January 7, 2008

Philippines expects minimal increases in corn prices this year

Agriculture officials in the Philippines said the public could expect minimal increases in agricultural commodities despite hikes in world oil prices, the Philippine Inquirer reported.

Ginintuang Masaganang Ani Rice programme director, Frisco Malabanan, said that the oil price increase would directly affect farmers though, as costs of production, specifically fertilizers and transport, are expected to rise.

Malabanan pointed that the country imports almost all of its nitrogen fertilizers (inorganic). He said that recently, nitrogen fertilizer prices had increased to P930 (US$23) per 50-kilogramme, up from last year's P800 (US$20) per bag.

With oil price hikes in 2007, fertilizer prices rose as much as P1,000 (US$24) a bag.

Agriculture Assistant Secretary Dennis Araullo said that feedmillers would most likely bear the effects of oil price increase in terms of the transport of corn from farm sites to production centers.

Feed millers use yellow corn as main ingredient for animal feeds in the Philippines. Araullo added that there are currently no plans to import yellow corn this year to boost local supply due to the high prices of the staple in the world market.