Wheat imports to hit record high this year

The Philippines expects wheat imports to reach a record of seven million metric tons this year amid growing consumption.

Based on the latest report of the United States Department of Agriculture-Foreign Agricultural Service( USDA- F AS ), this year’ s importation is 17 percent higher than the 5.98 million MT recorded in 2018.

The USDA hiked this year’s projection from the 6.3 million MT forecast in March.

“For the past several years, wheat imports have been rising as demand for food and feed grains increases with the growing population,” USDA said.

“Although primarily a rice-based diet, Philippine preferences are shifting from corn-based products to incorporating more affordable wheat products,” it added.

Animal feed is likewise expected to be higher as demand for more protein in the diets continues to grow.

The trend towards stronger wheat use has intensified this year due to typhoon-related losses in the domestic corn crop.

“With domestic corn prices relatively high, the demand for wheat has surged, both in feed rations and for human consumption,” USDA said.

Latest import data showed wheat imports climbed 31 percent in January to 172,096 MT.

There is no commercial wheat production in the Philippines and wheat is the main raw material for flour and feeds.

Bakery products comprise roughly 50 percent of overall milling wheat consumption while the other half of milling wheat demand is for producing noodles, cookies and crackers and pasta.

The Philippines sources 95 percent of its wheat requirements from the US. There are 20 flour mills in the country with an aggregate milling capacity of over five million MT.