The Philippines recently announced a decision to lower restrictive corn import tariffs on non-ASEAN corn from 35% to five percent.
Executive Order 171 cited the economics of the current world situation driven by the conflict between Russia and Ukraine and corn’s pivotal role in more than 50% of the total production cost of large-scale broiler and swine rations for the decision to lower import tariffs on corn.
The Council believes this is a responsible step by the Philippine government as it encounters domestic inflationary pressures.
“The U.S. and Philippines agricultural industries have enjoyed a strong relationship for a very long time,” said USGC President and CEO Ryan LeGrand. “The Council is standing by, ready to help the Philippine government and industry fill in any raw material supply shortage the country is facing. U.S. farmers have an abundant, sustainable corn crop ready to deploy when needed.”
The Philippines feed industry relies heavily on feed wheat imports due to its history of high import tariffs on corn outside ASEAN. The recent global wheat supply chain disruptions have had a disproportionally negative impact on Philippine input prices.
“If these tariff reductions stick long term, the Philippine livestock industry will have a chance to become competitive again with their ASEAN neighbors. When a steady supply of corn is available, the overall demand for corn grows, given corn is still the energy source of choice by many nutritionists,” said Caleb Wurth, USGC regional director for Southeast Asia and Oceania.
“This higher demand for corn will also help local corn producers join the global corn market, increasing efficiency and profitability. The Council will be right there with our partners to ensure all parties in the agricultural supply chain equitably participate in this historic move.”