Local corn farmers seek gov’t price support
Local corn farmers are calling on the government for price support as the farm gate price of corn is expected to dip following the arrival of imported feed wheat—considered an alternative to corn in making animal feeds.
The Philippine Maize Federation Inc. (PhilMaize) and Philippine Chamber of Agriculture and Food Inc. (PCAFI) have criticized the Department of Agriculture for allowing imported feed wheat to arrive during the local corn harvest, warning that prices could plummet to P12 a kilo against the expected farm gate price of P15 a kilo.
“Imports of feed wheat accounts for only 1 to 2 percent of corn production. But still, their effect in pushing down local corn prices is significant. It becomes worse as the [National Food Authority] no longer supports corn price as it now has a different mandate due to the [rice tariffication law],” PhilMaize president Roger Navarro said.
Last week, Philippine Association of Feed Millers Inc.—the oldest and biggest association of feed producers in the country—bought 81,400 metric tons of feed wheat from Australia, citing the high prices of local corn as well as the shortfall in the local supply.
Corn accounts for 60 percent of the ingredients in the manufacture of animal feeds. Moreover, the cost of feeds accounts for 80 percent of meat and chicken production costs.
PCAFI president Danilo Fausto said the government must continue its price support function for corn farmers to weather the effects of the pandemic, which slowed down the demand for the crop and made the movement of commodities harder.
“Government should immediately initiate a program to buy the corn being harvested at a viable price from the farmers for storage as a buffer stock to support future demand during the nonharvest season,” he said.
The groups also cited a study conducted by the Philippine Competition Commission (PCC), which showed that local prices of corn were adversely affected by feed wheat imports.
“The Philippines imports feed wheat every month and therefore when local corn harvest coincides with the arrival of feed wheat, the price of local corn is usually depressed,” the PCC study said. “This is more pronounced during the third quarter when the Philippines has the big bulk of local harvest and the quality of which is affected by the lack of mechanical dryers.”
According to Navarro, “feed wheat imports can arrive year-round because they have storage facilities for their origin.” He noted, however, that millers “are timing arrivals even during the corn harvest just to take advantage of lower prices.”
Fausto added that the government should regulate the arrival of imported corn substitutes if it sincerely wanted to protect domestic corn producers.
Corn is considered one of the country’s major crops and represents around 10 percent of total crop production. INQ
