Local corn, pork output projected to decline further in 2021
The deadly African swine fever (ASF) is projected to trim the country’s production of corn and pork and reduce the importation of corn and feed wheat after more than a third of the country’s pig stocks were lost to the virus.
The United States Department of Agriculture (USDA), in its latest Philippines report, said the country’s pork production this year could further decline by 10 percent after a 6-percent dip in 2020.
The Department of Agriculture (DA) earlier this month reported a declining number of ASF cases in the country, but local producers said this was because there were fewer hogs left.
Chester Warren Tan, president of National Federation of Hog Farmers Inc., said only 30 to 35 percent of hog producers in Luzon decided to continue with their operations since ASF crept into the region.
In Visayas and Mindanao where swine fever cases have been more sparse, about 90 percent of hog raisers remain active.
Affordable alternative
In turn, the demand for corn and feed wheat–both raw materials in making animal feed–would likewise decline and affect local corn production. The country imports wheat as it is an affordable alternative when corn prices are high.
“The domestic hog and chicken industries for years have been the bright spots of Philippine agriculture and the largest sources of agriculture output after rice,” USDA said. “Both sectors, however, face major challenges [going into 2021 and 2022] that will dampen feed demand.”
The demand for yellow corn, used for feed production, may decline by 250,000 metric tons (MT) to 6.5 million MT, according to the USDA, while consumption of white corn—mainly used for food—may stay flat at 2.1 million MT.
The corn industry provides a steady livelihood for more than 500,000 farmers. Roger Navarro, president of Philippine Maize Federation Inc., said the ill effects of ASF on the back of the government’s proposal to ease importation imports might translate to losses of P16 billion to the industry.
Renewed lockdown
Even feed wheat consumption is expected to dip by 200,000 MT.
The renewed lockdown in Metro Manila may particularly depress demand for both chicken and pork again. Industry insiders said farmers from all sub-sectors were carefully calibrating their production to minimize losses.
Corn accounts for 60 percent of the ingredients in making animal feeds. The cost of feeds also accounts for 80 percent of meat production cost. INQ
