Connect with us

Hi, what are you looking for?

Economy

PHL wheat import outlook cut on weak animal feed demand

PHILIPPINE wheat imports are expected to total 6.8 million metric tons (MT) in the 2020-2021 marketing year (MY), downgrading its previous estimate of 7 million MT due to weaker demand for animal feed, the US Department of Agriculture (USDA) said.

In a report, the USDA’s Foreign Agricultural Service said the Philippine trade in wheat rose 9% year on year to 2.3 million MT in the three months to September, which is also the first quarter of MY 2020-2021.

“Milling wheat from the US drove this growth, as contacts report the bakery and noodle sectors doing well during the pandemic,” the USDA said.

“With 1 million MT shipped from July to September, the Philippines is currently the largest destination for US wheat,” it added.

The USDA added that a decline in feed wheat consumption due to African Swine Fever (ASF) is expected to offset higher milling wheat demand.

It said Philipine hog producers have downsized due to ASF, with more than 400,000 animals culled as a result of the virus.

The USDA said the animal feed segment will also be hampered by restrictions on the issuance of Sanitary and Phytosanitary Import Clearances (SPSICs), and additional requirements for obtaining the document.

“Importers have reported unpredictability in the issuance of import clearances during the last three months,” the USDA said.

Meanwhile, the USDA projected Philippine corn production for MY 2020-2021 at 8.2 million MT, across a harvestable area of 2.6 million hectares.

It added that corn imports during the period at 600,000 MT.

Under the new guidelines set by the Department of Agriculture, new requirements are now needed for corn and wheat import clearances, including a description of the commodities, an affidavit declaring the shipment’s purpose, and a separate SPSIC for every shipment with a different declared purpose, among others.

“Industry contacts have noted that new requirements in the recently issued Memorandum Circular No. 39 could disrupt corn exports and limit feed availability and affordability in 2021,” the USDA said.

The USDA estimated Philippine rice output at 12 million MT during MY 2020-2021, harvested over 4.65 million hectares.

Its rice import estimate was cut to 2.3 million MT for the year from the previous estimate of 2.6 million MT, as a result of the SPSIC bottleneck.

“The Bureau of Plant Industry (BPI) issued 678 SPSICs from July to October in 2020 for 490,441 MT, down 53% from the 1.19 million MT representing 1,462 SPSICs issued during the same period in 2019,” the USDA said. — Revin Mikhael D. Ochave

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

THE PESO strengthened against the dollar on Tuesday amid easing global oil prices and ahead of an expected increase in remittances due to the...

Economy

PHILIPPINE STOCKS extended their climb on Tuesday on last-minute bargain-hunting and ahead of the rebalancing of the MSCI. The bellwether Philippine Stock Exchange index...

Economy

THE government financial institutions (GFIs) that will be tapped to provide capital and help manage a P250-billion sovereign wealth fund have disclosed their proposed...

Economy

THE European Chamber of Commerce of the Philippines (ECCP) urged the Philippines to eliminate tariffs on imports of all electric vehicles (EVs) regardless of...

Economy

PRESIDENT Ferdinand R. Marcos, Jr. is expected to sign an executive order (EO) that will fast-track applications for investments deemed strategic to the economy,...

Economy

AN Israeli tech investor said a country’s legal system is a major consideration in attracting foreign investment, and urged legislators to reform the tax...

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.