RP to ban corn imports from Thailand, Vietnam

The Philippines, now free of the bird flu virus that ravaged much of Asia, will bar imports of corn from Thailand, Vietnam and Indonesia in its April 2 tender for fear the grain might have been contaminated.

Agriculture officials said yesterday the ban on corn from the three countries was discussed with prospective suppliers of the 350,000 tons of corn that state trading firm National Food Authority planned to buy on April 2.

One of the officials said the Philippine government was also considering barring corn imports from China, which said this week it had stamped out the disease.

The government said it would rule next week whether to allow Chinese corn imports, according to a trade source who attended the suppliers’ meeting with government officials.

"We have to adopt these rules to protect our poultry industry," a senior agriculture official, who declined to be identified, told Reuters.

Government veterinarians urged strict curbs on the import of corn from countries hit by avian flu because the grain could carry the virus.

Traders had said the Philippines would turn to Asian countries for its corn requirements because of high freight costs from traditional suppliers Argentina and the United States.

"If the government also bans the import of corn from China, the Philippines has no choice but to buy from India," an executive from one of the country’s largest feedmills said.

But he doubted whether India – which emerged as an exporter this year ending an absence of several years – could meet the large Philippine requirement. He said the Philippines had no choice but to buy corn from South American countries.

"The ban effectively nullifies the intention of the government to provide relief to the high price of local animal feed," he said.

The Philippine government has approved the duty-free import of 350,000 tons of corn and an unlimited volume of soymeal in the next six months to try to cut the cost of pork.

It has also approved the removal of tariffs on the import of 5,000 tons of pork.

Fears of the bird flu virus – which killed more than 24 people in Vietnam and Thailand – prompted consumers to shift to pork, causing a shortage.

Hog farmers also blame a weak peso and higher offshore feed prices for the shortage.

The Philippines imports each year one million tons of corn or wheat as a substitute for animal feed.