Required Report - public distribution

**Date:** 10/2/2006

**GAIN Report Number:** RP0000

RP0000

**Philippines**

**Livestock and Products**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Emiko Purdy

FAS Manila

**Prepared by:**

Pia Abuel-Ang

**Report Highlights:**

Despite reported sporadic animal disease outbreaks, hog production is
still forecast to expand in 2006 due to an increase in the number of
breeding stock imported last year as well as a large rise in the number
of live births. However, the decline in live animal births and the
continuing decline in the importation of live cattle are expected to
limit the growth of the Philippine cattle industry. Ensuing high retail
price of red meats as well low purchasing power of consumers will likely
result in a decrease in red meat consumption, as consumers shift to
other lower priced protein substitutes.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Manila \[RP1\]

\[RP\]

**Executive Summary**

Despite reported sporadic animal disease outbreaks, hog production is
still forecast to expand in 2006 due to an increase in breeding stock
imported and a large rise in the number of live births last year as well
as the prevailing favorable swine prices. On the other hand, the decline
in live animal births and the continuing decline in the importation of
live cattle are expected to limit the growth of the Philippine cattle
industry. Ensuing high retail price of red meats as well as low
purchasing power of consumers will likely result in a decrease in red
meat consumption, as consumers shift to other lower priced protein
substitutes.

Despite a decline in domestic beef production, total beef imports
contracted by about 16

percent in 2005 as a result of weak demand for beef and beef products.
Moreover, the decline in beef importation observed in 2005 is believed
to be the result of a shift from manufacturing grade beef to lower
priced mechanically deboned meat (MDM) of chicken/ turkey by the meat
processing industry.

**Production**

**Swine:** According to the Bureau of Agricultural Statistics (BAS), the
total supply of swine in the country was estimated at 36.8 million in
2005, an increase of about 4 percent from the previous year due mainly
to an 8 percent growth in live births as well as a rise in imports of
breeding animals. The strong demand for pork due to the continuing AI
concerns in the region as well as rising farmgate prices have also
contributed to the strong growth of the hog sector in 2005, reversing
the previous year's trend. It is estimated that hog production, valued
at P126 billion (\$2.3 billion), contributes as much as 82 percent to
total livestock production.

Despite reported outbreaks of porcine diarrhea syndrome (PDS) and other
animal disease concerns in some of the major hog producing regions,
output is still forecast to expand this year due to an increase in the
importation of breeding stock. During the first half of 2006, hog
production was estimated to have grown by as much as 4 percent and is
expected to remain strong throughout the second half of the year. Output
will likely continue to expand in the next year due to the continuing
trend of favorable prices, giving the industry an incentive to increase
production.

While the share of commercial hog operations is fast growing, up 5
percent from only 20 percent a few years ago, the Philippine hog
industry is still comprised mostly of backyard operations. At present,
about 75 percent of total swine stocks are raised in backyard operations
while only 25 percent come from commercial farms. More than half of the
total swine population came from the top five producing regions namely:
Central Luzon (13.8 percent), CALABARZON[^1] (12.5 percent), Western
Visayas (9.8 percent), Eastern Visayas (7.5 percent) and Central Visayas
(7.2 percent).

In 2005, annual average farmgate price of swine increased by 4.49
percent, from P68.86/kg (\$1.23/kg) in 2004 to P71.88 (\$1.30/kg) last
year. Farmgate prices have risen by about 40 percent over the last two
years from an average of P51.29/kg (\$0.92/kg) in 2003. As of June 2006,
the average farmgate price was P86.68/kg (\$1.64/kg). The continued rise
in farmgate prices has been mainly attributed to increased feed cost,
particularly of corn and imported soybean meal, high costs of animal
biologics and the rise in transportation costs.

