The Department of Agriculture (DA) is pushing to significantly expand the national corn import quota to protect the local livestock and poultry sectors from surging feed prices and potential supply shortages.
Agriculture Secretary Francisco Tiu Laurel Jr. announced that the agency has proposed increasing the Minimum Access Volume (MAV) for corn from 216,940 metric tons to 500,000 metric tons.
The recommendation has been submitted to the MAV Management Committee for review before its final endorsement to President Ferdinand Marcos Jr.
“We have endorsed the proposed increase in the corn MAV to anticipate possible supply tightness arising from weather-related risks and escalating production costs, particularly fertilizer and logistics expenses that remain vulnerable to disruptions from the lingering conflict in the Middle East,” Tiu Laurel explained.
The DA’s proposal serves as a proactive defense against a projected tightening of domestic supply. Local industry stakeholders have raised concerns over the lingering impacts of El Niño, expensive fertilizers, and a noticeable decline in planting activity.
Although the Philippine Statistics Authority forecasts a corn harvest of 8.3 million metric tons for 2025, officials remain cautious of external economic pressures.
Under the proposed framework, the 500,000 metric tons of corn imported within the MAV will enjoy a lower preferential tariff of 5%, while any volume brought in beyond this threshold will face a higher 15% duty.
Geopolitical instability—particularly energy market fluctuations and shipping bottlenecks near the Strait of Hormuz—has driven up the costs of freight and global fertilizers. Because yellow corn serves as the foundational ingredient for animal feed, a spike in its price directly inflates the production costs of poultry and meat, ultimately burdening consumers.
Following a brief period of cooling inflation, these rising transport and input costs have kept food price pressures elevated.
However, the DA clarified that the proposed quota increase is a flexible contingency measure rather than a permanent policy shift, assuring local farmers that it will only be deployed when necessary to prevent harming domestic corn producers.
“Corn is a critical input for poultry and livestock. Stabilizing feed costs helps temper price pressures on essential food items and protect household purchasing power,” Tiu Laurel stated.