USDA hikes PHL corn import outlook to 1 MMT for market year 2022-2023

THE country’s corn imports in market year 2022-2023 could reach 1 million metric tons (MMT) on the back of the extension of lower tariffs on the commodity and anticipated easing of global prices.

In its latest projections, the United States Department of Agriculture Foreign Agricultural Service in Manila (USDA-FAS) estimated that corn imports in the current market year would be two-thirds over the previous market year’s 600,000 MT.

The Philippines’s current market year for corn is from July 2022 to June 2023.

“FAS Manila estimates MY 2022/23 corn imports at 1 million, up by 300,000 MT from USDA Official because of the extension of lower tariffs through 2023, as well as competitive Asean corn price quotes,” the USDA-FAS Manila said in its Global Agricultural Information Network (GAIN) report.

The international agency noted that Indonesia has “expressed interest” in exporting corn to the Philippines due to low domestic demand in the former.

“Estimated Indonesian corn exports to the Philippines for the current marketing year are from 200,000 MT to 250,000 MT,” the USDA-FAS Manila said.

The Office of the Press Secretary earlier announced that the administration of President Ferdinand R. Marcos Jr. would extend the lower tariff rates on pork, corn, rice, and coal until the end of the year to ease accelerating inflation.

The USDA-FAS Manila pointed out that applications for corn imports through the Bureau of Plant Industry (BPI) have more than doubled to 627,871 MT from 298,831 MT.

Meanwhile, approved sanitary and phytosanitary import clearances for corn imports rose by 83 percent to 367 from 201 during the July to September period, the USDA-FAS Manila added.

“This is attributed to the passage of Executive Order No. 171, Series of 2022, which feed millers have taken advantage of,” it said. Executive Order 171 ordered the reduction of corn tariffs.

The USDA-FAS Manila estimated that total corn feed consumption of the Philippines would reach 6.9 MMT, 100,000 MT higher than the previous market year because of the extension of lower tariffs and anticipated competitive future price quotes.

“Corn is still the preferred feed ingredient, especially for broilers and layers when available,” it added.

In terms of production, the country’s corn output would fall to 7.9 MMT from 8.344 MMT due to lower fertilizer applications because of higher prices of the planting input, according to the USDA-FAS Manila.

“While farm-gate prices have become attractive for corn farmers, this was tempered by the high production costs [of which fertilizer is a major factor]. As with rice, FAS Manila believes that there is a reduction in corn production [as opposed to Philippine government data],” it said.