RP to export corn to Korea soon

The Korean government has approved the corn samples sent by the Philippines, paving the way for the export of Philippine corn to Korea.

Agriculture Assistant Secretary Dennis Araullo said the samples were sent by the Philippine Maize Federation (Philmaize).

A separate sample, Araullo said, had been sent to Taiwan. Approval by the Taiwanese government is still being awaited.

Philmaize president Roger Navarro said the agreed export price is about P16 per kilo. The initial volume is still being worked out due to the high cost of shipping.

Initial inquiries on the shipping cost showed that a 40-footer van which could carry up to 25 metric tons would cost $1,650, resulting in a shipping cost of around P5 per kilo, which is considered as quite high by corn farmers.

Navarro said a 20-footer van may be more economical at a shipping cost of $800 to $1,000 and which would allow Philmaize more leeway in supplying the required tonnage.

He said Philmaize is hoping that this opportunity to start exporting to Korea and Taiwan would encourage more Filipino farmers to plant corn and would finally put the Philippines on the world map as a viable source of corn.

According to Navarro, Korea has been forced to look for an alternative source of corn, following the flooding of the US corn belt and the drought that has affected China, forcing the two traditional global corn suppliers to tap into their own corn reserves and temporarily halting corn sales to the global market.

Local hog and poultry growers have expressed fears that the export of corn may lead to a shortage or lack of supply in the domestic market.

The local corn industry, Navarro said, has been fortunate this year that in spite of continued production shortage, the depopulation of the hog industry has now resulted in an “artificial sufficiency.”