+--------------------+------------+---------------+-------------------+
| # Far              |            |               |                   |
| mgate Prices Table |            |               |                   |
+--------------------+------------+---------------+-------------------+
| **Commodity**      | Swine      |               |                   |
+--------------------+------------+---------------+-------------------+
| Prices in          | Pesos      | per uom       | Kilogram          |
+--------------------+------------+---------------+-------------------+
| Year               | **         | **2005**      | \% Change         |
|                    | 2004**[^2] |               |                   |
+--------------------+------------+---------------+-------------------+
| Jan                | 61.03      | 73.08         | 19.74             |
+--------------------+------------+---------------+-------------------+
| Feb                | 65.89      | 73.59         | 11.69             |
+--------------------+------------+---------------+-------------------+
| Mar                | 69.93      | 73.95         | 5.75              |
+--------------------+------------+---------------+-------------------+
| Apr                | 70.16      | 74.45         | 6.11              |
+--------------------+------------+---------------+-------------------+
| May                | 70.35      | 73.86         | 4.99              |
+--------------------+------------+---------------+-------------------+
| Jun                | 70.45      | 73.40         | 4.19              |
+--------------------+------------+---------------+-------------------+
| Jul                | 67.77      | 70.65         | 4.25              |
+--------------------+------------+---------------+-------------------+
| Aug                | 66.21      | 69.23         | 4.56              |
+--------------------+------------+---------------+-------------------+
| Sep                | 65.34      | 69.20         | 5.91              |
+--------------------+------------+---------------+-------------------+
| Oct                | 67.16      | 70.13         | 4.42              |
+--------------------+------------+---------------+-------------------+
| Nov                | 70.22      | 69.31         | (1.30)            |
+--------------------+------------+---------------+-------------------+
| Dec                | 81.79      | 71.07         | (13.11)           |
+--------------------+------------+---------------+-------------------+
| Avg.               | 68.89      | 71.88         | 4.39              |
+--------------------+------------+---------------+-------------------+

Source: Bureau of Agricultural Statistics

The supply chain for the Philippine hog industry starts with procurement
of feed ingredients sourced either domestically or from imports. Feed
milling activities are 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:** According to data from the Bureau of Agricultural Statistics
(BAS), total cattle production declined in 2005 despite an increase in
water buffalo (carabao) live births, due to very low live birth rates in
the beef cattle sector. As of January 2006, inventory of beef cattle
stood at 2.55 million, about 2 percent lower than the previous year.
However, carabao inventory during the same period was estimated at 3.36
million head, reflecting a one percent increase, with backyard farms
contributing most to this growth. Total supply of live cattle as of
January 2005 declined due to low calf crop output and a decrease in live
cattle importation. The expansion of the Philippine cattle sector is
forecast to remain negligible in 2006 due to the continued decline in
live animal births. Moreover, the continued increase in prices of
imported feeder cattle is expected to further limit the growth of the
Philippine cattle industry in the near future.

Cattle production, valued at P22.4 billion (\$406.6 million), remains
small at only 16 percent of total livestock production. It is estimated
that about 94 percent of total cattle population is raised in backyard
farms, while only 6 percent come from commercial operations. Currently,
about 54 percent of total cattle population is made up of carabao while
the remaining 46 percent is beef cattle. For carabaos, Region II,
Cagayan Valley registered the highest carabao population (10.20
percent), followed by Region IV, Southern Tagalog (9.86 percent) and
Region VI, Western Visayas (9.78 percent). On the other hand, beef
cattle production is mainly concentrated in the Ilocos Region (14.85
percent), Southern Tagalog (14.24 percent) and Central Visayas (10.98
percent).

In 2005, average farmgate price of live beef cattle was P63.93/kg
(\$1.60/kg), 8.36 percent higher than the previous year's average price
of P59.00/kg (\$1.05/kg) and 23 percent higher than that of 2003. Prices
are expected to remain high due to stagnant production and limited
supply of feeder cattle.

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

  **Commodity**      Beef Cattle                          

  Prices in          Pesos              per uom           Kilogram

  Year               **2004**           **2005**          \% Change

  Jan                50.00              65.33             30.66

  Feb                51.36              65.72             27.96

  Mar                52.40              67.11             28.07

  Apr                56.35              61.07             8.38

  May                57.63              60.90             5.67

  Jun                58.64              61.64             5.12

  Jul                62.01              61.97             (0.55)

  Aug                62.56              62.21             (0.56)

  Sep                62.55              63.05             0.80

  Oct                61.66              65.62             6.42

  Nov                62.51              65.65             5.02

  Dec                70.30              67.20             (4.41)

  Avg.               59.00              69.93             8.36
  ------------------ ------------------ ----------------- ----------------

Source: Bureau of Agricultural Statistics

Several studies have noted the continuing decline in the share of
commercial farms vs. backyard cattle 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 meat supply.

