Commodity Systems Analysis of Corn 1
Commodity Systems Analysis of Corn 1
SYSTEM
ANALYSIS OF
CORN
I. INTRODUCTION
Corn is one of the world’s most productive and dominant crops. It is grown
material in industry. Corn is the third largest plant-based food source in the world
(Britannica, 2018).
The corn plant is a tall annual grass with a stout, erect, solid stem. The large
narrow leaves have wavy margins and are spaced alternately on opposite sides of the
stem. Staminate (male) flowers are borne on the tassel terminating the main axis of
the stem. The pistillate (female) inflorescences, which mature to become the edible
ears, are spikes with a thickened axis, bearing paired spikelets in longitudinal rows;
each row of paired spikelets normally produces two rows of grain. Varieties of yellow
and white corn are the most popular as food, though there are varieties with red, blue,
pink, and black kernels, often banded, spotted, or striped. Each ear is enclosed by
According to Mikstas (2022) corn is one of the most popular vegetables in the Unites
States while in the Philippines, it is the second most important crop. 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
input suppliers who directly benefit from corn production, processing, marketing and
distribution. Corn is also processed into high value products, such as cornstarch, corn
all parts of the world. In the Philippines, corn production is based on the landscape
and topography of an area. In 2021, the production volume of corn in the Philippines
amounted to over eight million metric tons, slightly lower than the produced quantity
Sweet corn
Sweet corn refers to long, yellow ears of corn, often also called Japanese
sweet corn*, sugar corn, or table corn. These are long ears, with almost bright green
husks and very yellow kernels. You’ll often see these sold streetside or sold in mall
stalls boiled and shredded with margarine and cheese powder. They’re also commonly
True to its name, sweet corn is sweet and juicy. It can be added to soups, as
well as desserts such as mais con yelo and corn pudding (like Vietnamese CHÈ BẮP).
You can also use them in ginataang MAIS or make them into sweet tamales (Pepper,
Ud.).
centimeters in length, and has an elongated, cylindrical shape with blunt ends. The
cobs are tightly wrapped in layers of dark to light green husks with thin, pale-yellow
fibers known as silks that act as a layer between the husk and cob. The husks also
have a ridged, textured surface and fibrous, inedible nature. When the husks are
peeled, a plump cob is revealed, covered in densely packed kernels. The kernels have
a semi-glossy appearance and a curved, smooth, and taut surface, showcasing shades
of violet, dark purple, and ivory. Wild Violet corn should be harvested when some of
the kernels on the cob have just begun turning a light violet-purple hue. As the cobs
age, the purple shades will darken. Wild Violet corn is fleshy, aqueous, and tender
with a crisp, succulent consistency. The bi-colored corn is high in sugar and low in
starch, creating a sweet and subtly nutty flavor. It is important to note that the longer
the ears are stored, the more the sugars will begin to convert to starch in the flesh,
White lagkitan
White lagkitan (also known as waxy corn or glutinous corn) is one of the most
regions, where it’s available either fresh, dried, or canned. Dried lagkitan (hominy)
can be ground into a fine powder such as cornmeal, grits, or cornflour. But we usually
the Cebu region. It boasts a low glycemic index, making it slower to digest resulting
in a more gradual release of glucose in the body. This, plus the fact that it tastes like
rice, makes it a common rice substitute. People often use tinigib to make maja blanca,
pintos or binaki (like corn tamales), and SUAM NA MAIS (aka ginarep or
dinengdeng na mais; a fresh corn soup with spinach or malunggay). You can also
roast Visayan white corn to make a drink called kapeng mais, which surprisingly
Purple corn is common in the Andes region of South America. A few years ago, it
was introduced to the Philippines, becoming a hit for its high antioxidant content. When
harvested, purple corn is sticky and sweet. It’s typically soaked in boiling water and used as a
food coloring. But it’s also famously used to make Peruvian CHICHA MORADA. This corn
drink is specifically made using purple corn with a combo of spices like cinnamon and
Young corn
Young corn refers to mais harvested at its early stage, while the stalks are still
young and immature. Their mildly sweet flavor and snappy texture make them an
indispensable ingredient for chop suey. You can also simply eat them steamed or
roasted with butter, stir-fried into rice or noodles, or added into soups or stews
(Pepper, Ud.).
