The local hog industry incurred losses of P27.9 billion due to the sharp decline in farmgate price caused by a surge in pork import, the Department of Agriculture (DA) reported on Monday.

The agency noted that the P27.9 billion losses recorded from January to July this year could double if farm gate prices of hogs continue to weaken.

"The figure could double to P55.8 billion by year-end if weak prices persist, while industry submissions point to potential losses of as much as P100 billion," it stated.

After a preliminary investigation found that rising foreign shipments seriously injured the domestic hog industry, Agriculture Secretary Francisco Tiu Laurel Jr signed last Saturday a department order authorizing a temporary or up to 60-day restriction on pork importation.

"The preliminary findings show that the surge in pork imports is putting severe pressure on our local producers. We cannot allow an import surge to undermine an industry that is still struggling to recover from years of ASF-related losses," Tiu Laurel said.

According to DA, "pork imports climbed 42 percent, from 589,675 metric tons in 2023 to 836,240 metric tons in 2025. Imports also accounted for an increasing share of domestic production, rising from 39 percent in 2021 to 61 percent in 2025 and 65 percent in the first half of 2026."

"The squeeze is evident in the country's worsening dependence on imported pork. Domestic self-sufficiency fell from 74.3 percent in 2021 to 65.5 percent in 2025 and just 54 percent in January to August 2026. Imports' share of domestic consumption, meanwhile, rose to 55 percent," it stated.

"Frozen pork inventories reached about 121,000 MT in July, up 38 percent from a year earlier and more than double their level in 2024. Imported products accounted for 94 percent of these stocks," it added.

The agency noted that due to the inventory buildup the average farmgate prices dropped from P198.30 per kilogram in 2025 to P175.75 in the first half of 2026, with some producers reporting a 50-percent plunge from P240 to P120 per kg.

Acknowledging industry groups' concern that the 60-day import restriction may be too short, Tiu Laurel said the government could consider extending the measure, as it did with last year's rice import ban.

“We can extend the period, just as we did with the rice import ban last year. But this requires a delicate balancing act because we also have to consider the needs of consumers and meat processors,” he said.

Tiu Laurel Jr. said "rebuilding the hog industry requires more than short-term price interventions."

"We are working through the necessary legal, regulatory, and industry reforms to bring the national hog population back to its pre-ASF level of about 13 million heads by the end of 2028," he said. Robina Asido/PHS