December 23, 2024 | 12:00am
MANILA, Philippines — The growing demand for pet food and sustained poultry expansion would drive the country’s corn import in the current market year to rise by seven percent year-on-year to over 1.6 million metric tons (MT).
The US Department of Agriculture – Foreign Agricultural Service in Manila (USDA-FAS) projected that corn imports from July to June next year would reach 1.63 million MT, about 109,000 MT higher than the 1.521 million MT recorded in the previous market year.
The international agency attributed the increase to growth in both poultry feed and pet food industries. It noted that corn imports in the previous market year of 2023-2024 expanded by more than half to 1.521 million MT from 907,000 in market year 2022-2023.
The extension of the reduced tariff rate on corn imports also provides support for sustained entry of foreign stocks, the USDA-FAS Manila said.
Earlier this year, President Marcos issued Executive Order 62 which extended until 2028 the lower corn tariff rates of five percent for in-quota imports and 15 percent for out-quota imports.
USDA-FAS Manila estimated that the country’s total corn feed and residual consumption would reach 7.6 million MT in the current market year, up by 200,000 MT from 7.4 million MT.
“Industry contacts report that the demand for chicken meat and eggs are expected to further increase within the current MY (market year), as alternative sources of protein for the growing population,” it said.
The international agency added that the slow recovery of the domestic hog industry would also contribute to the increase in corn feed demand, especially with the prospects of African swine fever vaccine commercialization on the horizon.
“Additionally, industry contacts also report a positive outlook for pet food this market year,” USDA-FAS Manila said.
Meanwhile, food, seed and industrial consumption of corn would also rise to 2.23 million MT from 2.2 million driven by higher demand for corn-based food snacks and by-products like cornstarch and oil, USDA-FAS Manila added.
Production wise, USDA-FAS Manila projected that the country’s output would inch up to 8.15 million MT from 8.119 million MT in the previous market year.
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