November 16, 2012
 

Philippine wheat, corn imports seen to decline in 2013

The Philippines' importation of wheat and corn is projected to decrease in marketing years (MY) 2012-2013, while rice imports will remain flat, the United States Department of Agriculture (USDA) said in a report.

In its Global Agricultural Information Network (Gain), the USDA said wheat importation for MY 2012-2013, which began in July, will go down by 17 percent on year to 3.3 million tonnes due to ample beginning stocks and a slowdown in feed consumption.

"Wheat imports went up by 21 percent to 3.97 MMT in MY 2011-2012 due to unusually strong feed demand," the report read.

Milling wheat consumption for MY 2012-2013 is expected to go up by 1 percent to 2.3 million tonnes due to the continued strength of the Philippine economy and as a result of campaign-related spending on food leading up to the national elections in May 2013.

Corn imports for MY 2012-2013, meanwhile, are expected to decline by 45 percent to 100,000 tonnes due to higher domestic production. MY 2012-2013 began in May this year.

The Gain report noted that local corn farmers were spurred to plant more due to high global corn prices in 2012.

Meanwhile, overall rice imports for MY 2012-2013 which started in May are expected to remain flat at 1.5 MMT due to improved domestic production.

On Tuesday the Bureau of Agricultural Statistics (Bas) said in a report that the Philippines will overshoot its target of producing 17.84 MMT of paddy rice this year on the back of increases in yield and harvest area.

In its "Rice and Corn Situation Outlook," the Bas projected that paddy rice output for the whole of 2012 will go up by 7.7 percent on year to 17.98 million tonnes.

"Harvest area may expand by 3.4 percent on year to 4.69 million hectares this year. Yield per hectare may improve to 3.83 MT, or by 4.2 percent," said the Bas in its report.

Unmilled rice output in the July-to-December period is projected to increase by 10.7 percent on year to 10.08 million tonnes.

"The expected 6-percent increase in yield may bring about the higher level of production during the second half of 2012," said the Bas.

The expected paddy rice output for 2012, however, is lower than the 18.46 million tonnes originally targeted by the government under its rice self-sufficiency road map.