closely related to the number of animals (cattle, hogs, and poultry) that are fed corn
and typically accounts for about 40 percent of total domestic corn use. The amount of
corn used for feed also depends on the crop's supply and price, the amount of
supplemental ingredients used in feed rations, and the supplies and prices of
competing ingredients. Corn also has food, seed, and industrial (FSI) uses, the most
significant of which is fuel ethanol. Total FSI makes up close 60 percent of total
domestic corn use. Corn is the largest component of the global trade of feed grains
(corn, sorghum, barley, and oats), generally accounting for about 80 percent of the
Seed
Fertilizer
Pesticides
Human Labor
SEED
Quality seeds are one of the important elements in maintaining plant potential. One of
the factors that can affect the growth potential and production of corn for each variety or
yellow corn which is, it is the most profitable among the other
areas will reduce the use of arable lowland that should be planted with
considered.
Here are samples hybrid corn and its price in the Philippines
FERTILIZER
Plant fertilizers are typically rated with an NPK ratio which list the balance of
(P), and potassium (K) - are needed in varying quantities depending on the period of the corn
Pre-planting fertilizers for corn should have NPK ratios of 1-4-0, 1-3-1, 0r 1-1-1 to
ensure they don’t contain too much nitrogen. This will ensure they develop a healthy root
system and have strong stems and foliage. Corn is heavy feeder and needs a high quantity of
Fertilizers typically come in one of two formulations: granular or liquid. Each type is
Liquid Fertilizers are typically designed to be diluted with water and sprayed onto
plants or soils. They deliver immediate results, but the primary downside of liquid
fertilizer is that they need to be applied frequently at 1-to-2 week’s intervals. Since
liquid fertilizers can easily be diluted, however, it’s easy to avoid overfertilizing when
using them.
Granular Fertilizers are a great choice for fertilizing after seeding- otherwise known
as side-dressing because they can be applied to the soil without accidentally being
applied to the plant themselves. Granular fertilizers slowly release nutrients over time,
Liquid 10-34-0 and dry 18-46-0 are common used. Other fertilizer formulations may be used
as starters; for example, the addition of zinc and/or sulfur may be warranted in sandy, low
Triple 14-Complete Fertlizer Triple 14 Complete fertilizer also called 14- P1,136.70
(14-14-14)
14-14 has equal percentage of Nitrogen,
last up to 3 months.
20% phosphorus.
Application of Fertilizer
The greatest need for nitrogen is from the V12 (plant is about 4 feet tall or
more) stage to the corn blister stage in a corn plant’s life. Typically, corn is side-
dressed at the 6 leaf (V6) stage; however any time prior to V12 will achieve
management goals.
Soil type heavily influences the side-dressing decision. High clay soils should
have a planned split-application of nitrogen fertilizer due to the risk of nitrogen loss
by denitrification. Corn at 2-3 leaf staging can withstand a broadcast application of
Top dressing fertilizer for maize works best when the timing is key, ie when it is
applied at the correct crop growth stage and at the recommended rate. Nitrogen
applied at the 3-4 leaf stage with a broadcaster leaves nitrogen vulnerable to leaching
Nitrogen-and other nutrients- are not taken up at a constant rate through the crop
life. Therefore, the table below summarizes the important growth stages and the
V1 Crop emerging
R1 140 kg/ha N
R6 Physiologically mature
PESTICIDE
The pesticide active ingredients used on corn are classified as herbicides (targeting
weeds), insecticides (targeting insects), and fungicides (targeting fungal disease), or other
chemicals (targeting all other pest and other materials, including extraneous crop foliage).
GLYPHOSATE
Glyphosate herbicides are one of the most common pesticides for corn and other
crops in the Philippines and other country. This organic chemical is best known by its
blocks one of a plants enzymes, which leads to an inhibition of amino acid and protein
ATRAZINE
Atrazine has been applied to eliminate broad-leaved weeds and perennial grass, it is
popularly used on corn as well as pineapples, sugarcane and many other crops. Atrazine is
even used for weed reduction in non-farming settings. It is become a major pesticides
because it is inexpensive, does not damage crops heavily and can be applied during a long
widow of time.
LAMBDA-CYHALOTHRIN
As a member of the grass family, corn is a high-demand moisture crop that needs an
inch of water each week. The goal is to keep the soil consistently near the 75% moisture
Drip Irrigation
need.
Surface Irrigation
depending on planting date, planting density, maturity group, location and weather
conditions. Corn requires the most water during the early reproductive growth stages, which
Table 3. Example of crop water use (ET) by growth stage for 113-day maturity corn.
