MANILA, Philippines — Local corn farmers will have to deal with depressed prices in the next few weeks as the importation of feed wheat coincides with the main harvest season.
According to the Philippine Maize Federation Inc. (PhilMaize), domestic corn prices may further spiral below P12 per kilogram.
This after feed millers purchased 81,200 metric tons of feed wheat, a cheaper substitute for corn, from the Black Sea and Australia. More than 30,000 MT will be arriving next month.
“Imports of feed wheat accounts for only one to two percent of corn production. But still, their effect on pushing down local corn prices is significant. It becomes worse as the NFA (National Food Authority) no longer supports corn price as it now has a different mandate,” PhilMaize president Roger Navarro said.
NFA is no longer buying corn from farmers as its function has been limited to procuring local palay (unhusked rice) due to the Rice Tariffication Law.
“Feed wheat imports can arrive year round because they have storage facilities from their origin. But they are timing arrivals even during the corn harvest just to take advantage of lower prices,” Navarro said.
The country’s feed wheat imports usually come from Australia, Bulgaria, US, Canada, India, Russia, Brazil, European Union, and Black Sea.
The Philippine Chamber of Agriculture and Food Inc. (PCAFI) emphasized that the government must continue its price support function for corn amid the pandemic.
“Government should immediately initiate a program to buy the corn being harvested at a viable price from the farmers for storage as buffer stock to support future demand during the non-harvest season,” PCAFI president Danilo Fausto said.
A study recently released by the Philippine Competition Commission showed that local corn price had been 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,” PCC 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 lack of mechanical dryers,” it pointed out.
Fausto said the government should immediately intervene in supporting corn price, putting up storage facilities, and providing technology.
“Corn is one of our major crops where millions of our farmers depend for their livelihood. It represents around 10 percent of total crop production. Government should protect our corn farmers especially during this time of crisis to allow them to survive,” he said.