February 23, 2012

Philippines becomes third biggest US soymeal buyer

An expanding livestock sector, rapidly growing economy and an appreciating currency drove demand for SBM to approximately 1.7 million tonnes in 2011, and 2012 levels will likely reach 1.9 million tonnes.

However, when SBM prices spike, some farmers use a combination of copra meal and vitamins as a substitute. Copra meal production surged in 2010 to 920,000 tonnes due to record level copra output. It then fell to 770,000 tonnes in 2011, and is expected to remain at this level in 2012, as coconut palms take a 'biological rest' after three consecutive years of heavy nut-bearing.

Accordingly, CNO production and exports declined to roughly 1.47 and 0.9 million tonnes, respectively, in 2011, and will likely remain at this level in 2012.