LABOR
Labor is the amount of physical, mental and societal effort used to produce goods and
require access to seasonal and migrant farmworkers. Agricultural workers maintain crops and
tend livestock. They perform physical labor and operate machinery under the supervision of
SOURCE OF INPUTS
Fertilizers/Pesticides
▪ Cooperative
Organic inputs
▪ Independent producers
Seeds
Government- DA-LGU
Seed breeders
Cooperative
Irrigation/Water
Rainfall
Surface drainage
River
Water pump
Labor
Household members
Tenant
Stressful conditions such as drought, foliar disease, hail damage, inadequate nutrition
Climate Change
Market Forces
Land rent
Demographics
B. PRODUCTION SUBSYSTEM
1. Production Trends, Volume and Prices
In the Philippines, corn production is based on the landscape and topography
over eight million metric tons, slightly higher than the produced quantity of 8.12
Production volume of corn in the Philippines from 2012 to 2021(in million metric tons)
The wholesale price of yellow corn grain in the county had been fluctuating over the past
decade. Corn production in the country had been declining in recent years, particularly of
yellow corn, resulting in an increase in corn imports. The average domestic wholesale price
of yellow corn grain in the Philippines was approximately 18.62 Philippine pesos per
2. Farming Systems
The farming system employed in corn production in the Philippines are upland
and lowland farming. Upland corn farming is mainly white corn or lagkitan and it is
planted in sloppy areas such as hill side and kaingin for indigenous people. This is
only for consumption and selling around the community. White corns is low in
number of production because it is a small scale production that almost 0.2 hectares of
Lowland corn farming is mainly composed of yellow corns, it is planted along plains
and near from water source such rivers, irrigation system and deep-well because water is one
of essential input for hybrid corn production. Yellow corn production is larger compared to
white corns because yellow corn are processed it animal feed for hogs, chickens and other
poultry animals. Yellow corn plays a vital role in animal nutrition. It is one of the most
important feed grains in feed milling and accounts for 50-60% of the total mixed feed ration.
About 90 percent of yellow corn produced is used as feed for swine and poultry. It is a
primary source of energy supplement and can contribute up to 30% protein, 60% energy and
3. Production Concentration
In the Philippines, corn is being produced on 2.5 million hectares, with a total
production volume of eight (8) million metric tons in 2019. The provinces of Isabela
and Bukidnon are the top producing provinces with a total production volume of 1.1
million metric tons and 0.8 million metric tons, respectively (PSA, 2019). Based on
the latest census for agriculture, the country’s average corn farm area is 1.30 hectares
(PSA, 2015).
BARMM), and Region 10 (Northern Mindanao). The combined white corn production of
these three regions accounts for more than one half of total white corn produced in the
Philippines (PSA, 2019). On a provincial level, the top three (3) producing provinces are
Maguindanao, South Cotabato, and Lanao del Sur. Although Mindanao mostly produces
white corn, one major market is still Cebu in the Visayas. The production regions are
and Northern Mindanao (Region 10) are the main contributors to national production (Figure
3). These three (3) regions supply around 61 percent of total domestic yellow corn
production. The top producing provinces are Isabela, Bukidnon, and South Cotabato,
accounting for 45
percent of the total national output. The end market of yellow corn are mainly the feed mills.
These mills, in turn, have business operations near hogs and poultry production areas in
Central
Luzon, Southern Tagalog, Central Visayas, and Southern Mindanao (PSA, 2019).
