Manila: The Department of Agriculture (DA) on Tuesday assured that mitigation measures are in place as the government prepares for the possible effects, including the worst-case scenario, of the continuous fuel price hikes due to the ongoing conflict in the Middle East. During the hearing of the Senate Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee, Agriculture Secretary Francisco Tiu Laurel Jr. said efforts are underway to cushion the impact on Filipino farmers, fishers, and consumers. According to Philippines News Agency, Tiu Laurel emphasized the importance of food security as a matter of national stability, stating, "Our task is to ensure that the system absorbs the shock rather than amplifies it." Despite current prices of basic agricultural commodities remaining at pre-conflict levels, the DA projected price spikes across goods should the global crude price hit USD200 per barrel if tensions persist for up to 180 days. Tiu Laurel outlined six strategic steps to addr ess the rising costs of fuel, fertilizer, freight, and logistics. The first priority involves strengthening domestic production by supporting key crops, distributing certified and climate-resilient seeds, and improving extension services. The second priority is to mitigate input costs through fuel subsidies, use of biofertilizers, organic alternatives, and diversification of fertilizer sources. In terms of logistics, the DA is focusing on investments in cold chain facilities, farm-to-market roads, and negotiations with ports and transport groups. Additionally, the department is considering diversifying farm inputs and food sources. Protecting consumers through price monitoring, targeted food assistance, strategic buffer stock releases, and imposing price caps when necessary is another key priority. The long-term strategy includes advancing agricultural resilience through farm consolidation, digitalization, and climate adaptation. According to the DA's worst-case scenario projection, the local palay producti on may slightly contract due to high fertilizer prices, with potential drops in local rice output for the first and second semesters of 2026. Retail prices for well-milled rice may see a significant increase, with projections indicating a 49 percent jump to PHP67 per kg. from PHP45 per kg. pre-conflict levels. Tiu Laurel mentioned that the effects of oil price surges on retail rice might be felt around August, but assured that adequate support for local food producers and flexibility to diversify sources of agricultural inputs and goods could help stabilize prices. The worst-case scenario projection also indicated potential increases in chicken, pork ham, and belly prices. However, Tiu Laurel noted that the local poultry industry's overproduction could help stabilize chicken prices, while pork stock inventory remains sufficient. Overall, Tiu Laurel emphasized the need for the agency to balance support for local farmers and consumers through diversification of importation sources and potential tariff adjustm ents.
