Philippine soybean meal imports rising

“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.