November 8, 2011
 
Philippine Feed Weekly: Rising corn prices prompt Philippine feed and livestock raisers to import (week ended October 19, 2011)

An eFeedLink Exclusive
 

Price summary

While prices of other feed grains remain stable, prices of corn in the Philippines continue to increase, resulting from the heels of the damages caused by strong typhoons that hit the country in recent months.

Pedring (international name Nesat) and Quiel (Nalgae) were the strongest cyclones that devastated farmlands in Central Luzon and submerged Metro Manila.

According to traders, tight supplies have pushed up prices of corn, the major ingredient in feed. Although the Christmas season is also a factor in the increase, the after-effects of storms have hiked prices since supplies are starting to become scarce.

Analysts believe that prices of feed grains will continue to increase as prices in the international market have also soared due to cyclones that severely affected some countries in Southeast Asia.
 
 
Market Analysis
 
Meanwhile, hog raisers and feed producers in the Philippines have requested the government to import corn to avert possible supply woes in the first quarter of 2012.

In a letter to agriculture secretary Proceso Alcala, the Pork Producers Association of the Philippines have asked a special importation permit - asking for a zero tariff for corn shipments in six months - to source cheaper corn. ProPork president Edwin Chen said backyard farmers would be the hardest hit as corn prices have already reached more than PHP15 from the usual PHP12.

This week, the Philippine Association of Feed Millers (Pafmi) also wrote to the Department of Agriculture to allow them to import 100,000 tonnes of corn to supply their requirements in the first quarter of 2012. The group said Pedring and Quiel have damaged the quality of corn which jacked up prices.

Indication surveys reveal that farmers will delay planting following the typhoons and this may further tighten supply in the early months of 2012.

Although plans are afoot to import feed wheat, this will not substitute the corn requirements of the country.

The DA has yet to act on this matter but is expected to release their decision next week.
 

Prices of raw feed ingredients (in PHP/kg)

 

October 12

October 19

Changes

Yellow corn

15.25

16.75

+1.50

Rice Bran

11.00

11.00

0.00

Copra meal

12.10

11.50

-0.60

Pollard 

13.50

13.20

-0.30

Feed wheat

15.50

16.50

+1.00

Coconut oil 

64.00

60.00

-4.00

US soymeal

22.50

22.50

0.00

Argentina soymeal

21.50

21.50

0.00

Molasses

6.50

6.20

-0.30

Fishmeal

45.00

50.00

+5.00

Note: Prices are quoted from the Bureau of Animal Industry
US$1 = PHP43.08 (November 8, 2011)

 


 
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