September 29, 2021


Philippine feed millers body points out inadequate corn production 


The Philippine Association of Feed Millers Inc. (PAFMI) has raised concern over insufficient local corn production and is urging the government and local producers to address the urgent need to ensure reliability and consistency of supply in the country.


Corn is a key input in various industries, including feed manufacturing, food processing and biofuel production.


Animal feed producers are the biggest users of corn, particularly of yellow corn. However, the local supply of yellow corn in the past several years had been falling 48% short of feed producers' requirements.


PAFMI believes that a reliable and consistent corn supply will be crucial in boosting local production, not only for animal feeds, but also for food, food processing and biofuel production.


"This can be achieved by coming up and immediately implementing an inclusive, comprehensive and sustainable corn industry development programme," PAFMI said.


Already, the group is pushing for the adoption of a value chain approach in the preparation of such policy and programme. This means the programme should not be limited to corn production concerns, but should also cover other aspects affecting the entire industry, such as post harvest facilities, credit, warehousing, marketing, transport and other logistics concerns, among others.


"PAFMI vows to support all measures needed to improve the country's corn supply sufficiency, reliability and consistency given the strategic role corn plays in ensuring the country's food security and in keeping vibrant economic activity," PAFMI said.


Yellow corn, a source of energy for animals, makes up 40-60% of animal feeds. These, in turn, account for 60-70% of the cost of producing meat and poultry products. Thus, supply and prices of yellow corn significantly affect end-consumers of meat, poultry products and fish.


For instance, PAFMI said, a ₱1 (US$0.02) increase in the price of feed corn per kilo translates to a 3% rise in the cost of producing a kilo of broiler feeds which, in turn, could result in a 1% rise in the cost of growing a broiler chicken.


This, while a 3% increase in the cost to produce a kilo of layer feeds will jack up by 2% the cost of producing an egg. A 2% increase in the cost of producing a kilo of hog feeds will increase by 2% the cost of growing a hog. All these consequently result in higher prices of pork, chicken and eggs.


- Manila Bulletin