4. Technological Development
Technological advancements vary in scope. In corn industry good quality corn and
post-harvest management is important. disease caused pathogens are one of the factor that
reduces the quality of corn. Genetically modified corn is one of the solution that helps famer
cope with this problem. Bt corn in the Philippines was mainly developed to be resistant to the
Asian corn borer (Ostrinia furnacalis Guenee) The Asian corn borer is one of the most
destructive corn pests in the country and typically accounts for 20–30 percent of annual crop
damage (Dela Rosa2001). It damages plants by boring holes in the stems and pods that cause
wilting of the leaves and crop losses. Bt corn carries a transplanted gene that produces a
delta-endotoxin protein that paralyzes the larvae of some harmful insects, including Asian
corn borers, when ingested. The Bt protein punctures the mid-gut of the insect, leaving it
unable to eat, and it will eventually die within a few days. Since 2003, farms planted to
conventional hybrid corn varieties have been steadily replaced with Bt corn. From about 0.5
percent of the total area harvested to corn (i.e., 11,000 hectares) in 2003, James (Reference
James2014) reports that Bt corn was planted on about 32.4 percent of the total area harvested
(i.e., 831,000 hectares) in 2014. The Philippine Department of Agriculture (DA) stresses that
the use of Bt corn is a means to ensure the country's food security and global
competitiveness. The Philippine DA believes that Bt corn reduces farmers’ input costs and
increases their yield, while keeping the ecosystem intact and enabling crops to grow under
Post-harvest technology helps corn farmers to cope with certain losses due to
are vehicles that can use to transport the product from farm to market and in drying
before they use sunlight now they use vertical dryer flat bed for 12 hours compered to
Corn is one of the main ingredient that is needed in making animal feeds. To be
specific corn comprises 60 to 70 percent of the ingredients for the production of animal feeds,
while the cost of feeds can take up 80 percent of the production cost for chicken and other
livestock products. The strong growth demand for pork has potential to increase income
opportunities and alleviate poverty among rural and agricultural households in the
Philippines.
Corn farmer faces different problems. Pests and diseases are one of the main causes of
yield losses of Filipino corn farmers every year. Weeds are also an extensive problem in corn
production that may cause a yield loss of 100% if no hand weeding nor herbicide is applied.
Malaybalay and Cabanglasan in Bukidnon reveal serious problems in the corn industry that
have likely contributed to the high poverty incidence among farmers. A common lament
among the interviewed farmers is the occurrence of drought, strong winds and rains, which
have led to corn crop losses for the past 10 years. Most of the corn farmers plant in sloped
areas, which are naturally prone to landslides; thus, extreme weather conditions would likely
result in crop failures. By some accounts, in 2012 there were farmers who experienced zero
yield because of Typhoon Pablo, whose strong winds flattened corn stalks and made the
fallen corn cobs an easy target for hungry field rats. Corn farmers and traders in three of the
country’s major corn producing provinces lose at least 760 million a year due to
PROCESSING SUBSYSTEM
Corn is included in so many different food items, besides the obvious fresh
corn that we enjoy for so little in the produce section. We also consume a lot of corn
as a main ingredient in several other processed foods. Then, there is corn that is
grown specifically for use in animal feed, which is not harvested for human
consumption. Corn is grown, harvested and handled in different ways based on the
market in which it is being grown. Below are three different examples of methods in
When corn is harvested for the fresh market, it is harvested by hand using a
harvesting tool. This is the most labor-intensive harvesting method as the workers are
working directly with the corn. Luckily, the tractor moves in front of the workers to
help break down the corn stalks so that it is easier for the workers to progress through
When harvesting corn for the processing market, it is all done with one machine. A
corn combine is used and goes up and down the rows of corn to harvest out the kernels. The
corn combine separates out the kernels from the rest of the stalk and then once the corn
combine is filled, the kernels are released into a hauling trailer to take the kernels to the
processing facility.
This type of corn harvesting was probably the most interesting to learn about.
The actual purpose is to ferment the harvested corn so that it can be digested by dairy
cows. This harvesting process consists of one machine that goes through and chops up
the majority of the corn plant and transports it to an adjacent trailer that takes the
In the Philippines, corn is also processed into high value products, such as
1. Corn starch
Because of the increased need for grain corn, special breeding programmes need
focused on corn-varieties suitable for the starch industry. These corn varieties offer improved
attributes such as increased starch content, easy going processability and special qualities of
the starch itself. Corn varieties were grown for specific technical applications of starch.
Among these are waxy corn and high-amylose corn (Vekaspedia, Ud.).
2. Corn oil
Corn oil is oil extracted from the germ of corn. Its main use is in cooking, where its
high smoke point makes refined corn oil a valuable frying oil. It is also a key ingredient in
some margarines. Corn oil is generally less expensive than most other types of vegetable oils.
