News last update:6 Aug 2012

Philippine soybean meal imports rising

Philippine imports of soybean meal and wheat will likely increase next year (2009) on the back of an expected recovery in the livestock sector, a former official of Philippine Association of Feed Millers Inc. said.

"With lower feed prices, lower raw material prices [and] the expected rebound of the animal sector, we see more importation of soybean meal next year," said Ric Pinca, former association vice president. "I would conservatively place it at 1.6 million metric tons."

Soybean meal and wheat are used as ingredients for animal feeds.Pinca said soybean meal imports are expected to bounce back to 1.6 million metric tons from 1.3 million this year because of the low cost of soybean meal at this time.

In the market, soybean meal prices now stand at P22-P23 a kilo, from P28-P30 a kilo in August. "I would expect more wheat to come in because of the zero duty recently imposed," Pinca said. "Wheat would replace corn in the formulation of the feeds."

He, however, declined to cite specific figures since the importation of wheat would depend on the corn yield next year. In 2009, the government expects corn production to reach a hefty 7.8 million metric tons.

Through Executive Order No. 756, the government has temporarily removed a 7.0-percent tariff on feedwheat imports for the next six months. 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.

Editor AllAboutFeed

Or register to be able to comment.