December 24, 2024

Philippine corn imports set to rise amid poultry sector growth

The Philippines is projected to increase its corn imports by 7% in the current market year, driven by sustained expansion in the country's poultry industry.

According to the US Department of Agriculture - Foreign Agricultural Service in Manila (USDA-FAS), corn imports from July to June next year are expected to reach 1.63 million metric tonnes (MT), an increase of 109,000 MT from the 1.521 million MT recorded in the previous market year.

The growth in corn imports has been attributed to rising demand from both the poultry feed and pet food industries. In the 2023-2024 market year, corn imports saw a significant increase of more than 50 percent, reaching 1.521 million MT compared to 907,000 MT in the 2022-2023 market year.

The extension of reduced tariff rates on corn imports has also supported the steady flow of foreign stocks into the country. Earlier this year, President Ferdinand Marcos Jr. issued Executive Order 62, extending lower corn tariff rates of 5 percent for in-quota imports and 15 percent for out-quota imports until 2028.

The USDA-FAS Manila estimated that the total corn feed and residual consumption in the Philippines would rise to 7.6 million MT in the current market year, an increase of 200,000 MT from 7.4 million MT. Industry reports indicate that demand for chicken meat and eggs will continue to grow as alternative protein sources for the expanding population.

Additionally, the slow recovery of the domestic hog industry has contributed to the rising demand for corn feed. This trend is expected to continue, particularly with the potential commercialisation of an African swine fever vaccine on the horizon.

The pet food industry is also showing growth prospects this market year, according to USDA-FAS Manila. Meanwhile, the consumption of corn for food, seed, and industrial purposes is expected to rise slightly to 2.23 million MT from 2.2 million MT, driven by higher demand for corn-based snacks and by-products such as corn-starch and oil.

On the production front, the Philippines is anticipated to see a marginal increase in its corn output. USDA-FAS Manila projected production to reach 8.15 million MT, up from 8.119 million MT recorded in the previous market year.

-      The Philippine Star