Philippine soybean meal (SBM) imports this year would go up by 5.45 percent to a record-high of 2.9 million metric tons (MMT) due to the continuous expansion of the livestock and poultry sectors, according to a Global Agricultural Information Network (Gain) report.
The Gain report, which was prepared by the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) in Manila, noted that the forecast is higher by 15,000 metric tons (MT) than the 2.75 MMT recorded in 2017.
“Driven by strong feed demand from the expanding domestic hog and poultry industries, SBM imports are forecast to reach a record 2.9 million tons in marketing year [MY] 18/19,” the report read.
The Gain report noted the United States will remain as the top exporter of SBM to the Philippines, as “less competition” is expected from competitor Argentina, which is currently grappling with drought.
“According to US Customs data, Philippine SBM imports from the United States reached $747 million in 2017, the highest ever, making the country the largest market in the world for US,” it added.
The USDA-FAS in Manila estimated that the Philippines’s total SBM demand this year to grow 3.4 percent to 3 MMT, from last year’s 2.9 MMT.
“SBM demand is expected to increase through MY 18/19 as local livestock and poultry raisers capitalize on growing consumption of meat and meat products [the by-product of an expanding economy],” it said. “MY 18/19 SBM demand is forecast to grow 100,000 tons from the previous MY reaching 3 million tons.”
Local SBM production is expected to remain flat for the third consecutive year at 126,000 MT, bringing total supply for 2018 at 3.291 MMT, which is beyond the 3-MMT estimated full-year demand. The Gain report noted SBM stocks at the end of 2018 would be at 291,000 MT.
“Local SBM production remains insignificant relative to overall supply and the industry is dependent on imports,” it added.
The Gain report also projected that the country’s soy bean oil (SBO) imports this year would reach a three-year high of 40,000 MT.
Total Philippine SBO consumption this year is expected to increase by 7.69 percent to 70,000 MT due to a flourishing retail food industry, according to the Gain report.
“SBO is mainly used for mayonnaise and salad dressings, and the local industry does not consider it to be a complete CNO [coconut oil]substitute,” it added. “Food use of SBO is minimal relative to overall edible-oil usage.”
The Gain report indicated that local SBO production would remain flat at 30,000 MT. “Philippine SBO production continues to be insignificant relative to overall Philippine vegetable-oil production and is supported largely by imported beans.”
It also noted Philippine soybean imports in 2018 would expand by 3.85 percent to 270,000 MT, from the previous year’s 260,000 MT. The report noted this is due to the increasing preference of livestock farmers for full-fat soybean, which is cheaper.
“Overall soybean imports are projected to increase to 260,000 tons in MY 17/18 with the majority coming from the United States,” it read. “US beans, however, may face stiff competition from Brazil due to a bumper crop and more-favorable prices.”