Reform corn tariffs to reduce meat prices, govt urged

Title Reforming Corn Tariffs A Recipe for Cheaper Meat Prices

The Philippines' Foundation for Economic Freedom (FEF) has called on the government to reform corn import tariffs to a uniform five percent, citing the need to reduce meat prices and make protein sources more affordable for families.

In a presentation at the Management Association of the Philippines' General membership meeting, FEF President Calixto Chikiamco emphasized the importance of liberalizing corn imports, reducing the out-quota tariff to 5 percent, and establishing a uniform value for in-quota and out-quota raw corn imports. The reform we are asking for is to make corn imports more competitive by eliminating the disparity between in-quota and out-quota tariffs, he said.

Current Situation
Currently, the Philippines imposes a five percent tariff on corn imports within the minimum access volume (MAV), while imports outside the MAV are levied with a 15 percent tariff. This means that almost all corn imports are subject to the higher 15 percent tariff rate.

Impact
The disparity in tariffs has resulted in a significant increase in the cost of feeds, which ultimately leads to higher meat prices. According to FEF, the input tariff for corn is five percent, while the output tariff is 15 percent. The demand for corn is much higher than the MAV, leading to a shortage of this essential feedstock.

Solution
To address this issue, FEF proposes reducing the out-quota tariff to 5 percent and establishing a uniform value for in-quota and out-quota raw corn imports. This would lead to a reduction in the cost of feeds and subsequently lower chicken and pork prices.

Benefits
A study by FEF Fellow Dr. Roehlano Briones estimates that meat prices have risen by 79 percent from January 2020 to June 2025. The proposed reform could result in a 2 percent decline in pork prices and a 1.7 percent reduction in chicken prices, making protein sources more affordable for families.

Challenges
Trade Undersecretary Allan Gepty emphasized the need to protect local production and farmers from increased corn imports. While there are valid concerns about protecting local farmers, FEF argues that a more nuanced approach is needed to balance the interests of farmers with those of consumers.

Conclusion
Reforming corn tariffs could be a crucial step in reducing meat prices and making protein sources more affordable for families. By liberalizing corn imports and reducing tariffs, we can create a more competitive market that benefits both farmers and consumers. Now is the right time to act on this issue to mitigate the impact of recent price increases driven by global events.

Keywords Corn Tariffs, Meat Prices, Feeds, Chicken, Pork, Reform, Liberalization

Edward Lance Arellano Lorilla

CEO / Co-Founder

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