Corn agronomists have developed high-oil varieties; however, these varieties tend to show
lower field yields, so they are not universally accepted by growers. Corn oil is also a
feedstock used for biodiesel. Other industrial uses for corn oil include soap, salve, paint, rust
proofing for metal surfaces, inks, textiles, nitroglycerin, and insecticides. It is insecticides
3. Corn Syrup
Corn syrup is a food syrup which is made from the starch of corn and
composed mainly of glucose. Corn syrup is used in foods to soften texture, add volume,
prevent crystallization of sugar, and enhance flavor. Corn syrup is distinct from high-fructose
corn syrup created when corn fructose syrup, syrup undergoes enzymatic processing that
produces a sweeter compound containing higher levels of fructose. The more general term
glucose syrup is often used synonymously with corn syrup, since glucose syrup is most
corn starch, then processing that starch to yield. Corn syrup, which is almost entirely glucose,
and then adding enzymes that change some of the glucose into fructose.
5. Corn flakes
Breakfast cereal technology has advanced greatly since its origins in the late
nineteenth century. The latest innovation in the industry is the twin twin-screw cooking
extruder. The two rotating screws scrape each other clean as they rotate. This allows the
dough to move more smoothly than in an extruder with only one screw (Vikaspedia, Ud.).
Corn is the main source of carbohydrate demand for cattle feed. It’s the most used
food ingredient in the world for low and high nutrition. The cow needs to be fed in such a
way that it is slowly digested in her stomach or rumen and the function of rumen is good.
Corn fermented with yeast is a fancy food for cows. It is a feed processing system. Properly
fermented food is easy to digest and increases the number of beneficial bacteria in the
stomach. During this time, in the process of fermentation, corn breaks down glucose into bile
and turns it into sucrose and alcohol. That is to say, it breaks down the food and makes the
Aside from that, corn cobs are usually thrown away at big corn processing plants
and are often considered a waste disposal problem. Some has contracted to buy 2,000 tons of
corn cobs from a major corn seed company in the country. They crushes the cobs with a
hammer mill so they can be made into fine powder or into coarser sizes. By fermenting the
crushed corn cobs with molasses and beneficial microorganisms, the material does not only
become more nutritious, it also becomes more palatable, and is well-liked by livestock such
industrial chain, and an abundance of products, which include starch, starch sugar,
LAMSAN INCORPORATED is the foremost corn wet milling company in the Philippines.
Its products include cornstarch, corn gluten feed, corn gluten meal and corn germ. It has been
in the business since 1971 and has steadily grown to become the industry leader today.
corn
3. Y.e.s. Exp. & imp. Corp. Bottled sardines in extra spicy corn
4. North ridge foods imp. & exp. Assorted foodstuffs such as fried corn
snacks,
condiments
peas)
The Philippine Association of Feed Millers Inc. (PAFMI) has asked the government
to address the need to ensure a reliable and consistent supply of corn and to review its tariff
structure. The local supply of yellow corn in recent years has fallen 48% short of
requirements. PAFMI said a reliable and consistent supply of corn is crucial to boost local
production of animal feed, human food and biodiesel. PAFMI has also asked the Philippines
government to review the tariff structure on yellow corn to prevent more cost increases.
According to a separate report from the Manila Standard, the prices of local and imported
feed corn are approaching record highs and contributing to higher food prices.
“Tariffs are supposed to protect local corn growers, but with the significant supply
gap, feed millers need to import more corn to supply the requirements of livestock growers,”
the report said. “The country’s yellow corn importation is now more than what is locally
well as post-harvest facilities, credit, warehousing, marketing, transport and other logistics
concerns. “PAFMI vows to support all measures needed to improve the country’s corn supply
sufficiency, reliability and consistency given the strategic role corn plays in ensuring the
country’s food security and in keeping vibrant economic activity,” (Reus, 2021). It is because
the Philippines still has insufficient capability to process its corn. Farmers must also be
trained on good agricultural practices to make them more competitive so they could
maximize their yield and address problems affecting the sector. This competitiveness is a
vital element in making sure that the farmers are up to the standards set by the Association of
Southeast Asian Countries (Asean) as the economic integration of its member-countries will
kick off. Most farmers still lack the technology to process corn efficiently at a faster rate
(Reus, 2021).
uses, as well as empower the farmers and increase their income, thereby improving their
quality of life.
