DEPARTMENT OF AGRICULTURE

Corn Program

CORN INDUSTRY
DEVELOPMENT ROADMAP
2011-2017

ASEC. EDILBERTO M. DE LUNA

National Corn Program Coordinator
LOCAL SCENARIO
 IMPORTANCE OF CORN
 Yellow corn is mainly used
and traded as raw material for
animal feeds (almost 70% of
national corn annual produce)
 White corn serves as main
food staple for about 15% of
the total population (mostly
in major islands of Visayas
and Mindanao)
 Around 1.5 million farmers
depend on corn production
 ECONOMIC VALUE OF CORN, 2012
CURRENT PRICES CONSTANT PRICES
INDUSTRY GROUP % SHARE % SHARE
2012 2012
TO GVA TO GVA
GVA in AGRICULTURE
1,253.39 100 694.77 100
& FISHERY
A. AGRICULTURE 1,060 84.59 565 81.31
Palay 279.53 26.37 140.74 24.91
Corn 82.07 7.74 40.25 7.13
Coconut 86.89 8.20 30.52 5.40
Sugarcane 28.96 2.73 16.63 2.94
Cassava 16.31 1.54 8.32 1.47
Other Crops 217.79 20.54 110.79 19.61
Livestock 152.98 14.43 93.26 16.51
Poultry 112.61 10.62 74.54 13.19
Activities & Services 83.09 7.84 49.84 8.82
B. FISHERY 193.16 15.41 129.89 18.69
Units in Billion Pesos except for percentages; Constant Prices based on 2000 Prices Source: NSCB
Corn-livestock-poultry integrated industries contribute 32.79% of GVA to AF in 2012, at current prices. These
sub-industries has a combined 2012 economic value of PhP347.66 Billion, at current prices.
 CORN PRODUCTION PERFORMANCE, 2001-2012

8.00
7.41
7.00

6.00
5.24
5.00 4.53
Million MT

4.00

3.00 2.61

2.00
1.92 2.17
1.00

0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

AAGR Combined 4.89% White 1.35% Yellow 7.13%

Source: BAS
 CORN PRODUCTION BY REGION, 2012
1,809
1,800

1,600

1,400
VOLUME ('000 MT)

1,200
960
1,000 865
800
623
600
383 364
400 256
205 241
171 168 151
200

-
 TOP 10 CORN PRODUCING RPOVINCES, 2012

YELLOW CORN WHITE CORN

PROVINCE VOLUME (MT) % SHARE PROVINCE VOLUME (MT) % SHARE
Isabela 1,183,123 23 Maguindanao 396,468 18
Bukidnon 780,267 15 Lanao del Sur 223,782 10
Cagayan 396,658 8 Lanao del Norte 205,799 10
South Cotabato 382,249 7 Zamboanga del Sur 120,078 6
North Cotabato 316,920 6 Cebu 90,122 4
Pangasinan 264,335 5 Sarangani 73,487 3
Sultan Kudarat 189,111 4 North Cotabato 68,558 3
Quirino 166,280 3 Bukidnon 65,247 3
Iloilo 145,273 3 Negros Oriental 64,323 3
Camarines Sur 126,638 2 South Cotabato 53,732 2
 CORN AREA HARVESTED, 2001-2012

3.00
2.59
2.49
2.50

2.00
1.57
1.50 1.31
Million HA

1.00 1.28
0.92
0.50

0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

AAGR Combined 0.45% White (1.54%) Yellow 3.35%

Source: BAS
 CORN AVERAGE YIELD, 2001-2012
4.50
4.09
4.00

3.50
2.83 2.86
3.00

2.50

2.00 1.82
MT/HA

1.50
1.65
1.00 1.23

0.50

0.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

AAGR Combined 4.28% White 2.86% Yellow 3.48%

Source: BAS
 CORN FARMGATE PRICES, 2001-2012
15.00 14.34
14.00
13.00
12.62
12.00
11.00
P/kg

10.00
9.00
8.00
6.84
7.00
6.50
6.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Yellow White
Source: BAS
 YELLOW CORN SUPPLY & DEMAND, 2001-2012
6,000
5,198

5,000
5,241
VOLUME ('000 MT)

