September 8, 2009

The Philippine corn sector may have hit several bumps along the road this 2009, but the Department of Agriculture (DA) is already looking ahead to a six-percent output growth in 2010.

 

DA assistant secretary Dennis Araullo, concurrent director of the Ginintuang Masaganang Ani (GMA) corn programme, said that production may reach 7.5 million tonnes in 2010 from 7.09 million tonnes this year.

 

Higher demand for animal feeds, a mild El Nino and the completion of post harvest facilities are expected to result in higher output.

 

Araullo said the hog industry and poultry might bounce back and is expecting a big demand as the AH1N1 and Ebola Reston virus scares are over.

 

He said election-related activities would also boost consumption of pork and chicken.

 

More output requirements of hog and chicken farmers mean more demand for corn, which is the main ingredient in animal feeds.

 

Production in early 2009 was hampered by high fertiliser prices at the start of planting, as well as too much rain which interfered with pollination.

 

The mild El Nino poised to hit the Philippines from late 2009 to early 2010 is seen to favor corn flowering.

 

As for the recent price crash in corn, Araullo said the situation may stabilise just in time to encourage further planting.

 

The government is exporting about 150,000 tonnes of corn to Vietnam to ease a glut in feed ingredients such as feed wheat, which traders bought to take advantage of duty-free importation that ended in June this year.

 

The Philippine Maize Federation, however, still doubts on whether farmers will be encouraged enough to plant more corn - or to plant corn at all - since the government is only buying yellow corn at around PHP10 a kilo.

 

The DA's Bureau of Agricultural Statistics (BAS) said in a recent report that corn production is forecast to reach 7.09 million tonnes by end-2009.

 

US$1 = PHP48.441 (Sep 8)