REUTERS

THE GOVERNMENT has issued new rules governing the allocation of pork import quotas for 2026, with half of the minimum access volume (MAV) reserved for meat importer-processors.

Joint Department Circular No. 1, signed by six agencies, including the Department of Agriculture (DA), canceled all allocations for the 54,210-metric-ton pork MAV issued under previous guidelines and consolidated for redistribution.

According to the circular, 50% of the MAV for pork will be distributed among meat importer-processors with verified local processing facilities, while other qualified MAV licensees are allocated 30%.

State trading enterprises, which include government-owned and -controlled entities, were allocated the remaining 20%.

In November, the DA suspended the distribution of MAV allocations for pork, citing the need to overhaul the allocation rules.

Agriculture Secretary Francisco P. Tiu Laurel, Jr.  said the DA was seeking to increase the share for processors to help keep prices of processed pork products affordable, while providing a portion to state entities that can be tapped to stabilize supply and retail prices.

MAV rules, formulated three decades ago, allow limited imports of certain agricultural commodities at favorable tariffs.

For pork, shipments within the MAV pay a 15% tariff, while volumes exceeding the MAV are charged the regular 25% rate.

Under the revised rules, all importers are required to reapply for MAV licenses, which will be valid for five years and subject to annual verification.

Allocations will be distributed through a “systematic distribution procedure,” a raffle-based system that assigns volumes in economic lot sizes to qualified applicants.

A midyear redistribution round will be held to reallocate surrendered or unused quotas, which must be returned by the end of May to be included in the pool.

The circular also introduces a minimum utilization threshold of 70% for 2026, with failure to meet the requirement resulting in disqualification from the following year’s allocation. — Vonn Andrei E. Villamiel