I.

PROJECT TITLE: RENOVATION OF THE INTEGRATED

SERVICE BUILDING AND SEED
PROCESSING BUILDING: R&D
FACILITIES OF PHILCORN

II. PROPONENT: PHILIPPINE CORN RESEARCH

INSTITUTE (PhilCorn)

III. TOTAL PROJECT COST: PhP 5,000,000.00

IV. DURATION: July 2002 to Dec 2002

V. SOURCE OF FUND: BAR

VI. PROJECT DESCRIPTION:

A. Rationale

The provisions of DA Administrative Order No. 5, Series of 2001 paved the way for the
establishment of the Philippine Corn Research Center (PhilCorn). The Agriculture and
Fishery Modernization Act (AFMA) otherwise known as RA 8435, which is the basis of
AO No. 5, prescribed urgent measures of establishing research institutes and centers
for strategic commodities in the country. These institutes are designed to modernize
agricultural research, development, and extension (RDE) and to hasten the delivery of
services of the department (DA) on various agricultural commodities produced in the
country. PhilCorn takes the lead in the corn sector.

Corn Situation.

Corn is the second most important crop in the Philippines. About 12 million Filipinos
prefer white corn as their main staple instead of rice. In addition, 70-75% of livestock
mixed feeds use yellow corn as its main constituent. Corn is also processed into high
value products such as cornstarch, corn oil, glutten, and snack foods.

Currently, the demand for white corn is increasing because of the increasing population
and the expanding white corn user-industries. On the other hand, the demand for
yellow corn has been on the up trend due to the rapidly increasing livestock and poultry
population.

Corn Production.

On the national average, however, corn production in the Philippines is inefficient with
very low yield per hectare. White and yellow corn types have yields of 0.98 -1.12t/ha
and 0.84 - 2.42t/ha, respectively. These low yields bring down the national average
yield to a low of 1.59 t/ha compared to other corn-producing countries such the USA

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(7.99 t/ha), China (5.09 t/ha), Argentina (4.99 t/ha), Thailand (3.38 t/ha), and Indonesia
(2.19 t/ha).

Problems on Corn Production.

There is a serious yield gap between farmers and researchers fields. One reason for
this is the low adoption of genetically improved seeds due to inadequate supply of OPV
varieties and the high cost of hybrid seeds. Another reason is the degeneration of
existing varieties due to continued planting without appropriate seed selection technique
for the next cropping season. Other reasons include infertile soils, inadequate number
of varieties suitable to the highly variable upland areas, and unreliable water supply.
Furthermore, the yield gap between experimental corn yields and the maximum of 8.8
t/ha obtained in some fields indicate the need for more research in genetic improvement
and cultural management practices for the farmers.

Better Strategies Needed.

Technology options to contain some of the problems cited such as low yield potential,
susceptibility to pests and diseases, low response to fertilizer, and weed control
strategies, among others, are already available in some regions and farmers. However,
strategies to effectively provide better access to these technologies seemed to have
been ineffective and wanting as evidenced by the very low productivity levels obtained
by farmers.

Profit is the main incentive to produce more crops. As a farm business, there is a need
not only to increase production but also, and more importantly, to reduce cost of
production and increase profit.

The PhilCorn.

PhilCorn was established to institutionalize a sustainable corn RDE system. It aims to

develop technologies that ensure stable supply of corn at prices affordable to all due to
widespread adoption by economically viable and sustainable corn farming communities.

As per DA Administrative Order No. 5, PhilCorn shall develop viable and dynamic
national corn research and development program that will strengthen, further improve or
otherwise modernize a national corn industry into a highly productive and profitable
business, and to sustain the gains already made in corn production. In addition, it shall
expand employment opportunities in the rural areas and ultimately promote the general
welfare of the people through high productivity, commercial processing, and competitive
domestic and export marketing of corn, feeds, and corn-based products.
Initial Steps.

The institute shall establish its main campus at the University of Southern Mindanao
(USM). PhilCorn has been allocated a 60-hectare experimental area within the USM

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Campus in Kabacan, North Cotabato and this shall serve as the central experiment
station of the institute.

Upon initial implementation, immediate actions would take place to facilitate the
construction of the main campus and the development of the whole experimental area.
A complete master plan will be prepared to facilitate the development of the site and the
construction of the main buildings and other pertinent structures and facilities to fully
operationalize the main center and the institute as a whole.

Funding.

AO No. 5 provides an initial budget of PhP 45 million to be allocated by the BAR. Part
of this allocation would come from the BAR-GMA funds which amounts to PhP 5 million.

The P5M available fund allocated by BAR from its IDG should be utilized as soon as
possible to hasten the operation of the PhilCorn. This project is proposed to identify the
specific activities and financial plans for PhilCorn.

B. Objectives

General Objective:

The general objective of this project is to achieve the main thrust of PhilCorn in
enhancing the conduct of integrated corn RDE activities by hastening the infrastructure
development program through the rehabilitation of the field experimental area in the
main campus of the institute. The preparation of master plan or experimental field
layout is essential to facilitate land development and plans for the construction of
infrastructures and other agricultural facilities such as greenhouses, seed storage, etc.
Likewise, it is essential to prepare layout plans for installation of basic facilities such as
water supply and electrical connections.

Specific Objectives:

1. To develop a master site development plan for PhilCorn

2. To facilitate the renovation and upgrading of the Integrated Service Building and
the Seed Processing Building

C. Expected Output

1. Approved master site development plan

2. Upgraded Integrated Service Building and Seed Processing Building

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D. Impact

The development of the master site plan is needed to determine the present condition of
the experimental area. It helps evaluates the capability of the station to conducts
agricultural research and other related projects. The needs also of the station can be
determined through the aid of a master plan. It is therefore very important that in the
operationalization of the institute a master plan of the whole experiment area should be
developed.

The existing motor pool and seed processing building located in one of the facilities in
the University of Southern Mindanao will initially house PhilCorn. It is therefore
necessary that these facilities be renovated and upgraded to suit the needs of the new
institute as it implements its role as a leader in the corn industry.

E. Components

The development of the master plan would include the zoning plan, land use map, site
development plan, aerial perspective of built-up area, and other components as
required by the guidelines prepared by the Bureau of Agricultural Research.

The repair and renovation of the integrated service building and seed processing
building would include the demolition works, excavation & backfill, plumbing works, and
other components as listed in the plan of work necessary to complete the project.

F. Strategies of Implementation

The project will be managed by the University of Southern Mindanao. It will be

contracted by USM on behalf of PhilCorn to a contractor deemed qualified and capable
of finishing the project as determined by a committee which represents delegates from
the Bureau of Agricultural Research and USM.

G. Targets and Workplan

Jul Aug Sep Oct Nov Dec Budg. Reqt., PhP

Master Development Plan 500,000.00
Renovation of Int. Serv. Bldg. 2,140,000.00
Renovation of Seed Proc. Bldg. 2,360,000.00

H. Budgetary Requirements

The implementation of this plan will incur a total cost of Pesos: Five Million Only
(P5,000,000.00).