February 26, 2010

El Nino forces Philippines to import feed wheat

The prolonged dry spell is forcing the private sector in the Philippines to import a large volume of feed wheat from Thailand.

Agriculture Undersecretary Salvador Salacup said local livestock producers and feed millers have been having a hard time sourcing corn, the main ingredient in livestock feeds, since January.

He said that 700,000 tonnes of feed wheat would be imported by the private sector until June this year.

Corn has been one of the crops that have been hardest hit by the El Niño weather phenomenon, according to the Department of Agriculture (DA). Of the 700,000 tonnes, 300,000 tonnes have arrived, Salacup said.

Importers of feed wheat have to pay a 7% tariff as stipulated under the Asean Free Trade Agreement (Afta). The private sector must pay for the tariff for the remaining 400,000 tonnes, said Salacup.

The DA announced that the dry spell has caused damage to crops amounting to PHP3.77 billion, with corn being the worst hit at PHP2 billion.