Millers seek more corn imports
FEED millers are calling for more corn imports to help mitigate the impact caused by global supply chain disruptions on feed ingredients, the Philippine Association of Feed Millers Inc. said ( Pafmi).
“The Russian-Ukrainian conflict has further affected the supply of feed wheat, which is used as a substitute for corn due to its lower price. This leaves local millers with no choice but to rely on more maize imports; a higher MAV (minimum access volume) would provide some flexibility to keep feed inputs for local pig and poultry farmers at a lower price,” Pafmi said in a statement.
Currently, the Philippines already imports over 4 million metric tons (MMT) of feed ingredients such as corn and corn substitutes needed by the livestock and poultry industry. Imports are boosting local maize production, which last year was less than 6 million tonnes, according to the Ministry of Agriculture’s National Maize Program.
In May, President Rodrigo Duterte signed Executive Order (EO) 171 to soften the blow to inflation, which rose to 5.4% from 5.0% in April, caused by rising oil prices and a tight global grain supply situation due to the Russian-Ukrainian conflict. .
OE 171 reduces tariffs on a number of imports that affect inflation. For fodder corn, the tariff was reduced from 35% to 5% for volumes within the quota limits, and from 50% to 15% for volumes outside the quota.
To take full advantage of EO, the milling industry is asking the Ministry of Agriculture, through its MAV management committee, to take action as soon as possible on the proposal to increase the size of the Country MAV for maize at 2 MMT from the current 217,000 MT. This will cover the volume of maize imports for the second half of the year.
Meanwhile, any tightness in the global corn supply is now offset by better crops in the United States, and the supply situation is expected to improve later this year with better crops expected from other major countries. corn producers, including the United States, from September.
In a previous report, US Grains Council (USGC) President and CEO Ryan LeGrand said, “America’s farmers have a bountiful and sustainable corn crop ready to be deployed when needed. He added that “The USGC stands ready to assist the Philippine government and industry in addressing any raw material supply shortages the country is facing.”