                                                

  Dairy Cows Beg.     0                 0            0          0          0          0
  Stks                                                                                

  Beef Cows Beg.      0                 0            0          0          0          0
  Stocks                                                                              

  Production (Calf    1190              1190         1195       1195       0          1200
  Crop)                                                                               

  Intra EC Imports    0                 0            0          0          0          0

  Total Imports       120               100          130        100        0          110

  TOTAL Imports       120               100          130        100        0          110

  **TOTAL SUPPLY**    **6877**          **6857**     **6917**   **6862**   **5617**   **6872**

  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     1237              1250         1250       1250       0          1250

  Total Slaughter     1237              1250         1250       1250       0          1250

  Loss                48                40           50         50         0          50

  Ending Inventories  5592              5567         5617       5562       0          5572

  **TOTAL             **6877**          **6857**     **6917**   **6862**   **0**      **6872**
  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.                                                                             
  ------------------- ----------------- ------------ ---------- ---------- ---------- ----------