The Philippines may export corn for the first time after local farmers entered into a supply agreement for 300,000 tonnes of corn with a South Korean trading firm.

The Philippine Maize Federation Inc. were negotiating with Korea Overseas Grains Investment Co. of the shipment prices, which is tentatively set at PHP 16 per kg, according to president Roger Navarro.

Navarro said the South Koreans may or may not pay for the shipping cost but the floor price would be set at no les than PHP 13 per kg.

The South Korean group visited Mindanao to assess the Philippine corn sector's capacity to supply corn before opening negotiations for a supply agreement.

Navarro said the federation is still considering how to ship the corn - by bulk handling or using 40-foot container vans.

"We have 20,000 tonnes of corn which we plan to use for a trial shipment next month. We might start with at least 10,000 tonnes via container shipment," Navarro said.

According to Navarro, the federation is exploring export markets because the government's support price set for the corn section was insufficient.

The group had requested corn support price to be set at PHP 13 per kg, but the government only increased it to PHP 10 per kg. On Friday (September 26, 2008), National Food Authority Administrator Jessup Navarro said his agency was studying if it could increase corn support price to PHP 11.5.

Corn output for the second half of 2008 is forecast to reach 3.71 million tonnes, 9.7-percent short of the government's target of 4.11 million tonnes, according to estimates by the Bureau of Agricultural Statistics.