By Madelaine B. Miraflor Still the largest market for US soybean meal (SBM), the Philippines is seen to import more SBM this year than what it did in the past years amid expanding domestic hog and poultry industries. Based on the Global Agricultural Information Network (GAIN) report of US Department of Agriculture (USDA), the Philippines' SBM imports this year would reach a record high of 2.9 million metric tons (MT), which is higher than the 2.75 million MT the country was able to buy in 2017. " SBM imports in MY 2018 to 2019 are expected to reach a record 2.9 million tons due to strong feed demand as both industries continue to consolidate and modernize," the GAIN report said. Most of this, according to the report, will be coming from United States, enhanced by less competition from Argentina. Last year, Philippines' SBM imports from US reached $747 million, the highest ever, making the country the largest market in the world for US SBM, according to US Customs data. As of now, Philippine soybean production is negligible and the small amount of imports is purchased largely by one crusher. “Local SBM production remains insignificant relative to overall supply and the industry is dependent on imports,” GAIN said. The local production will particularly remain flat at 126,000 MT, bringing total supply for 2018 at 3.3 million MT. By the end of this year, the total SBM stocks would be at 291,000 MT. SBM serves as the major protein source and base ingredient for nearly all poultry and hog diets. Moving forward, the USDA said the domestic hog and chicken industries "continue to be the bright segments of Philippine agriculture." Overall, the livestock sector gained 1.1 percent in 2017 from the 2016 level with hog production expanding 1.5 percent. Poultry’s output grew 4.6 percent in 2017 compared to the previous year with chicken production gaining 4.3 percent despite an avian flu outbreak in August 2017. In 2017, next to rice (which traditionally accounts for a quarter of farm output), domestic hog and chicken production were the top contributors to Philippine farm output with shares of 15 and 12 percent, respectively. For this year, USDA also sees the country’s soy bean oil (SBO) imports to reach a three-year high of 40,000 MT. This, as the consumption may increase by 7.69 percent to 70,000 MT due to the growing retail food industry, according to the Gain report. “SBO is mainly used for mayonnaise and salad dressings, and the local industry does not consider it to be a complete CNO substitute,” GAIN said.