THE Department of Agriculture (DA) wants to increase the country’s minimum access volume (MAV) for corn to 500,000 metric tons (MT) to reduce supply risks and cushion the effect of rising livestock and poultry feed costs.
The MAV is the volume of agricultural commodities allowed into the country at lower tariff rates, a commitment the Philippines made to the World Trade Organization. Under the MAV, in-quota tariff rates for corn are 5 percent, while out-quota tariff rates are 15 percent.
In the DA proposal, the MAV for corn would more than double from the current 216,940 MT.
Agriculture Secretary Francisco Tiu Laurel Jr. said the proposal — developed in consultation with corn, livestock, and poultry industry stakeholders — has been forwarded to the MAV Management Committee composed of government economic managers.
“We 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.
In 2025, the Philippine Statistics Authority estimated that the country produced 8.3 million MT of corn.
This year, stakeholders have warned that a strong El Niño — coupled with increased fertilizer costs and weakened planting intentions among corn farmers — could threaten domestic corn production.
Agriculture officials have also cited increased freight and fertilizer prices, along with higher production costs due to volatile energy markets and difficult shipping routes around the Strait of Hormuz, an aftermath of the Middle East war.
Yellow corn is a crucial ingredient in animal feeds and one of the biggest expenses in livestock and poultry. Sustained increase in feed costs affects the prices of pork, chicken, eggs, and other food staples.
While the country saw months of subdued inflation due to lower rice prices and cheaper food costs, price pressures resurfaced in March as the Middle East war drove up global oil prices, affecting transportation, fertilizer, and other production inputs.
Headline inflation spiked to 4.1 percent in March and 7.2 percent in April, before slightly decreasing to 6.8 percent in May. The DA said this shows how quickly external shocks can affect domestic prices and compromise food prices.
“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,” said Tiu Laurel.
Rather than a permanent policy shift, the proposed MAV expansion is meant to be a calibrated contingency measure, with imports to be activated only when warranted by supply conditions to avoid affecting the livelihoods of local corn farmers, the DA said.
