May 8, 2006

Corn production and imports up in the Philippines 

Corn production is expected to be up by 35 percent to 2.67 million tonnes for the first half of the year over the same period last year, but planned corn import of 200,000 tonnes would not be affected, Agriculture Secretary Domingo Panganiban said in a report.

Farmers have devoted a larger area for corn for the first semester of this year to 1.03 million hectares from 895,000 hectares in 2005. Yield is also expected to increase from an average of 2.21 tonne a hectare last year to 2.58 tonne a hectare.

However, a trader said feed producers may still have to import more corn this year.

Feedmillers are reportedly requesting for an additional MAV import volume which would allow them to enjoy the lower 35 percent tariff compared to the 50 percent non-MAV tariff.

Early this year, the department was projecting a 5.8 million tonne corn production, a 9.4 percent increase from the previous year's 5.3 million tonne corn output.

This growth in corn output is expected from the expanded use of hybrid corn, newer farming methods and the more efficient use of farmlands.

Feed millers have been indicating the need for an additional MAV volume this year as it has now surpassed 100,000 tonnes. The Philippine Association of Feed Millers in January has imported 24,000 tonnes, San Miguel Corp imported 60,000 tonnes and 20,000 tonnes were imported by another group.

Given a 200,000 tonne corn import limit, this volume will be the biggest in three years. The Philippines only imported 57,902 tonnes of corn in 2005.