Continue in promoting the utilization and health benefits of white corn grains and
expand the market for high quality white corn grits to help ease the pressure on rice
demand
Increase production per hectare from 6.17 t/ha – 6.54 t/ha for yellow, 2.35 t/ha – 2.56
PROGRAM COMPONENTS
1. Biological Control
Trichogramma Production
Combined Harvester
Mechanical Sheller
Vertical Dryer
1. Techno Demo
Tipid-Abono
Technical Briefings
support of its Foods Staples Sufficiency Program. This is in partnership with the Land
Bank of the Philippines (LANDBANK) to provide credit assistance to small palay and
corn farmers for their production activities/projects. DA agencies, together with the
by the Department of Agriculture and Land Bank of the Philippines. The program
aims to help more palay and corn farmers access timely, adequate, and affordable
C. DOST-PCAARRD
FLE project to enhance corn yield and agri students’ entrepreneurship skills in Isabela
techniques to other farmers. The strategy was conceived by former DA-RFU 2 Regional Dir.
technique is effective, they would adapt it. Farmers also learn more easily with a hands-on
approach.
The project aims to increase corn production by 600 kg/ha in areas with non-acidic soils, 500
kg/ha in areas with acidic soils, and 1,000 kg/ha in traditional white corn areas. The project
areas are divided into 103 clusters, each cluster consisting of 200- 400 ha of contiguous
cornfields in Isabela.
Components of the project are selection of farmer-leaders; capacity building; mobilizing and
such as application of Bio-N and agricultural lime, demo on open-pollinated variety, and
In a related development, the corn project received an added P3.3 million from PCARRD’s
“Enhancing the demand for agriculture, forestry and natural resources graduates through
S&T” program. Hence, some components of the project were reoriented to accommodate
Aside from increased corn production, the additional expected outputs are enhanced ISU
learning modules and agriculture students trained on corn production and marketing in FLE-
Farmers, researcher, project implementers, national and local government units, and other
stakeholders gathered for the farmers’ field days in provinces of Quirino and Cagayan,
Cagayan valley. The two-day event carried the theme, “Negosyo sa Sakahan at Pangisdaan,
Laban sa Kahirapan” that aimed to share farming knowledge and experience, highlight on-
farm demonstrations and technologies, while building strong farming communities through
based Integrated Farming System in the Riverflood Plain in Alcala, Cagayan” carried out
With corn as Region 2’s primary commodity, CPAR projects target to address common
agro-climatic conditions in the province in relation to corn production. The region, with its
hilly and river flood prone areas, deals with adverse circumstances affecting farm
Office (DA-RFO) 2 through CPAR include suitable land use management approaches, water
conservation practices, and soil health preservation measures. In both projects, the farmer-
Strength
Commodity Corn has innovation driven culture where significant part of the revenues
are spent on the research and development activities. This has resulted in staying
shareholders.
The high switching costs that Commodity Corn has built up over years in its products
and services offer has resulted in high retention of customers, lower marketing costs,
Commodity Corn has highly efficient outsourcing and offshoring strategy. It has
resulted in greater operational flexibility and bringing down the costs in highly price
Horizontal connected teams at the Commodity Corn are driving operational speed,
building greater agility, and keeping the organization nimble to compete with new
competitors. Sustainable margins compare to other players in Strategy &
Execution industry
Corn Products International, Inc. firm has clearly differentiated products in the
market place. This has enabled Commodity Corn to fetch slight price premium
Suppliers of Commodity Corn in the sector have low bargaining power. Corn
Products International, Inc. has further diversified its suppliers portfolio by building a
robust supply chain across various countries. This helps Commodity Corn to manage
not only supply disruptions but also source products at highly competitive prices.
Commodity Corn is one of the leading recruiters in the industry. Managers in the
Corn Products International, Inc. are in a position to attract the best talent available.
The firm has a robust talent identification program that helps in identifying the
brightest.
Commodity Corn has strong brand awareness and brand recognition among both - the
exiting customers and potential new customers. Strong brand equity has enabled
needs to shorten the cash cycle by 12% to be more competitive in the marketplace,
Commodity Corn has taken concrete steps on diversity, equity, and inclusion. But the
As mentioned earlier in the report, Commodity Corn has a very deliberative decision
making approach. This approach has resulted in prudent decisions, but it has also
resulted in missing opportunities in the industry over the last five years.
management generalist. This has resulted into product oriented approach rather than
The opportunities
Commodity Corn can improve the customer journey of consumers in the industry by using
analytics and artificial intelligence. It is suggested that firm can provide automated chats to
help consumers solve their own problems, provide online suggestions to get maximum out of
the products and services, and help consumers to build a community where they can interact
Even though inflation is raising its head in most developed economies, Commodity Corn can
still utilize the low interest rates to borrow money for capital investment. Secondly it can also
use the increase of government spending in infrastructure projects to get new business.
