January 8, 2013

 

 

In order to protect farmers' income, the Philippine's Department of Agriculture will pursue corn exports this year and encourage them to continue planting the crop in view of lower prices brought about by excess production.

 

In an interview, Department of Agriculture (DA) Secretary Proceso Alcala said that corn exports will encourage farmers to continue planting, noting that the expected surplus in production this year will also lead to lower prices of the grains.

 

"Our projection has always been reaching self-sufficiency. Lately, I see better option… not to dream about self-sufficiency, but to dream about exporting corn because we now have the capability," he said.

 

Alcala said that the National Food Authority (NFA) is still deliberating on the possible export of corn, noting that latest estimates showed that current production levels match the feed requirements of livestock growers.

 

"At present, farmers are still enjoying good buying price," the DA chief said. "But the next thing that will happen after hitting self-sufficiency is a drop in prices. If that happens, farmers will stop planting and we'll be back to zero," he said.

 

Alcala added that if domestic buying prices fall lower than the current level, the NFA might allow the shipment of corn to the world market to give farmers better prices for their produce. He said that they are now talking with private firms in Korea and Malaysia for the possible export of yellow corn.

 

"Both of the countries have been importing 95% of their corn from the US. It would be a logistical advantage for us," he said.

 

At present, corn prices in the world market are pegged at PHP18 (US$0.44) per kilogramme, much higher than the local buying price of PHP15-16 (US$0.37-0.39) per kilogramme.

 

The corn industry is expected to meet production target of 7.8 million tonnes this year, with bumper harvest being eyed in provinces unaffected by Typhoon Pablo.

 

Alcala also said that corn plants in Cagayan Valley and Isabela are expected to contribute greatly to local production, as good domestic buying prices have encouraged farmers to cultivate the crop.

 

For 2012, the government expects to attain a sufficiency level of 98% with a deficit of 179,000 tonnes. This is because a small volume of corn requirements for animal feeds are still imported by livestock growers. For 2013, the government intends to raise corn yield to 8.4 million tonnes with a sufficiency level of 101%, with a surplus of 149,000 tonnes.

 

To do this, the government should encourage domestic consumption of ingredients for animal feeds. Also, the government is currently conducting intervention strategies such as the provision of production support services, irrigation development, post-harvest development services, marketing development services, as well as education and training for farmers.

 

Alcala is also encouraging more private firms in the country to invest in more silos for storing corn.