May 3, 2007

 

Philippine corporations tender for 64, 640 tonnes of corn

 

 

Philippine firms led by San Miguel Corporation, Southeast Asia's largest food and beverage firm, have committed to buy 64,640 tonnes of yellow corn at a tender on May 17, a government source said on Wednesday (May 2).

 

A source from the National Food Authority (NFA), the government's rice importing arm, said San Miguel had submitted a letter of intent to the NFA to buy 40,000 tonnes of corn.

 

Other local feed millers, poultry and livestock firms have told the NFA they also want to buy 24,640 tonnes, according to the NFA source.

 

The NFA will hold a tender to buy up to 80,000 tonnes of yellow corn for June/July arrival on behalf of local firms on May 17.

 

The volume is part of the 200,000 tonnes of corn that the government has allowed to bridge the gap in local supply.

 

At a tender on April 11, local firms bought 120,000 tonnes of yellow corn from Argentina.

 

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

 

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

 

The Philippines plans to buy 400,000 tonnes of corn overseas this year to fill a projected shortfall 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 ($0.02) for every kilo of corn bought. (US$1=47.60 pesos)