RP faces corn shortage
Conrad M. Cariño
Manila Times
Official blames high prices of fertilizers for crisis
Barely recovering from a rice crisis, the country faces a major corn shortage that could cause a domestic shortfall in meat products and force the closure of firms involved in the livestock and poultry industry.
In a consultative meeting Thursday on the commercialization of organic and microbial fertilizers, Dennis Araullo, the head of GMA (Ginintuang Masaganang Ani) Corn Program, said the high prices of inorganic fertilizers are forcing many farmers not to plant corn, or cut their planting of the crop by half. Corn in the Philippines is largely grown for animal feeds.
If the national production of corn does not meet the 7.9-million metric ton target for this year, the country may have to import the grain. This option poses problems, since corn is in short supply worldwide because it is a major biofuel crop.
“The [corn production] gains in the first quarter is significant, but worldwide, we could not find corn supplies. Corn is very expensive, and it is also used as biofuel [feedstock],” Araullo explained to journalists during a meeting in Quezon City.
The Department of Agriculture has declared a no-corn importation policy for this year, even if about 120,000 metric tons of corn were imported in 2008.
Araullo said a corn shortage will badly hit the domestic livestock and poultry industry, possibly forcing the closure of many firms in that industry.
If that is not enough, people who eat white corn in place of rice will also be affected, and might switch back to eating rice. Based on estimates of local food experts, up to 15 million Filipinos are eating white corn instead of white rice.
Problem with fertilizers
Araullo blamed the high prices of inorganic or chemical fertilizers for farmers wanting to give up or to cut back on corn production.
During the consultative meeting, Dr. Norlito Gicana, the executive director of the Fertilizers and Pesticides Authority, disclosed that a bag of urea now costs between P1,800 to P1,900 per bag, and that the increasing prices of crude oil in the world market are to blame. As of April, one bag of urea costs about P1,200. Most inorganic fertilizers are made from crude oil.
Because of the high prices of inorganic fertilizers, the Department of Agriculture through its various agencies, such as the Bureau of Soils and Water Management, wants more farmers to start using organic and microbial fertilizers, while cutting down on the quantity of chemical inputs.
“Organic fertilizers cannot totally replace inorganic fertilizers, but the good quality of organic fertilizers should be in order,” Gicana said.
Self-sufficiency target
This year, the corn production target is 7.37 million metric tons, which is about 9 percent higher compared to the 6.74-million metric tons production in 2007.
Araullo said the 7.37-million metric ton target translates to a corn self-sufficiency level of 94 percent. The Agriculture department is aiming for 100-percent corn sufficiency in 2009 or 2010. About 2.7 million hectares of lands are planted to corn.
The first-quarter production of corn hit 1.99 million metric tons. The figures for the second quarter are not yet available.
Importing more corn would be very expensive for the Philippines, since its price is P13 to P14 per kilo.
In the US, the price is about P15 and in Argentina, P15.60, excluding freight cost, which is about $125 per metric ton.
Because of the possible major corn shortage, Gicana said the Agriculture department will set talks with the Land Bank of the Philippines to provide financing for corn farming and the production of organic fertilizers.
“We’ll try to talk with LandBank on how they can help in corn and organic fertilizers,” he added.
Another option is to provide subsidy coupons for fertilizers to corn farmers. Rice growers have been availing of subsidy coupons for rice.
No Comments, Comment or Ping
Reply to “RP faces corn shortage”