4,000 3,725

3,000

2,000 2,607
1,645

913
1,000
172 86
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

YC Import FW Import Local Demand Local Production

Source: BAS, LDC, PAFMI

 CORN-FEED SUPPLY & DEMAND, 2013
VOLUME ('000 MT)
ITEM
CORN CORN + CASSAVA
SUPPLY of Yellow Corn & Corn Substitutes 7,167 7,767
Beginning Stock (includes cassava and feedwheat) 2,386 2,386
Net Local Yellow Corn Available 4,781 4,781
Local Yellow Corn Production 5,254 5,254
Less: 9% Postharvest Losses 473 473
Cassava Substitute (corn equivalent) 600
DEMAND of Yellow Corn for Feeds 5,265 5,265
ENDING STOCK of Yellow Corn & Corn Substitutes 1,902 2,502
No. of months to last 4.33 5.70
Source: BAS, LDC
 CONSTRAINTS AND OPPORTUNITIES
for YELLOW CORN
CONSTRAINTS
• RISING COST OF INPUTS
 Total production cost of
PhP35,182/Ha in 2012 as
compared to PhP28,664/Ha in
2011
• LIMITED POSTHARVEST
FACILITIES
 161 DA village-type dryers, 12
NABCOR CPHPTC, 3 NFA corn
centers and 50 units from
private sector as of 2012 with
total annual rated capacity of
556,870 MT (10% of the total
YC production)
OPPORTUNITIES
• TIGHT WORLD SUPPLY
 Corn for bio-fuel production
and adverse weather condition
resulting in high world market
prices (USD315/MT FOB or
PhP12.92/kg in 2012 as
compared to USD292/MT FOB
or PhP12.56/kg in 2011)
 At least 4 million MT yellow
corn is imported annually by
ASEAN from US and the
Americas
 CONSTRAINTS
• NEGATIVE EFFECTS OF CLIMATE
CHANGE
 Average of 18 typhoons every
year from 2006 to 2011 and
frequency of El Nino
occurrence is during the first
semester from 2002 to 2010
• LOW QUALITY OF GRAIN DUE
TO HIGH AFLATOXIN LEVEL
 Aflatoxin level of greater than
20ppb for food and 50ppb for
feeds
OPPORTUNITIES
• INCREASING DOMESTIC
DEMAND FOR CORN
 High growth rates of hog and
poultry sectors will require
greater corn supplies (average
annual growth rates of 1% and
5%, respectively based on
target demand 2012-2017)
 Emerging needs for food and
industrial uses (e.g. starch
production)
• AVAILABILITY OF HIGH-
YIELDING VARIETIES AND
OPEN-POLLINATED VARIETIES
 Hybrid seed potential of 7-10
mt/ha; OPV seed potential of 4-
5 mt/ha
CONSTRAINTS AND OPPORTUNITIES
for WHITE CORN
CONSTRAINTS
• Negative perception that corn
grits are only for the poor
• Low productivity
• Requires special packaging of
white corn grains and grits
• High cost of processing due to
lack of post harvest facilities
• Inaccessibility of white corn
grits in urban areas
• Climate change – many areas in
the Philippines are vulnerable
to drought and flooding
• Increasing prices of inputs (e.g.
fertilizer, seeds)
OPPORTUNITIES
• Increasing corn consumption
will definitely contribute to the
Food Staples Sufficiency
Program
• Health food – low glycemic
index prevents diabetes and
helps build stamina
• Availability of high-yielding
open pollinated varieties
• Tight world supply and
increasing price of rice
YELLOW CORN: COST & RETURN ANALYSIS, 2012
NATIONAL REGION 2
ITEM COST COST COST COST
(P/HA) (P/KG) (P/HA) (P/KG)
PRODUCTION 25,215 5.04 29,580 3.70
Seeds 4,500 0.90 7,980 1.00
Fertilizer 7,470 1.49 9,960 1.25
Pesticide 1,645 0.33
Labor 9,100 1.82 9,120 1.14
Land Rental 2,500 0.50 2,520 0.32
POST PRODUCTION 9,967 1.99 11,460 1.43
Harvesting & Hauling 2,750 0.55 2,880 0.36
Shelling 2,500 0.50 3,000 0.38
Drying 1,500 0.30 1,800 0.23
Sacks 1,200 0.24 1,440 0.18
Interest 2,017 0.40 2,340 0.29
TOTAL COST 35,182 7.03 41,040 5.13
AVERAGE YIELD (KG/HA) 5,000 7,000
FARMGATE PRICE 12.50 12.50
GROSS INCOME 62,500 87,500
NET INCOME 27,318 5.47 46,460 7.37
WHITE CORN: COST & RETURN ANALYSIS, 2012
NATIONAL ARMM
ITEM COST COST COST COST
(P/HA) (P/KG) (P/HA) (P/KG)
CASH COSTS 6,302 3.89 7,124 2.85

