Monday, May 28, 2007

Biofuel: A Spark of Light for Mindanao

Our estimated consumption for oil is estimated to grow from 128 million barrels in 2000 to 224 million barrels in 2009. The implementation of the Bio fuel law requiring ethanol and biodegradable diesel in fuel mix will eventually result to a savings of almost $800 million worth of oil imports.

 

Brazil , the world's top exporter and leader in renewable energy uses sugar cane as raw material. It  has produced 15.9 billion liters of bio-ethanol in 2005 of which 90% went to the domestic market.  While the United States

Uses corn and produces 18.9 billion liters of bio ethanol each year.   It needs 132 billion liters to reach its goal of 20% reduction in oil consumption by 2017. With a third of its own corn production being used to produce bio ethanol, corn prices are continuously rising in the US. They are set to plant 90.5 million acres of corn this year or a 15% increase over 2006.

 

 
Corn and Sugar Cane Production

 

Corn and sugar cane are abundant in many regions in Mindanao . Corn production performed significantly with a 11.5% growth brought about by the 3.0% expansion in the harvest areas. This was further boosted through the availability of quality seeds coupled with better market prices which encouraged farmers to plant corn.

 

Corn output increments were noted in most regions particularly in Regions XIII, X and XII. In Northern Mindanao, for instance, the robust performance in corn production was brought about by the farmers' availment of loans extended by the local government units, as well as the shifting to corn from sugarcane owing to the former's higher price.

 

 However, a slowdown in output was reported in ARMM due to slight worm infestation in Basilan, floodings in Maguindanao, landslide in Lanao del Sur and dry spell in Tawi-Tawi.

 

The total corn production was 3,153.64 MT in 2004 ; and  3,143.61 MT in 2005 and 1,183.73 MT for the first six months  (January-June) of 2006. 

Whereas sugar  production  was recorded at 4863.97 MT in 2004 and 3764.10 MT in 2005 and 2925.78 MT in the first six months of 2006.

 

The corn variety in Mindanao is  most often used as feed grains   by the livestock sector.  When I was still seating in the National Corn Board, I learned that the corn farmers from the region was besieged with so many problems that calls for policy reforms or modifications - policies to build infrastructure, improve market information services, and institute relevant standards for corn grading could enhance market competition and facilitate an efficient market exchange.  Infrastructure improvements should include better inter island shipping vessels and upgrading of roads to reduce the high cost of transportation. Regular shipping schedules between major producing and consuming areas would help ensure that corn can be transported when needed. The availability of better storage and marketing facilities both in towns and villages and on-farm would make it possible for farmers to hold corn, rather than dumping it on the market immediately after harvest.

 

 
Future uses of Corn
 
The alternative use for corn as a raw material for ethanol  can provide our thousands of corn farmers an alternative market for their crops.   This may lead to an accelerated growth in the demand for corm which can result  to better  and higher pricing schemes in trading  . Direct investments may also be a major result which would mean more opportunities for livelihood for the farmers.  Perhaps, even policy reforms will be at a faster pace since the government have no other choice but to address the problems so as to increase production.

 

I could not help but remember the  happy faces of the hundreds of corn farmers who attended the recently concluded 1 st Mindanao Corn Congress held in South Cotabato, where a P22.8 million worth of corn post harvest, processing and trading center was launched .  All of them are pinning their hopes on this new development.

No comments: