By Jennifer Dorsett
Field Editor

A new report by the U.S. Department of Agriculture (USDA) Foreign Agricultural Service (FAS) says the Philippines is now the second-largest market for U.S. wheat exports.

Joe Sowers, regional vice president-Philippines and South Korea for U.S. Wheat Associates, told a crowd at the annual Prairie Grains Conference in December the country’s strong import record is great news for American wheat farmers.

“It’s a success story by any degree,” he said. “It’s spectacular.”

There is no commercial wheat production in the Philippines, despite it being the only Asian nation whose citizens eat more bread than rice.

In 2014, there were 14 wheat mills in the nation, but there are now 22, with another operation set to open later this year, FAS reported.

According to the report, Filipinos enjoy a variety of wheat-based products such as breads, cakes, pastries, cookies, crackers, pasta and noodles.

Sowers tied the rise in wheat consumption among Filipinos to rising incomes and a growing middle-class population.

“These consumers can choose what they want, not what they can afford,” Sowers said.

He noted U.S. wheat is known in the Philippines for its high quality, and Filipino companies often tout their products as made with American wheat.

According to FAS, the Philippines is projected to import 7.2 million metric tons of wheat this year, more than twice the amount imported a decade ago—and 95 percent of that will come from the U.S.

The country is also the largest market for both U.S. soft white and hard red spring classes.

The Association of Southeast Asian Nations (ASEAN), a coalition of 10 countries including the Philippines, is now seen as the world’s top wheat-importing region.

“It’s more and more important, this Southeast Asian market,” Sowers said.

In the Philippines, he noted, more than half the population is under 24 years old and 90 percent is under the age of 55. Sowers said the statistic is important because younger adults typically have more disposable income, making them particularly attractive to marketers.

Although milling wheat consumption will increase in the Philippines, total wheat imports are projected to be down slightly as African swine fever continues to dampen hog feed demand.