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Corn imports to be timed in lean months(Business World (Philippines) Via Thomson Dialog NewsEdge) The Agriculture department plans to align the country's corn importation schedule under the Minimum Access Volume (MAV) during the lean months of corn production from May to June, from the current schedule whereby bulk is ordered in January. In this way, imported corn supply will be able to correspond better to local needs, Agriculture Secretary Domingo F. Panganiban said in a recent interview. He added that the department is consulting with industry stakeholders on the plan. MAV is the minimum access volume of specific agricultural products committed by members of the World Trade Organization that will be allowed entry in their respective countries. National Food Authority (NFA) administrator Gregorio Tan, Jr. explained that, in a calendar-based schedule, the country usually imports starting January and then orders additional volumes throughout the year as local demand dictates. He noted the tendency is to use up all the MAV import allocations by the last quarter, which causes an oversupply of the commodity in the last part of the year. Unused MAV allocations lead a reduction in allocations for the following year. "It might be better really to have the MAV license scheduled from June to June of the following year," said Mr. Tan. It will be recalled that the Philippine Association of Feed Millers Inc. (PAFMI) had earlier asked for additional corn imports of about 120,000 metric tons under the MAV from the Agriculture department, citing expectations of corn supply shortfalls within the year. DA turned down its request. The sector uses the corn as raw materials for feeds for hogs and poultry. PAFMI vice-president Ric Pinca said in an earlier interview that out of a total corn MAV allocation 216,000 MT for the year, the local feeds industry has already used up about 144,000 MT or 67%. The recent resumption of poultry exports to Japan, he added, is also foreseen by the feeds industry to boost domestic demand for feeds. Copyright 2006 BusinessWorld (Philippines). Source: Financial Times Information Limited - Asia Intelligence Wire. |