Soybean meal imports seen at record level this year
Still the largest market for US soybean meal (SBM), the Philippines is seen to import more SBM this year than what it did in the past years amid expanding domestic hog and poultry industries.
Based on the Global Agricultural Information Network (GAIN) report of US Department of Agriculture (USDA), the Philippines' SBM imports this year would reach a record high of 2.9 million metric tons (MT), which is higher than the 2.75 million MT the country was able to buy in 2017.
"[Philippines'] SBM imports in MY [market year] 2018 to 2019 are expected to reach a record 2.9 million tons due to strong feed demand as both industries continue to consolidate and modernize," the GAIN report said.
Most of this, according to the report, will be coming from United States, enhanced by less competition from Argentina.
Last year, Philippines' SBM imports from US reached $747 million, the highest ever, making the country the largest market in the world for US SBM, according to US Customs data. As of now, Philippine soybean production is negligible and the small amount of imports is purchased largely by one crusher.
“Local SBM production remains insignificant relative to overall supply and the industry is dependent on imports,” GAIN said.
The local production will particularly remain flat at 126,000 MT, bringing total supply for