Commodity Corn can develop new processes and procedures in Strategy & Execution
industry using technology such as automation using artificial intelligence, real time
Loyalty marketing
management platform. The customer analytics can help the organization to fine tune its
loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on
mainstream advertising spending, build better pricing strategies using personalization, etc.
Consumer behavior has changed in the Strategy & Execution industry because of Covid-19
restrictions. Some of this behavior will stay once things get back to normal. Commodity Corn
can take advantage of these changes in consumer behavior to build a far more efficient
business model. For example consumer regular ordering of products can reduce both last mile
delivery costs and market penetration costs. Commodity Corn can further use this consumer
data to build better customer loyalty, provide better products and service collection, and
The expansion of the 5G network will help Commodity Corn to increase its market reach.
Commodity Corn will be able to reach out to new customers. Secondly 5G will also provide
technology framework to build new tools and products that can help more immersive
5G expansion will open new opportunities for Commodity Corn in the field of marketing
communication. It will bring down the cost of doing business, provide technology platform to
build new products in the Strategy & Execution segment, and it will provide faster access to
the consumers.
post Covid-19, Commodity Corn can use these opportunities to build new business models
that can help the communities that Commodity Corn operates in. Secondly it can use
The threats mentioned in the HBR case study Corn Products International, Inc. are -
Apart from technology driven competitive advantage dilution, Commodity Corn can face
Aging population
As the populations of most advanced economies are aging, it will lead to high social security
costs, higher savings among population, and lower demand for goods and services in the
economy.
Regulatory challenges
Commodity Corn needs to prepare for regulatory challenges as consumer protection groups
and other pressure groups are vigorously advocating for more regulations on big business - to
reduce inequality, to create a level playing field, to product data privacy and consumer
privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to
interaction with people. The increasing wages can put downward pressure on the margins of
Commodity Corn.
Commodity Corn high dependence on third party suppliers can disrupt its processes and
delivery mechanism.
It is one of the major threat that Commodity Corn is facing in Strategy & Execution sector. It
can lead to higher research and development costs, higher marketing expenses, lower
CRITICAL PROBLEM
CLIMATE CHANGE
Corn is considered the second most important cereal crops in the Philippines
(Gerpacio, 2004). It is also among the field crops that will be directly hit by climate
change. The anticipated impact of climate change on corn will not only affect it
production system but also the different social economic activities related to this crop.
Shortage in supply for corn due to yield decrease will surely affect not only the
country’s food production system but also the different livelihood and economic
activities in which this crop is the primary inputs and center of trade activities. Thus,
it is imperative to quantify the extent of climate change impact on corn in the country
(Salvacion, 2015).
Extreme climate conditions such as flooding during the wet season, the effect of
drought and the abrupt climate change prevent high volume production of corn and therefore
Pest and diseases are one of the main causes of yield losses of Filipino corn farmers
every year. It has to survive a number of disease threats throughout the season it includes;
Tar spot
Anthracnose
Eyespot
WEEDS
Weeds are also an extensive problem in corn production that may cause a yield loss of
100% if no hand weeding nor herbicides is applied. Examples of weeds commonly found in
corn are;
Water hemp
Giant ragweed
Marestail
Foxtail
recommended by 68.17 percent of corn farmers nationwide. Price support was suggested by
56.35 percent while regulation on price of farm inputs was cited by 43.89 percent. Some
20.32 percent recommended provision of new or modern farming technologies and 14.44
percent, infrastructure facilities. Soil testing analysis was mentioned by 12.94 percent. About
The proportion of corn farmers suggesting financial support ranged from 30 percent
in MIMAROPA (Palawan) to 96.30 percent in CAR (Ifugao). Price support and regulation of
prices of farm inputs were recommended by all corn farmers in Central Luzon (Tarlac). There
were 33.33 percent in Central Luzon (Tarlac) who mentioned improvement of irrigation
proposed the conduct of soil testing/analysis while 81.82 percent recommended the
Addressing environmental concern was cited by 37.04 percent in CAR (Ifugao) (PSA, 2014).
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https://www.theproducenerd.com/2019/08/corn-harvesting/
Vikaspedia. (Ud.). Products from corn. Retrieved on December 11, 2022 from:
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production
Anonymous. (2018, September 28). Turning Corn into Nutritious Livestock Feed.
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Reus, A. (2021, September 30). Philippine feed millers worried about corn supply, tariffs.
