The Department of Agriculture (DA) is proposing to more than double corn imports under the Minimum Access Volume (MAV) quota scheme to ensure adequate feed supplies for the country’s hog and poultry farms.
An impending El Niño threatens to reduce local corn production, potentially driving up prices of the staple grain and squeezing swine and chicken farmers already grappling with rising production costs, DA policy division assistant chief Kristine Mares said at a congressional briefing on Tuesday.
Raising the MAV to 500,000 metric tons from the current 220,000 metric tons would allow more foreign corn into the country and help sustain production in the pork and poultry industries, she explained.
‘The price of corn is really increasing. This is the farm-gate price, and… in June it reached P19. But based on our consultations with stakeholders, it is currently around P20 to P23 per kilo,’ Mares told lawmakers in Filipino.
‘What does that mean when the price of corn increases? Basically our feed costs will rise… and then hog and poultry product costs will go up too,’ she added.
Feeds account for 50 to 60 percent of the total cost to raise pigs and poultry, more than half of farmers’ total production expenses, according to Mares. With corn making up 50 to 65 percent of those feeds, any fluctuations in corn prices impact overall prices.
‘That is the importance of corn when it comes to the hog and poultry sector,’ she said.
Domestic corn production costs have escalated since the Middle East conflict broke out in February, driven by surging fertilizer prices and higher logistics expenses tied to rising diesel costs, Mares said.
She also said there are concerns that a record El Niño expected to sweep across the country until the first half of 2027 could discourage farmers from planting corn.
‘With the El Niño, we’d have drier conditions. So that is a significant risk when it comes to production and yields. It’s possible that corn production might go down,’ Mares explained. ‘And given the two major concerns right now, it’s possible that farmers might lower their planting intention.’
The proposal to hike the MAV, a scheme that provides lower tariff rates for products entering the country under a set limit, would ‘support the competitiveness of the livestock and poultry industry,’ according to Rory Jay Dacumos, a director at the Department of Economy, Planning and Development.