January 10, 2012

Philippine feed millers raise feed cost by US$0.45/50 kg

Philippine feed millers are increasing the price of animal feeds by at least PHP20 (US$0.45) per 50-kilogramme bag due to the recent price hike in raw materials.

Philippine Association of Feed Millers Inc. president Norman Ramos said many feed millers could no longer hold back the price increase.

"Yellow corn, rice bran and coconut oil are more expensive these days. This has forced most feed millers to increase their price," said Ramos.

A recent industry monitoring show that corn now costs PHP19 (US$0.43) to PHP20 (US$0.45) per kilo from PHP13 (US$0.3) in 2011 in December 2011.

Animal feeds are sold to poultry and livestock animals.

The group said earlier it was no longer pursuing the duty-free importation of yellow corn despite the high price in the local market. It said the harvest in February may lower the price or local corn.

The group in October asked the Agriculture Department to allow the entry of 100,000 tonnes of yellow corn in the first quarter of 2012.

The association cited high prices and tightness in the supply of yellow corn in the months of January to March due to the delay in plantings.

The department, however, rejected the request, saying there was no actual shortage of yellow corn.

Feed millers said duty-free imports of yellow corn were justified because of high domestic prices and the poor quality of local corn.