July 12, 2007

  

Philippine corn users may give up tariff-free imports

 

 

Philippine feedmilers, poultry and livestock raisers may waive their right to 200,000 tonnes of corn that the government has allowed them to import at zero tariff due to high global prices, a feedmilling industry official said Wednesday (July 11).

 

The Department of Agriculture earlier this year started permitting them to bring in a total of 400,000 tonnes of corn at zero tariff annually, split evenly between the two halves of the year.

 

In April this year, high global prices prompted local feedmillers and poultry and livestock raisers to buy only 120,000 tonnes of Argentine corn at US$215.48-US$215.50/tonne, on a cost and freight basis.

 

According to the official with the Philippine Association Of Feedmillers Incorporated, who did not want to be named, prevailing high prices of corn could deter local end-users from taking advantage of the tariff-free import quota in the current half year.

 

"Global prices are even stronger now. Even at zero-duty, landed price of corn imports could be higher compared to local prices," the official said.

 

Local price of corn currently is around PHP12.90/kilogramme, the official said, compared with a landed price of PHP13.2/kilogramme.

 

Also, most local end-users prefer higher-quality Argentine corn over Chinese corn, the official said, although Argentina's energy woes could delay corn arrivals.

 

"We're told Argentina's problem on power supply has resulted into congestion of their ports," the official said.

 

The zero-tariff quota was designed to ensure availability of corn in the local market. The regular tariff for corn is 35 percent.

 

Corn is a major component of livestock and poultry feeds.

 

US$1 = PHP46.20 (as of July 12)