Inefficiencies in supply and market chains as well as inadequacies in policies and governance continue to limit corn productivity, according to Senator Cynthia A. Villar.
Saying the government can “no longer turn a blind eye to the struggles of the yellow corn industry and the people who depend on it,” the chair of the Senate’s agriculture committee endorsed to plenary a measure for a comprehensive framework for its promotion and development.
Just before the Senate went on Holy Week break, Villar delivered her sponsorship speech for Senate Bill (SB) 2625, under Committee Report No. 246 entitled “An Act to develop the Philippine Corn Industry, enhance the availability and affordable of quality feeds and staple food, and provide for a corn competitiveness enhancement fund.”
“The measure acknowledges the organizational and institutional constraints and ensures that corn farmers are provided with adequate resources and support mechanisms that they need to thrive and compete in the market.”
Villar’s Committee on Agriculture, Food and Agrarian Reform together with the Committees on Finance, and Ways and Means conducted one public hearing, two technical working group meetings, and several consultative meetings before crafting the panel report.
In seeking to propel the competitiveness and expansion of the yellow corn industry, the bill is deemed a “crucial supplementary measure aligned with the objectives of the Livestock, Poultry and Dairy Industry Development Act” which Villar earlier sponsored. “It is imperative that we also bolster the corn industry.”
The yellow corn industry, Villar said, “plays a pivotal role in sustaining our livestock and poultry industry and feeding the nation.” She cited data showing that in 2023, the combined corn-livestock-poultry sector contributed 27.17 percent of gross value added in agriculture. It provided livelihood opportunities to more than 1.28 million corn farmers, 2.8 million livestock and poultry farmers and thousands of other industry players throughout the value chain.
“This underscores the impact of the industry on our economy, particularly on job creation, food security, and potentially on poverty alleviation.”
Despite its significance, the yellow corn industry “faces its share of challenges that require greater government attention,” according to Villar.
For instance, amid increasing demand in the feeds, foods and other industrial markets, the Philippines remains a net importer of yellow corn. Approximately 84 percent of the yellow corn produced locally is being used by the animal industries as feeds, but in 2020, the country achieved only 57 percent self-sufficiency in yellow corn for feed use.
Villar noted that in broiler and swine production, feeds make up about 50 percent and 60 percent of the overall production costs, respectively. The Philippines has the highest cost of production for livestock and poultry among Asean countries primarily due to feed costs.
‘Laggard’
“Even while our yellow corn productivity has increased at an average of 4.2 metric tons per hectare from 2018 to 2022, the Philippines is still lagging behind, ranking 8th among its neighboring countries in Asia.”
She attributed this to several factors including the existing legal restriction (Presidential Decree No. 4) which prevents corn farmers from exporting corn unless there is excess production or supply. As a result, they cannot fully take advantage of the opportunities presented by the export market.
Another pressing challenge that corn farmers must grapple with is the high cost of inputs such as seeds and fertilizers.
Also, Villar noted that almost all yellow corn hybrids sold are genetically engineered, which are about five times more expensive than the conventional seeds.
She said the stringent standards for developing high-yielding varieties have hampered the participation of local Filipino companies in the seed industry.
This, she said, underscores the need for more investments in research and development especially on seeds and biotechnology. Furthermore, she said most of the corn budget goes to the white corn program, with little attention paid to the growth of the yellow corn industry.
Villar is proposing the crafting of an updated Corn Industry Development Roadmap, to address the current and emerging needs of the industry and set the strategic initiatives and direction to enhance its competitiveness.
“The creation of an updated roadmap shall be spearheaded by the Bureau of Plant Industry [BPI] together with relevant stakeholders, particularly small hold farmers, feed processors, livestock farmers, regulatory offices, and academe.”
The lawmaker is pushing for the designation of priority corn production provinces which will lead to the modernization and better performance of the yellow corn sector.
These provinces will distribute the high-quality seeds and feeds they produce to other provinces through BPI field offices. According to PSA data for 2023, the top producing provinces which account for 61 percent of the total yellow corn production, includes Isabela (17.04 percent), Cagayan (9.75 percent), Bukidnon (14.83 percent), Maguindanao (8.06 percent), Pangasinan (5.74 percent), and South Cotabato (5.71 percent).
SB 2625 also provides for the creation of the Corn Competitiveness Enhancement Fund. This is in addition to the annual General Appropriations Act regular budget. For 10 years, the Corn Fund will consist of an annual appropriation of P3 billion, to come from tariff collection on imported corn, feed wheat, feeds and other products and ingredients for feeds.
Meanwhile, the white corn will not be left behind, “since the same is being used for human consumption,” said Villar. “We are proposing the allocation of 20 percent of the fund to white corn development and other indigenous corn varieties, and 80 percent of the Corn Fund shall be utilized for yellow corn.”