Farm Inputs (Seeds, Fertilizer,

Pesticide) Paid in Cash 2,561 1.58 2,746 1.10
Hired Labor 1,836 1.13 705 0.28
Others Paid in Cash 1,905 1.18 3,673 1.47
NON-CASH COSTS 2,097 1.29 4,136 1.65

Farm Inputs (Seeds, Fertilizer,

Pesticide) Paid in Kind 235 0.15 514 0.21
Hired Labor Paid in Kind 297 0.18 1,265 0.51
Others Paid in Kind 1,565 0.97 2,357 0.94
IMPUTED COSTS 8,873 5.48 11,266 4.50
Farm Inputs (Seeds, Fertilizer,
Pesticide) 62 0.04 2 0.00
Labor 6,701 4.14 9,717 3.88
Others 2,110 1.30 1,547 0.62
TOTAL COSTS 17,272 10.66 22,526 9.00
AVERAGE YIELD (KG/HA) 1,620 2,503
FARMGATE PRICE 13.73 14.08
GROSS RETURNS 22,243 35,242
NET RETURNS 4,971 3.07 12,716 5.08
PROGRAM DIRECTIONS
PROGRAM GOAL:
Increase production of quality corn for human
consumption, feeds and industrial uses, as well as
empower the farmers to increase their income,
thereby improving their quality of life.

OBJECTIVES:
• Attain self-sufficiency and/or surplus in corn by
2013
• Increase corn production from 6.97 MMT in
2011 to 8.73 MMT in 2014
• Increase yearly income per hectare of farmers
 MAJOR STRATEGIES
A. ENHANCING PRODUCTION
• Increase area thru development of
idle and new lands suitable for
corn production and promote
intercropping of corn to coconut
and/or cassava
• Increase yield thru the use of
quality planting materials and cost-
reducing technologies or varietal
shift from traditional and OPV to
high yielding varieties
 PRODUCTION TARGET

PRODUCTION ('000 MT) AREA ('000 HA) YIELD (MT/HA)

