FMD eradication: Cornerstone of government policy

(Editor’s Note: Following is a statement delivered by Agriculture Secretary Luis Lorenzo Jr. during the hearing called by the Senate committee on agriculture on Senate Bill 1004: "An act allowing the importation of live animals, meat and meat products only from zones declared by the OIE as FMD Zones where vaccination is not practiced," on Oct. 28, 2003.)

Thank you for inviting the Office of the Secretary of Agriculture to participate in this policy discussion. I am happy to provide technical guidance on your deliberation regarding this proposed bill. Let me start by saying, Foot and Mouth Disease or popularly known as FMD is a highly contagious viral disease affecting animals. It has been proven to cause major production losses in pigs and ruminants. If you will recall, at the height of the FMD epidemic in Luzon in 1995, commercial pig industry lost about P2 billion.

About 1,553 outbreaks were recorded and 98,604 clinical cases were reported. This episode forced former President Fidel V. Ramos to declare Luzon as a calamity area, under EO251. In addition, former Secretary Roberto Sebastian, under AO7 Series of 1995, imposed stricter quarantine rules to control the spread of FMD. As a result, a significant decline in the number of reported cases were recorded.

Description Of The Livestock Sector

Up till today, the eradication of FMD remains as the cornerstone of government policy. The Department of Agriculture, under my watch, remains committed in implementing the National Plan to Eradicate FMD, which was put in place in 1996. We recognize that livestock production contributes a major share to agricultural output and to the national economy as well. Since the beginning of this millennium, this sector demonstrated a sustained growth at 2.6 percent in 2001, then four percent in ’02, then at three percent this year.

According to Cristina David, the livestock sector in the past 40 years, has proven itself to be a growth sector.

Perhaps, it is also useful to report to the committee that livestock production is also an important part of both subsistence farming and commercial agricultural enterprises, accounting, for approximately 14 percent of agricultural production. Quantitatively, the backyard sector is the most important producer of animal protein. Last year, this sector was responsible for almost 77 percent of pig production and more than 90 percent of ruminant livestock production. Hence, the FMD eradication program has a direct contribution to the poverty alleviation strategy of the government.

FMD Is A Trade Barrier

The presence of FMD in the country is a major trade barrier. In the past years, there have been several opportunities for the Philippines to export livestock products but due to the FMD occurrence, these opportunities were lost. For example, there was an attempt to export frozen fresh port to Singapore, but it did not push through because of the FMD issue. In Malaysia, in 1987, arrangements were made to export ice cream. But this was not approved by the Malaysian Veterinary Services Department due to FMD presence.

I believe that the several opportunities to export livestock products from the Philippines are waiting. But unless FMD is eradicated, these opportunities will always slip through our midst. Our local livestock industry will be in a better position to compete with the livestock sector of other countries if FMD is eradicated.

Constraint To Food Security

But eradication of FMD is not only geared towards making the Philippines an exporter of livestock products. A more important goal to consider is to achieve self-sufficiency in animal protein. Today, pork accounts for 80 percent of meat consumption, or roughly 16 kgs. per capita per annum. This consumer demand is driving a strong stimulus for increased pork production. I believe that absence of FMD will push more pork production, reduce the cost, stimulate more investments in this sector and provide jobs to our people.

Creating A Risk-Free Environment

It is in this context that the Department of Agriculture views the proposed bill. The efforts of the National Government to become self-sufficient in hogs and chicken meat as well as the initiative of the private sector to be an exporter of pork and poultry products is anchored on the success of the government’s eradication program of the foot-and-mouth disease.

Senate Bill 1004, allowing the importation of live animals, meat and meat products, only from zones declared by the OIE as FMD free zones where vaccination is not practiced, complements the government’s eradication program and builds upon the national priority of providing the livestock raisers a risk-free environment, it protects the considerable gains achieved by the Department of Agriculture over the past year, particularly the declaration by the OIE of Visayas and Mindanao, including Palawan and Masbate as FMD-free.

The Department is convinced that the Senate committee on agriculture appreciates and supports protecting these internationally recognized FMD free zones, as it means protecting 52 percent of the country’s livestock populations of which 30 percent come from the Visayas and 22 percent from Mindanao.

By passing this law, we will deliver a strong signal to the producers that the National Government remains committed to the future of the livestock industry. Like you, as Secretary of Agriculture, I am also sworn to protect the interest of the backyard raisers whose livelihood depends on animal raising.

I recognize the protocol for ensuring the safe transmit and distribution of meal imports from non-OIE countries. But, I also am aware that the entry of meat and meat products from non-OIE-certified zones continues to impose risks to the animal populations. Thus, our bid to become FMD-free by 2004 will be compromised and difficult to achieve unless we remove all the existing risks, including meat imports from non-OIE countries.

Providing Stable Prices For Processed Meats

Consumer welfare is also important to the Department of Agriculture. I am sensitive to their needs for cheap raw materials for their processing requirements. Thus, I am proposing that the entry of imports from non-OIE countries be reduced gradually to allow processors to adjust and plan ahead. I also urge the meat importers and the processors to come together and offer a solution in order that they may remain competitive.

Perhaps, importing the canned corned beef is an alternative. Or, tariff reduction of meat imports from OIE accredited countries will lower costs. Maybe, we should start looking at a long term solution, such as developing our buffalo and cattle industry.

All your suggestions are welcome. The Department of Agriculture will review them and be open to your policy and administrative recommendations. In the meantime, let me reiterate that I support Senate Bill 1004. But, I am proposing that to give the importers and processors the chance to adjust, thus moving the effectivity of this bill to June 2004.