Market Profile - Philippines

Phillippines Market Snapshot

Supply/Demand Basics

  • More or less 100% dependent on imported soymeal.
  • Top Asian destination for U.S soymeal.
  • SEA’s 2nd largest producer of corn with about 60% yellow and 40% white.
  • RA 9367 give authority for 5-10% blend rate with potential to E20.

Country Overview

  • Population: 102.6 million
  • Population growth: 1.59%
  • Urban %: 44.4
  • Urban growth: 1.32%
  • GDP: $741 billion
  • GDP growth: 5.8%
  • GDP per capita: $7,300
  • A complex archipelago with over 7,000 islands.
  • One of the fastest growing populations in Southeast Asia.
  • Economy forecast to quicken in 2016 due to government projects.
  • OFW (overseas Filipino workers) remittances make up 10% of the GDP.

Trade and market Share Issues

  • Imports significant amounts of U.S. wheat, some of which is used for feed purposes.
  • Marginal corn importer, usually from Thailand, occasionally from U.S.
  • Major U.S. ethanol importer.
  • End users favor imported corn due to lower mycotoxin content.
  • TRQ for corn is 217,000 MT.

Policy issues

  • 10% ethanol blending mandate, RA 9637 calls for E20 by 2020.
  • Effective and strong ethanol mandate.
  • New administration is radically different than previous.
  • 35% in quota duty and 50% out of quota for MFNs.
  • Asian Economic Community (AEC) has 0% corn import duty across the region.
  • Philippines looking to become corn exporter (still way to high priced).
Phillippines Supply Demand