January 20, 2006

Feed millers in Philippines buying corn due to poor harvest

A poor domestic harvest has forced feed millers in the Philippines to source for foreign sources of corn as local prices climb. 

Philippine corn output fell last year due to the El Nino weather pattern in the first half and flooding in the fourth quarter, the Department of Agriculture said.

24,050 tonnes of Chinese yellow corn were bought by the Philippine Association of Feed millers Inc. (PAFMI) at a tender this week. The corn was bought at US$139.44/ tonne on Tuesday from trading firm Bung Ltd, including cost and freight (C&F).

San Miguel Corp., Southeast Asia's largest food and beverage group, imported a total of 80,000 tonnes of yellow corn in December.

Of that amount, 60,000 tonnes of US yellow corn arrived on January 6 and another 20,000 tonnes of Argentine corn arrived on Jan. 3, traders said.

64,000 tonnes of wheat were also bought by a second group of feed millers, livestock and poultry firms at US$141.50/tonne, including cost and freight.

Philippines imported 593,464 tonnes of feed wheat last year, up from 540,296 tonnes in 2004. It also bought 55,000 tonnes of corn last year from just 10,000 tonnes in 2004, according to PAFMI.