PHL seen importing more rice, meat

12.06.2017

The Philippines is projected to import at least 1.5 million metric tons (MMT) of rice this year, 53.33 percent more than the estimated 700,000 metric tons (MT) the country purchased from abroad last year.

The Food and Agriculture Organization (FAO) made this estimate in its latest biannual report, titled “Food Outlook: Biannual Report on Global Food Markets”.

The FAO attributed the increase in Philippine rice imports to the expected expiration of the World Trade Organization’s waiver on rice this year. It also said the country will be one of the main drivers for the sustained trade of the grain in Asia.

“Asia is anticipated to account for nearly all of the forecast growth, importing a total of 21.3 MMT, up 11 percent year-on-year,” the report read.

“The expansion is expected to be facilitated by the removal of import duties in various countries in the region or the reengagement of governments in imports in an attempt to keep domestic quotations under control or refurbish reserves,” it added.

Aside from the Philippines, the FAO said Bangladesh and Sri Lanka are expected to expand its grain purchases this year.

The United Nations unit forecasted that the total volume of rice that would be traded this year would reach 43.6 MMT, 4.81 percent higher than the 41.6 MMT recorded last year.

The FAO also noted that the price of rice for exports has started to go up after the Philippines and Bangladesh have sent signals that it would import more rice this year.

“Quotations of the most-widely traded Indica rice proved more stable during the first quarter of 2017, but have since gathered speed, amid seasonal tightness and prospects of a return of important buyers to the market, in particular Bangladesh and the Philippines,” the report read.

In a separate report, the Agricultural Market Information System (Amis) reported that the increase in the price quotas of rice exports in the region was prompted by the sudden announcement of the Philippines that it would import 250,000 MT of rice. Amis is the FAO’s marketing outlook arm.

“In addition to shipments to near East Asia and parts of Africa ahead of Ramadan, underpinning came from expectations of near-term buying interest from the Philippines, where National Food Authority stocks were at close to three-year lows,” Amis said in its “June Market Monitor” report.

The FAO estimated that Philippine milled-rice production this year would reach 12.14 MMT, slightly higher than its 2016 estimated output of 12.11 MMT.

The UN unit pegged the global milled-rice production this year at 502.6 MMT, higher than the 499.3 MMT recorded in 2016.

The Department of Agriculture is targeting to produce 18.57 MMT of paddy rice this year, 5.33 percent higher than last year’s output of 17.63 MMT.

Meat imports

In the same report, the FAO projected that Philippine meat production in 2017 would expand by 3.4 percent to 3.612 MMT, from 3.493 MMT recorded last year.

FAO data showed pork would account for more than half, or 53.98 percent, of the country’s total meat production this year. The country’s hog-meat output this year is expected to reach 1.95 MMT, 4.5 percent higher than the 1.866 MMT produced last year.

Despite this, the FAO projected that the Philippines would purchase more meat from abroad this year. Data from the FAO showed that the country would import 552,000 MT of meat, 6.97 percent higher than the 516,000 MT it purchased last year.


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