April 17, 2007

 

Philippine livestock and feed sectors to buy 80,000 tonnes of corn

 

 

Feed millers, poultry and livestock in the Philippines have requested the government for an additional import 80,000 tonnes of yellow corn this month for their animal feed requirements, an industry spokesman said on Monday (April 16).

 

Ric Pinca, spokesman of the Philippine Association of Feedmillers Inc said they would file the tender this month to meet the June/July arrival deadline set by the government.

 

The National Food Authority (NFA), the grain importing arm of the Philippine government, said it was still studying the proposal.

 

NFA administrator Jessup Navarro said they would ensure that corn will arrive between June and July before local farmers harvest their corn in August and September.

 

Last week, Philippine feedmillers, poultry and livestock firms bought 120,000 tonnes of yellow corn from Argentina for June/July arrival.

 

The local firms had sought to buy up to 200,000 tonnes in that tender.

 

Of the 120,000 tonnes purchased, Cargill Philippines Inc. won the contract to supply 60,000 tonnes from Argentina at US$215.48 per tonne, including cost and freight, for arrival no later than July 31.

 

Toepfer International Asia was granted to supply the remaining 60,000 tonnes at US$215.50 per tonne, including cost and freight, for arrival no later than June 30.

 

The volume is part of the 400,000 tonnes of volume that the country plans to import this year to fill a projected shortage in local production for animal feed.

 

Local firms asked the government to waive the minimum 35 percent tariff on imported corn so that the grain would cost the same as local corn.

 

Instead of paying the tariff, the NFA charged local firms a fee of 1 peso for every kilo of corn bought.

 

Agriculture Secretary Arthur Yap has said the government had to waive the tariff as world prices for corn and other feeds rise due to increased demand for the grain to produce biofuel.

Note: US$1=47.80 pesos