DA Proposes Higher Corn Import Limit to Counter El Niño Impact

The Department of Agriculture (DA) is seeking to increase the country’s minimum access volume (MAV) for corn to 500,000 metric tons (MT) to mitigate potential price hikes in animal feed due to El Niño. Agriculture Undersecretary Asis Perez emphasized that the move would benefit consumers by ensuring a stable supply of protein and lowering production costs for hog and poultry producers.

Under the proposal, the additional 280,000 MT would allow more corn imports at reduced tariff rates, helping to ease feed costs. The DA noted that corn comprises 50% to 65% of feed expenses, which make up 50% to 60% of total production costs for hogs and poultry. The threat of El Niño poses risks to corn yields due to drier conditions, potentially reducing planting intentions among farmers.

Katrin Mares, chief of the DA's Macro-economic Policy Division, highlighted that farmgate pork prices remain low despite rising input costs, squeezing profit margins for hog producers. The DA proposed expanding the MAV to give the government greater control over import volumes, timing, and beneficiaries. However, the Samahang Industriya ng Agrikultura (SINAG) expressed skepticism, arguing that tariff reductions do not necessarily benefit producers or consumers.

The Philippine Statistics Authority projected a 14.4% drop in corn production by the third quarter of 2026, from 2.43 million MT to 2.08 million MT. The DA is also exploring millet as a substitute for corn in animal feed due to its ability to thrive in dry conditions with less water.