May 6, 2009

Philippine feed wheat imports in 2009 may surge to 1.8 million tonnes, the highest in at least eight years, as traders boost purchases on relatively low global prices amid ample supplies, an industry executive said Tuesday (May 5).

Local feedmillers have already bought around one million tonnes of feed wheat, and imports are expected to continue, said Ric Pinca, an executive at the Philippine Association of Feed Millers, Inc., or Pafmi. The country imported 92,000 tonnes last year.

The increase is expected even as a six-month concession allowing duty-free imports of wheat expires in May. The government had withdrawn the seven percent import tariff in December, and the association has already requested for an extension till the end of this year.

"With or without tariff, there's enough feed wheat in the world market at very competitive prices that the feedmilling sector would like to take advantage of," Pinca said.

Philippine feed wheat imports were around 1.5 million tonnes a year from 2001 to 2006. Following a steady increase in global prices, shipments fell to 393,000 tonnes in 2007.

Retail prices of imported wheat are currently around PHP10-PHP11/kilogramme, while local corn prices are around PHP13/kilogramme.

Wheat and corn substitute each other as a major component of livestock and poultry feeds.