NEWS AND ANALYSIS FOR THE GLOBAL ANIMAL FEED INDUSTRY. Feed
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about-corn-supply-tariffs/
Vet Medicine VD. (2021, August 8). Corn for animal feed and nutrition analysis. Retrieved
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https://psa.gov.ph/sites/default/files/crs_corn2013_0.pdf
Filipino Manufacturers of corn and Suppliers of corn. Panjiva S&P Global Market
Manufacturers-Of/corn
Goldberg, R. A. & Clay, T. M. (2022). Corn Products International, Inc. SWOT Analysis /
TOWS Matrix / Weighted SWOT Analysis. Oak Spring University. Retrieved on December
commodity-corn
Britannica, T. Editors of Encyclopaedia (2018, August 24). Jerusalem artichoke.
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from: https://rfo3.da.gov.ph/corn-program/
Mikstas, C. (2022, September 01). Corn. webMd. Retrieved on November 18, 2022 from:
https://www.webmd.com/food-recipes/corn-health-benefits
Pepper. (Ud.). 6 Types of Philippine Corn (Mais). Retrieved on November 18, 2022 from:
https://pepper.ph/blog/6-types-philippine-corn-mais
Economic Research Service (ERS). [2022]. Feedgrains Sector at a Glance. U.S. Department
https://www.ers.usda.gov/topics/crops/corn-and-other-feedgrains/feedgrains-sector-at-a-
glance/
Statista Research Department. (2022, August 31). Production value of corn in the Philippines
https://www.statista.com/statistics/752414/philippines-corn-production-value/
REFERENCES
PhilStar Global. (2007). Corn farmers suffer huge postharvest losses. Retrieved on
December 13, 2022 from
https://www.philstar.com/business/agriculture/2007/07/22/7415/corn-farmers-suffer-huge-
postharvest-losses
Manuel, C.C. (2018). Small-scale corn farmers’ misfortunes. Retrieved on December 13,
2022 from https://essc.org.ph/content/archives/10523/
Statista. (2022). Production volume of corn in the Philippines from 2012 to 2021.
Retrieved on December 12, 2022 from
https://www.statista.com/statistics/751372/philippines-corn-production/#:~:text=In%20the
%20Philippines%2C%20corn%20production,tons%20in%20the%20previous%20year.
Statista. (2022). Domestic wholesale price of yellow corn grain in the Philippines
from 2012 to 2021(per kilogram in Philippine pesos). Retrieved on December 13, 2022 from
https://www.statista.com/statistics/1046953/philippines-domestic-wholesale-price-yellow-
corn-grain/#:~:text=The%20average%20domestic%20wholesale%20price,pesos%20per
%20kilogram%20in%202021.
Salazar, A. et al. (2021). Issues Paper on Corn Industry in the Philippines. Retrieved on
December 13 from https://www.phcc.gov.ph/wp-content/uploads/2021/01/PCC-Issues-Paper-
2021-01-Issues-Paper-on-Corn-Industry-in-the-Philippines.pdf
Sanglestsawai, S., Rodriguez, D., Rejesus, R., & Yorobe, J. (2017). Production Risk, Farmer
Welfare, and Bt Corn in the Philippines. Agricultural and Resource Economics Review,
46(3), 507-528. doi:10.1017/age.2017.1
Department of Agriculture DA. Ud. Corn Program. Retrieved on December 13, 2022 from
https://rfo3.da.gov.ph/corn-program/
Department of Agriculture DA. Ud. Sikat Saka. Retrieved on December 13, 2022 from
https://acpc.gov.ph/sikat-saka/
DOST-PCAARRD. Ud. FLE project to enhance corn yield and agri students’
entrepreneurship skills in Isabela. Retrieved on December 13, 2022 from
http://www.pcaarrd.dost.gov.ph/home/portal/index.php/quick-information-dispatch/1236-fle-
project-to-enhance-corn-yield-and-agri-students-entrepreneurship-skills-in-isabela
Department of Agriculture- Bureau of Agricultural Research (2022). CPAR farmers’field
days showcase corn production technologies in region 2. Retrieved on December 13, 2022
from
https://bar.gov.ph/index.php/media-resources/news-and-events/188-cpar-farmers-field-days-
showcase-corn-production-technologies-inregion-2
ACTIVITY
IN
INTRODUCTION TO
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ENTERPRISE
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