Philippines to Export Yellow Corn

[MikeLigalig.com]

by PNA

The government is now studying the possibility of commercially exporting yellow corn within this year amid high grain prices as a result of the worst drought that hit the United States, the Department of Agriculture (DA) said on Wednesday.

Edilberto de Luna, DA assistant secretary and National Corn Program director, told reporters that the inter-agency committee is now reviewing the appeal of the Philippine Maize Federation, Inc. (PhilMaize) for the commercial export of corn.

“Within the next two weeks, the committee expects to complete the final recommendation to the National Food Authority (NFA) Council,” de Luna said.

The IAC –composed of the NFA Council, hog growers, poultry raisers and other industry stakeholders– is tasked to come out with the final volume for the corn exports.

Meanwhile, the DA official said that farmers and traders may start exporting corn and corn grits as they wait for the approval from the NFA Council of the total volume to be ship to the world market.

Under an existing resolution, the NFA administrator is authorized to issue transport permits for locally produced corn for the purpose of research, market testing and experimentation.

“Based on the resolution, individual farmers, traders, and cooperatives are allowed to export as much as 100 MT of corn at any given time,” de Luna said.

“This will be a good way to test our exports capability as we inch closer to self-sufficiency by next year,” he added.

The Philippines expects to corn production to reach a record-high of 7.819 million MT in 2012, and about 8.450 million MT by 2013.

“By next year, we are projecting a surplus of 149,000 MT of corn,” de Luna said.

“We’re advised by Secretary [Proceso] Alcala not to wait for the surplus. He said that we need to start exporting corn, even in small amount, for us to test the international market,” he added.

In a text message, Roger Navarro, Philmaize president, said that they are now negotiating with Taiwan and Korea for the corn export, saying that they have already sent a group to the Southeast Asian countries to discuss the shipment.

Navarro said they expect no shortage of supply as a result of the corn exportation, noting that 1.4 million MT of feedwheat, which was imported earlier by feed millers, will cover the requirement for this year.

“International corn price will increase due to drought experience by US, should this scenario prevail then we can have export opportunities,” he said.

Not allowing the export of corn products, Navarro said, runs contrary to open market as agreed under the World Trade Organization.

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