News last update:6 Aug 2012

Philippines clear corn supply gap

The Philippine National Food Authority will bid out a contract to import 80,000 metric tonnes of corn, completing the total shipments of 200,000 mt required to fill in a supply shortage for the year.

The government would push through with the last batch of corn imports before June to meet a critical supply gap, NFA Deputy Administrator Ludivico Jarina said in the Manila Standard. The main corn harvest is expected starting on July yet.

Only about 120,000 mt of corn imports of the total 200,000 mt were subscribed during a bidding April 11 at the NFA office in Quezon City.

Toepfer bagged the contract to import 60,000 mt while Cargill won the other half. Other qualified bidders were Bunge, Romar Commodities, Louis Dreyfuss and Paritas. Toepfer and Cargill plan to obtain the corn supply from an Argentine source.

Double volume allowed

The Department of Agriculture has allowed up to 400,000 mt of corn imports this year in two separate tranches of 200,000 mt each based on reports of a production of shortfall of 1.8 million mt this year.

The government has committed to shoulder the import duties to make domestic corn prices competitive. The feed milling sector has estimated that yellow corn production this year will reach 3.88 million tonnes, or around 60% of total corn output, against the feeds requirement of about 5.11 mt.

With post-harvest losses of around 15%, the available yellow corn for feeds will reach around 3.3 million mt, or a shortfall of 1.8 million mt, said Ric Pinca, vice president of Philippine Association of Feed Millers.

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