By Vonn Andrei E. Villamiel, A reporter
FOOD PRICE GROWTH is expected to accelerate in the second quarter, as crude oil prices begin to rise. flower prices paid by consumers due to higher transportation and farm production costs, analysts said.
Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., said the prices and supply of food and agricultural products are likely to remain stable in the country. fifirst quarter but may accelerate later.
“This will cause a problem in the second quarter. Prices will be affected due to transportation costs brought about by the increase in oil prices and fertilizer costs,” he said. BusinessWorld via Viber.
Mr. Fausto said the increase in agricultural production costs, coupled with a weak peso, will lead to increased pressure on food prices starting next month.
Raul Q. Montemayor, the national manager of the Federation of Free Farmers, said the impact of the increase in farming costs will have a major impact on the next harvest season, but consumers may already be feeling price pressure early on due to market speculation.
“We will see an impact on the next harvest later this year, although prices will start to rise before then due to speculation of lower yields and higher production costs,” he said. BusinessWorld via Viber.
The Philippine Statistics Authority reported price increases for various essential food items in early March. The prices of finely milled rice and regular milled rice increased by 3.8% and 2% year-on-year, respectively.
It also reported high rates of fish, including galunggong (round scad, 3.4%), tilapia (5.1%), and the bank (milk, 10%).
BMI, a unit of Fitch Solutions, said Asia-Pacific the region faces risks of disruption of food supply in the coming months.
“Asia-Pacific economies are now facing increasing risks of physical shortages not only of energy such as oil and gas, but of fertilizers and – by extension – food that may occur later in the year,” it said.
BMI said fertilizer costs are already on the rise, with urea prices up nearly 25% since the start of the Middle East war, and are likely to increase further iffThe lict continues.
The Gulf Cooperation Council is an important supplier of fossil fuel nitrogen fertilizers. BMI said about a third of the world’s nitrogen fertilizer trade could be disrupted due to prolonged gas supply issues.
Such disruptions come at a critical time, as the Philippines, Vietnam, Pakistan, and Sri Lanka enter the crucial rice and corn planting season in April and May.
“These disruptions coincide with key planting and fertilization periods across the region, which may impact yields if shortages continue into the growing season,” BMI said.
Mr. Montemayor said the Philippines should prepare from the middle of the year, especially between July and September, when there will be a small harvest.
“In this difficult time, we have no choice but to rely on imports, and both the availability and the price of imports will be affected by the Iran war,” he said. BusinessWorld via Viber.
Mr. Montemayor said higher fuel and input costs could increase production costs or force farmers to cut back on essential inputs such as irrigation and fertilizers, which could lead to lower yields and food intensification.
Apart from plant-based goods, the Department of Agriculture (DA) said it expects tighter supply and higher prices for fishery products during the year due to rising fuel costs and the upcoming lean season.
“Right now, ours fithe shermen still lead. But if fuel prices remain high in May or June, our fishermen may not fish, which may cause a shortage,” said Agriculture Secretary Francisco P. Tiu Laurel, Jr.
As an emergency measure, the DA prioritizes aquaculture, especially tilapia and the bankto help stabilize supply.
“We are pushing our aquaculture industry to plant more fingerlings this summer so that in May or June, we will have a lot of fish,” said Mr. Laurel.
He also cited imports as a result, as the DA recently approved the importation of up to 250,000 metric tons of fish since August.
