December 31, 2024
Philippines wheat imports expected to rise in 2024-2025
The Philippines is projected to increase wheat imports in the 2024-2025 marketing year as demand for the grain is expected to increase alongside the country's expanding population.
According to the US Department of Agriculture's Foreign Agricultural Service (USDA-FAS), Philippine wheat imports from July 2024 to June 2025 are expected to reach 7.2 million metric tons (MT). This represents a 4.1% increase compared to the estimated 6.9 million MT imported in the 2023-2024 marketing year.
Milling wheat imports, used for human consumption, are forecast to rise during the current marketing year, while imports of feed wheat, used in animal feed production, are expected to remain stable.
The Philippines does not produce wheat domestically and relies entirely on imports to meet its supply needs. Milling wheat demand is anticipated to grow by 4.3 percent to 3.65 million MT, supported by population growth and increasing incomes. Feed wheat consumption is projected to remain steady at 3.45 million MT.
Industry sources report robust consumption of milling wheat due to rising incomes and evolving dietary patterns. Consumers are diversifying their diets to include more wheat-based products alongside traditional staples like rice. This trend is evident in both household consumption and dining out at quick-service and full-service restaurants.
Despite stable feed wheat consumption, local feed manufacturers are expected to prioritise feed corn over feed wheat. The USDA-FAS noted that declining global corn prices have made feed corn a more attractive option. Corn remains the preferred ingredient in animal feed production due to its superior nutritional and physical attributes, including its fattening properties and yellow colour.
Feed wheat is typically used to fill supply gaps for feed corn or when its price is comparatively lower. However, the USDA-FAS highlighted that milling wheat prices have dropped from an average of US$311 per MT in July-August 2023 to US$274 per MT during the same period in 2024.
Similarly, imported corn prices have shown an overall downward trend since May 2024, apart from a brief increase in July. This price decline has reduced demand for imported feed wheat in the Philippines.
- Philippine Daily Inquirer