**Consumption**

Philippine GDP grew 5.1 percent in 2005, slower than its projected
target of 5.3 to 6.3 percent. The slower growth has been attributed to
weaker farm output and slow export demand. Philippine GNP, however, rose
by 5.7 percent last year, buoyed by remittances from overseas workers,
although still lower than the 6.2 percent GNP growth in 2004.
Surprisingly, the significant increase in overseas remittances (which
have fueled personal consumption in recent years) did not boost personal
consumption to expected levels.

Many analysts have attributed the weak growth in consumption spending to
the prevailing political uncertainty in the country. Average inflation
was in the 7.7 to 7.9 percent range in 2005, and is projected at 8.0 to
8.5 percent this year. This year's GDP growth target is between 5.7 to
6.3 percent, lower than the previous GRP estimate of 6.3 to 7.3 percent.
Some private analysts, however, predict that the 2006 Philippine GDP
growth rate will be similar to last year's level. Rising consumer and
oil prices, as well as the imposition of new and additional taxes, are
expected to produce shifts in the consumption pattern of the average
Filipino.

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 2006 is predicted, as consumers shift to other
lower priced protein substitutes such as fish. Weak consumer prices and
lower purchasing power of Filipino consumers have resulted in a decline
in beef and chicken consumption. Pork consumption increased slightly
last year, likely fueled by concerns about continued AI outbreaks and
other animal diseases in the region.

+--------------------+---------------+---------------+---------------+
| **PER CAPITA MEAT  |               |               |               |
| CONSUMPTION**      |               |               |               |
|                    |               |               |               |
| **2002-2004        |               |               |               |
| (Kg.)**            |               |               |               |
+--------------------+---------------+---------------+---------------+
|                    | **2003**      | **2004**      | **2005**      |
+--------------------+---------------+---------------+---------------+
| Beef               | 3.58          | 3.83          | 3.43          |
+--------------------+---------------+---------------+---------------+
| Pork               | 14.12         | 13.67         | 13.69         |
+--------------------+---------------+---------------+---------------+
| Chicken            | 8.00          | 8.20          | 7.85          |
+--------------------+---------------+---------------+---------------+

Source: Bureau of Agricultural Statistics

**Pork:** In 2005, the average retail price of pork was P141.61/kg
(\$2.57/kg), about 4 percent higher than the previous year.

+--------------------+-------------------+-------------+--------------+
| ###### Re          |                   |             |              |
| tail Prices Table  |                   |             |              |
+--------------------+-------------------+-------------+--------------+
| **Commodity**      | Meat, Swine       |             |              |
+--------------------+-------------------+-------------+--------------+
| Prices in          | Pesos             | per uom     | Kilogram     |
+--------------------+-------------------+-------------+--------------+
| Year               | **2004**          | **2005**    | \% Change    |
+--------------------+-------------------+-------------+--------------+
| Jan                | 128.33            | 145.59      | 13.45        |
+--------------------+-------------------+-------------+--------------+
| Feb                | 136.79            | 143.96      | 5.24         |
+--------------------+-------------------+-------------+--------------+
| Mar                | 142.69            | 141.67      | (0.71)       |
+--------------------+-------------------+-------------+--------------+
| Apr                | 141.65            | 142.20      | 0.39         |
+--------------------+-------------------+-------------+--------------+
| May                | 139.03            | 143.13      | 2.95         |
+--------------------+-------------------+-------------+--------------+
| Jun                | 136.86            | 143.64      | 4.95         |
+--------------------+-------------------+-------------+--------------+
| Jul                | 134.95            | 143.21      | 6.12         |
+--------------------+-------------------+-------------+--------------+
| Aug                | 133.21            | 142.18      | 6.73         |
+--------------------+-------------------+-------------+--------------+
| Sep                | 131.13            | 140.57      | 7.20         |
+--------------------+-------------------+-------------+--------------+
| Oct                | 130.60            | 139.01      | 6.44         |
+--------------------+-------------------+-------------+--------------+
| Nov                | 137.52            | 137.18      | (0.25)       |
+--------------------+-------------------+-------------+--------------+
| Dec                | 143.81            | 136.96      | (4.76)       |
+--------------------+-------------------+-------------+--------------+
| Avg.               | 136.22            | 141.61      | 3.96         |
+--------------------+-------------------+-------------+--------------+

