Agriculture Secretary Arthur Yap said the long dry spell brought about by the El Niño phenomenon along with the rising cost of production inputs is forcing farmers to scale down corn production.
Despite the expected production shortfall, Yap said the DA will not allow additional importation of tariff-free corn.
The DA’s decision to reduce its production target is consistent with the corn industry’s previous forecast.
Roderico Bioco, president of the Philippine Maize Federation earlier said the DA’s targeted corn production of 5.7 million MT to 5.8 million MT is unrealistic considering prevailing conditions.
The DA wants to plant hybrid seeds to bolster output by 50 percent in planted areas. Corn, a major staple like rice, is used mostly for livestock and poultry feeds.
"The projections should be brought down to more realistic figures," said Bioco, adding that the first semester output alone is already seen to go down by 300,000 MT to 2.2 million MT from the original target of 2.5 million MT.
The strong typhoons hit the country late last year, cut first quarter output by 300,000 MT. This is aggravated by rising fertilizer prices that forced farmers to cut back on production. Petroleum-based fertilizers now average about P900 for every 20-kilogram bag compared with only P450 per bag two years ago.
As a result, corn prices breached the P10 per kilo level and almost neared P11 per kilo, prompting the Philippine Association of Feedmillers Inc. to seek the duty-free importation of at least 100,000 MT last month.
To keep supply and prices stable, the DA wants to plant an additional 40,000 hectares of farmland planted to hybrid corn seed to boost corn output. Existing hybrid corn areas stand around 300,000 hectares.
The average yield from hybrid corn seeds is about 4.5 tons per hectare, with the potential yield as high as eight MT per hectare. The average yield from regular seeds is only about three MT per hectare.
The DA will provide farmers a subsidy of P1,200 per 20-kilogram bag of hybrid seeds. Hybrid seeds are priced at P1,500-P3,500 per bag.
Bioco however, said an expansion of corn hectarage is not sustainable if government does not attend to the more acute problem of inadequate postharvest facilities.
"The overemphasis on production is futile at this stage because we’re lagging on our post-harvest capability. If you plant more, you’re going to lose more, so why do you have to plant more when you don’t have a solid program for post harvest?"
He added that at current production rate, the country is self-sufficient in corn. He warned that surplus production will backfire on farmers as the quality of corn would suffer without providing enough storage and drying facilities.