Interests in conflict

As this goes off to press, the Department of Agriculture’s (DA) Administrative Order No. 9, Series of 2013 (AO9), seems all set for execution, the final draft merely awaiting the signature of DA Secretary Proceso Alcala.  As far as I know, the Secretary has not signed it yet, but the Association of Meat Processors Inc. (PAMPI) says the order is already being implemented, this according to PAMPI president Mr. Francisco Buencamino.

The issue between the country’s livestock and chicken producers on one hand, and the meat importers and processors on the other goes deep.  We have had occasion to interview both camps on different occasions and gleaning from these interviews, the positions of both camps have merits on their own. Both sides of course have their own interests to protect.

The pork and chicken growers attest to the fact that there has been excessive importation of pork and chicken products, and much of these are unauthorized.  In other words, there is rampant smuggling of these products as evidenced by the official manifestos declaring the authorized importations against the actual entry into our ports as well as the volume of stocks of imported livestock in cold storages around the country.

They also attest to the fact that our local production of pork and chicken is sufficient to meet local demands and they have, in fact, stepped up production last year to meet the demands. Hence, the heavy importation of these livestock products is unwarranted and lacks legitimacy.

Beyond the fence, the meat importers and processors also have their own beef against the local growers and the government. PAMPI president Francisco Buencamino says that the local production is definitely not enough for their needs — if they buy up all the local production, he says, there won’t be any left for our own domestic consumption.

The organization is likewise questioning the intention of AO9 which specifies the qualifications of importers and the need for a monthly accreditation. Allegedly, the purpose of A09 is to ensure hygiene and the safety of the imported meat, but Mr. Buencamino says nothing in the said order even provides for this. The emphasis is on the qualifications of the importing company.

As to allegations of heavy and rampant smuggling, he maintains that whatever is discovered to be smuggled is actually too small in proportion to the volume of legitimate imports of their members. “May nahuli na ba?...Customs is the one that they have to talk to,” according to Mr. Buencamino.  He went further to suggest that the National Meat Inspection Service (NMIS) which is the proponent of A09 should publish he list of those importers whom they have given import permits to and who are not legitimate members of PAMPI.

Importations are permitted only if they have VQCs (Veterinary Quarantine Certificates) issued by the Bureau of Animal Industries.  The counterpart suppliers abroad, on the other hand, are only allowed to ship out what is allowed to be imported into the Philippines based on the documentation requirements. PAMPI, for its part, is requesting that they be given copies of the requisite VQCs that have been issued by the Bureau of Animal Industries which they can match with the accredited suppliers that are actually importing meat into the country. They went as far as saying that if they find discrepancies here, and should these discrepancies involve any of their members, PAMPI will take the necessary steps to sanction their members.

In the said A09, a meat importer needs to present his SEC registration papers showing that the company has a minimum capitalization of P5-million, on top of other requirements like BIR clearances, etc. in order to get accredited. Though this capitalization is not a problem for existing meat importers, Mr. Buencamino says this is a deterrent for new players in the industry and is patently anti-business. Some legitimate new importers who do not meet this qualification may in fact be granted the necessary letter of credit by his bank, notwithstanding his “insufficient” paid up capital. He also claims that the P5-million figure is arbitrary and without basis, surmising that this may have been from hearsay from some importers who at one instance said that one container of imported meat costs this much.

“I think that the NMIS overstepped its authority by requiring a minim capitalization for any importer to go into business,” the PAMPI president said.  The mission of the NMIS is meat safety. “What does capitalization have to do with that?” he added. Also, some eleven pages of the administrative order is dedicated to the issue of accreditation, which requires the importer to submit voluminous requirements on a monthly basis for others (note: PAMPI members need to be accredited only every three months, as a concession to the long standing importers), and this includes reportorial requirements on all previous importations and where all these importations ended up with. Of course, PAMPI is up in arms against this as their well-guarded secret of clients’ identities as well as their “formulario” will now be public documents. On the part of the NMIS, they have included the guarantee of confidentiality in requiring the submission of such documents.  And to this, the PAMPI official has a retort.

Apparently, a colleague from Pro Pork reported that the supposedly confidential information on the volume of their stocks in various cold storages has been leaked out, and the natural suspect is NMIS, according to Mr. Buencamino. He further stated, “Now they want us to disclose all our customers on a confidential nature?  Who will believe that now? I need to know where that information of cold storage volumes came from…so we will know who to deal with and who not to deal with.”

For 2011, PAMPI data shows that the recorded importation was at 169 million kilos; for 2012, that figure is down to less than 150 million kilos.  PAMPI sees that the 2013 figures will surely be even less, a clear indication of a slowdown. On the other hand, the local hog and chicken growers are crying in protest over the heavy importation of livestock which is killing the local industry, and the rampant smuggling which is pulling down their gate prices.

Clearly, the Department of Agriculture needs to step into the picture post haste because two big sectors in the food industry have been impacted. We hope to see some relief for both sides.

Mabuhay!!! Be proud to be a Filipino.

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