Efforts of countries like the Philippines to increase agricultural production and improve food security depend largely on their access to vital inputs, such as fertilizer. As the Philippines does not produce its own chemical fertilizers and the shift to organic farming is moving at a snail’s pace, the country has continued to rely on imported fertilizers. Our annual purchases of imported fertilizers have exceeded 2 million metric tons (MMT), based on a report published by the Philippine Statistics Authority (PSA).
Titled “Agricultural Indicators System: Inputs,” the report on the fertilizer supply situation from 2014 to 2018 was released by the national statistics agency in December 2019. It indicated that the Philippines imported 2.3 MMT of fertilizers in 2018, flat compared to the 2017 level, according to PSA data. Of the available fertilizer supply of 2.82 MMT in 2018, local production accounted for only 520,000 metric tons; the rest came from foreign sources.
Among the chemical fertilizers imported by the country in 2018, purchases of urea averaged 1 million metric tons, based on PSA data. The country also purchased imported ammosul, ammophos, di-ammophos, complete and muriate of potash. Local farmers use these chemical fertilizers to increase the yield of essential food crops, such as rice and corn.
The local farm sector’s output is tied to international developments given its dependence on imported inputs like chemical fertilizers. Wild swings in fertilizer prices and the domestic policies of sellers could significantly affect the country’s agricultural production. This is because the crops subsector, which includes palay and corn, account for more than half of farm output.
The access of the Philippines to chemical fertilizers is a food security issue and restrictions on our access to imported inputs would certainly result in higher food prices. It would do well for exporting nations to heed the appeal of the World Trade Organization (WTO) and the United Nations to improve the access of importers, particularly developing nations, to fertilizers (See, “Fertilizer exporters urged to refrain from imposing curbs on shipments,” in the BusinessMirror, November 17, 2022). The joint study of the WTO and the UN projected that global fertilizer shortage would “likely” persist next year, thereby threatening world agricultural production and food security.
The joint study revealed that from January 2021 until October 15 this year, 19 WTO member-states implemented 41 fertilizer-related measures; nearly three-fourths were in the form of trade policy measures. These measures, as well as export restrictions including bans and quotas, have accelerated international fertilizer prices. Apart from making food more expensive, surges in the prices of fertilizer would also slash the income of planters.
The disruption caused by the pandemic and Russia’s attack on Ukraine have already caused food prices to rise to unprecedented levels, particularly in poor nations. In the Philippines, inflation accelerated to 7.7 percent in October—the highest since December 2008, mainly due to the higher annual increase in the price of food and non-alcoholic beverages. We urge fertilizer exporters to give due consideration to the recommendations of the WTO and FAO to enable countries like the Philippines to have continued access to this vital farm input. This way, they can help keep food accessible and affordable, particularly to the most vulnerable sectors of society.