February 3, 2004

 

 

Philippines May Lift 3% Tariff On Soymeal

 

The Philippines Department of Agriculture will seek to lift a 3% tariff on soybean meal to aid feed millers and hog raisers, Agriculture Secretary Luis Lorenzo said.

 

Lorenzo said he would ask the inter-agency Tariff and Related Matters, led by the Department of Trade and Industry, to scrap the tariff for the next six months, noting feed millers and hog raisers were "suffering from high prices of raw materials."

 

High prices of feeds result in increases in the prices of pork and other meats.

 

Lorenzo said the department's proposal could be the alternative to a request of feed millers and hog raisers for authority to import yellow corn duty-free. He said duty-free importation of corn might not be allowed until April because of the forthcoming harvest season.

 

Corn farmers are opposing importation of corn in February, when corn harvest in the Northern Luzon region peaks.

 

Philippine Association of Feed Millers Inc. vice president Ric Pinca said duty-free importation of corn was what the sector needed.

 

"Suspension of the tariff on soybean meal is the wrong solution," he said. "The industry needs the yellow corn for its feed production now that there is shortage in domestic corn supply."

 

Pinca, who is an official of General Milling Corp., added that the feed millers were asking that an initial importation of about 40,000 metric tons be shipped in late February or early March.

 

Feed millers and hog raisers are asking to be allowed to import duty-free 300,000 metric tons of yellow corn.

 

The Bureau of Agricultural Statistics estimates the country's corn requirement at 5.0-5.2 million metric tons and local corn production at 4.5 million metric tons.