Ireland – Key Market for the Philippines’ Soybean Meal
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The Philippines produces a minimal amount of Soybeans, which for MY 2022/23 Post forecasts flat at 1,000 MT. FAS Manila forecasts MY 2023/23 Soybean food use at 55,000 MT, slightly higher than Post’s updated MY 2021/22 level. Food demand is expected to grow as the economy fully recovers from the pandemic by early 2023. The MY 2022/23 forecast is 30,000 MT higher than USDA Official due to an updated methodology for calculating imports that lifted the total. Feed consumption is also expected to rise modestly in MY 2022/23, following slow growth in hog feed demand as the country grapples with the challenges of African Swine Fever.
FAS Manila forecasts MY 2022/23 Soybean imports at 210,000 MT, up 5,000 MT compared to Post’s revised amount for the previous period due to increasing demand as the economy reopens from stringent COVID-related restrictions. According to AgFlow data, the Philippines imported 0.5 million tons of Soybean from the United States in Jan-May 2023.
It has been the policy of the Philippine Government to facilitate the importation of Soybeans into the country since they are not produced locally in significant volumes. Soybean (HS Code 12.01) duties remain at 1 percent. As with any imported plant or plant product with a commercialized genetically engineered product, Soybean shipments require a declaration of GMO content. The statement can be signed by a responsible officer from the originating country, an accredited laboratory, the shipper, or the importer.
FAS Manila raised Soybean Meal production to 85,000 MT in MY 2022/23, up from 78,000 MT the previous year, because of the expected gradual recovery of the pig industry from the African Swine Fever (ASF). Poultry production is also forecast to increase the following year as the economy reopens following strict COVID-related restrictions.
Feed consumption in MY 2022/23 is 2.10 million MT, up 1.4 percent from the previous year. Hog and poultry feed demand is expected to increase as both sectors aim for greater MY 2022/23 production. Consumption in MY 2021/22 was raised 19,000 MT from USDA Official based on stronger than expected broiler production. FAS Manila forecasts Soybean Meal ending stocks at 226,000 MT for MY 2022/23, flat compared to the previous year’s level. Traders and processors privately hold stocks.
Soybean Meal Trade in the Philippines
Post forecasts MY 2022/23 Soybean Meal imports to reach 2.725 million MT, up about 3 percent from the previous year due to stronger hog and poultry feed demand. Imports for MY 2020/21 were adjusted upward to 2.73 million MT with full-year trade data incorporating Argentina port data. Although the United States remains the largest supplier of Soybean Meal to the Philippines, and the Philippines is the largest market for U.S. Soybean Meal, U.S. exports declined in MY 2020/21.
In 2021, the Philippines imported Soybean Meal worth $458 million, becoming the world’s 21st largest importer. The same year, Soybean Meal was the 68th most imported product in the Philippines. The Philippines imports Soybean Meal primarily from the United States ($238 million), Argentina ($111 million), Vietnam ($84.6 million), Brazil ($10.9 million), and Malaysia ($7.13 million). The fastest-growing import markets in Soybean Meal for the Philippines between 2020 and 2021 were Vietnam ($84.2 million), Brazil ($8 million), and Malaysia ($7.13 million).
In 2021, the Philippines exported Soybean Meal worth $103k, making it the world’s 94th largest exporter of Soybean Meal. In the same year, Soybean Meal was the 825th most exported product in the Philippines. The leading destination of Soybean Meal exports from the Philippines is Ireland ($97.8k) and Malaysia ($4.2k).
Other sources: USDA
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