Philippines Seeks to Double Corn Imports Amid El Niño and Rising Costs
The Department of Agriculture (DA) in the Philippines is seeking to double corn imports under the Minimum Access Volume (MAV) quota scheme to ensure sufficient feed supplies for hog and poultry farms. The move comes as an impending El Niño threatens to reduce local corn production, potentially driving up prices and squeezing farmers already facing rising production costs.
DA policy division assistant chief Kristine Mares highlighted that the price of corn has surged to P20 to P23 per kilo, up from P19 in June. This increase directly impacts feed costs, which account for 50 to 60 percent of total expenses for raising pigs and poultry. Since corn makes up 50 to 65 percent of those feeds, any price fluctuations significantly affect overall production costs.
Mares noted that domestic corn production costs have risen since the Middle East conflict in February, due to surging fertilizer prices and higher logistics expenses tied to rising diesel costs. The expected record El Niño, which could last until the first half of 2027, poses a significant risk to production and yields, potentially discouraging farmers from planting corn.
Rory Jay Dacumos, a director at the Department of Economy, Planning and Development, supported the proposal to hike the MAV, stating it would enhance the flexibility of corn importation for feed production and help moderate feed input costs should supply conditions tighten.