April 5, 2004

 

 

Philippines To Export Corn For The First Time

 

The Philippines will export corn for the first time this year to ease the downward pressure on corn prices. The corn will be exported in the third quarter following forecasts of a bumper crop reaching 1.5 million MT.

 

Roderico R. Bioco, chairman of the Philippine Maize Federation Inc. (PMFI), disclosed during the 3rd Philippine Corn Congress that Mindanao is now preparing to export to Malaysia as corn price may hit below farmers' desired level of P8.50 per kilo. Corn price is now at P9.50 to P10.50 per kilo from a higher P12 per kilo at the beginning of the year. He said the PMFI is also eyeing the Brunei market for the same export plan.

 

"We will be exporting corn to Malaysia in August to September because we have a very big crop in Mindanao. It will not be so large - 5,000 to 10,000 tons, but it will relieve the downward pressure on price because the lack of storage facilities in Mindanao will create a glut that will push price below P8.50," he said.

 

Bioco said that the Malaysian export will give a significant advantage to Mindanao corn producers as Malaysia is a shorter distance from Mindanao compared to if Mindanao corn will be shipped to Luzon. He said Mindanao will be able to ship corn to Malaysia at P9 to P10 per kilo compared to the US's P12 per kilo price. Malaysia will likewise have the advantage of getting the corn from a nearer source.

 

"Malaysia imports half a million tons of corn from the US. With the export, we will relieve the pressure on price locally and still be competitive compared to US corn or China. We'll be competitive even if there is no export subsidy," he said.

 

He said Mindanao is expecting a harvest of 1.5 million MT during the second season harvest (July to September), significantly up by 25 percent over last year's 1.2 million MT as corn price skyrocketed in the world market due to tight feed grains supply, encouraging farmers to expand planting.

 

As such, Bioco said Mindanao has the capacity to export 200,000 MT of corn but that farmers may not be able to immediately export this big volume as corn price locally may also firm up to corn users' dismay.

 

With the encouraging high corn price in the world market, the Philippines is projected to produce 5.57 million MT of corn this year, up by 20.56 percent from last year's 4.62 million MT.

 

Mindanao usually takes up 60 percent of the country's total corn output, although the lack of post harvest facilities, Bioco said, causes losses of 15 to 25 percent of production. The third quarter harvest takes up Mindanao's biggest harvest in the year of as much as 60 percent.

 

Mindanao will be able to keep up with international standard on corn quality with a moisture content of 14 percent and aflatoxin level below 50 parts per billion.

 

"They like our corn. It's better than China which is an old corn," he said.