Corn - Understanding the Philippine "political crop"

 

 

 

 

In the Philippines, corn ranks the second most important grain crop after rice. As a staple food of about 20% of the Filipinos, it is planted anytime of the year. Corn is the main ingredient for animal feed as it is an excellent source of energy and crude protein content.

 

Due to its critical role to the development of poultry and livestock industries, corn along with rice, are considered "political crops". According to a study by the Philippine Institute for Development Studies corn is largely important on decisions of those running the national affairs in agriculture. It is believed that success in achieving self-sufficiency in these staples is a barometer of the performance in agricultural development of the present political leadership. For this reason, a large portion of the government programmes have been largely anchored on these staples.

 

Hence, corn is often at the centre of controversies especially at a time where a myriad of issues such as climate change and trade liberalisation are changing the global perspective. As the lifeblood of more than five million Filipinos and the third biggest contributor in terms of gross added value in agriculture next to rice and coconut, much is at stake for corn's every grain.

 

 

 

Figures from the Bureau of Agricultural Statistics show that corn production in the first semester of 2010 brought about a 25% reduction to 2.42 million tonnes from last year's level of 3.22 million tonnes. Harvest area also decreased by 14.5% from last year's million hectares. Similarly, yield declined by 12.3%.

 

Major producing areas of Cagayan Valley and SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City) were severely affected by the El Niño. According to BAS, corn production in these regions decreased by 409.87 thousand tonnes and 137.65 thousand tonnes respectively. Harvest areas were reduced by 60.9 thousand hectares in Cagayan Valley and by 37.56 thousand hectares in SOCCSKSARGEN.

 

BAS predicts that July-December 2010 may surpass last year's output by 3.2% from 3.82 million tonnes to 3.94 million tonnes. This could be attributed to the improvement of yield by 4.3% from 2.46 tonnes per hectare to 2.56 tonnes per hectare.

 

Based on farmers' planting intentions, BAS projects a Q1 2011 increase for production, area and yield by 24%, 8.4% and 14.4% respectively.

 

Planting intentions in Cagayan Valley, Western Visayas and SOCCSKSARGEN increased in anticipation of more favourable weather conditions due to the onset of rainfall. BAS estimates that corn output in these regions would grow by 54.9%, 53.7% and 22.4% respectively. The probable harvest areas would expand by 6% to 26%. On the other hand, harvest area in ARMM (Autonomous Region in Muslim Mindanao) will expand by 2.11% or 16.86 thousand hectares due to cropping movement in Maguindanao and utilisation of some areas that are left in Lanao del Sur.

 

 

 

The advent of free trade agreements such as that of Asean and China has provoked the government to build numerous corn facilities to enhance the country's competitiveness, most notable of which is the newly-inaugurated Reina Mercedes Corn Processing Centre (RMCPC) in Isabela province which is touted to be the biggest in Southeast Asia. The US$11.5-million facility boasts of 200,000-tonne processing capacity as well as state-of-the-art bulk silos that can at least carry 60,000 tonnes. Another project in the pipeline is the US$790,000 corn processing facility which will be built in Isabela and funded by the Korea Rural Economic Institute. The centre includes state-of-the-art technologies such as corn sheller, corn dryer, storage and bulk handling system. It will also have two multi-purpose warehouses that will function as machinery shed and grain storage while the community centre will be used for trainings and other related activities. These centres aim to improve agricultural efficiency, increase farming income, develop food security and social justice among the marginalised farming sector.

 

However, Roger Navarro, chairman of the PhilMaize Federation, an agricultural non-government organisation, believes that the present facilities are not enough to accommodate the country's total harvest. For instance, RMCPC, with all the hype, cannot even contain 10% of Region 2's total corn harvest. "Region 2 has the production of 200,000 hectares while the plant's capacity is only 30,000 hectares," he said.

 

The urgency for post production facilities is evident as the country's yearly postharvest losses are estimated at 50%. Hence, in a seven-million tonne production a year, the wastage is too much. "We believe that post production is the second most important factor next to production. We can't afford huge losses yearly."

 

Although the government has established the Bureau of Postharvest Research and Extension to oversee the country's postharvest activities, Navarro reveals that most of the plants built are too small, an indication that it is not among the priorities of the national government. "These facilities can only accommodate village-type volume, from 100 to 500 hectares to as big as 1,000 to 2,000 hectares whereas we have millions of hectares devoted to corn. That's why most of our farmers are still sun-drying their corn and these are prone to aflatoxin. These aflatoxins are carcinogenic and we all know that it is dangerous," he laments.

