July 21, 2006

 

Philippine feed wheat imports could hit one million tonnes in 2006

 

 

Philippine imports of feed wheat could rise to one million tonnes this year, almost double from 2005 because of a shortfall in domestic corn supply, a feed milling industry official said Thursday (Jul 20).

 

So far this year, feed millers have already signed contracts to buy 733,263 tonnes of feed wheat, compared with total imports of 593,484 tonnes in 2005, Ric Pinca, executive vice president of the Philippine Association of Feed millers Inc (PAFMI), told reporters.

 

"I think it will reach 1 million tonnes (in 2006)," Pinca said.

 

Out of a contracted volume of 733,263 tonnes, more than 350,000 tonnes have already arrived in the country.

 

Around 80,000 tonnes are scheduled to arrive in August, 40,000 tonnes in September, and 40,800 tonnes in October, he said. Imports are mostly from Brazil, Canada, China and the European Union.

 

According to Pinca, the shortfall in domestic corn supply is evidenced by high prices, which have risen to around 12 peso a kilogramme from 7-8 peso/kg in 2005.

 

Wheat imports are used as a substitute for corn, a major component in livestock and poultry feed.

 

Meanwhile, imports of soymeal could fall to 1.2 million tonnes, compared with imports of 1.5 million tonnes last year, Pinca said.

 

"Importation of soymeal was excessive last year, so there's a lot of carry-over stocks for this year," he said.

 

Imports of soymeal in the year to July have already reached 673,188 tonnes. "Based on an average import volume of around 100,000 tonnes each month, our imports this year could be about 1.2 million tonnes," he said.

 

Argentina accounts for 62 percent of the country's soymeal imports, while the US accounts for 32 percent, and India 6 percent.

 

Soymeal accounts for 20 percent of feed formulation.