May 24, 2007

 

Philippines to up corn area by 600,000 ha in 3 years

 

 

The Philippines will raise the country's corn planted area by up to 600,000 hectares in three years to attain self sufficiency in corn production, Agriculture Secretary Arthur Yap said Wednesday (May 23).

 

The plan is to increase the country's planted area by 200,000 hectares each from 2008 to 2010, he said.

 

"About 70 percent of these new areas will be concentrated in the Mindanao region (in southern Philippines). We have a better chance of increasing production by developing new areas there," said Yap who noted traditional corn areas in northern Philippines have been facing extreme weather conditions.

 

If the plan succeeds, 600,000 hectares of new corn crop will result in more than 1.7 million tonnes of additional production, said Yap.

 

In fact, the department has set a target of producing 7.5 million tonnes of corn next year, up from this year's projected output of 6.9 million tonnes.

 

This year's target of 6.9 million tonnes, if achieved, will itself be a record and up 13 percent from last year's production as farmers increased acreage following the sharp rise in corn prices.

 

 

Philippine producers should look at exports

 

According to Yap, plans to further boost production could usher in the country's emergence as an exporter of corn, which in turn, would help ensure food security in the country.

 

"I can't say with total confidence that we will become self sufficient domestically due to the expected growth in demand. The idea should be to open a lot of markets so that the flow of commodities would continue," Yap said.

 

Expanding the market for local corn would also keep corn farmers from shifting to other crops, he said. "It's always healthy if you're supplying not just one market, because if you're dependent on the domestic market alone, you will be subjected to the vestitudes of the local conditions."

 

For instance, lower demand for corn from the livestock and poultry industries will inevitably put pressure on prices unless local producers have the option to ship out their corn, he said.

 

"This is why I think corn should target being a regional commodity, not just a domestic commodity. This will help avoid the peaks and valleys of supply and prices," he said.

 

 

Chinese investment to help boost corn production

 

Yap said a Chinese investment to develop up to one million of hectares of land to be devoted for rice and corn cultivation in the Philippines will help boost production of the yellow grain in the years to come.

 

Chinese investors, led by Jilin Fuhua, are now in the process of finalising the identification of an initial 50,000 hectares of land spread across the provinces of Cagayan Valley, Isabela, Nueva Ecija and Pangasinan, in northern Philippines.

 

Output from this investment will be used to help address food security in the country.

 

"The Agriculture Department will insist that it should have a say on whether the produce will be exported or not. The local market should be given priority," he said.

 

The Chinese project is expected to bring in a total investment of US$3.84 billion within the next five to seven years. This investment is supported by the Jilin provincial government and will be financed by the China Development Bank, Yap said.