{"id":322658,"date":"2023-04-13T10:00:33","date_gmt":"2023-04-13T02:00:33","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=322658"},"modified":"2023-04-13T13:08:37","modified_gmt":"2023-04-13T05:08:37","slug":"pork-inflation-african-swine-fever","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/pork-inflation-african-swine-fever\/","title":{"rendered":"Inflation could worsen if African Swine Fever escalates"},"content":{"rendered":"\n
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Analysis and Recommendation<\/h2>\n\n\n\n

The Philippine hog industry is again hounded by the African Swine Fever (ASF). Based on the latest data from the Bureau of Animal Industry, 81 provinces are now experiencing cases of ASF. <\/p>\n\n\n\n

Last March 8, the first case of ASF was detected in Carcar City Cebu. Cebu is a major source of pork in the region. It is the country’s third largest hog producer, after Bukidnon and Batangas. Carcar City is famous for pork products such as lechon and chicharon. The Bureau of Animal Industry confirmed that 58 out of 149 blood samples tested from Carcar City were positive for ASF. <\/p>\n\n\n\n

The Department of Agriculture does not expect the outbreak to have a huge impact on pork supply. 2022 hog production in terms of number of heads reached 21.07 million, 0.9 percent higher than the previous year\u2019s level of 20.89 million heads.<\/p>\n\n\n\n

Our View: <\/strong>The Philippines is one of the top pork-consuming countries in the world and an ASF outbreak can lead to a spike in pork prices. Pork demand in the Philippines can be considered inelastic as it is an essential part of the Filipino diet. It accounts for about 60% of the total meat consumption in the country. <\/p>\n\n\n\n

Despite the assurance from the government, an outbreak will lead to a culling of pigs and implementing stricter biosecurity measures. This will lead to a decline in pork supply and a spike in prices. This will have a material impact on inflation as food has a 38% weight on the CPI basket. The Bangko Sentral ng Pilipinas’ (BSP) monetary policy direction is currently unclear. The main variable in consideration is still domestic inflation.<\/p>\n\n\n\n

The Philippines is one of the top consumers of pork in the world and an ASF outbreak can lead to a spike in pork prices. Pork demand in the Philippines can be considered inelastic as it accounts for about 60% of Filipinos\u2019 total meat consumption. Despite the assurance from the government, an outbreak will lead to a culling of pigs and implementation of stricter biosecurity measures leading to a temporary shortage of supply and a spike in prices.<\/p>\n\n\n\n

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This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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