November 20, 2006

Philippine 2007 soymeal imports seen up on higher demand

Philippine imports of soymeal could rise next year from the forecast import volume of 1.06 million tonnes this year on expected stronger demand from local feed millers, an industry official said Friday (Nov 17).

Ric Pinca, executive vice president of the Philippine Association of Feed millers Inc (PAFMI), told a press briefing the possibility of corn and wheat prices rising even further on the global market could lead feed millers to alter their feed formulation in favour of soymeal.

"Soymeal usually accounts for about 20-30 percent of feed formulation, but this can be stretched further if grain prices remain at high levels," Pinca told reporters.

Pinca did not provide an estimate on how much he expected imports to rise.

Close to 70 percent of feed formulation is made up of wheat or corn.

The fall in imports of soymeal this year from last year's import volume of 1.5 million tonnes was due to overbuying of the commodity in 2005, Pinca said.

Peter Mishek, director for international Trade and Business Development of AGP Processing Inc, a major exporter of soymeal in the US, said global interest in ethanol could keep grain prices at high levels. Ethanol is a gasoline additive derived from agricultural feedstock such as corn, sugar, among others.

The US supplies around 50 percent of the country's soymeal imports, while the rest comes from Argentina.