Source: Bureau of Agricultural Statistics

**Beef:** The annual average retail price per kilogram of beef was
P293.62/kg (\$5.33/kg), 7.54 percent higher than the previous year.

+-------------------+--------------------+-------------+--------------+
| ###### Re         |                    |             |              |
| tail Prices Table |                    |             |              |
+-------------------+--------------------+-------------+--------------+
| **Commodity**     | Meat, Beef and     |             |              |
|                   | Veal               |             |              |
+-------------------+--------------------+-------------+--------------+
| Prices in         | Pesos              | per uom     | Kilogram     |
+-------------------+--------------------+-------------+--------------+
| Year              | **2004**           | **2005**    | \% Change    |
+-------------------+--------------------+-------------+--------------+
| Jan               | 171.56             | 203.32      | 18.51        |
+-------------------+--------------------+-------------+--------------+
| Feb               | 180.34             | 202.42      | 12.24        |
+-------------------+--------------------+-------------+--------------+
| Mar               | 187.22             | 202.16      | 7.98         |
+-------------------+--------------------+-------------+--------------+
| Apr               | 190.86             | 202.94      | 6.33         |
+-------------------+--------------------+-------------+--------------+
| May               | 188.04             | 204.67      | 8.84         |
+-------------------+--------------------+-------------+--------------+
| Jun               | 188.33             | 204.00      | 8.32         |
+-------------------+--------------------+-------------+--------------+
| Jul               | 187.59             | 204.48      | 9.00         |
+-------------------+--------------------+-------------+--------------+
| Aug               | 190.72             | 202.95      | 6.41         |
+-------------------+--------------------+-------------+--------------+
| Sep               | 194.68             | 203.28      | 4.42         |
+-------------------+--------------------+-------------+--------------+
| Oct               | 195.91             | 204.11      | 4.19         |
+-------------------+--------------------+-------------+--------------+
| Nov               | 196.47             | 204.39      | 4.03         |
+-------------------+--------------------+-------------+--------------+
| Dec               | 200.25             | 204.50      | 2.12         |
+-------------------+--------------------+-------------+--------------+
| Avg.              | 189.30             | 203.62      | 7.54         |
+-------------------+--------------------+-------------+--------------+

Source: Bureau of Agricultural Statistics

**Trade**

Despite a decline in domestic beef production, total beef imports
contracted by about 16 percent in 2005 as a result of weak demand for
beef and beef products. Exports from relatively new supplier Brazil,
declined by as much as 34 percent, while imports from other traditional
beef suppliers India, Australia and New Zealand also declined. Imports
of feeder cattle also declined from already low levels due to high
import prices, further contributing to the tight beef supply situation
in the country.

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 compared to breeder cattle importation of only
25,000 head last year. With the high dollar-peso exchange rate and
increasing cattle import prices, importation decreased tremendously from
about 250,000 to 300,000 head in 1990's to only 25,0000 head in 2005.

