August 26, 2009
Philippines sets corn export price for Vietnam
The Philippine National Food Authority (NFA) plans to export yellow corn to Vietnam at PHP8-PHP9 per kilogramme while also looking for other export markets, officials said on Tuesday (Aug 25).
NFA director for public affairs Rex C. Estoperez concurred that the cost set is based on the data on how much Vietnam imports corn from India, adding that the PHP8/kg would be the competitive price to export to Vietnam.
Last Sunday, the Agriculture department said it plans to export 50,000-150,000 tonnes of yellow corn to Vietnam this year, which will mark the first time the country will export the commodity, which is the main ingredient in animal feeds.
According to data from the Philippine Maize Federation, Inc. (Philmaize), current prices of corn in Luzon and Mindanao have fallen to about PHP4.50-PHP8/kg, lower than the production cost of PHP9-PHP10/kg, from about PHP20/kg in January and PHP13/kg in December last year, due to dampened demand.
Philmaize also projects 800,000-900,000 tonnes of corn surplus this year - partly due to feed wheat imports, according to Philmaize president Roger V. Navarro.
Private traders imported some 1.1 million tonnes of feed wheat when the 7 percent duty on feed wheat expired on June 21.
US$1 = PHP48.690 (Aug 26)
