January 12, 2009
Feed importers in the Philippines will take advantage of the current zero tariff by buying 600,000 tonnes of feed wheat in 2009, twice the volume from last year's imports.
A group of local feed millers will hold a tender on January 13 to buy 30,000 to 40,000 tonnes of feed wheat for April delivery, they said.
Manila imported around 300,000 tonnes of feed wheat in 2008, at between US$144 and US$235 a tonne.
One trader said the rising cost of corn in the local market have also prompted feed millers to double their wheat imports.
Most of the purchases may be made in the first half of 2009 or before the zero tariff expires, the trader added.
The Philippine government in November last year removed the 7percent tariff on feed wheat imports for six months to stabilise domestic prices of corn.
Imports of soymeal, which carry a 3 percent tariff, are projected to increase to 1.6 million tonnes this year from 1.3 million tonnes in 2008, on lower international prices, traders said.