February 17, 2004

Philippines Corn Output To Continue Rising

Corn harvest in Philippines is expected to continue increasing, with output possibly reaching 5.0 million MT this year.

Interest in growing corn is helped by strong domestic feed demand and more widespread use of better quality corn seed. Stronger markets will encourage more farmers to shift to high yielding corn varieties such as hybrids.

Hybrid corn is estimated to be cultivated in around 500,000 hectares during the year or roughly 20% of total corn area planted. Contract growing schemes offered by large companies with feed milling operations are becoming popular. These companies specify and provide quality seeds and extend technical assistance, on top of the traditional buy-back guarantee.

Traditionally, around 60% of corn production is concentrated in the southern island of Mindanao with the majority harvested in the third quarter of each year. Corn demand, on the other hand, is highest (around 75%) on the main island of Luzon in the northern part of the country, where the majority of the feed mills, livestock and poultry farms are located. Corn production in Luzon accounts for roughly 30% of national corn output, the majority of which is harvested in the first semester.