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Philippine pork production expected to decline in 2020

Philippine pork production is expected to decline by double digits in 2020, as African swine fever continues to spread. Imports of pork are likely to increase as demand recovers from the decline seen at the end of 2019.

26 March 2020
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According to a GAIN report from the United States Department of Agriculture, pork production in the Philippines is expected to drop about 10 percent in 2020 as African swine fever (ASF) continues to spread throughout the country, both in Luzon and more recently in Mindanao. The Philippine Department of Agriculture announced that as of March 10, about two percent (237,000 pigs) of the country’s total 12.8 million hogs have been culled.

Pork demand is expected to normalize from the drop in late 2019. Consumers had concerns about the safety of pork during the initial spread of the disease, but demand has since recovered.

Total swine inventory increased by 0.7 percent, with backyard farms comprising about 70 percent of total hog supply, which is a 2.4 percent decline. Commercial farm hog numbers, on the other hand, increased 6.2 percent. This could indicate a shift to commercial farming, as such operations benefit from strong biosecurity measures and efficient production.

Slaughter rates dropped in 2019 because of low farm gate prices and weak pork demand, which contributed to a decline in 2019 swine meat production.

Source: Philippine Statistics Authority
Source: Philippine Statistics Authority

Farm gate prices during the last quarter of 2019 dropped below the cost of production and many commercial farms delayed slaughter until retail prices of pork began to recover.

Total pork imports for 2019 dropped due to high global pork prices from increased purchases by China. Philippine imports of swine meat will likely increase in 2020 to fill the shortfall in domestic production.

March 17, 2020/ USDA/ USA.
https://apps.fas.usda.gov/

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