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The Department of Agriculture is overhauling the nearly 30-year-old rules on Minimum Access Volume for pork imports
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Agriculture Secretary Francisco Tiu Laurel, Jr. said the current rules, drafted in 1996, are outdated and have allowed a small group of importers to dominate allocations
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Pork imported under the MAV scheme is subject to a lower 15% tariff compared to 25% for regular imports
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The current annual MAV quota for pork is 55,000 metric tons, with 30,000 MT allocated to meat processors
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Of 130 MAV quota holders, only 22 control more than half (55%) of the total volume, according to the agriculture chief
The Department of Agriculture (DA) is overhauling the nearly 30-year-old rules on Minimum Access Volume (MAV) for pork imports, aiming to correct long-standing loopholes that have been “exploited” by a small group of accredited importers.
Agriculture Secretary Francisco Tiu Laurel Jr., speaking on the sidelines of the 31st National Hog Convention in Pasay City, said the reform effort is being led by the agency’s Policy and Planning Office, with a new framework expected by October.
“Our MAV rules were written in 1996… I found a lot of room for improvement. So, we have to revise the MAV,” he said.
Under the MAV system, pork imports within the annual quota are subject to a reduced tariff of 15%, compared to the 25% rate applied outside the quota. The country currently allows the importation of 55,000 metric tons (MT) of pork under this mechanism, with 30,000 MT reserved for meat processors to help keep prices of processed meat affordable.
However, a recent DA review revealed significant imbalances, according to Tiu Laurel. Of the 130 accredited quota holders, just 47 account for 80% of the MAV allocation. Even more concerning, 22 of those 47 control 70% of the allocated volume—translating to more than half of the entire MAV quota being cornered by less than two dozen companies, he highlighted.
The agriculture chief said MAV quotas are being reused, which distorts the actual volume of imports and limits consumer benefits from lower tariffs.
As part of the reforms, the DA wants to increase the allocation for meat processors to 40,000 MT. The remainder would be assigned to Food Terminals Inc. (FTI), which could then intervene in the market to help stabilize pork prices.
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