Feed producers call for lower tariffs on yellow corn

The country’s largest feed producer group has urged President Duterte to issue an executive order reducing tariffs on yellow corn, the main raw material for making feed.

According to the Philippine Association of Feed Millers Inc. (Pafmi), the move will help ease the country’s growing food inflation and lower the high cost of meat production.

“The current tariff structure, at a maximum of 50%, pushes the cost of imports to unrealistic levels, leading to higher production costs for livestock and poultry producers, resulting in uncompetitive prices for farmers. local meat products compared to meat imports which now benefit from lower tariffs, ”the group said.

The Pafmi demands a uniform tariff of 5 percent on yellow maize compared to the current rate of 35 percent for those under the minimum access volume (MAV) and 50 percent for those above the MAV and coming from non-Asean countries.

Animal feed accounts for about 60 percent of what farmers spend on raising livestock and poultry.

“Because the supply in Asean has also tightened due to the growing needs of the region and purchases from China … access to more competitive sources of feed maize is necessary to ensure an adequate supply for them. millers and the livestock and poultry sectors. However, under the current tariff structure, even imports from other sources would not help control corn and feed inflation, ”he added in a statement.

The group’s request came as the Department of Agriculture (DA) is set to release this month the findings of its technical working group tasked with studying whether the reduction in import duties on yellow corn will benefit not only consumers and millers, but also local producers who have been vehemently opposed to Pafmi’s proposal.

Roger Navarro, chairman of the country’s largest corn growers group, said the DA should prioritize helping local corn growers, especially after severe tropical storm “Maring” destroyed 150 million people. corn pesos on 8,658 hectares of farmland. This does not include the costs that farmers will incur for rehabilitation and clean-up operations.

Navarro added that while the industry understands the need to import, there is no need to reduce tariffs further as this will eventually kill the local industry which is already struggling with higher input costs, price instability and lack of post-harvest facilities, among others.

For Pafmi, the Maring attack only made the tariff issue more urgent as it will further reduce the supply of yellow corn, especially with the start of La Niña.

The Duterte administration, to temper the country’s food inflation, instituted reforms that made it easier to import several agricultural products including rice, meat and fish despite opposition from local producer groups.

A new tariff regime for corn, Navarro noted, could discourage corn growers from replanting.

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