January 24, 2008

 

Philippine H1 corn output to rise 9 percent on high prices

 

 

Philippine corn output in the first half of the year is expected to rise 9 percent to 3.01 million tonnes as high domestic prices encourage farmers to plant more, a senior agriculture official said Thursday (January 24, 2008).

 

The planting area for corn this year is likely to rise by 75,000 hectares as strong demand for the yellow grain has prompted some rice and sugar cane farmers to shift to corn, said Agriculture Department Assistant Secretary Dennis Araullo, programme director for corn.

 

To help boost output, the department is promoting the use of high-yielding hybrid seeds, Araullo said.

 

Corn prices currently range between PHP11.50-PHP12.50 a kilogramme (US$0.278-US$0.303) at the farmgate level, compared with only PHP8/kg (US$0.194) a few years ago.

 

To meet the country's full-year production target of 7.37 million tonnes, output in the second half of the year should grow 10 percent to 4.36 million tonnes, Araullo said.

 

In 2007, the country's corn output rose 10 percent to 6.73 million tonnes.

 

Meanwhile, the department, through National Agribusiness Corp., is set to invest PHP525 million (US$12.71 million) to build 15 grain centres in various parts of the country.

 

The grain centres, which will require PHP35 million (US$847,000)each to build, will consist of drying, shelling and bagging facilities, Araullo said.

 

The grain centres are intended to ensure high-quality grain and help reduce post-harvest losses.

 

San Miguel Corp, the country's largest food and beverage conglomerate, is also keen on building five other grain centers within the first half of the year, he said.

 

The location of two of these grain centers has already been finalised, he said, adding they will be in Bukidnon and Isabela provinces, key producing areas of the country.

 

San Miguel has a feed and poultry division.