The report said wheat imports are expected to increase 550,000 tonnes to 5.75 million tonnes, driven mainly by growing feed demand. This growing demand also is expected to increase corn imports by 200,000 tonnes to 700,000 tonnes.

Rice imports are likely to decline 300,000 tonnes to 1 million tonnes in 2018-19 due to increasing production and shifting dietary preferences toward wheat and protein, the report said.

There is no commercial wheat production in the Philippines, but there are 20 flour mills in the country with an aggregate milling capacity of over 5 million tonnes, the GAIN report said.

“Milling wheat demand is poised to increase modestly in 2018-19 due to economic growth and the increasing Philippine population,” the report said.

It added that “feed wheat consumption is expected to increase 2.5 million tonnes in 2018-19 due to firm animal feed demand from an expanding livestock sector and a lower price relative to feed corn.”

As of December 2016, there were 486 feed mills registered with the Philippine Bureau of Animal Industry (BAI) with a total capacity over 27,000 tonnes per eight-hour shift, the report said, quoting industry sources.

About 60% of the registered feed mills in 2016 were classified as small-scale producers (less than 25 tonnes per eight-hour shift). Only 15% produced more than 100 tonnes per eight-hour shift, according to the report.