Philippine feed millers choose cheaper Argentinean soybeans
The US once supplies 65% of the Philippines' yearly imports of 1.5 million metric tonnes of soybean meal, but now lost significant market share to cheaper Argentinean product.
But with a smaller import volume this year of only 1.11 million tonnes due decimated animal population caused by a series of destructive typhoons, the US’ share dwindled to only 26% (291,676 t) with Argentina capturing 69% (771,137 t); India 4% and Brazil 1%.
US soybean meal is about $50 to $60 more expensive. The biggest users in the Philippines are poultry farmers.
The US has sent an 11-man trade team to regain foothold in the Philippine soybean meal market they previously dominated, but now lost significant market share to cheaper Argentinean beans.
The team composed of soybean farmers, state soybean board officials, shipping agents and traders came for a five-day visit to promote US soybean meal use with local poultry and hog farms.
The group would also have discussions with feed millers and farm operators.
Headed by Glen Heitritter a top level official of Ag Processing Inc. which is one of US’ biggest agricultural cooperative and leading soybean meal exporter, the trade team also seeks to look at exporting other agricultural products such as corn and DDGS to the Philippines.
Other representatives came from the Iowa Soybean Association; the Minnesota Soybean Growers Association; the Nebraska Soybean Board; Mishek and Associates; Maritime 24, a shipping company; and MC Marte Enterprises which is coordinating the trade team’s activities in the Philippines.
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