Philippines

Market Snapshot 2018 - Philippines - Commodity Table

Supply/Demand Basics

  • U.S. corn co-products main competition is other alternative imported proteins such as  soybean meal and wheat.
  • SEA’s 2nd largest producer of corn with about 60% yellow and 40% white.
  • Ethanol demand reached 151 million gallons in 2017, with almost half coming from imports.
  • 18 MMT feed market

Country Overview

  • Population / growth: 104 million / 2.0%
  • Urban / growth: 2% / 2.16%
  • GDP / growth: $874.5 billion / 6.9%
  • GDP per capita: $8,200
  • 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. (4th largest market in 2017)
  • End-users favor imported corn due to lower mycotoxin content.
  • DDGS are imported as an alternative to higher priced local corn.

Policy Issues

  • All imports with GMO events must have biosafety certificate.
  • 10% ethanol blending mandate, RA 9637 calls for E20 by 2020.
  • Effective and strong ethanol mandate.
  • 35% in quota duty and 50% out of quota for MFNs.
  • Asian Economic Community (AEC) countries will have a 0% corn import duty.

Market Snapshot 2018 - Philippines - Chart