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					                                                      USDA Foreign Agricultural Service

                                                          GAIN Report
                                                     Global Agriculture Information Network
Template Version 2.09




Voluntary Report - Public distribution
                                                                           Date: 11/20/2007
                                                             GAIN Report Number: RP7070
RP7070
Philippines
Livestock and Products
Philippines Lifts Restrictions on U.S. Beef & Beef
Products
2007

Approved by:
Emiko Purdy
U.S. Embassy
Prepared by:
Pia Ang


Report Highlights:
On November 16, 2007, the Philippine Department of Agriculture lifted all import restrictions
on beef and beef products from the United States following the OIE decision in May
recognizing the minimal risk classification status for Bovine Spongiform Encephalopathy
(BSE) of the United States. Demand for a variety of U.S. beef products is expected to grow
by 20 percent in 2008, providing excellent marketing opportunities for U.S. beef suppliers.


                                                                        Includes PSD Changes: No
                                                                         Includes Trade Matrix: No
                                                                                     Trade Report
                                                                                      Manila [RP1]
                                                                                              [RP]
GAIN Report - RP7070                                                               Page 2 of 3

U.S. Beef Import Restrictions Lifted

On November 16, 2007, the Philippine Department of Agriculture lifted all import restrictions
on beef and beef products from the United States, following the OIE decision in May 2007
recognizing the minimal risk classification status for Bovine Spongiform Encephalopathy
(BSE) of the United States. Currently, the following U.S. beef and beef products may now be
exported to the Philippines:
    bone-in beef;
    boneless beef;
    processed beef; and
    beef offal

All U.S. beef and beef products sourced from cattle of all ages may now be exported to the
Philippines provided that it comes from healthy ambulatory animals and devoid of specified
risk materials.

This makes the Philippines the first country in Asia to fully comply with OIE guidelines. At
the same time, the Philippines granted Canada full market access for its beef and beef
products.

Additional information and specific certification requirements may be obtained from FSIS
website:
http://www.fsis.usda.gov/Regulations_&_Policies/Philippines_Requirements/index.asp

Philippine Beef Market

According to Philippine Bureau of Agricultural Statistics data, in 2006, the Philippine beef
(including carabeef or buffalo meat) produced reached 242 TMT, down by 3 percent from the
previous year. However, total imports of beef remained at nearly the same level as the
previous year. Demand for beef also posted a decline. The Philippines imports annually
about 100,000 MT of beef valued at over $100 million to augment inadequate domestic
production. Majority of which is manufacturing grade beef for further processing into corned
beef and hotdogs. About 98 percent of Philippine beef imports are boneless beef, mostly
manufacturing grade beef used to produce processed meat products (i.e., hotdogs and
canned corned beef). The top suppliers of beef to the Philippines are India (56 percent) and
Brazil (36 percent).

Opportunities for U.S. Beef

In 2006, the Philippines imported over $6 million worth of beef and beef products from the
United States. From January to September 2007, U.S. beef exports, mostly cuts suitable for
use by hotel and restaurant establishments, already reached $7.7 million, more than double
the value exported during the same period the previous year. Full year beef exports for 2007
are expected to hit $10 million, significantly surpassing last year’s levels and more than
doubling 2003 export levels of $4.5 million.

There is small but growing demand by the hotel and restaurant sector, particularly in key
cities in the Philippines, for U.S. bone-in products such as prime rib and short ribs as well as
a variety of U.S. beef products. Under this new agreement, U.S. beef exports could increase
to $12-13 million by next year. U.S. Meat Export Federation has announced that it has
stepped up its marketing efforts in this market. The Philippines has a large population of
over 86 million people, growing at an average of 2.36 percent annually. Moreover, the
growing middle and upper middle class estimated at about 8-10 million, increasing overseas




UNCLASSIFIED                                             USDA Foreign Agricultural Service
GAIN Report - RP7070                                                            Page 3 of 3

remittances from Filipino workers which contributes roughly 20 percent to Philippine GDP,
and the expanding local tourism industry are expected to drive demand for U.S. beef.




UNCLASSIFIED                                           USDA Foreign Agricultural Service