November 6, 2008
The Philippines has shelved plans to export corn due to the low price offered by a South Korean group.
Korea Overseas Grain Investment & Development Co Ltd offered US$296 per tonne, about 10-percent lower than the US$330 per tonne asked by the Philippine Maize Federation Inc. (PhilMaize), said Roger Navarro, president of PhilMaize.
If the export plan went through, the Philippines would have begun shipping corn this month to South Korea at a minimum rate of 3,000-5,000 tonnes per month, said Navarro.
The Philippines accounts for just 1 percent of global corn output but poor domestic prices have spurred farmers to find other markets for their crop. The shipment would have the first for the Philippines, which is self-sufficient in corn.
Domestic corn production this year is expected to reach 7.2 million tonnes, below the target of 7.4 million tonnes, due to damage caused by a major typhoon on farmlands in June and the impact of rising fertiliser cost for most of the year.