CORN INDUSTRY CORN INDUSTRY INVESTMENT INVESTMENT OPPORTUNITIES OPPORTUNITIES CUM MARKET CUM MARKET TRENDSTRENDS

Presented by:

ROCHELLE A. OTOCTrade & Industry Development AnalystDepartment of Trade & Industry

Corn Industry

Source: www.indexmundi.com

Corn Industry

Source: www.indexmundi.com

Corn Industry

Source: www.indexmundi.com

Philippine Corn Trade Year Imports by Year

Corn Industry

Source: www.indexmundi.com

Philippine Corn Total Supply by Year

Corn Industry

Source: www.indexmundi.com

Philippine Corn Total Distribution by Year

Philippine Corn Total Distribution by Year

Corn Industry

Source: www.indexmundi.com

Corn Industry

Source: www.indexmundi.com

5-Year Comparative Production of Corn

Market Year Production Unit of Measure Growth Rate

2011 7130 (1000 MT) -1.94%

2012 7261 (1000 MT) 1.84%

2013 7532 (1000 MT) 3.73%

2014 7671 (1000 MT) 1.85%

2015 7500 (1000 MT) -2.23%

2016 8000 (1000 MT) 6.67%

Corn Industry at a Glance

• Corn is the second most important crop in the Philippines. About 14 million Filipinos prefer white corn as their main staple and yellow corn accounts for about 50% of livestock mixed feeds.

• Some 600,000 farm households depend on corn as a major source of livelihood, in addition to transport services, traders, processors and agricultural input suppliers who directly benefit from corn production, processing, marketing and distribution.

• Corn is also processed into high value products, such as cornstarch, corn syrups, corn oil, gluten and snack foods.

Corn Industry at a Glance

PRODUCTS & BY-PRODUCTS OF CORN

Corn Industry

Source: www.indexmundi.com

Major Products

FEEDFEED

Corn Industry

Source: www.indexmundi.com

Major Products

CORN STARCH

Corn Industry

Major Products

CORN OIL

Corn Industry

Major Products

ETHANOL

Corn Industry

Major Products

BIOPRODUCTS

Corn Industry

* Based on interview to some corn farmers

Current Market Structure

FARMER MIDDLE MAN BIG TRADER

MANUFACTURER

RETAILERINPUT SUPPLIER

Corn Industry

Source: www.indexmundi.com

Issues & Concerns PRODUCTION

High Price on Production Inputs such as Fertilizers, seeds etc

Diseases (presence of pests and the like) MARKETING

Low buying price No institutional buyers

FINANCING No capitalization High interest on Credit

Corn Industry

Source: www.indexmundi.com

Issues & Concerns INSTITUTIONAL DEVELOPMENT

Farmers are not organized/ clustered Farmers are not empowered

Corn Industry

Source: www.indexmundi.com

What we can do… Organize Improve product quality Increase capitalization Negotiate/market products to direct buyers Organize / continue to conduct related activities such

as conference, fora, trainings & seminars

DTI INTERVENTION• Institutional Development • Organizational Strengthening cum Value Chain &

Industry Clustering• Investment Promotion• Develop & Support existing & would-be investors• Conduct of BOS, Investment Conference

• MSME Development• Support through conduct of skills trainings &

seminars• Capability Building Seminar

• Product Development• Product Clinic & Critiquing• Product Labeling & Packaging

Thank YouThank You!!!!

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