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Vol. 1 No. 7
April 1-15, 2000
Corn sector: strategies towards global competitiveness
by Thea Kristina M. Pabuayon

In 1995, the Philippine maize industry was exposed to more external competition as the country resigned itself to international trade agreements, specifically the GATT under the WTO. A reduction in corn production was predicted to occur in 10 years unless new technology and efficient marketing initatives are introduced.

In anticipation of this situation, the Bureau of Agricultural Research (BAR) and the SEAMEO Regional Center for Graduate Study and Research in Agriculture (SEARCA) embarked on a two-year collaborative project to assess the productivity of the local corn industry and its competitiveness in the world market. It also aimed to draft recommendations on technology, trade, and policy entry points that will result to a more efficient resource allocation for the sector.

The project had five major activities, namely:

1. comprehensive literature review on the Philippine corn sector during the periods of 1986 to 1996;

2. data gathering and generation on corn production and competitiveness using rapid rural appraisal and BAS cost returns surveys and studies;

3. estimate technical efficiency and international competitiveness parameters in major corn-producing regions;

4. a rigidly focused study tour with researchers, farmers, private sector, and policy makers in current potential competitors or partners in corn, specifically Thailand, Argentina, and Indonesia; and

5. policy analysis simulation of specific technology, trade, and policy interventions in the corn sector.

The application of technology in the top corn-producing provinces of Isabela, Bukidnon, and South Cotabato were observed. Results show hybrid seed adoption rates in these provinces were high compared to the rate of adopting improved OPV's. Generally, it was however found that maize hybrid technology is practiced in only about 20-25% of the maize area planted. Traditional varieties still dominate the corn landscape.

In the costs and returns comparison, it was found that hybrid farms required a relatively larger amount of capital than OPV farms. Net income per unit of output was higher for OPV technology. But net income on a per hectare basis was higher for hybrid system due to much higher yields. Moreover, it was found both OPV and hybrid systems under high-performing conditions will enable the local maize producers to have enough output for local consumption and export under the GATT regime.

As an output of the study, several suggestions and policy recommendations were made. First, maize-concerned agencies should collaborate with the private sector for the efficient marketing and distribution of new maize seed varieties. Second, the development of parent materials and population improvement should be the focus of public funds. Third, transport infrastructure and irrigation systems must be improved. Finally, liberalization/deregulation of the maize sector should be done to eliminate inefficient producers. All these to make the industry more competitive in the world market.

April 1-15 2000 Articles:

:: 2001 budget proposals for R&D reviewed
:: Corn sector: strategies towards global competitiveness
:: Fishermen empowerment through coops development
:: Pest management info database now accessible
:: Public info campaign on GMOs launched
:: The call to improve fertility of acidic soil

::: More April 2000 articles :::