PHL wheat imports likely to increase next year — USDA

THE Philippines is expected to import more wheat next year due to increasing demand for both milling and animal-feed quality grain, according to the US Department of Agriculture (USDA).

In a report, the USDA is estimating that wheat imports will rise to 7 million metric tons (MT), up 1.4% against its 6.9 million MT forecast for 2024.

This was also a 16.6% upgrade from the 6 million MT estimate it issued earlier.

For 2024, the USDA raised its estimates for wheat imports to 6.9 million MT from 6.5 million MT previously.

The Philippines typically imports wheat for animal feed, while human-grade varieties go to flour production.

It said that global trade for wheat next year is expected to grow due to increased imports in the region by the Philippines and Vietnam.

“Global consumption is raised on increased feed and residual use in the Philippines, Vietnam, Australia, Canada, and the UK, outweighing lower feed and residual use in the European Union,” the USDA added.

The USDA retained its forecast for Philippine rice imports next year at 4.6 million MT.

The government lowered tariffs on imported rice to 15% from 35% until 2028 through Executive Order No. 62, as an inflation containment measure.

The USDA said Vietnam, the Philippines’ biggest supplier of rice, is expected to increase its overall exports to 8.6 million MT next year. This represented an upgrade from the 8.3 million MT forecast issued earlier.

It cited “large shipments to core markets (serviced by Vietnam), including Indonesia and the Philippines.”

In January, the Philippines and Vietnam signed an agreement giving the Philippines a quota of 1.5 million MT to two million MT of rice annually for five years.

As of Aug. 29, rice imports hit 2.8 million MT, the Bureau of Plant Industry reported. — Adrian H. Halili