About 98 percent of Philippine beef imports are boneless beef, mostly of
manufacturing grade, used to produce processed meat products (i.e.,
hotdogs and canned corned beef). In 2005, the top suppliers of beef to
the Philippines were India (67 percent), Brazil (25 percent), Australia
(4 percent) and New Zealand (3 percent). The decline in beef importation
observed in 2005 is believed to be the result of a shift from the use of
manufacturing grade beef to lower priced mechanically deboned meat (MDM)
of chicken or turkey by the meat processing industry. According to BAI,
imports of MDM chicken increased by more than 300 percent last year,
from just under 3,000 MT in 2004 to over 12,000 MT. Currently, over 40
percent of the 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:         | 2004        |                | **2005**      |
+----------------------+-------------+----------------+---------------+
| U.S.                 | 1,131       | U.S.           | 993           |
+----------------------+-------------+----------------+---------------+
| Others               |             | Others         |               |
+----------------------+-------------+----------------+---------------+
| India                | 95,479      | India          | 93,125        |
+----------------------+-------------+----------------+---------------+
| Brazil               | 50,274      | Brazil         | 33,114        |
+----------------------+-------------+----------------+---------------+
| Australia            | 5,614       | Australia      | 4,970         |
+----------------------+-------------+----------------+---------------+
| New Zealand          | 5,955       | New Zealand    | 3,706         |
+----------------------+-------------+----------------+---------------+
| Total for Others     | 157,321     |                | 134,915       |
+----------------------+-------------+----------------+---------------+
| Others not Listed    | 5,010       |                | 1,147         |
+----------------------+-------------+----------------+---------------+
| Grand Total          | 163,463     |                | 137,055       |
+----------------------+-------------+----------------+---------------+

Source: Bureau of Agricultural Statistics

Total pork imports increased slightly in 2005, with main pork and
processed pork supplier China increasing exports to the Philippines by
nearly 50 percent. About 60 percent of all Philippine pork imports are
processed pork products (i.e., luncheon meat, sausages, etc.), mostly
originating from China. Major country suppliers of pork were China (60
percent), the United States (8 percent), Germany (7 percent) and France
(6 percent).

+-----------------------+----------------+------------+--------------+
| #######               |                |            |              |
| # Import Trade Matrix |                |            |              |
+-----------------------+----------------+------------+--------------+
| **Country**           | #######        |            |              |
|                       | ## Philippines |            |              |
+-----------------------+----------------+------------+--------------+
| **Commodity**         | Meat, Swine    |            |              |
+-----------------------+----------------+------------+--------------+
| Time Period           |                | Units:     |  MT          |
+-----------------------+----------------+------------+--------------+
| Imports for:          | 2004           |            | **2005**     |
+-----------------------+----------------+------------+--------------+
| U.S.                  | 536            | U.S.       | 2068         |
+-----------------------+----------------+------------+--------------+
| Others                |                | Others     |              |
+-----------------------+----------------+------------+--------------+
| China                 | 10,142         | China      | 15,208       |
+-----------------------+----------------+------------+--------------+
| Germany               | 3,032          | Germany    | 1,832        |
+-----------------------+----------------+------------+--------------+
| France                | 3,890          | France     | 1,607        |
+-----------------------+----------------+------------+--------------+
| Denmark               | 1,624          | Denmark    | 1,223        |
+-----------------------+----------------+------------+--------------+
| South Korea           | 1,723          | Canada     | 1,198        |
+-----------------------+----------------+------------+--------------+
| Total for Others      | 20,411         |            | 21,068       |
+-----------------------+----------------+------------+--------------+
| Others not Listed     | 3,336          |            | 2,400        |
+-----------------------+----------------+------------+--------------+
| Grand Total           | 24,283         |            | 25,536       |
+-----------------------+----------------+------------+--------------+

Source: Bureau of Agricultural Statistics

An uptrend in imports of live breeding stock of swine was observed in
2005, which will likely contribute to an increase in hog production this
year.

In 2005, Minimum Access Volume (MAV) utilization for
fresh/frozen/chilled pork dropped from 19 to 10 percent. While beef
imports make up a significant portion of total beef supply in the
country, fresh/frozen pork imports represent less than 10 percent of
domestic supply. Despite a MAV volume of 54,210 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). There have been
no imports of pork (HS 0203) outside the MAV.

