Corn shortfall to reach 1.8 million tons

Local feedmillers said yesterday that the recently approved importation of 400,000 metric tons of corn is not enough to meet domestic demand.

The shortfall is projected to reach 1.8 million metric tons, according to estimates by the Philippine Association of Feed Millers Inc. (PAFMI).

"The projected shortfall is based on an assumption that livestock and poultry requirements for corn will grow this year by 3.2 percent," said PAFMI executive vice president Ric Pinca. This, he added, is actually a very conservative forecast."

Yellow corn production this year is projected to reach 3.88 million tons while total requirement for livestock feed production is projected at around 5.11 million tons.

Assuming post-harvest losses of around 15 percent, the available yellow corn for feed production would only reach around 3.3 million tons, leaving a shortfall of 1.8 million tons, Pinca said.

Unfortunately, local end users are prohibited from importing corn without government intervention, Pinca said, adding that increases in the price of grain in the international market have prevented local end users from buying the grain and paying due taxes.

"There is no other option. We can’t be competitive unless we bring in the corn at zero tariff," he said.

The Philippines imposes a 35-percent tariff on importations covered by the minimum access volume (MAV). The tariff is even higher at 50 percent — for importations made outside of the MAV.