December 6, 2010

AG Processors to increase soy exports to Philippines

AG Processors (AGP), the biggest farmer-owned soy processor in the world and a major soy meal supplier to the Philippines, is leading a 15-man delegation of American farmers and traders to attempt to further increase their share of the Philippine soymeal market.

The delegation reached on Friday (Dec 3) and will meet with feedmillers, poultry and hog raisers, and local traders within the week.

The Philippines imported 1.5 million tonnes of soymeal in the previous year and US soymeal took up 35% share of the market. Industry insiders believe this year's imports may be more than 1.6 million tonnes because there is higher feed demand from the pork and poultry sectors.

Last year, the Philippine feedmilling industry produced 7.5 million tonnes of feeds, 7% more than the previous year's seven million tonnes of production. Soymeal is made up of 20%-25% of the feed formula, with corn taking 50%-60% and the remainder taken by fibres, vitamins, and minerals.

The hog-raising industry's consumers use 65% of the country's feed requirements, followed by the poultry sector with 25% and the balance is divided by the fishery and other animal raisers.

AGP is expanding its export facility in the Port of Grey's Harbor in Aberdeen, Washington, to bolster its capability to serve Pacific Rim countries including the Philippines. AGP has a 15-year history of exporting agricultural products from the US. These include soy, soymeal and corn. MCM Enterprises is the Philippine representative of AGP.