Philippine poultry, hog raisers may benefit from lower animal feed costs on AFTA

Poultry and hog raisers in the Philippines see lower feed costs as one possible silver lining in the impending implementation of a free-trade scheme among members of the Association of Southeast Asian Nations (Asean).

 

Elias Inciong, vice president of the United Broiler Raisers Association (Ubra), said alternative raw materials for feed, such as tapioca, could become cheaper due to the elimination of tariffs under the Asean Free Trade Area-Common Effective Preferential Treatment (Cept).

 

Albert Lim Jr., National Federation of Hog Farmers Inc. (NFHFI) president, agreed that raw materials for animal feeds will become less expensive once the Afta-Cept goes into full implementation next year. Lim noted that tapioca pellets used as feed input are slapped a tariff of 35 percent.

 

Other feed inputs such as soy are slapped a tariff of 1 percent, 3 percent for soymeal and 3 percent for DDGS (dried distillers grains with solubles).

 

However Lim said the source of the materials could pose a problem.

 

The NFHFI chief said only Thailand produces surplus tapioca pellets which the Philippines can buy.

 

As for yellow corn, Lim noted that Indonesia does not produce enough for export to other Southeast Asian countries at zero tariffs.

 

Earlier, stakeholders admitted that they are monitoring Malaysia and Indonesia as possible sources of yellow corn. Under AFTA, the 35-percent tariff on yellow corn imposed by Manila will be removed.

 

Traditionally, the Philippines sources its yellow-corn requirement from the United States, Argentina and Brazil whenever there's a shortage of the produce. Yellow corn makes up around 50 percent to 60 percent of animal feeds.

 

Any increases in the cost of yellow corn in the domestic market will have a corresponding impact on the retail price of pork and dressed chicken.