ANIMAL feed producers are pushing for a uniform tariff of 5% on yellow corn imports, level with the preferential tariffs on imports from ASEAN, pitching it as a measure to rein in food inflation and help the feed millers and livestock growers.

The Philippine Association of Feed Millers, Inc. (PAFMI) said in a statement Friday that the tariff will create a “level playing field” for the livestock industry, noting that hog raisers are struggling to recover amid competition from imports after their herds were thinned by African Swine Fever (ASF).

“The need to address the tariff issue on feed corn or yellow corn imports was made more urgent by the damage inflicted on farms by severe tropical storm Maring, which is expected to further reduce supply, and the onset of La Nina, which can be a threat to the agriculture sector, including corn farms,” PAFMI said.

“It has become doubly harder for hog raisers to recover from ASF with corn feed currently affected by tight supply in the ASEAN region and record high prices in world markets,” PAFMI said.

Yellow corn tariffs from non-ASEAN sources must pay a tariff of 35% within the Minimum Access Volume quota, which escalates to 50% for imports beyond the quota. Yellow corn imports from within ASEAN pay 5%.

“The current tariff structure, at a maximum of 50%, is bloating the cost of imports to unrealistic levels, triggering increases in the production costs of livestock and poultry,” PAFMI said.

Citing government and industry data, PAFMI said feed corn demand averaged 9 million MT a year between 2018 and 2020. Domestic corn sources can only service about 5 million MT.

It said demand is expected to increase as the economy reopens and the livestock sector continues to recover from the ASF outbreak.

“The three-year figures showed a supply-demand gap of 48.4%. This does not reflect the actual percentage of the supply that actually meets the standards for feed milling. The gap is addressed by imports of feed corn and alternative inputs, such as feed wheat,” PAFMI said.

According to PAFMI, the average price of feed corn was P22.88 per kilogram in September, up 49.5% from a year earlier.

“Prices in the world market have also been rising due to increasing demand for food, feed and energy,” the group said, referring to the use of corn as a source of biofiel.

PAFMI estimated the landed cost of feed corn imports at P30.10 per kilogram assuming the current average world price plus 50% tariffs, which it deemed too high for the livestock industry.

“Yellow corn accounts for 40% to 60% of the animal feed formulation while feed accounts for 60% to 70% of the cost of producing meat and poultry products,” PAFMI said.

“Cutting the tariff on feed corn imports would address the challenges faced by downstream sectors such as the feed milling and poultry and livestock sectors, and ultimately benefit the general public,” it added. – Revin Mikhael D. Ochave 

THE PHILIPPINE Economic Zone Authority (PEZA) said South Korea’s EnPlus Co. Ltd. became the first electric vehicle (EV) manufacturer to register for special incentives.   

In a statement Friday, PEZA said EnPlus is investing P5 billion to manufacture and operate a plant for electric cars and electric jeepneys in Pulupandan, Negros Occidental.   

“EnPlus will be our first EV manufacturer to be registered under PEZA, where it can avail of special incentives for pioneering projects,” PEZA Director General Charito B. Plaza said.   

According to PEZA, a Memorandum of Understanding was signed between Ms. Plaza and EnPlus CEO Young Yong Ahn on Oct. 21 to help set up EV joint ventures in economic zones.   

Under the agreement, PEZA will provide a 30-hectare site in order to attract clusters of prospective suppliers to support the EnPlus plant.   

Ms. Plaza said the deal will help spread development outside of Metro Manila.   

“EnPlus, a Korean company, is (now) our partner in investing in the countryside and believing in (the) Philippines as an investment haven in Asia,” Ms. Plaza said.   

“Using EVs is better for our environment as they emit fewer greenhouse gases and air pollutants than vehicles using petrol or diesel. In the global context, electric cars have yet to be mainstreamed,” she added.  – Revin Mikhael D. Ochave 

THE Board of Investments (BoI) said it approved poultry projects of Broilers Club, Inc. (BCI) and STMP AgriBusiness Corp. worth a combined P168 million.   

The BoI said in a statement Friday that BCI and STMP qualify for incentives as a new producer of eggs of broiler chicken and a new producer of parent stock hatching eggs integrated with the growing of grandparent stock, respectively. They are eligible under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Act in the Agriculture, Fishery and Forestry category of the 2020 Investment Priorities Plan.   

“These projects add essential support to the meat processing industry as parent stock breeder farms are considered vital links to the country’s poultry supply chain and broiler chickens are reared and prepared for meat consumption,” BoI Managing Head Ceferino S. Rodolfo said.   

The BoI said the project of BCI, worth P87.8 million, comprises three poultry houses in Sta. Cruz, Davao del Sur. Its commercial operations began in May 2021, with staff of up to 43 personnel, and an annual capacity of 4.9 million eggs.   

Meanwhile, STMP’s P80 million project in Nasugbu, Batangas will begin operations on January 2022 and involves 25 employees.  

The project has a capacity of 2.15 million intact eggs, 1.9 million hatching eggs, 17,820 female breeders, and 1,782 male breeders per year.   

“Both firms have contract agreement to supply San Miguel Foods, Inc. (SMFI). Eventually, these firms will contribute to the supply requirements of the local markets which includes retail and institutional buyers,” the BoI said.   

“Poultry meat is considered one of the basic commodities/necessities. It is the second most consumed meat type after pork based from the Philippine Statistics Authority (PSA) data on livestock and poultry,” it added.  – Revin Mikhael D. Ochave