Favorable weather conditions could drive the country’s corn production in the first quarter of the year to a growth of as much as 20 percent, according to the Department of Agriculture (DA).
Assistant Secretary for Operations Federico E. Laciste Jr. noted that the Philippine Statistics Authority’s (PSA) projected corn production during the January-to-March period of 2.4 million metric tons (MMT) is achievable with the anticipated better weather conditions. The PSA’s 2017 first-quarter projection is 24.98 percent higher than the recorded 1.92-MMT harvest during the same period last year.
“It’s possible to play at that level [20 percent], a little bit lower than their projection [25 percent]. Because, for sure, yield and harvest will greatly increase [due to favorable weather],” Laciste, who is also the National Deputy Director of the DA’s Rice and Corn Program, told the BusinessMirror.
“Production in the past first quarters—in 2015 and 2016—was really down due to El Niño. But now it will really increase,” he added.
Total corn production in 2016 declined to 7.2 MMT compared to the 7.52-MMT output in 2015, according to the PSA.
El Niño factor
“Harvest during the first quarter last year was bad due to El Niño. Their projection of more than 20-percent increase in first-quarter production is really possible as the weather has been favorable for farmers,” Philipine Maize Federation Inc. (PhilMaize) President Roger V. Navarro told the BusinessMirror in a separate interview.
However, despite the favorable weather for planting, farm-gate price of corn has remained low for some time now due to the unregulated importation of feed wheat and corn, Navarro said.
“We call on the feed millers and livestock sector to calibrate their importation. To make a balance [on the] volume of importation of feed wheat and corn in order not to hurt the local farmers,” Navarro said.
Citing corn farmers from Koronadal and Palawan, Navarro said farm-gate price of corn has been in the P8-per-kilogram mark for quite some time.
Latest PSA data showed farm-gate prices of both yellow- and white-corn grains in the second week of February were lower than those recorded a year ago.
Farm-gate prices of yellow-corn grain and white-corn grain were pegged at P11.40 per kg and P12.18 per kg, 5.08 percent and 9.81 percent lower than prices recorded in 2016, respectively.
“The P11-per-kg level should already trigger the price support of the National Food Authority [NFA]. So that means that the current farm-gate price is neither high nor favorable to farmers,” Navarro said.
The NFA buys corn from farmers at a support price of P13 per kg. Data from the PSA, however, showed that the NFA’s corn purchases have been minimal.
The food agency attached to the Office of the President is mandated to regulate and monitor the stability of corn supply and prices.
Corn export
Earlier, the DA has pronounced it is keen on exporting yellow corn this year as a measure to stabilize the local market price of corn.
Based on reports, the DA said there would be a production surplus this year.
The DA estimates total corn production this year would reach 8.1 MMT, 12.5 percent higher than the 7.2 MMT produced last year.
“Our corn farmers’ interest in boosting corn production is actually dampened by the very low prices manipulated by the corn traders arising from oversupply. Exporting is one doable solution that will benefit all industry stakeholders, as well as expedite the growth of the corn-farming sector,” Agriculture Secretary Emmanuel F. Piñol said.
The DA is eyeing to export yellow corn to Malaysia, Indonesia, Taiwan, South Korea and even in Europe, Laciste said.
“If the buyers will be from Malaysia and Indonesia, then we will get our exports from Mindanao, from the South. And if the importers would be from the northern side of the map, we would be exporting corn from Isabela,” Laciste said.
Laciste said since the pronouncement of the DA to export corn this year, local buyers have been making moves to secure their share of the production.
“Local yellow-corn buyers now are telling our farmers: ‘Don’t export your corn anymore, I will buy them at favorable prices,’” he said.
“Now they are talking with our RFOs [regional field offices] to secure their corn production. In order not to export the crop, they are offering good prices to our farmers,” he added.
The DA has formally asked President Duterte to amend the guidelines of the NFA to allow farmers to export yellow corn this year.
Export
In a letter addressed to the President, Piñol said shipping corn to other countries would stabilize domestic prices and boost farmers’ income.
“The existing policy of the NFA before we could export corn is the 200-percent sufficiency benchmark; if only we could amend the policy and guideline reducing it to 100-percent sufficiency benchmark, then we could immediately export corn,” Piñol said in his letter dated February 2, a copy of which was obtained by the BusinessMirror.
“In view of the urgency of the situation, I am respectfully and humbly recommending the immediate amendment of the policy guideline issued by the NFA, which is currently under the Office of the President,” he added.
Piñol said the DA is implementing two interventions to hike the country’s corn production this year—the adoption of drip-irrigation with solar-powered irrigation systems deployed in strategic areas, the use of hybrid-corn seeds and distribution of fertilizer to farmers.
“Our country’s corn production during the next five years of your presidency shall double and allow us to finally export to our neighboring countries,” Piñol said, adding the DA would soon launch a program, dubbed as Programang MA MAIS: Mas Marami, Mas Masagana!, to hike corn output.
The NFA oversees the regulation and stabilization of grains prices and supply in the country. Before farmers could export grains, such as corn, the interagency NFA Council must first declare there’s a surplus per Presidential Decree (PD) 4.
“In the exercise of this power, the authority shall directly undertake the exportation of rice, corn and other grains and/or their substitutes and/or by-products/end-products whenever there is an excess in production and/or supply, or it may allocate export quotas among certified and licensed exporters,” PD 4 read.
“Provided, however, that the council shall first certify after to such excess production and/or supply after proper consultation with the Office of the President,” it added.
Sufficiency
Based on the report of the PSA on the country’s food sufficiency, corn self-sufficiency ratio (SSR) was pegged at only 91.35 percent in 2015, the lowest since 2011. The SSR shows the extent to which a country’s supply of commodities is derived from its domestic production, according to the PSA.
Laciste said the DA is also eyeing to strengthen the research and development arm of the corn industry.
“We have a research and development facility for rice—PhilRice [Philippine Rice Institute]—but we don’t have [a similar institute] for corn,” Laciste said.
Laciste said they are looking at the possibility of teaming up with experts from Mexico-based crop-research institute CIMMYT for the development of the country’s corn research and development program.
“I want to send some of our agriculturists to CIMMYT to learn the latest technologies and studies in corn planting,” he said.
Earlier, the PhilMaize said there is a need to increase the country’s corn yield per hectare and to cut production cost to boost the competitiveness of local corn farmers.
Navarro added the corn sector needs better market linkages and postharvest technology.
“Our farmers need precise farming through technology provided by the Department of Agriculture and trainings provided by extension workers,” Navarro said.
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