December 3, 2008
Philippines' 2009 soymeal imports seen to increase
The Philippines' soymeal and feed wheat imports are likely to increase next year due to an expected recovery in the livestock sector, said a former official of the Philippine Association of Feed Millers Inc.
About 1.6 million tonnes of soymeal will be imported next year as prices of feed and raw materials are now lower, said Ric Pinca, former association vice president.
Soymeal and feed wheat are used as ingredients for animal feeds.
Pinca said soymeal imports are expected to reach 1.6 million tonnes from this year's 1.3 million tonnes because the current cost of soymeal is low.
In the market, soymeal prices are now PHP22-23 per kg, down from PHP28-30 per kg in August.
"I would expect more feedwheat to come in because of the zero duty recently imposed. Feed wheat would replace corn in the formulation of the feeds," Pinca said.
The government expects 2009 corn output to reach 7.8 million tonnes, and has temporarily removed a 7 percent tariff on feed wheat imports for the next six months.
Corn farmers are skeptical of the move, however, as feed millers and traders have ordered more than 200,000 tonnes of feed wheat to be delivered until early 2009.
Corn farmers have since expressed their apprehension over the government's decision, as feed millers and traders have begun placing orders totaling more than 200,000 metric tons of feedwheat to be delivered until early 2009.