April 13, 2007

Philippines will buy Argentine corn to cover expected shortage
 

To cover an expected domestic corn shortage and acquire buffer stocks for the next few months, the Philippines will import 120,000 tonnes of Argentine corn within the first half of 2007.

The National Food Authority has bought 60,000 tonnes of corn each from Cargill Phils. Inc. and Toepfer International Asia Pte. Ltd. in a recent bidding.

The corn imports should arrive by June and July when a seasonal shortfall in domestic supply is expected.

End-users including feed millers and poultry producers had earlier asked the agriculture department to allow 700,000 tonnes of corn imports to cover the anticipated shortfall, said Ginintuang Masaganang Ani (GMA) Corn Program Director Dennis Araullo.

According to the Livestock and Development Council, low corn production should lead to a domestic shortage of about 1.8 million tonnes this year.

Corn demand from the Philippine feed industry usually registers 5.5 million tonnes annually. Industry participants reflect that with the growth in ethanol production competing with feed and food producers for corn supplies, global prices of the crop are on the rise.