President Ferdinand R. Marcos has increased the Minimum Access Volume (MAV) for imported corn to 500,000 metric tons (MT) from 220,000 MT to address a projected supply deficit of 1.42 MT due to local production constraints and higher costs.
Under Executive Order (EO) 129 Marcos signed on Monday, the additional 280,000 MT in corn imports aims to ensure adequate supplies for the livestock, poultry and feed milling industries amid potential supply shortages or abnormal price increases.
The order cited higher fertilizer, fuel, freight and other agricultural input costs, as well as weather-related risks, including the potential effects of El Niño, as factors that could further aggravate the projected supply deficit.
“There is an urgent need to address the projected supply gap in yellow corn, ensure adequate and stable supply of corn for the livestock, poultry, and feed milling industries, and mitigate pressures on feed and food prices,” the EO 129 read.
“Corn is the principal energy component in livestock and poultry feeds, and inadequate domestic corn supply may increase feed costs and, consequently, the production costs and retail prices of pork and poultry products, thereby contributing to inflationary pressures on food commodities,” it added.
Marcos approved the increase following the recommendation of the MAV Management Committee (MMC) to activate the MAV Plus Mechanism for corn this year.
The additional import volume is intended as a calibrated and temporary measure to augment domestic corn supply for feed production and address the requirements of qualified feed millers and manufacturers, as well as farmers and farmers’ cooperatives.
EO 129 directs the MMC to formulate and issue implementing guidelines within 30 days from the order’s effectivity, consistent with existing laws, rules and regulations.
The MMC is composed of representatives from the Department of Agriculture, Department of Agrarian Reform, Department of Finance, Department of Science and Technology, Department of Trade and Industry and Department of Economy, Planning, and Development.
The guidelines must provide for the equitable and transparent allocation and distribution of the additional 280,000 MT in import volume.
They must also ensure that the additional importation are implemented as a calibrated, transparent and time-bound measure to augment domestic corn supply, stabilize feed prices, and address the feed supply requirements of the livestock, poultry and feed milling industries.
The order states that the implementation must be consistent with the objectives of the MAV Plus Mechanism and the promotion of consumer welfare.
EO 129, which was made public on Tuesday, takes effect immediately upon its publication in the Official Gazette or a newspaper of general circulation. (PNA)
