Southeast Asian food security worries WTO
YAOUNDÉ, Cameroon—Fertilizer shipment bottlenecks threaten food security across Southeast Asia, amid the ongoing conflict in the Middle East, a World Trade Organization (WTO) official said.
The Strait of Hormuz, located between Oman and Iran, carries about one-quarter of global seaborne oil trade, along with significant volumes of liquefied natural gas and fertilizers, such as urea and ammonia.
“Much of the fertilizer that goes through the Strait of Hormuz does go to countries or to economies in Southeast Asia, and the disruption of the fertilizer supplies could certainly lead to difficult food security issues,” WTO chief economist Robert Staiger said in a press briefing during the 14th Ministerial Conference here.
Staiger said the conflict could slow down economic activity and trade in the region, given their dependence on fuel and fertilizer imports.
“Many of these economies import oil through the Strait of Hormuz and this is likely to reduce economic activity and trade in the usual way that oil-importing countries would be hurt by a rising crisis,” he told reporters.
Asia seen to grow 3.9%
In its latest global trade outlook, the WTO projected that Asia’s gross domestic product (GDP) would grow by 3.9 percent under a baseline scenario, higher than the global forecast of 2.8 percent.
“However, depending on the length and severity of this conflict and the corresponding effects on energy prices, GDP growth rates could fall to 2.5 percent globally, with negative impacts most acutely felt in net energy-importing regions, namely Europe and, to a lesser extent, Asia,” the report read.
The Philippines is a net importer of fuel and fertilizer, making the country vulnerable to global price spikes and supply shocks. Prices of these farm inputs have risen significantly since the Middle East conflict began in late February.
Prices of urea (prilled), the most widely used fertilizer, range from P1,710.88 to P2,250.94 per 50-kilogram bag, data from the Fertilizer and Pesticide Authority showed.
Although the Philippines is assured of sufficient food supply in the coming months, Agriculture Secretary Francisco Tiu Laurel Jr. warned that any sustained increase in production costs could begin to affect rice prices by August.
To alleviate the impact of rising farm input costs, the Department of Agriculture (DA) has started distributing subsidies and financial assistance to eligible farmers and fishers nationwide, coming from both its 2025 budget and the P10-billion Presidential Assistance for Farmers and Fisherfolk Program.
“The bulk of the distribution of assistance will be after the Holy Week,” the DA said in a statement earlier.
