THE Department of Agriculture (DA) signaled its openness to a proposal for a minimum buying price for palay (unmilled rice) to be set at P20 per kilogram.

Agriculture Assistant Secretary Arnel V. de Mesa said the DA is open to and studying a floor price mechanism, and described the floor price of P20 per kilo for dry palay proposed by the Federation of Free Farmers (FFF) as reasonable.

The FFF on Thursday said a minimum palay buying price will shield producers from “severe” drops in farmgate prices as domestic rice faces competition from imports.

Buying prices for freshly harvested palay have dropped to as little as P12-14 per kilo in parts of the country. “At this rate, many farmers will end up with losses, while more efficient producers will net only about P16,000 per hectare, or P2,700 per month for six months’ work,” the FFF said.

The FFF said the maximum suggested retail price for consumers should be accompanied by protections for farmers, calling for traders to be required to buy palay at a minimum price.

A floor price scheme is needed because the National Food Authority (NFA) can absorb only 4-5% of the harvests due to funding, storage and other constraints, the FFF said.

It said many farmers are forced to sell to private traders because they cannot comply with the NFA’s drying and quality standards.

The NFA’s buying price is P24 per kilo for dry and clean palay and at P18 per kilo for fresh palay, the DA said in mid-March.

The FFF said the floor price scheme could complement a proposed seasonal tariff arrangement, under which duties on rice imports are temporarily raised during the harvest and returned to normal afterwards.

Rice imports fell 46% year on year to 641,000 metric tons (MT) in the year to date ending March 13.

The DA said 96,260 MT of the shipments arrived in March, 267,114 in February, and 277,540 in January. The equivalent year-earlier volumes are 429,260 MT in January, 341,585 in February, and 415,764 in March.

In 2024, rice imports hit a record 4.68 million MT (MMT), against 3.6 MMT a year earlier. — Kyle Aristophere T. Atienza

PHILIPPINE soybean meal imports will likely increase 3.1% to 3.35 million metric tons (MMT), according to the US Department of Agriculture (USDA), to accompany an expected rebound in the hog industry.

The increase in imports for marketing year 2025/26 is also driven by increasing demand from the broiler, layer,aquaculture, and pet food segments, the USDA said in a report, citing its Foreign Agriculture Service.

It also noted expectations of a “gradual rebound in the swine industry.”

The US accounts for 80% of the Philippines’ soybean meal imports.

BusinessWorld has reported that the Philippine poultry industry is expecting feed prices to fall as US producers seek new markets after being shut out of China by retaliatory tariffs.

China, which is now facing a 104% charge on its exports to the US, has announced retaliatory tariffs of 84% on all US goods.

Soybean meal makes up between 5% and 30% of the composition of feed sold in the Philippines, the report noted, with demand from the broilers and aquaculture industries accounting for 25-30%.

The USDA report said domestic soybean production will likely remain under 1,000 MT in 2025/26.

The USDA said Philippine imports of soybean will increase 2.1% year on year to 147,000 MT in MY 2025/26 to meet the increasing demand from food and beverage processors, specifically for soy sauce and soy drinks.

It said soybean crushing demand for MY 2025/26 will remain flat, noting that the Philippines has only one crushing facility for processing imported soybeans into oil and meal.

Meanwhile, demand for soybeans for food use will rise 2.9% to 71,000 MT in MY 2025/26 due to increase in population, rising household incomes, and healthy eating trends.

Soybeans are processed into various food products such as soymilk, soy sauce, soy oil, tofu, bean curd, and fermented soybean.

“There is rising awareness among the consumers in the Philippines on the health benefits of soy products, specifically soymilk, that appeals to the health-conscious consumers,” the report said.

The US remains the largest soybean supplier, with 85% of the market in MY 2023/24, followed by Canada (7%) and Argentina (8%). The remaining suppliers in MY 2023/24 were China, Malaysia, and Singapore (with a combined 1% market share). — Kyle Aristophere T. Atienza