November 28, 2005

Philippine feed millers buy 44,000 tonnes of Chinese wheat

Philippine feed millers have bought 44,000 tonnes of wheat from China at US$143.50/tonne, on a cost-and-freight basis, for arrival in February, an industry executive said Friday.

The imports are intended to fill a shortfall in corn, an official of the Philippine Association of Feed Millers, or PAFMI, said.

"This is a stopgap measure due to the shortage of corn and as we are waiting for the government's approval on the importation of 100,000 tonnes at zero tariff," the executive told Dow Jones Newswires.

Early this month, PAFMI has asked the Department of Agriculture to allow the entry of 100,000 tonnes of corn at zero tariff.

"We expect the department to decide on our request in a week or two. There really is a shortfall as indicated by current prices," he added.

Local corn is currently traded at 11 peso/kg, up from 8 peso/kg two months earlier.

PAFMI is hoping they can bring in the 100,000 tonnes of corn at zero tariff within next month to help arrest a shortfall in supply, the official added.

According to the official, feed millers have so far imported more than half a million tonnes of wheat this year.

The industry may become aggressive in importing wheat next year if the shortfall in corn persists, he said.