May 10, 2007

Philippine poultry assured of an ample corn supply

The Philippine corn industry has promised a stable corn supply at market levels and to poultry farmers which could maintain retail prices of chicken at current levels.

According to Agriculture Secretary Arthur Yap, corn farmers have surpassed their dry season production targets during the first quarter of 2007 and reports of a supply shortfall of corn are deceptive.

The Philippine Maize Federation Inc or Philmaize, the country's federation of corn industry stakeholders, told Yap that even with yellow corn costing as high as P12 (0.19 euro) a kilo, no price hikes are seen for poultry as the grain has a stable supply.

Isidro Acosta, Philmaize vice chairman said this year's high production and corn imports to fill a foreseen supply gap will ease out any corn problem that will affect livestock and poultry subsectors.

At present, the selling corn price of P11 -12 (0.17 - 0.19 euro) per kilogramme is "sustainable" and acceptable to corn farmers who have been encouraged to plant more because of the sustained profits in corn production, according to Department of  Agriculture (DA) Assistant Secretary and GMA Corn Programme Director Dennis Araullo.

Corn production is targeting a 13.73 percent growth rate to reach 6.92 million tonnes this year from 6.08 million tonnes in 2006.

Araullo said the DA's off-season production target, covering a total of 132,000 hectares, is expected to yield an additional 350,000 to 400,000 tonnes of corn this year.