Groups seek gov’t aid over global woe

We have to ask the government and the private sector to work together in securing supply

Industry players are urging the Department of Agriculture (DA) to tap the private sector for assistance in addressing supply shortages and the rising cost of raw materials amid the worsening tension between Russia and Ukraine.

At a virtual briefing on Monday, Tugon Kabuhayan Co-convenor Norberto Chingcuanco said the private sector is ready to work with the government to address the adverse effects of the price hike to both producers and consumers.

“We have to ask the government and the private sector to work together in securing supply. The government must start to negotiate to secure supply and ingredients,” Chingcuanco told reporters.

Tugon Kabuhayan reiterated that if the issue remains unresolved, it will result in higher prices of agricultural products.

“If we don’t act fast, we will have a shortage of feeds. Less feeds means less production in the animal and aquaculture industries. Our country will once again resort to the importation of fish and meat. We want to cushion the impact of the Russian-Ukraine war on our industries,” it said.

Particularly, the swine industry saw a 130 percent price increase in soya. Soya is the top three ingredients in feed aside from yellow corn and wheat. Corn prices in the US alone went up by 15 percent over the weekend.

The group likewise pointed out that the increase in the price of wheat — a primary ingredient in the production of bread and other food items, including animal feeds — will eventually affect the market.

US traditional source

The Philippines usually import these raw materials from the United States, Australia, China, Canada including European countries like Russia and Ukraine. The country also imports some from Southeast Asian countries like Malaysia, Vietnam and Thailand.

Meanwhile, Oversea Feeds Corporation president Carlos Co pointed out that exporters don’t want to ship raw materials right now as they are in a wait-and-see game as development on the Russia-Ukraine conflict unfolds.

“The question now is not to prevent the increase in prices because we cannot do anything about the war in Ukraine, but how to temper the problem,” Co said.

“Exporters don’t want to ship raw materials right now. They are waiting to see what will happen. This will lead to feed ingredients getting more expensive, or go out of stock altogether,” he added.

The government must start to negotiate to secure supply and ingredients.

On Monday, Agriculture Secretary William Dar said President Rodrigo Duterte approved the increase of fertilizer subsidy to P20 billion from the previous P12 billion.

Dar said the additional budget will mitigate and cushion the effects of the global economic challenges compounded by the Russia-Ukraine crisis while boosting local food production.

The budget will be sourced from the DA’s P24-billion flagship “Plant, Plant, Plant” program.

The remaining P4 billion, on the other hand, will be equally allocated to urban and peri-urban agriculture, local feed production, aquaculture and mariculture fisheries, and food mobilization.