Philippine feed millers are expected to import as much as 300,000 tonnes (MT) of feed wheat from Australia.

 

The trader disclosed the feed wheat averaged US$290 per tonne at zero duty under Australia-New Zealand-Asean Free Trade Area. The feed wheat is due for arrival from January to May of this year.

 

The trader said landed price of wheat is lower than local corn and the importation was undertaken to ensure that there is enough supply during the months of April, May and June when the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) said the country may be hit by drought.

 

Earlier, the Philippine Maize Federation (Philmaize) disclosed that local yellow corn sells at a range of PHP15 to PHP16 per kilogram.

 

In August, traders placed feed wheat imports for 2010 to reach 1.15 million tonnes (MMT), 6.3-percent higher than the 2009 import figure.

 

The bulk of imported feed wheat was sourced from the European Union (EU). A total of 710,648 tonnes or roughly 62 percent of total importation came from the EU.

 

Feed wheat is a substitute for corn in animal feeds. Earlier, an industry source said a decline in actual corn output for 2010 could force feed millers to bring in more feed wheat next year.

 

Corn farmers had projected that corn production for 2010 would not reach the targeted 7.3 million tonnes and that output would settle at 6.8 million tonnes on the back of the damages caused by the El Niño weather phenomenon and typhoons that struck the country.

 

Last week, Philmaize said it is optimistic that the corn sector would fare better in 2011.