News
24.02.2010
US report sees Philippines importing more grains this year
Lower production amid rising demand will force the Philippines to import more rice, corn and wheat this year, a report of the US Department of Agriculture (USDA) attaché in Manila, dated Feb. 5, read.
The report said the estimates did "not necessarily" constitute "official" USDA assessment.
The document said overall grain imports will increase in marketing year 2010-2011, which starts this July, as a result of growing consumption by an increasing population, reduced production as a result of storms that hit in the last quarter of 2009, and reduced tariffs under regional free trade agreements.
For palay, which makes up 17% of total farm output, the report noted that storms Ketsana and Parma in September-October last year severely damaged the main rice crop in the fourth quarter, which traditionally accounts for 35%-40% of overall annual rice production.
"The series of typhoons will have far-reaching effects on grain production in the affected areas. Typhoon-affected rice farmers have not fully recovered, and because the typhoons damaged mature or ready-to-harvest rice, losses are significant and farm incomes are expected to be down," the report read.
The Philippine Agriculture department estimates that palay harvest came in at 16.26 million metric tons (MT) last year, or a 3.3% contraction from 2008.
The USDA report shows palay production is expected to be cut to 16.19 million MT this year.
Corresponding milled rice production will slip to 10.2 million MT from 10.3 million MT.
Rice consumption is expected to rise to 13.9 million MT this year from 13.785 million MT last year.
The impact of storms in the fourth quarter of 2009 and the expected damage from the current dry spell will necessitate rice imports of as much as 3.2 million MT this year. Official Philippine government data shows the country imported 1.775 million MT of rice in 2009.
In terms of corn, production rose 1.5% to 7.03 million MT last year, the same report noted.
While production is expected to drop to 6.8 million MT this year, consumption is seen to stay at about 7.4 million MT.
Hence, corn imports are expected to rise to 600,00 MT this year from 400,000 MT in 2009.
Consumption of wheat is projected to rise to 3.25 million MT this year from 3.1 million MT in 2009, necessitating imports of 3.25 million MT this year.
BusinessWorld
