PH seen to purchase more soybean meal from US
US Department of Agriculture (USDA) said it expects the Philippines, the largest market for U.S. soybean meal (SBM), to import more of this commodity this upcoming market year (MY) amid expanding domestic hog and poultry industries.
The Global Agricultural Information Network (GAIN) report of USDA showed that “driven by strong feed demand from the expanding domestic hog and poultry industries, [Philippine’s] SBM imports are forecast to reach a record 2.9 million tons in market year (MY) 2018 to 2019”.
“US SBM is expected to lead in market share, enhanced by less competition from Argentina,” USDA said.
Right now, Philippine soybean production is negligible and the small amount of imports is purchased largely by one crusher.
Copra production in MY 16/17 was particularly revised upwards 100,000 tons to 2.3 million tons (which approximates industry’s production forecast for CY 2017) due to less-than-expected damages to coconut farms from typhoons.
Output, on the other hand, is forecast to rise to 2.6 million tons in MY 17/18 and should increase 100,000 tons to 2.7 million tons in MY 18/19 due to adequate precipitation in 2017 and the early part of 2018.
Meanwhile, the domestic hog and chicken industries continue to be the bright segments of Philippine agriculture, USDA pointed out.
SBM serves as the major protein source and base ingredient for nearly all poultry and hog diets.