October 23, 2007

Philippine end-users keen to buy 59,000 tonnes duty-free corn

Philippine end-users of corn have committed to buy around 59,000 tonnes of the grain in a tender to be held Tuesday, a senior official of the National Food Authority (NFA) said Monday (October 22).

The NFA will seek offers on Tuesday to buy 70,000 tonnes of duty-free corn for shipment in December this year.

Based on letters of intent submitted to the agency, local end-users including feedmillers and poultry and livestock raisers are interested in buying at least 59,000 tonnes of the grain, the official said.

"This is what they have committed to buy in their LOIs (letters of intent). But ultimately, any decision to buy will be based on prices," the official said.

The NFA, a state-owned grains trading firm, will hold the tender on behalf of the end-users.

Because of high global corn prices, the government is allowing the NFA to import 400,000 tonnes of corn this year on behalf of end-users to avoid the 35 percent tariff normally imposed on corn imports.

Earlier this month, a feedmilling industry official said the NFA will hold another tender in late November to buy 200,000 tonnes of duty-free corn.

Corn is a major component in livestock and poultry feeds.