Philippine corn sector to receive PHP 1 billion of South Korean grant

The grant will help to set up post-harvest facilities, including two bulk grain terminals with a 100,000-tonne capacity, the Philippine Maize Federation (PhilMaize) said on Tuesday (September 30, 2008).

The South Korean government had identified two sites for the bulk grains terminals, one in Mindanao and the other in Luzon's Region 2.

The project, if successful, would be able to reduce post-harvest losses by 15-30 percent, said PhilMaize president Roger Navarro. 

The Philippines is expected to produce 7 million tonnes of corn this year, up 4 percent on-year. However, about 1.75 million tonnes of the expected harvest may go to waste as the industry's recovery rate is only 60-65 percent, and the lack of good post-harvest facilities remain a big problem.

In the first half of 2008, the Philippines produced 3.29 million tonnes of corn, up 19.6 percent on-year. The second half is forecast to harvest 3.72 million tonnes of corn, down 6.78 percent on-year due to heavy rains and typhoons, which reduced planting areas.

The PHP 1 billion grant may not be sufficient, however, as Navarro said the two terminals could cost up to PHP 3 billion. Navarro said they are working on how much money South Korea is willing to provide, and they may just undertake one project at a time.

US$1 = PHP 46.9488 (October 2, 2008)