March 15, 2006

Chicken farmers in the Philippines may benefit from corn subsidy

The Philippines may subsidise corn planters so as to lower the price of corn for poultry farmers if it imposes a ban on corn imports from Indonesia due to bird flu.

The agriculture ministry does not specifically ban feeds/ feed ingredients from bird flu affected countries, but only cautioned businessmen on the procedures of importation to ensure that the virus does not hit the country, said Department of Trade and Industry (DTI) XI regional director Merly Cruz

Cruz said the high cost of chicken production primarily stemming from the price of feed ingredients is the only problem that would hampering the planned BIMP-EAGA halal chicken project. The project aims to export poultry products to the Middle East, a lucrative market. An organisation in the Philippines had recently been allowed to do halal certification for poultry exports to the Middle East.

Indonesia offers corn at a third of the price of the Philippines. A visit to Indonesia by a business group to import corn from the country was postponed recently when the group was made aware that the government frowns on such imports.

Cruz said it does not mean that the project is no longer doable if the government bans chicken feed from Indonesia. The issue on the cost of feed can be solved if government provides subsidies to farmers to reduce the price of corn, she said.