DA lowers corn production target

The Department of Agriculture (DA) is paring down this year’s corn production target due to the combined carryover effects of the El Niño phenomenon and prolonged rains in major corn-producing areas in Mindanao.

"It’s a double whammy for the corn sector. We were hit by flooding in late December which delayed planting in the Cagayan Valley and later these same areas were hit by the dry spell in the first semester. On the other hand, there was a lot of rains in Mindanao," said Agriculture Secretary Domingo F. Panganiban.

The DA had forecast a full-year corn production of 5.487 million metric tons (MT) which was scaled down target from the ambitious target of 5.7 million to 5.8 million MT.

In the first semester, corn production already dropped 15 to 18 percent or a loss of 300,000 MT because of the drought, along with the rising cost of production inputs that forced farmers to reduce corn output.

Panganiban however, remains confident that a turnaround can be achieved in the second semester, but admitted this will be difficult. Jesus Binamira, corn production program coordinator of the DA, said there is no cause for immediate concern even with the lower production forecast.

"We are not worried because demand for corn during the year contracted because hog and chicken producers depopulated because of rising production inputs," said Binamira.

As a result, corn prices are lower by 10 percent compared to last year at the prevailing farmgate level of P7 per kilo in Mindanao. In Luzon, corn prices now range from P9.20 to P9.50 per kilo in Bulacan and Batangas.

Panganiban said the Bureau of Agricultural Statistics will come out with a new corn production forecast in the coming weeks and will be able to determine if there is a need to bring in corn imports. Previously, 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.