Despite decline in farm-gate price, retail, wholesale quotations of yellow corn rises

In File Photo: A corn trader solar dries corn kernels on an idle road in Santiago City.

The average farm-gate price of yellow corn declined for two straight weeks in August, but the commodity’s wholesale and retail quotations continue to increase, the Philippine Statistics Authority (PSA) report showed.

In its recent price monitoring report, the PSA said the average farm-gate quotation of yellow corn in the second week of August fell slightly to P14.19 per kilogram (kg) from the previous week’s P14.21 per kg.

This is the second consecutive week that yellow corn farm-gate price declined since the fourth week of July, when the commodity was pegged at P14.44 per kg.

However, despite the slight decrements since end-July, the farm-gate price of yellow corn was still 26.47 percent higher than the P11.22 per kg recorded price level in August 2017.

Furthermore, both the average wholesale and retail price levels of yellow corn in mid-August sustained increments.

Wholesale prices of yellow corn grew 1.22 percent to P20.73 per kg from the P20.48-per-kg price level recorded in the first week of August. The latest farm-gate quotation is 18.01 percent higher than its year- ago average of P18.01 per kg.

During the second week of August, the average retail price of yellow corn breached the P25-per kg price level as it grew 2 percent from its previous week’s level.

Yellow corn was sold at the retail level at an average of P25.49 per kg, P0.50 centavo lower than the P24.99-per-kg recorded quotation at the start of August. The figure was also 14.66 percent higher than the P22.23-per-kg price level recorded in August 2017.

Industry stakeholders told the BusinessMirror that the farm-gate price of yellow corn, which is a vital component of animal feeds, increased this year due to erratic production in some parts of the country.

In fact, feed millers have requested the government to allow them to import yellow corn at zero tariff to augment local supply and ease the price of animal feed.

However, the request received criticisms from local corn growers and was eventually thumbed down by the Department of Agriculture.

Philippine Maize Federation Inc. (PhilMaize) President Roger V. Navarro told the BusinessMirror there is a “disconnect” between the farm-gate price of corn and its retail price.

Furthermore, Navarro said the production costs of corn farmers have gone up, as well, particularly their expenses on labor, fuel and other inputs.

 

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Jasper Emmanuel Y. Arcalas is a graduate of the UST Journalism School (Batch 2016). He currently covers agribusiness for the BusinessMirror. He joined the news outfit in August 2016.