April 3, 2018

Philippines' wheat imports to increase in 2018-19   
 

Investments in the Philippines' feed milling industry has spurred demand for feed wheat, which could increase in 2018-19, a USDA report revealed. 

The March 19 Global Agricultural Information Network (GAIN) report stated that wheat imports would rise 550,000 tonnes to 5.75 million tonnes, with strong demand expected to push corn imports by 200,000 tonnes to 700,000 tonnes.

Highlighting the absence of commercial wheat production in the Philippines, the report said that milling wheat demand, bolstered by economic growth and the country's growing population, could "increase modestly" in 2018-19.

"Feed wheat consumption is expected to increase 2.5 million tonnes in 2018-19 due to firm animal feed demand from an expanding livestock sector and a lower price relative to feed corn," the report added.

It further noted that the number of local feed mills, which were registered with the Philippine Bureau of Animal Industry (BAI), was 486 as of December 2016. All these sites had a combined capacity of over 27,000 tonnes per eight-hour shift.

About 60% of these feed mills were considered as small-scale producers (less than 25 tonnes per eight-hour shift), with 15% producing more than 100 tonnes per eight-hour shift.