The country’s importation of soybean meal (SBM) could increase to 2.4 million metric tons (MMT) on lower global prices and an expanding livestock industry, according to a report from the US Department of Agriculture (USDA).
For the current marketing year (MY) ending September 30, the Foreign Agricultural Service (FAS) of the USDA in Manila said SBM imports could go up by 9 percent, from 2.2 MMT recorded in MY 2014-2015.
“SBM imports for MY 2016-2017 are forecast to reach 2.5 MMT, driven by continued consolidation and growing sophistication of the domestic feed-consuming industries,” the report read.
FAS Manila noted that local hog industry is the dominant Philippine feed consuming sector, accounting for an estimated 55-percent to 65-percent share of the country’s feed requirements.
“Poultry production accounts for 25 percent to 35 percent and aquaculture covers roughly 10 percent. As a result of the continued consolidation and growth of both sectors, the local feed-milling industry has likewise been expanding and modernizing,” the report read.
The report noted that there are roughly 500 registered feed mills in the Philippines producing over 10 MMT of compound feeds annually.
“According to trade contacts, home-mixers used to dominate feed production, but have been overtaken by commercial feed-millers and integrated producers, which now have a combined share of around 80 percent of overall feed production,” the report read.
Citing sources, USDA said around 75 percent of all feed operations are in the main island of Luzon, 15 percent in Mindanao and 10 percent in the Visayas.
“The industry has been instrumental in lobbying for the speedy resolution of an issue related to feed ingredients from genetically engineered [GE] crops, including SBM,” the report read.
“Local feed millers stressed there was no substitute for imported SBM, which likely were GE,” it added.
The USDA said there were and continues to be no trade disruptions on US SBM sales to the Philippines as a result of a court ruling prohibiting the importation of products derived from GE soybeans.
The Philippines was the second largest SBM market for the US globally in 2015, with sales reaching a record $635 million, up 8 percent from the previous year’s level.
The country imports most of its SMB requirements as local production remains small.