+---+--------------------+-------+-----+-------+-----+-------+-----+
| * |                    |       |     |       |     |       |     |
| * |                    |       |     |       |     |       |     |
| M |                    |       |     |       |     |       |     |
| A |                    |       |     |       |     |       |     |
| V |                    |       |     |       |     |       |     |
| U |                    |       |     |       |     |       |     |
| T |                    |       |     |       |     |       |     |
| I |                    |       |     |       |     |       |     |
| L |                    |       |     |       |     |       |     |
| I |                    |       |     |       |     |       |     |
| Z |                    |       |     |       |     |       |     |
| A |                    |       |     |       |     |       |     |
| T |                    |       |     |       |     |       |     |
| I |                    |       |     |       |     |       |     |
| O |                    |       |     |       |     |       |     |
| N |                    |       |     |       |     |       |     |
| R |                    |       |     |       |     |       |     |
| A |                    |       |     |       |     |       |     |
| T |                    |       |     |       |     |       |     |
| E |                    |       |     |       |     |       |     |
| 2 |                    |       |     |       |     |       |     |
| 0 |                    |       |     |       |     |       |     |
| 0 |                    |       |     |       |     |       |     |
| 3 |                    |       |     |       |     |       |     |
| - |                    |       |     |       |     |       |     |
| 0 |                    |       |     |       |     |       |     |
| 5 |                    |       |     |       |     |       |     |
| * |                    |       |     |       |     |       |     |
| * |                    |       |     |       |     |       |     |
+---+--------------------+-------+-----+-------+-----+-------+-----+
| H | Description        | 2003  | P   | 2004  | P   | 2005  | 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                 | 5     | 15  | 5     | 19  | 5     | 10  |
| 2 | esh/Chilled/Frozen | 0,595 |     | 3,005 |     | 4,210 |     |
| 0 | Pork               |       |     |       |     |       |     |
| 3 |                    |       |     |       |     |       |     |
+---+--------------------+-------+-----+-------+-----+-------+-----+

Source: DA-MAV Management Committee

The Minimum Access Volume for 2006 remains unchanged from the previous
year's levels of 54,210 MT. This level is expected to be maintained
until such time as a new WTO agreement is reached. In-quota and
out-of-quota tariff rates remain the same.

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.

**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)[^3] to implement policies and procedures governing
post production flow of both locally produced and imported meat and meat
products. The Meat Import/Export Services of the NMIC ensures that
imported or exported meat and meat products are produced under
acceptable conditions and systems.

**Import Policy:** Aside from the FSIS Certificate of Wholesomeness,
which accompanies all meat and poultry shipments from the United States,
the Philippine DA strictly requires all accredited importers to obtain a
Veterinary Quarantine Clearance (VQC) certificate from the Bureau of
Animal Industry (BAI) prior to importation (please see RP 6030 for more
information about Philippine import policies for meat and poultry).
Currently, the Philippine Department of Agriculture (DA) allows the
imports of U.S. boneless beef and beef products provided that it is
certified as coming from healthy, ambulatory cattle not older than 30
months and devoid of SRMs.

**Tariffs:** The 2006 MFN and Common Effective Preferential Tariff
(CEPT) rates for ASEAN countries for all beef and pork and their
products are reflected in the table below. The average applied tariffs
for 2006 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.

  ------------------- ------------------------- ------------- ------------
  **HS Code**         **Description**           **2006**      

  ** **               ** **                     **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                               
  ------------------- ------------------------- ------------- ------------

  ------------ ------------------- -------------- --------------- -------------- ---------------
  **HS Code**  **Description**     **2006**                                      

                                   **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**                | **2006**   |        |
+--------------+--------------------------------+------------+--------+
|              |                                | **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**                | **2006**   |        |
+--------------+--------------------------------+------------+--------+
|              |                                | **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: Tariff Commission

**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
supermarket. 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 continue to grow. 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
lack of new investment, an increasing global trend towards more
stringent sanitary and phytosanitary (SPS) requirements for food
products, 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 outside the country such as India, and
South America as well as Australia, Europe and the United States.