 

Navarro cannot help but compare other governments' treatment to postharvest infrastructure. "Postharvest for them is like putting up a bridge or just putting up a school or a hospital. These structures are well-financed by their government and sadly our government doesn't treat it that way. That's why if there are climactic conditions, our corn is easily prone to problems."

 

Thus he encourages more investors for postharvest facilities for farmers to have an equal level playing field, particularly in prices. "Traders only have freeloaders and warehouses but they don't have postharvest facilities. Now, corn prices are still the same, whether the grains underwent postharvest treatment or it had only been sundried. But if I am a feedmiller, I would go to a trader that has a facility because feedmillers now realise that putting up a facility will guarantee them storage and quality. If you don't have a facility, I will need extra treatment including toxin binders and this will involve additional formulation and additional expenses. Feedmillers now give you premiums if you have a facility or if your corn has undergone postharvest treatment."

 

 

 

Amid protests and doubts, trade players have already accepted the use of genetically-modified corn to enhance productivity and achieve self-sufficiency. Navarro said biotech corn helps against problems of pests and weeds as well as easing postharvest losses.

 

These GM corn are also tolerant to weather aberrations which makes it more ideal than the traditional ones. "There are seeds now that are drought-tolerant and these can more or less help farmers to plant during the dry season. You cannot do anything about climate change, everybody is feeling it. There will be a shift in crop production and there will also be a strategy that we will adopt in irrigated areas. Farmers will be able to plant corn after rice so they will still have production," he said.

 

The commercialisation of Bacillus thuringiensis (Bt) corn in 2003 has raised farmers' yields and incomes as well reducing soil erosion. In fact, the International Service for the Acquisition of Agri-biotech Applications reported that as of 2008, the net national impact of biotech corn on farm income was estimated at US$49 million.

 

According to Dr. Benigno Peczon from the Department of Science and Technology, Bt corn is genetically modified to control insect larvae called corn borers, which had been a bane to farmers. Prior to Bt corn, Peczon said infestation by corn borers were controlled through insecticides which are only effective before the corn borers enter the plants. Once these pests enter the plants, no further spraying can effectively eliminate the larvae which are already embedded deep within the tissues. "If the borers get into corn kernels, the protective covering of the kernels are destroyed, rendering them susceptible to growth of moulds, thus, making them prone to aflatoxins which are health hazards that can even cause cancer," he said.

 

Aside from Bt corn that battles corn borers, another gene was introduced into corn seeds to protect corn from herbicides. Peczon noted that by definition, a herbicide is intended to destroy herbs, including young corn plants. Introduction of herbicide tolerant corn seeds changed some traditional farming rules such as ploughing which also helps reduce soil erosion. In this way, soil retains its natural moisture that would have been washed off by rainwater due to constant ploughing.

 

Navarro just shrugs off strong opposition against GM corn. "You know in other countries, you can never assure self-sufficiency if you do not adopt GM crops, particularly corn. These protesters also have their own agenda. If you're fighting for something, you should be able to provide an alternative but unfortunately they don't have it. Our country needs food security and in this case, they can't give any solutions to our food security concerns."

 

 

 

Early this year, corn farmers were alarmed by the influx of feed wheat imports due to the grain's low prices in the world market as well as an alleged scarcity in local corn supply. The government even waived the 7% tariff of feed wheat to zero duty which irked industry players. "We cannot do anything about it but the government should put in necessary protection. If there's a tax, don't deprive the government of this revenue. You have already exempted an already cheap imported commodity so what would be left to the government. It's a double whammy, you hit the farmer, you hit the government," laments Navarro.

 

Fortunately, wheat imports from the Baltic regions were temporarily suspended due to an ongoing drought in these countries. Their governments already advised not to export to which Navarro is grateful, saying it is good for the country.

 

Of the country's annual seven million-tonne harvest, yellow corn - which is used for animal feed - accounts for the five million of the output and the rest of the yield is white corn.  Traditionally, Navarro says the country imports 300,000 to 500,000 tonnes of yellow corn to meet demand, but exceeding that volume is already questionable. "If you analyse it, our yellow corn production is still not enough to meet the requirements but we should also enforce safety nets in our imports to protect our farmers."

 

Navarro sees AFTA and CAFTA it both a threat and an opportunity. "If we're not transcending towards development, it will be disadvantageous to you but if you equip yourself, then you will become on par in the playing field. It's already there and we don't have any other choice except to make ourselves efficient. Our neighbours are also threatened and we can seize some opportunities there. In Thailand or Taiwan, their requirement is five million tonnes a year, so there's a big chance for us to export if international prices are good."

 

Since the era of free trade is here to stay, Navarro says that there is no room for complaints but instead the Philippines should be an active player in a global market.