October 25, 2007

 

Philippines expects 9-percent rise in corn output next year

 

 

Philippine corn production in 2008 is projected to grow 9 percent on year to 7.4 million tonnes as farmers are likely to plant more to take advantage of higher grain prices, a senior agriculture official said Thursday (October 25, 2007).

 

Corn output this year is expected to reach 6.8 million tonnes.

 

"Corn prices are very encouraging for our farmers. We expect more farmers to shift to corn throughout next year," said Assistant Secretary Dennis Araullo, the agriculture department's programme director for corn.

 

Around 170,000 hectares of additional farmlands are expected to be planted to corn by next year, he said.

 

This year, total corn areas, estimated at 2.5 million hectares, increased by around 142,000 hectares on-year as stronger grain prices prompted farmers to cultivate the yellow grain.

 

Domestic prices of corn currently range between PHP12.50-PHP13.50 a kilogramme (US$0.28-0.31) from only PHP-7-PHP8 (US$0.16-0.18) a couple years back.

 

According to Araullo, local farmers are so bullish on planting corn that there is a shortage of high-yielding hybrid corn seeds, prompting seed suppliers to import from nearby Indonesia.

 

Despite the projection of higher output next year, the department is likely to approve a pending request by local end-users of corn, which include feedmillers and poultry and livestock raisers, to import 200,000 tonnes at zero duty, said Araullo.

 

Local end-users are also seeking a re-tender for 70,000 tonnes of corn within the next month following their decision to reject offers made Tuesday at an auction for the supply of that volume due to high prices.