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

  **Country**            **Philippines**                                                   

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

                         Revised           2005        Estimate    2006        Forecast    2007

                         Old               New         Old         New         Old         New

  **Market Year Begin**                    01/2005                 01/2006                 01/2007

  TOTAL Beginning Stocks 12139             12139       12090       13041       12156       13693

  Sow Beginning Stocks   2110              2050        2042        2140        0           2170

  Production (Pig Crop)  22110             24640       22465       25270       0           25900

  Intra EC Imports       0                 0           0           0           0           0

  Total Imports          1                 2           1           2           0           2

  TOTAL Imports          1                 2           1           2           0           2

  **TOTAL SUPPLY**       **34250**         **36781**   **34556**   **38313**   **12156**   **39595**

  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        19200             20980       19800       21730       0           22790

  Total Slaughter        19200             20980       19800       21730       0           22790

  Loss                   2960              2760        2600        2890        0           2920

  Ending Inventories     12090             13041       12156       13693       0           13885

  **TOTAL DISTRIBUTION** **34250**         **36781**   **34556**   **38313**   **0**       **39595**

  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**        | **Phil    |   |     |     |     |           |     |
|                    | ippines** |   |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| **Commodity**      | **Meat,   |   |     |     |     | (1000 MT  |     |
|                    | Swine**   |   |     |     |     | CWE)      |     |
|                    |           |   |     |     |     |           |     |
|                    |           |   |     |     |     | (1000     |     |
|                    |           |   |     |     |     | HEAD)     |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
|                    | Revised   | 2 |     | Es  | 2   | Forecast  | 2   |
|                    |           | 0 |     | tim | 006 |           | 007 |
|                    |           | 0 |     | ate |     |           |     |
|                    |           | 5 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
|                    | Old       | N |     | Old | New | Old       | New |
|                    |           | e |     |     |     |           |     |
|                    |           | w |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| **Market Year      |           | 0 |     |     | 0   |           | 0   |
| Begin**            |           | 1 |     |     | 1/2 |           | 1/2 |
|                    |           | / |     |     | 006 |           | 007 |
|                    |           | 2 |     |     |     |           |     |
|                    |           | 0 |     |     |     |           |     |
|                    |           | 0 |     |     |     |           |     |
|                    |           | 5 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Slaughter          | 19200     | 1 |     | 19  | 19  | 0         | 0   |
| (Reference)        |           | 9 |     | 800 | 800 |           |     |
|                    |           | 2 |     |     |     |           |     |
|                    |           | 0 |     |     |     |           |     |
|                    |           | 0 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Beginning Stocks   | 0         | 0 |     | 0   | 0   | 0         | 0   |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Production         | 1100      | 1 |     | 1   | 1   | 0         | 1   |
|                    |           | 1 |     | 122 | 130 |           | 158 |
|                    |           | 0 |     |     |     |           |     |
|                    |           | 0 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Intra EC Imports   | 0         | 0 |     | 0   | 0   | 0         | 0   |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Total Imports      | 30        | 2 |     | 30  | 28  | 0         | 30  |
|                    |           | 6 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| TOTAL Imports      | 30        | 2 |     | 30  | 28  | 0         | 30  |
|                    |           | 6 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| **TOTAL SUPPLY**   | **1130**  | * |     | **  | **  | **0**     | **  |
|                    |           | * |     | 115 | 115 |           | 118 |
|                    |           | 1 |     | 2** | 8** |           | 8** |
|                    |           | 1 |     |     |     |           |     |
|                    |           | 2 |     |     |     |           |     |
|                    |           | 6 |     |     |     |           |     |
|                    |           | * |     |     |     |           |     |
|                    |           | * |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| 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.         | 1130      | 1 |     | 1   | 1   | 0         | 1   |
| Consumption        |           | 1 |     | 152 | 158 |           | 188 |
|                    |           | 2 |     |     |     |           |     |
|                    |           | 6 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Other Use, Losses  | 0         | 0 |     | 0   | 0   | 0         | 0   |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| TOTAL Dom.         | 1130      | 1 |     | 1   | 1   | 0         | 1   |
| Consumption        |           | 1 |     | 152 | 158 |           | 188 |
|                    |           | 2 |     |     |     |           |     |
|                    |           | 6 |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| Ending Stocks      | 0         | 0 |     | 0   | 0   | 0         | 0   |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| **TOTAL            | **1130**  | * |     | **  | **  | **0**     | **  |
| DISTRIBUTION**     |           | * |     | 115 | 115 |           | 118 |
|                    |           | 1 |     | 2** | 8** |           | 8** |
|                    |           | 1 |     |     |     |           |     |
|                    |           | 2 |     |     |     |           |     |
|                    |           | 6 |     |     |     |           |     |
|                    |           | * |     |     |     |           |     |
|                    |           | * |     |     |     |           |     |
+--------------------+-----------+---+-----+-----+-----+-----------+-----+
| 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      
                      Cattle**                                             HEAD)      

