January 7, 2010

Imports seen to drive Philippine corn prices down

An expected influx of imports of corn and alternative raw materials to substitute corn for animal feed production will further drive down the price of local corn.

Local corn prices are currently PHP10.50 to PHP11.50 (US$0.23-US$0.25) per kg.

The competition will come from the Philippines' acceptance of a free trade regime with its Asean and Chinese neighbours, said Roger Navarro of the Philippine Maize Federation (PhilMaize).

Navarro raised concern on feed millers importing feed ingredients on the back of an anticipated good domestic corn harvest this year.

Corn, a major source of protein in animal feeds, normally accounts for 50-60% of animal feeds. The local corn industry can no longer resist such importations, and in return PhilMaize is urging the government to collect import taxes in order to provide minimum protection for the farmers.

Industry sources earlier said that they continue to import feed wheat in anticipation of higher corn prices this year.