Farmhands arrive to tend to the maize farms in Barraca town in Ilocos Norte on February 16, 2022. Jonathan Cellona, ABS-CBN News/File
MANILA — The Department of Agriculture sees a possible 20% decline in the country's production of corn amid the threat of El Niño and the effects of the conflict in the Middle East.
In a briefing before the House Committee on Agriculture and Food, the DA pushed for increasing the Minimum Access Volume (MAV) for imported corn to 500,000 MT from the current 220,000 MT to help stabilize feed costs and the price of pork and chicken.
The DA noted that the 50 to 60 percent of poultry and hog production cost is attributed to animal feed, and of that amount, 50 to 65 percent is corn.
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"Hindi lingid sa ating kaalaman na sa mga araw na ito, lubhang apektado ang presyo ng baboy at manok sa buong bansa. Kailangan nila na kung mataas o mababa ang kanilang benta, kailangan 'yung cost of production somehow will also be lowered," Agriculture Undersecretary Asis Perez said on Tuesday.
"Unfortunately, this situation coincided with two major phenomena that are beyond the control of our farmers. Ang una po ay ang gyera sa Hormuz, nagpataas ng cost of production ng corn. Pangalawa, ang inaasahan nating matinding tama ng El Nino. Ang dalawang bagay na ito ay tiyak na magpapaba ng ating lokal na produksiyon ng mais," he added.
"Hindi bababa sa 20% ang aming tinataya na kakulangan na maaaring idulot ng dalawang major na phenomena na ito."
The DA is proposing the so-called MAV Plus instead of a broad reduction in corn tariff, as the volume and implementation period are limited and will prioritize actual feed users.
"Based on our consultation with the stakeholders, nasa P20 to P23 na per kilo ang corn ngayon. Ano ba ang ibig sabihin nito 'pag tumataas ang presyo ng ating corn? So basically, tataas ang feed cost natin which is nangyayari na po ngayon, and then tataas ang ating hog and poultry production," said the DA's Katrina Mares.
"Nakikita rin po namin 'yung corn MAV Plus as a way to provide support din sa ating hog producers without jeopardizing ang ating corn producers," she added.
Of the 220,000MT MAV for regular corn, 75.93% have been utilized as of October 5, according to the DA.
The Department of Economy, Planning, and Development and at least two groups of corn farmers expressed support for the DA's proposed expanded MAV for corn.
But farmers' groups stressed that the arrival in the country of imported corn should not coincide with the local corn harvest season.
"Ang peak po ng harvest is March, April, and August, September. Kailangan ang arrival ng mais will not go into those peak months," said PHILMAIZE's Romualde Elvira Jr., suggesting that imported corn should arrive from October to January.
"Ang pakiusap po namin, sana matupad ang guidelines na during lean season lang dumating 'yung mga imported na mais, kasi sa taas ng cost of production ngayon," Quezon Provincial Corn Producers Federation's Emerson Agno added.
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Undersecretary Perez assured that should their proposal be approved, the imported corn will arrive in December and January.
"Amin pong sinisigurado na ang dating ng mga papayagan natin makasali sa MAV plus na ito ay bago magkarooon ng anihan. Kaya timing ito, kasi ngayon ay Oktubre, kung sakaling maapprove ito, we have December and January for possible na dating ng MAV plus na papayagan," Perez said.
The Minimum Access Volume allows specific volumes of an agricultural commodity to be imported with a lower tariff.
HIGHER PRODUCTION COST
Corn producers, meanwhile, noted that the cost of local production has increased recently amid fuel price hikes.
"Sa ngayon, maganda ang farmgate price. Pero ang problema namin is mataas ang cost ng fertilizer ngayon. Mataas din ang fuel at nakadagdag din siyempre ang labor cost. Ang dating P800 to P1,000 per hour na tractor service, umaabot na po ng P3,000, P2,500, P2,000… sa ibang regions... Wala pa po doon 'yung drying, 'yung harvesting," Elvira said.
They appealed for more government support through fertilizers and additional post harvest facilities.
"Napakababa ng subsidy galing sa DA. Sa mga corn farmer ay limited na one hectare per farmer ang ibinibigay nilang inputs. Kung 'yun ay tataas ang suporta ng DA, mas maeengganyo kami magtanim at tumaas ang production ng Pilipinas," Agno explained.
"Recommendation po namin, kung pwede NFA magbigay ng price support or magprocure ulit ng mais sa ngayon…. Sa ngayon walang procurement ng mais ang NFA," Elvira added.
"Pagdating naman doon sa suporta, mapapansin natin over the years, tumataas ang request ng DA for support sa corn sector. Tatlong taon na po yan, dahan dahan nating itinataas… Isa sa pinakavalid concern ng ating stakeholder 'yung post harvest facility. The absence or presence of post harvest facilities can differentiate the price between P3 to P5. Kaya doon talaga dapat ang tutok," Perez replied.