The Philippines may still end up importing 600,000 metric tons (MT) of corn next year despite the government’s new policies limiting the issuance of Sanitary and Phytosanitary import clearances (SPS-IC) on the staple as well as feed wheat.

In the latest Global Agricultural Information Network (GAIN) report, USDA’s Foreign Agricultural Service (FAS) here in Manila (Post) said corn imports for Marketing Year (MY) 20/21 are raised 20 percent to 600,000 MT due to increased trade through September.

This is despite corn imports being affected by the same new government’s policy in the Philippines as feed wheat.

“The Philippine Statistics Authority (PSA) reports that production and area harvested in the first quarter were up nearly 5 percent and 3.5 percent, respectively, from the previous year. Increased typhoon activity in the second quarter, however, is expected to lower overall growth for the first half of MY20/21,” Post said.

Typhoon Ulysses alone is estimated to have caused over 9,000 MT of corn loss in Isabela and surrounding provinces, while a similar amount was lost from Typhoons Rolly and Quinta.

Post also maintained the forecasts for MY20/21 Philippine corn production and area harvested at the current USDA official 8.2 million MT and 2.6 million hectares, respectively.

Philippine corn imports from July to September 2020 reached 375,000 MT, nearly equaling total imports in all of MY19/20.

During the period, U.S. corn exports to the Philippines were robust, placing the country as the second-largest supplier after Vietnam with 78,000 MT exported.

Post’s industry contacts, however, have noted that new requirements in Department of Agriculture’s (DA) recently issued Memorandum Circular (MC) No. 39 could disrupt corn exports and limit feed availability/affordability in 2021.

Signed by Agriculture Secretary William Dar on December 2, MC 39 added several new requirements for the application of an SPS-IC for corn and wheat, including commodity description of the product, such as for feed or food purposes; an affidavit declaring the purpose of the importation, in addition to the already required proforma invoice and GMO/Non-GMO certificate; a revision of the must-ship date upon issuance of the SPS-IC from the previous 60 days to 20 days.

Also added was a requirement for shipments to arrive by a set date: within 35 days if shipped from ASEAN countries (except Myanmar) and within 65 days if shipped from Myanmar and other countries.

All importers must also provide to both Bureau of Plant Industry (BPI) and the Bureau of Animal Industry (BAI) their current corn and wheat supply and utilization report every three months.

To be specific, corn and feed wheat are used in making feeds. Feed wheat is utilized primarily in hog feeds, while poultry raisers prefer using corn as their primary feed ingredient.

For next year, because of the new policy and the continuous spread of African Swine Fever (ASF) in the country, Post also lowered MY20/21 wheat imports to 6.8 million MT.

To be specific, Post lowered MY20/21 wheat imports by 200,000 MT to 6.8 million MT, with weaker demand for feed wheat offsetting the growth in milling wheat.

Trade for the first quarter of MY20/21 reached 2.3 million MT, nine percent higher than the same period last year.

Milling wheat from the United States drove this growth, as contacts report the bakery and noodle sectors doing well during the pandemic.

Other wheat-based products such as cakes and cookies, however, have fared poorly due to restrictions on gatherings dampening demand.

With 1 million MT of wheat shipped from July to September, the Philippines is currently the largest destination for U.S. wheat.