October 12, 2009

The Philippines is likely to cancel its plan of exporting corn to Vietnam due to the recent devastation caused by a tropical storm and a typhoon in corn-producing areas.

This plan could push through early next year due to an expected higher demand for feed corn, said Agriculture Undersecretary Bernie Fondevilla.

In August, the agriculture department said it will export about 150,000 tonnes of corn to Vietnam. Tropical storm Ketsana and typhoon Parma damaged 18,651 hectares of corn plantations in Luzon, which have forced in a change of plans, according to figures from the department.

But industry data showed a worse picture, saying that 20,000 to 25,000 hectares of corn plantations equal to 80,000 tonnes to 100,000 tonnes of corn being flooded. Most of those affected lands were in Luzon's Tuguegarao and Isabela, said Roger Navarro, president of the Philippine Maize Federation, Inc.

Corn has been destroyed in those areas, he said.

Local corn and hog industry leaders welcomed the government's plan to hold corn exports, as it would ensure a stable domestic supply which in return will result in stable prices.

The corn will be used when there is no more feed wheat, said Navarro.

Fondevilla said corn supply is sufficient until year end, but prices have increased to about PHP9.50 per kg due to the typhoons.

Industry data showed that current corn prices range at PHP9-PHP10 per kg, up from PHP4-PHP8 per kg in August.

US$1 = PHP46.63 (Oct 12)