YEAR
Combined White Yellow Combined White Yellow Combined White Yellow
2011 6,971 2,150 4,821 2,545 1,284 1,261 2.74 1.67 3.82
2012 7,407 2,166 5,241 2,594 1,312 1,282 2.86 1.65 4.09
2013 8,213 2,487 5,726 2,696 1,406 1,290 3.05 1.77 4.44
2014 8,730 2,518 6,212 2,717 1,415 1,302 3.21 1.78 4.77
2015 9,277 2,860 6,417 2,756 1,447 1,309 3.37 1.98 4.90
2016 9,863 3,079 6,784 2,792 1,478 1,314 3.53 2.08 5.16
2017 10,532 3,373 7,160 2,852 1,514 1,338 3.69 2.23 5.35
*2011-2012 Actual Data; 2013-2017 Target
B. REDUCING POSTHARVEST LOSSES
• Establish more PHFs and equipment in major
corn producing areas to reduce losses
• Maintain premium quality corn grains and grits
in accordance with the approved standards
thru trainings and positioning of appropriate
technologies
 POSTHARVEST LOSS REDUCTION TARGET
PH LOSS SAVINGS
PRODUCTION NET AVAILABLE
YEAR VOLUME % VOLUME VALUE ('000
('000 MT) % CORN ('000 MT)
('000 MT) DIFF ('000 MT) PHP)
2011 6,971 15 1,046 5,925
2012 7,407 12.7 941 6,466 2.3 170 2,129,513
2013 8,213 9 739 7,474 3.7 304 3,798,513
2014 8,729 7 611 8,118 2 175 2,182,250
2015 9,277 6 557 8,720 1 93 1,159,625
2016 9,863 5 493 9,370 1 99 1,232,875
2017 10,533 4 421 10,112 1 105 1,316,625
Notes:
1. Value savings is based on constant price of Php12.5 per kilogram.
2. Net Available Corn is based on Annual Production less PH Loss Volume.
C. IMPROVING MARKET LINKAGES
• Facilitates marketing tie-ups and contract
growing arrangements
• Provides timely price and market information
• Promote corn exportation
D. HUMAN RESOURCE
DEVELOPMENT
• Empower the present and future
farmers by developing their skills,
knowledge and attitude thru
trainings such as FFS, FSTP, etc.
• Organize and strengthen more
cluster areas
E. POLICY FORMULATION &
ADVOCACY
• Identify the appropriate policies
conducive to corn industry making
it competitive over the long term
F. INFRASTRUCTURE SUPPORT
• Provide farm machineries
and farm-to-market roads
• Install small irrigation
systems in major strategic
areas
G. PROGRAM MANAGEMENT
• Facilitate linkages with
policy-makers, field
implementers, LGUs, private
sectors and other
stakeholders
 OTHER STRATEGIES
• Conduct R&D for yellow and white
corn that include SSNM, IPM, CPAR
and other researches
• Genetic conservation and utilization
• Product and by-product
development and utilization
• Coordinate with lending institutions
to provide guarantee to conduits,
credit to farmers especially in new
areas and insurance in highly
vulnerable areas
 SUFFICIENCY TEST
VOLUME ('000 MT)
ITEM
2011 2012 2013 2014 2015 2016 2017
NET CROP AVAILABLE 6,541 7,396 8,553 9,434 10,244 11,234 12,241
White Corn 1,877 2,153 2,463 2,642 2,865 3,101 3,419
Yellow Corn 4,098 4,673 5,171 5,613 5,959 6,425 6,855
Cassava (in Corn Equivalent) 566 570 919 1,179 1,420 1,708 1,967
REQUIREMENT 6,730 7,034 7,250 7,480 7,744 8,016 8,293
Food 1,564 1,675 1,748 1,824 1,904 1,987 2,085
Feeds & Other Industrial Uses 5,166 5,359 5,502 5,656 5,840 6,029 6,208
SURPLUS/DEFICIT (502) (116) 588 1,136 1,539 2,104 2,614
Food
Feeds & Other Industrial Uses (502) (116) 588 1,136 1,539 2,104 2,614
SUFFICIENCY LEVEL 95% 99% 105% 110% 113% 117% 121%
Food 100% 100% 100% 100% 100% 100% 100%
Feeds & Other Industrial Uses 90% 98% 111% 120% 126% 135% 142%
*2011-2012 Actual Data; 2013-2017 Target
 INCOME & JOB TARGET

JOB GENERATION (NO.)

YEAR FARMERS INCOME* (PHP/HA)
Combined White Yellow Combined White Yellow
2011 36,088 20,010 55,053 45,000 15,000 30,000
2012 36,807 20,521 54,577 49,000 28,000 21,000
2013 40,840 22,865 61,633 102,000 94,000 8,000
2014 44,805 23,932 68,894 21,000 9,000 12,000
2015 48,813 27,645 73,614 39,000 32,000 7,000
2016 53,266 30,292 80,618 36,000 31,000 5,000
2017 57,913 33,690 86,902 60,000 36,000 24,000
*4% inflation rate on corn price every year; baseline data is sourced from BAS
 PROGRAM BUDGET
CORN PROGRAM BUDGET (PHP'000)
ITEM
2011 2012 2013 2014
GRAND TOTAL 483,642 950,739 1,524,302 1,796,965
PRODUCTION SUPPORT 302,500 380,022 605,217 881,481
IRRIGATION DEVELOPMENT 3,660 12,810 15,050 15,400
POSTHARVEST DEVELOPMENT 338,610 527,986 556,285
MARKETING DEVELOPMENT 5,105 5,105 14,839 14,824
CREDIT FACILITATION
EXTENSION SUPPORT 136,312 170,127 287,418 279,490
RESEARCH & DEVELOPMENT 19,380 28,380 49,115 49,485
REGULATORY 2,000 2,000 8,050
INFORMATION SUPPORT 10,185 9,185 8,040
POLICY FORMULATION 4,500 4,500 8,587
 PROGRAM IMPACT

• Sufficiency and/or surplus in yellow corn

• Postharvest loss reduction
• Increased farmers’ income
• Price stability
• Job generation
• Net exporter of corn
HAVE A MAIZE DAY!