Corn exports seen by yearend

THE PHILIPPINES is looking to export at least 200,000 metric tons of corn next year to take advantage of high world prices amid a projected surplus, an Agriculture official said during the weekend.

Edilberto M. De Luna, Agriculture assistant secretary and National Corn Program coordinator, said in a phone interview that exports could actually start before the yearend given a pending Philippine Maize Federation, Inc. (PhilMaize) request.

“PhilMaize is targeting to start exports to Korea, Taiwan and Malaysia before the year ends,” said Mr. De Luna, declining to provide details on planned volumes.

Next year, meanwhile, “We are looking to export about 200,000-400,000 metric tons (MT) … as we are already projecting to have a surplus…,” he said.

An interagency committee, comprised of National Corn Program representatives, the Bureau of Animal Industry and stakeholders including livestock farmers, has been tasked by the National Food Authority (NFA) Council to work on PhilMaize’s proposal.

The NFA, under its mandate, must first certify that there is a surplus of corn before producers can be allowed to export as the crop is a major staple. Currently, the Philippines still has a deficit of 179,000 MT.

“Production has been strong so far. The Philippine Coconut Authority has also allowed the intercropping of corn in some 150,000 hectares of coconut plantations, which would boost this year’s production further, which means we could possibly allow exports earlier,” Mr. De Luna explained.

The department is targeting to produce a record 7.819 million MT this year. In 2011, output was 6.971 million MT, 9.31% higher than 2010’s 6.377 million MT.

The Agriculture department expects to achieve self-sufficiency in corn by end-2013 with output of 8.45 million MT.

“The target next year is to lower postharvest losses in the crop to 10% from the current 12-15%, which would translate to an additional yield of 300,000-400,000 MT, wiping out our deficit,” Mr. De Luna said.

***

Source: Bettina Faye V. Roc, BusinessWorld. (23 September 2012)