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Philippines: Determinants of Wheat Import Demand

Author

Listed:
  • Levin, Carol E.
  • Lin, Chin-Zen

Abstract

The Philippines relies entirely on imports to meet all of its wheat demand. Wheat marketing and distribution have been controlled by the private sector since 1986. The milling industry consists of 2 milling associations and 12 mills. The key factor in wheat importers' purchasing decisions is the price of wheat, with quality being the second most important factor. Between two high-quality sources, price is the more important factor; however, between an inferior and superior source, quality factors override price considerations. Protein and moisture are the most important quality characteristics. In general, dockage was not listed as one of the top five quality factors determining the country supplier. Selling cleaner U.S. wheat would result in possible premiums, although the amount of the premium is not known. In terms of the trade effects of cleaner U.S. wheat, all millers indicated that lower dockage levels, at the current price, would not result in an increase in demand for U.S. wheat imports in the short term.

Suggested Citation

  • Levin, Carol E. & Lin, Chin-Zen, 1993. "Philippines: Determinants of Wheat Import Demand," Staff Reports 278694, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278694
    DOI: 10.22004/ag.econ.278694
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    File URL: https://ageconsearch.umn.edu/record/278694/files/ers-report-590.pdf
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    References listed on IDEAS

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    1. Ingco, Merlinda D., 1991. "Is rice becoming an inferior good? Food demand in the Philippines," Policy Research Working Paper Series 722, The World Bank.
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    Cited by:

    1. Diersen, Matthew A. & Wilson, William W. & Dahl, Bruce L. & Satyanarayana, Vidyashankara, 1997. "Additionality Of Credit Guarantees For U.S. Wheat Exports," Agricultural Economics Reports 23425, North Dakota State University, Department of Agribusiness and Applied Economics.

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