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Yellow corn

The document discusses corn production in the Philippines. It notes that corn yields are low on average compared to other major corn producing countries. While yellow corn areas have seen higher yields due to new varieties, white corn yields have grown slowly. Low adoption of technologies, high losses, and transportation and marketing costs have kept domestic corn production costs above import prices. As a result, corn areas and production have declined in recent decades. The corn sector now faces further challenges from trade liberalization commitments. The goal of the Ginintuang Masaganang Ani for Corn program is to increase productivity and incomes through improved technologies, marketing, and partnerships between government and the private sector.

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Overview     Corn is the second most important crop in the Philippines. About 12 million Filipinos prefer white corn as their main staple. Yellow corn accounts for about 70% of livestock mixed feeds. Corn is also processed into high value products, such as corn starch, corn oil, gluten ad snack foods. Fifty four percent (54%) of total corn production comes from yellow corn, which comprises one third of the total corn area.
The corn-livestock sector accounts for 16% of the GVA in agriculture. Some 600,000 farm households depend on corn as a major source of livelihood, in addition to transport services, traders, processors and agricultural input suppliers who directly benefit from corn production, processing, marketing and distribution.
The Domestic Corn Sector On a national average, corn production in the Philippines is inefficient. Mean yield has been extremely low at 1.52 MT/ha. in 1996 as compared to major corn producing countries, i.e. 3.15 MT/ha in Thailand , 4.04 MT/ha in Argentina , and 7.97 MT/ha in the United States . Despite the low yields attributable to marginal white corn areas planted to traditional varieties, prime yellow corn areas have demonstrated high yield growth rates due to the adoption of high yielding open-pollinated and hybrid varieties. The yellow corn technology demonstrated an annual yield growth rate of 15% over the past 25 years, in contrast to the white corn technology which exhibited only 1.48% annual growth rate during the same period.
The protection of the corn industry through quantitative restrictions has discouraged the transformation of the corn sector into a more efficient industry. Overall, average production costs at the farmgate level stood at about 10% higher than CIF prices of imported corn. This non-competitiveness of domestic corn can be attributed by a confluence of constraining factors, such as: 1) low adoption of modern corn production technologies ; 2) high post harvest losses ; and 3) high transport and marketing costs due to inadequate infrastructure . However, there are regions which exhibit relatively advanced production technologies, high yields and low average production costs.
The production and marketing inefficiencies plaguing the corn sector have adversely affected farm profitability over the years. The absence of clear and consistent corn import policies continues to depress farmgate prices to levels that do not afford corn farmers reasonable returns.
As a result of poor farm profitability, corn area harvested declined drastically from 1990 to 1997, at a rate of 4.0% annually. This decline can be traced mainly to the shift of white corn areas to yellow corn and to the production of high value crops. IN major corn producing provinces, farmers have exited from about 670,000 hectares of white corn lands, while shifting to only about 150,000 hectares for yellow corn production. To a greater extent, traditional and marginal white corn areas may have likewise been left idle as farmers seek employment in urban areas.
Domestic corn production decreased by 10% from its peak of 4.85 MMT in 1990 to 4.33 MMT by 1997. On the other hand, the composite demand for corn for food, feed and other industrial uses is projected to grow annually by 3.94% for the period 1995-2004. If current productivity and profitability levels do not improve substantially, the production-consumption gap is expected to worsen by the year 2000. On the average, some 400,000 MT of corn have been imported annual since the 1990, mainly to meet the requirements of the livestock and poultry sector.
 
Globalization A Challenge to the Corn Sector The corn sector has been catapulted into a new era with the Philippines binding itself with its commitments to regional and international trade agreements. Under the General Agreement on Tariffs and Trade - World Trade Organization (GATT-WTO), the country is required to provide a minimum access quota or volume for imported corn of 130,000 MT starting 1995 and increasing to 217,000 MT in 2004 at 35% tariff. Quantities imported over these levels carry higher tariffs of 100% in 1995 and declining to 50% in 2004.
Private sector importation of corn substitutes in mixed feeds, i.e., feed wheat and barley, are allowed and carry lower tariff rates. Likewise, in-quota imports of swine and poultry under GATT-WTO enter the country at 30% and 40% tariff, respectively. Out-quota tariff rates for the two commodities are slightly higher at 40% and 65% for 1998, declining to 35% and 50% by 2000.
Phil. Corn industry GOALS AND OBJECTIVES The overall goal of  Ginintuang Masaganang Ani for   Corn  is to increase productivity and production of quality corn for human consumption, feeds and industrial uses, as well as improve farmers' incomes and quality of life.
Specifically, the Program aims to achieve the following immediate objectives in the program farm clusters: To increase average corn productivity from 3.21 MT/ha to 5.0 MT/ha; corollary, to decrease current average production costs by at least 20%; To increase farmers' adoption of the yellow corn hybrid technology; To produce quality corn and decrease post harvest losses by 5% through timely and proper harvesting, shelling, drying and storage techniques; To increase the incomes of corn farmers by insuring at least 50% return on the investments, and by improving productivity of labor; To stabilize prices at levels equitable to farmers, consumers and end users; To ensure corn-based farming systems technology development and transfer system; and To improve and institutionalize linkages between and among the Department of Agriculture (DA), Local Government Units (LGUs), Non-government Organizations (NGOs), Peoples Organizations (POs), State Colleges and Universities (SCUs), and the private sectors.
PROGRAMS STRATEGIES The major strategies which the  Ginintuang Masaganang Ani for Corn program will utilize are: Area-Based Approach Productivity Improvement Focused Targeting LGU-led Program Implementation Participatory Approach Counterpart Schemes Capacity-Building Private Sector Partnership
Major Corn Trading Centers Isabela Cebu City Cagayan de Oro General Santos Davao Bulacan