September 30, 2008

 

The corn industry association in the Philippines is in talks with South Koreans for the export of yellow corn due to the low support price set by the government.

 

Philippine Maize Federation Inc, (Philmaize) President Roger V. Navarro said with reference to the Korean Overseas Grains Investment and Development Co that an agreement with the Koreans to make trial shipment has been made.

 

Mr Navarro said Philmaize hopes to export 40 container vans containing 30-35 tons of yellow corn to South Korea before the end of the year.

 

Last Friday, 26 September 2008, the interagency government body on rice and corn hiked the buying price of yellow corn, used for animal feed, to PHP 11.50 per kilogramme from PHP 10 per kilogramme, but this is PHP1.10 lower than Philmaize's proposal of PHP 13.

 

Early last month, the same body approved the increase in the government's buying price for white corn to PHP 13 per kilogramme and yellow corn to PHP 10 per kilogramme, both up from PHP 7 per kilogramme. Yellow corn makes up nearly two- thirds of the Philippines' total corn production, while the rest is white corn, for food.

 

Mr Navarro also said the increase in support price is already late, therefore only the traders will benefit because farmers have already turned over their produces to traders.

 

The Federation is looking at the price of corn in the international market, which is PHP 16 per kilogramme, a figure advantageous to corn farmers. The Koreans promised to build post harvest facilities and grains terminal in ports.

 

Agriculture Assistant Secretary Dennis B. Araullo said only surplus output would be exported. Taiwan has also sent a letter of intent to import corn from the Philippines as well.

 

The Philippines, which accounts for just 1 percent of world corn output, produced 3.29 million tonnes of corn in the first half, slightly higher than its goal of 3.22 million tonnes. The government has set a corn production target of about 7.4 million tonnes this year, up by 9.5percent from 2007.

 

Ricardo M. Pinca, vice-president of the Philippine Association of Feed Millers, Inc., said his group would not be affected as there is low demand.

 

Meanwhile, Renato R. Eleria, vice-chairman of the National Federation of Hog Farmers Inc said while they are willing to purchase corn from the farmers, the price offered was not appealing.