August 25, 2009
Philippines mulls corn exports to Vietnam, Indonesia this year
The Philippines is considering selling corn to Vietnam and Indonesia this year, state-owned grain trading firm National Food Authority said Monday (August 24).
The exports could prop up local prices, which are low due to weak demand for feedmeal, as poultry and livestock industries cut production amid the economic downturn, NFA spokesperson Rex Estoperez said.
The Philippines may export around 150,000 tonnes of corn to Vietnam, Estoperez said, adding that if actual demand is higher, this "indicative" volume could be increased.
"Based on our market information, Vietnam imports around 600,000 tonnes of corn every year - Indonesia imports more than that," he said.
Currently, domestic corn prices are hovering around PHP7 (US$0.14) a kilogram, much lower than the NFA's support price for the grain of PHP13/kg (US$0.26).
The NFA's support price is intended to encourage planting. The agency, however, is unable to effectively support prices as it has set a procurement volume of only 300,000 tonnes against an expected output this year of 7.09 million tonnes, up 2.3 percent compared with last year.
Corn is a major component in livestock and poultry feedmeal.
US$1 = PHP48.57 (August 25)
