February 1, 2008

Philippines to invest US$22 million in post-harvest facilities for corn

The Philippine Department of Agriculture plans to invest PHP900 million (US$22.3 million) within the next two years to build post-harvest facilities in a bid to boost domestic corn production, a senior agriculture official said Thursday (February 1, 2008).

Dennis Araullo, assistant secretary for agriculture and the department's programme director for corn, said the department plans to build 45 corn grain centers over the next two years as a way of encouraging local farmers to continue planting the crop.

The grain centers, which will cost around PHP35 million (US$863,000) each, will consist of drying, shelling and bagging facilities. Araullo says the department will put up PHP20 million (US$493,000) for each centre.

He said the balance of funding should come from the private sector or the local government agency concerned, adding that the department is now in talks with prospective investors, including feedmill companies.

Post-harvest losses often reach up to 15 percent of total corn output in the Philippines. Building the grain centers is expected to reduce such losses while ensuring the grain processed is of high quality.

The agriculture department's corn production target for 2008 is 7.37 million tonnes, around 9 percent higher than last year's output of 6.73 million tonnes.