The situation, in brief
The Department of Agriculture (DA) said it is closely monitoring developments in the US-Iran conflict and their potential impact on food prices. “We are concerned about the intensifying conflict between the US and Iran, as it may lead to prolonged increases in oil prices, affecting petroleum-based…
The Department of Agriculture (DA) said it is closely monitoring developments in the US-Iran conflict and their potential impact on food prices.
“We are concerned about the intensifying conflict between the US and Iran, as it may lead to prolonged increases in oil prices, affecting petroleum-based fertilizers, freight costs, and the fuel that powers farm machinery and fishing boats,” Agriculture Secretary Francisco Tiu Laurel Jr. said.
The agency expressed particular concern over the Strait of Hormuz, a narrow but critical waterway through which a significant portion of the world’s oil supply passes.
Historically, disruptions in the passage have triggered spikes in oil prices, eventually driving up food prices and tightening energy markets.
For the Philippines, the DA noted that fertilizer inputs are closely tied to energy prices, especially nitrogen-based products derived from natural gas.
The department said higher oil prices would likely lead to increased costs of farm inputs. It also raised concerns about rising freight and shipping rates, which could affect imported commodities such as wheat and animal feed—key inputs for bread, pork and poultry—and potentially accelerate food inflation.
“We have seen this during past oil shocks, and we are now looking at ways to manage the impact on our food systems and the country’s food security,” Laurel said. “We have to balance fiscal prudence with the welfare of our food producers and consumers,” he added.
