The United States Department of Agriculture (USDA) said soybean meal imports in the Philippines are expected to increase due to growing demand for animal feeds while coconut oil production will likely decrease due to El Niño.
The agency said with the expected decrease in coconut oil production, importation of palm oil will increase.
A report released by the USDA through the Foreign Agricultural Service on Monday showed the Philippines’ soybean meal imports for market year 2024-2025 will reach 3.2 million metric tons (MT), a 4 percent increase from 3.03 million MT in the previous market year.
Soybean meal is mainly used for animal and aquaculture feeds with a small portion used for curd production.
Increased demand for soybean meal is traced to the growing requirement of the animal feeds industry.
Soybean meal is the main protein source of livestock and aqua feeds formulations, accounting for 15 to 40 percent share of total raw material components.
The USDA report said copra crushing in the Philippines is set to decline by 15 percent this year which will also result in a 15-percent reduction in coconut oil supply to 1.57 million MT from 1.85 million MT.
Because of lower production, the Philippines’ coconut oil exports will also drop to 900,000 MT, or by 21 percent, from last year’s 1.14 million MT, attributed to low coconut supply.
The Philippines is the top producer and exporter of coconut oil which is a key ingredient in food, cosmetics, cleaning and medical products.
About 75 percent of coconut oil produced locally is exported.
The report said because of lower coconut oil production, palm oil imports will increase by 5 percent to 940,000 MT from 895,000 MT.
Palm oil is used for food processing, mainly for cooking oil, margarine, shortening and non-dairy creamer. It is also used in consumer products like soap, cosmetics and medical products.
The report said palm oil is preferred over other vegetable oils as it is cheaper, more durable and more resistant to pressure and high temperature.
