GEN. SANTOS CITY -- About P1.2 billion is needed for modern post-harvest processing facilities in 30 sites nationwide to fully develop a high-quality corn industry, an official said.

Ruby Boligor, representative of the National Agribusiness Corp. to the recent GMA Corn Program National Planning and Review Workshop in nearby Alabel, Sarangani, said the country has insufficient modern post-harvest processing facilities that would ensure production of premium quality corn.

"We want to establish corn processing center models that will produce quality corn at 20 parts per billion aflatoxin level," she said.

A published study by the Bureau of Post-harvest Research and Extension concluded that improper post-harvest practices have been blamed to the buildup of molds in corn, which causes aflatoxin.

Corn with high aflatoxin level when eaten by animals or humans could result in biological disorders or even death, the study pointed out.

Ms. Boligor said the number of modern post harvest facilities is expected to rise in at least 10 regions of the country, half of which will be in Mindanao.

Based on her paper obtained by BusinessWorld, the provinces initially identified in Mindanao are Sarangani , North Cotabato, Zam-boanga del Sur and Davao and the Autonomous Region in Muslim Mindanao and Negros Occidental in Visayas and Mindoro in Luzon.

Estimated cost of setting up a single modern post-harvest processing facility is P39 million, which includes equipment, hauling vehicle and management and administrative costs, among others.

Alongside the post-harvest facility would be a trading center so that individual or institutional buyers will not have difficulty in getting their corn supplies.

Acknowledging the central government's fiscal situation however, Ms. Boligor said the project would be carried out with the private sector and the local government units through a joint-venture agreement.

National Agribusiness would manage the processing centers, she said.

She said putting up a modern post-harvest processing facilities in corn-producing regions would provide a mechanism that reduces the cost of corn processing, ultimately benefiting small farmers or even small-and-medium scale corn-based enterprises.

Jesus Binamira, corn program chief, told reporters in the sidelines of the workshop that corn farmers incur heavy losses due to poor post harvest facilities.

"Corn easily rots without appropriate post harvest facilities. The government has recognized this problem and is keen on improving the situation to improve the plight of corn farmers," he said.

Mr. Binamira said farmers, once the modern post-harvest facilities would be in place, could deposit their corn products for storage when prices are low. If corn prices go up, they can then withdraw their stock from the facility.