Feedmillers ask DA for more corn imports

The local feedmilling industry is reiterating to the Department of Agriculture (DA) its request for additional corn imports of 120,000 metric tons (MT).

"We are hoping to get approval of our request in the next two weeks because of the urgency of bringing in the corn imports," noted Ricardo M. Pinca, vice-president of the Philippine Association of Feed Millers Inc. (Pafmi).

Pinca said the additional corn imports under the minimum access volume (MAV) scheme is required by feedmillers to supply the anticipated increase in demand by the local livestock, aquaculture fisheries, and poultry sectors.

MAV refers to the least volume of imported agricultural products the Philippines can allow into the country as part of its commitment to the World Trade Organization (WTO)

This year, the MAV allocation for corn is 216,000 MT at 35-percent tariff of which 80 percent has been absorbed by feedmillers.

"We need more than the regular MAV allocation and we need the corn not in December but in September which is a critical month for the fishfarming, livestock and poultry sectors because they have to raise their production for the forthcoming Christmas season," said Pinca.

He said that local corn production, despite being projected to be at record levels this year will still not be enough to satisfy the requirements of the feedmilling sector because of the hefty 30 percent postharvest losses being perennially lost by farmers.

"Local supply will continue to be tight and that is indicated by the steady high prices of domestically-produced corn," Pinca said.

Previously, Pinca said corn imports are necessary because the country’s 697 feedmillers led by the commercial millers and integrators such as San Miguel Corp., Cargill Philippines, Swift Foods, General Milling Corp., Universal Milling Corp. and Tyson Agro-Ventures, are all expanding their output to keep pace with growing demand.

"The industry has to cope with the growing demand both for food corn and corn as animal feeds. The Philippine population is growing at an annual rate of three percent, and demand for poultry and hogs are also increasing at almost the same level," he said.