Agriculture Secretary Francisco P. Tiu Laurel Jr. sought to calm concerns over a potential food price spike, saying extreme projections tied to surging oil prices are unlikely and do not reflect planned government interventions.
The Department of Agriculture (DA) chief said scenarios presented to the Senate—assuming crude oil prices averaging USD200 per barrel for six months—were based on “extreme assumptions” and excluded mitigating measures.
“The prices presented assumed the full impact of soaring crude,” Tiu Laurel said. “They did not factor in government action, which we will undertake to protect Filipinos from an oil shock.”
Rising geopolitical tensions in the Middle East have fueled concerns about energy supply disruptions, particularly in the Strait of Hormuz, a critical corridor for global fuel and fertilizer shipments. The DA noted that about 30 percent of global urea trade and roughly 20 percent of ammonia and phosphate flows pass through the strait.
Still, the government is moving to cushion potential fallout. The Department of Energy has secured additional crude supply from non-traditional sources, including Russia, helping diversify import channels.
On the agriculture side, Tiu Laurel said the Fertilizer and Pesticide Authority is authorized to make emergency purchases, while state-linked firms such as Planters Products Inc. can boost imports. In October, PPI imported from Vietnam a total 120,000 bags of 14-14-14 complete fertilizer.
The DA is also exploring alternatives like organic fertilizers, including chicken manure, to reduce reliance on petroleum-based inputs.
Despite the global uncertainty, domestic indicators remain stable. Food prices have held broadly steady, while pork inventories are adequate and broiler production is exceeding demand, easing farmgate prices.
While risks remain if oil prices stay elevated, Tiu Laurel said current conditions suggest the sector is better positioned to absorb shocks than initial projections imply.
The agriculture chief also warned against profiteering amid the energy crisis, cautioning traders and suppliers against unjustified price hikes and hoarding. “We are ready to apply the full force of the law against anyone who seeks to exploit the situation,” he said.
