November 24, 2010
Agencies asked to finance Philippine Q3 corn planting to prevent 2011 shortage
The Department of Agriculture (DA) and Land Bank of the Philippines (LBP) are asked to finance a third crop planting of corn this season to produce an extra 500,000 tonnes (MT) and avert a corn shortage in 2011 that could send price beyond PHP20 (US$0.45) per kilo.
According to Philippine Maize Federation Inc. (PMFI) Chairman Roderico R. Bioco and General Manager of Reina Mercedes Corn Processing Center (RMCPC), an estimated 100 hectares should be planted to corn in a third crop by February to March 2011 to produce additional volume.
The corn group asserted that DA and LBP can play a significant role in financing the third crop planting.
Bioco said the "DA can probably encourage our rice farmers (to plant corn) by subsidizing some of the costs of planting (hybrid corn) such as Roundup Ready-Bt corn which are preferred by farmers to control weeds".
Not only production will increase but also the farmer's income which will be critical for them to finance their regular rice planting requirements come July 2011.
PMFI has earlier met with LBP Vice President Ramon L. Monteloyola regarding financing of the third crop as corn production is seen to have a shortfall of 800,000 tonnes by the third quarter of 2011.
Without government intervention on additional cropping, Monteloyola said corn price may further skyrocket beyond PHP20 if there is no major measure to correct the supply situation. Granting that El Nino early this year brought down Luzon production by 500,000 tonnes and caused the feed wheat over-importation of 300,000 tonnes (although this is debatable), there will still be a net shortfall of 500,000 to 800,000 tonnes, he added.
A total of 1.3 million tonnes of feed wheat came in the first half of 2010, but none is expected to come in until the first half of 2011. This is as Russia and other countries in the Baltic region have held off export of feed wheat for their own food security.
