DA seeks 6-mo suspension of tariff on soybean meal

The Department of Agriculture (DA) will push for a six-month suspension of tariffs on imported soybean meal and amino acids to give domestic poultry and hog raisers a temporary respite from rising feed costs.

Agriculture Secretary Luis Lorenzo Jr. said the DA will ask the Tariff Commission (TC) to approve a request to waive the three-percent tariff on these commodities.

Amino acids and vitamins are mixed with feedmeal such as soya, corn and wheat which are processed into cakes or pellets. Soybean and wheat feeds are often used as corn feed substitutes.

Lorenzo said poultry and hog raisers are having difficulty coping with rising production costs, especially feedmeal which makes up the bulk of their expenses. The request for tariff suspension if approved will enable the two industries to save at least $500 million.

Earlier, Malacanang already aceeded to the hog and poultry industries’ request to import 350,000 metric tons (MT) of corn at zero-tariff.

Importation will be done by the National Food Authority (NFA) which will charge a servic fee of P0.50 per kilo, NFA Administration Arthur Yap said fee.

Arthur Salazar, director of the country’s corn production program, said the imports will come from Argentina and the US

Local feedmillers have also been asking the government to speed up the approval and arrival of the corn imports, saying local supply is short and more expensive.

Corn imports from Argentina and the US are actually more expensive at $190 per MT compared to $150 per MT from Thailand. However, the government has ruled out Thailand and China as possible sources because of the bird flu scare.

– Rocel Felix