July 22, 2009

The Philippines may not import any more feed wheat this year due to weak demand and declining local corn prices, an industry executive said Tuesday (July 21).

Local feed millers have so far imported 1.1 million tonnes of wheat, said the executive, who declined to be named.

"I don't think there will be additional imports," said the executive, noting domestic corn prices have fallen substantially to around PHP9.80 (US$0.20) a kilogram from PHP12/kg just a month ago and from a record PHP26/kg early this year.

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

Even without additional wheat imports, millers have ample supply of both wheat and corn as feed demand continues to remain weak tracking poor consumer demand amid the economic slowdown.

The usual spike in demand for feeds, to meet a burgeoning demand for meat products ahead of Christmas and New Year festivities, is yet to materialize, the executive added.

Philippine annual feed wheat imports were around 1.5 million tonnes from 2001 to 2006. Following a steady increase in global prices, shipments fell to 393,000 tonnes in 2007, declining further to 92,000 tonnes last year.

Following softer global wheat prices beginning late last year and rising local corn prices early this year, industry executives had predicted wheat imports this year could reach 1.8 million tonnes.

US$1  = PHP48.11 (July 22)