Importation of Wheat Flour in the Philippines

7/29/2019 Importation of Wheat Flour in the Philippines

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1. http://www.responsibleagroinvestment.org/sites/responsibleagroinvestment.org/files/FAO_Agbiz%20handbook_Wheat%20Flour.pdf

IMPORTATION OF WHEAT FLOUR IN THE PHILIPPINES

Wheat is a basic food ingredient derived by grinding or mashing the whole grain of

wheat. Whole grain is a good source of calcium, iron, fiber, and other minerals like selenium.The amount of wheat traded internationally exceeds that of all other grains. Furthermore, the

protein and caloric content of wheat is greater than that of any other food crop. Most wheat is

consumed in the form of baked goods, mainly bread; therefore, wheat grains must be milled to

produce flour prior to consumption. Wheat is also used as an ingredient in compound feedstuffs,

starch production and as a feed stock in ethanol production.[1]

Wheat production in the world has been increasing largely due to plant breeding research

and improved production technologies since the 1960s. However, since Philippines does not

commercially produce wheat , it imports from different wheat producing countries such as the

United States which is its largest supplier.

As shown in the diagram and table below, theres an intensive increase in the

consumption of wheat in the Philippines from year 2010 to 2011.

Source: United States Department of Agriculture
http://www.usda.gov/http://www.usda.gov/


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Source: United States Department of Agriculture

According to a report penned by Rene Pastor, the Philippines is on track to increase

wheat imports by almost 12 percent to 3.8 million metric tons in the 2013, and the bulk of the

buying is scheduled to take place during the second half of the year, a top official of the largest

flour milling group said. Philippines is on track to increase wheat imports by almost 12 percent

to 3.8 million metric tons in the 2013, and the bulk of the buying is scheduled to take placeduring the second half of the year, a top official of the largest flour milling group said.

.According to Ric Pinca, the executive director of the Philippine Association of Flour

Millers(PAFMIL), the estimated total of about 3.8 million metric tons (for milling wheat and

feed wheat) is attainable.

Having been in a superior position in the world wheat flour exports since particularly theyear 2005, Turkey imports wheat instead of importing wheat flour, and produces flour from

imported wheat. Turkey's wheat flour imports are almost nil. Wheat flour imports amounted to

3,111 tons in 2009, which was the highest quantity of imports of the last decade, 56 tons in 2011,

and 94 tons in January-September 2012.

In the last decade, Turkey exported the biggest quantity of wheat flour in the years 2005

and 2011. Between the said years, wheat flour exports declined in the years 2006, 2007 and

2008, started to increase from the year 2008 onwards, reaching the peak level of the last decadein the year 2011. The increase that occurred in the unit price of the exports has been the

principally important point of the development of Turkey's wheat flour exports within the said


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period. This is the element that determines Turkey's strengthening position in the world wheat

trade.[2]

It has been reported that the increasing competition caused by offering of cheaper

imported flour from Turkey weakened the demand of wheat here in the Philippines. It is said to

be 40 percent cheaper than the locally produced flour.


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Turkish government employs a complex inward processing scheme that creates

disruptive incentives to its milling industry to export flour regardless of price. The fact that the

cheapest Turkish flour is much more expensive in Turkey than similar flour Turkey exports to

the Philippines, that such export clearly constitutes dumping. Dumping as defined as the act of

charging a lower price for the like goods in a foreign market than one charge for the same good

in a domestic market for consumption in the home market of the exporter. [3]


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INTERNATIONAL TRADE

LAW

SUBMITTED TO:

ATTY. EVER HIGUIT

SUBMITTED BY:

CZARINA CHERIZZE C. MARTINEZ


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Importation of Wheat Flour in the Philippines