February 9, 2004

Philippines To Allow Early Arrival Of Corn Shipment

The Philippine government should allow at least 40,000 metric tons of imported corn from 350,000 tons approved for entry at zero duty to arrive in the first quarter to address a local shortfall, a feed milling industry official said Monday.

"We want to ask the government, 'Where will we get our corn requirements for February and March?' We don't believe there will be enough supply (in the local market)," Ric Pinca, vice-president of the Philippine Association of Feed Millers, Inc., said.

The government approved earlier this month a petition submitted by the livestock, poultry and feed milling industries for them to import 350,000 tons of corn at zero tariff to provide temporary relief to the livestock and poultry sectors, which are facing difficulties due to rising prices of feed ingredients.

Corn is a major component in livestock and poultry feed. Imports have a tariff duty of 35% to 50%.

The government, however, has set a condition that imports should arrive no earlier than March 31 but no later than June 30, so as not to coincide with the peak dry season harvest in Cagayan Valley, a major corn-producing area in the country.

The shortfall in domestic supply is estimated at 575,171 tons in the January to June period alone.

The Philippines produces only about 4.5 million tons of corn annually against annual consumption of around 5.5 million to 6 million tons.

Pinca said local corn prices have risen to about 11 to 12 pesos ($1=PHP55.96) a kilogram from a year-ago level of only PHP8/kg, due to the shortfall in domestic supply.