News
26.06.2009
Philippines asked to restore zero duty on feed wheat
AN UMBRELLA GROUP of hog and poultry farmers and feed millers have asked President Gloria M. Arroyo to reimpose the zero duty on feed wheat in order to prevent higher pork and poultry prices.
"The Cabinet Tariff Reform Matters Committee decision to recommend the scrapping of the duty-free feed wheat importation is unfortunate, as this will lead to higher corn prices [an alternative feed source] and, thus, cause greater harm to the consuming public who will have to pay more for pork, poultry, meat and even fish products," the Agricultural Alliance said yesterday in a press release.
"The 7% tariff on feed wheat is not that high, but if the industry gets caught with high prices of corn and they do not have the feed [wheat] substitute, it will impact [sic] the [hog and poultry sector]," Renato R. Eleria, chairman of the National Federation of Hog Farmers, Inc., said in a telephone interview yesterday.
"If corn prices rise in the fourth quarter, you no longer have feed wheat [to fall back on]."
Executive Order 765, which reduced the tariff rate on feed wheat to zero, expired last June 21.
The government had said it would extend the zero duty on milling wheat, but not on feed wheat.
The group said feeds account for 60%-70% of costs in raising hogs and poultry.
Corn output, the main feed source, dropped 3.39% to 1.925 million metric tons in the first quarter due to early rains that delayed planting and stunted crop growth.
The Agriculture department expects corn production this year to fall 600,000 metric tons short of demand.
BusinessWorld
