September 13, 2004

 

 

Philippines Forecasts Slight Shortfall In Corn Production

 

The Philippines government placed corn shortfall at a minimal 165,000 metric tons (MT) for the next semester of 2004.

 

Agriculture Secretary Arthur C. Yap said the expected deficit from July 2004 to January 2005 may be filled up by feed wheat importation. But the government hopes it may be supplied by "intensive corn planting this September and October".

 

"By addressing the present post-harvest and marketing concerns of the farmers, the Department of Agriculture (DA) hopes to sustain the interest of the corn farmers for planting and therefore do away with the need to import corn or substitute," he said.

 

Corn and corn import substitute will just be at 365,000 MT for 2004, with a 200,000 MT importation in the first half as well as the predicted 165,000 MT in the second half.

 

The figure is far lower than the 1 million MT yearly shortfall recorded in the previous years.  This is because corn output is seen at between 5.2 to 5.5 million MT this year, up by 12.55 to 19 percent from 4.62 million in 2003.

 

Artemio M. Salazar, DA corn consultant, foresees a more certain corn sufficiency output level by 2005 at 5.5 million MT to 6 million MT, and has initiated standardization of corn quality based on a maximum moisture content of 14 per cent. This controls cancer-causing aflatoxin on the corn and makes it acceptable for export.

 

With a predicted corn sufficiency in 2005, Yap said DA is planning a R3 billion post harvest modernization program for the National Food Authority, including post harvest facilities for corn-producing provinces.

 

Salazar said that because of the lack of dryers and storage facilities in Cagayan de Oro, the price of corn transported to Bulacan dropped to P9.80 per kilo from R10.50 per kilo, even if volume shipped involved just 3,000 MT.

 

"Price dropped not because of the supply, but due to the poor corn quality for lack of post harvest facilities. Feed millers will not buy rotten corn," he said.

 

But Yap said the post harvest acquisition plan is now on-going.

 

"Dialogues between producers, traders, and users regarding marketing and measures to assure good quality corn are now also being undertaken in cooperation with LGUs (local government units)," he said.