Philippines to import less soybean meal from US

Due to weak swine sector

MANILA, Philippines — Philippine demand for soybean meal from the United States may fall below 2.6 million metric tons (MT) in the current market year due to weaker animal feed demand as local swine production remains challenged by African swine fever.

US Soybean Export Council (USSEC) country representative Benito Oliveros said US shipments of soybean meal to the Philippines in market year 2024-2025 are down by nine percent on an annual basis. The US soybean meal market year runs from October to September.

“(Soybean meal imports) would be a little bit lower than (the 2.6 million MT). I hope it is only five percent lower (for the full year),” Oliveros said.

Stronger feed demand from the poultry and dairy sectors are mitigating the drop in swine feed demand, providing support for soybean meal imports, Oliveros explained.

Soybean meal is a critical ingredient of animal feeds as it is a good source of protein and other nutrients for livestock and poultry animals.

US soybean meal exports to the Philippines in previous market year 2023-2024 rose by more than a fifth year-on-year to 2.6 million MT from 2.14 million MT, according to USSEC.

Purchases of the feed ingredient from the US increased as local feed makers saw US soybean meal as more economical compared to other foreign sources because of better quality and prices, Oliveros said.

The higher imports led to the US erasing some of Argentina’s market share in the Philippines, expanding its total share to around 80 percent from 75 percent, Oliveros added.

“Relatively, the price parity is so small even if the price of Argentina is lower it was still more economical (for local feed manufacturers) to use US soybeans (because of better quality),” he said.

The Philippines is the US’ top market for soybean meal, a position that is being challenged by Mexico, which has been aggressive in expanding its livestock and poultry sectors, Oliveros said.

US soybean meal exports to Mexico from October to January has expanded by 46 percent year-on-year to 945,470 MT while shipments to the Philippines declined by 11 percent to 933,619 MT, based on US Department of Agriculture data.

Meanwhile, the Philippines stands to benefit from the imposition of retaliatory tariffs by China on US soybean meal as it would result in lower prices, Oliveros said.

The US would be forced to divert some of its soybean meal exports to China to other markets like the Philippines once the retaliatory tariffs push through, Oliveros added.

“China is getting 70 percent of its soybeans from Brazil. The US would come in the markets that would be left out by Brazil since it is prioritizing China,” he said.

US soybean meal prices softened last year due to the rise in global supply because of better harvest in US and Brazil that outpaced the increase in demand, Oliveros added.

The local retail price of soybean meal is now between P27 and P28 per kilo, lower than the P30 per kilo recorded last year, Oliveros said.