Thursday, April 12, 2007

120,000 Tonnes of Yellow Corn

(Yahoo News) - MANILA, April 11 (Reuters) - Philippine feedmillers and poultry and livestock firms, led by San Miguel , bought 120,000 tonnes of yellow corn from Argentina on Wednesday for June/July arrival, officials said.

The volume is part of the 400,000 tonnes of corn that the Southeast Asian country plans to buy overseas this year to fill a projected shortfall in local production for animal feed.

An official from the National Food Authority (NFA), the grain importing arm of the government, said it would wait for expressions of interest from the private sector before deciding whether to hold a separate tender for 80,000 tonnes of the grain.

Ludovico Jarina, deputy administrator at the NFA, said it would give private feedmillers and livestock firms one month to reply.

If there is no separate tender, then the remaining 280,000 tonnes will likely be bid out in a tender in the second half of this year.

San Miguel, Southeast Asia's largest food and drinks group, bought 80,000 tonnes of corn on Wednesday. In addition to processed foods and its flagship beer, San Miguel also sells feeds and poultry.

Local firms asked the government to waive the minimum 35 percent tariff on imported corn so that the grain would cost the same as local corn.

Instead of paying the tariff, the NFA will charge local firms a fee of 1 peso for every kilo of corn bought.

Agriculture Secretary Arthur Yap has said the government had to waive the tariff as world prices for corn and other feeds rise due to increased demand for the grain to produce biofuel.

Cargill Philippines Inc. won a contract to supply 60,000 tonnes from Argentina at $215.48 per tonne, including cost and freight, for arrival no later than July 31, NFA officials said.

Toepfer International Asia won a contract to supply the remaining 60,000 tonnes at $215.50 per tonne, including cost and freight, for arrival no later than June 30.


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