                      Revised           2005         Estimate   2006       Forecast   2007

                      Old               New          Old        New        Old        New

  **Market Year                         01/2005                 01/2006               01/2007
  Begin**                                                                             

  Total Cattle Beg.   5582              5582         5597       5550       5622       5540
  Stks                                                                                

  Dairy Cows Beg.     0                 0            0          0          0          0
  Stks                                                                                

  Beef Cows Beg.      0                 0            0          0          0          0
  Stocks                                                                              

  Production (Calf    1150              1105         1160       1102       0          1100
  Crop)                                                                               

  Intra EC Imports    0                 0            0          0          0          0

  Total Imports       60                25           60         25         0          40

  TOTAL Imports       60                25           60         25         0          40

  **TOTAL SUPPLY**    **6792**          **6712**     **6817**   **6677**   **5622**   **6680**

  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     1150              1120         1150       1097       0          1095

  Total Slaughter     1150              1120         1150       1097       0          1095

  Loss                45                42           45         40         0          40

  Ending Inventories  5597              5550         5622       5540       0          5545

  **TOTAL             **6792**          **6712**     **6817**   **6677**   **0**      **6680**
  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  |     |
|                   | Beef and  |     |     |     | CWE)      |     |
|                   | Veal**    |     |     |     |           |     |
|                   |           |     |     |     | (1000     |     |
|                   |           |     |     |     | HEAD)     |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
|                   | Revised   | 2   | Es  | 2   | Forecast  | 2   |
|                   |           | 005 | tim | 006 |           | 007 |
|                   |           |     | ate |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
|                   | Old       | New | Old | New | Old       | New |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **Market Year     |           | 0   |     | 0   |           | 0   |
| Begin**           |           | 1/2 |     | 1/2 |           | 1/2 |
|                   |           | 005 |     | 006 |           | 007 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Slaughter         | 1150      | 1   | 1   | 1   | 0         | 0   |
| (Reference)       |           | 150 | 150 | 150 |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Beginning Stocks  | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Production        | 230       | 225 | 235 | 224 | 0         | 224 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Intra EC Imports  | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Total Imports     | 160       | 138 | 165 | 142 | 0         | 148 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| TOTAL Imports     | 160       | 138 | 165 | 142 | 0         | 148 |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **TOTAL SUPPLY**  | **390**   | *   | *   | *   | **0**     | *   |
|                   |           | *36 | *40 | *36 |           | *37 |
|                   |           | 3** | 0** | 6** |           | 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.        | 380       | 353 | 390 | 356 | 0         | 362 |
| Consumption       |           |     |     |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Other Use, Losses | 10        | 10  | 10  | 10  | 0         | 10  |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| TOTAL Dom.        | 390       | 363 | 400 | 366 | 0         | 372 |
| Consumption       |           |     |     |     |           |     |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| Ending Stocks     | 0         | 0   | 0   | 0   | 0         | 0   |
+-------------------+-----------+-----+-----+-----+-----------+-----+
| **TOTAL           | **390**   | *   | *   | *   | **0**     | *   |
| DISTRIBUTION**    |           | *36 | *40 | *36 |           | *37 |
|                   |           | 3** | 0** | 6** |           | 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]: CALABARZON Cavite-Laguna-Batangas area

[^2]: Average Peso to Dollar Exchange Rate 2005 \$1=55.0855; 2004
    \$1=56.0399

[^3]: NMIC was renamed NMIS in 2004