FPA Chief clarifies fertilizer price issues, lays out DA-FPA’s counter-measures

Written by Wendycharlene B. Almasen, Senior Administrative Officer I   l   Published: 02 February 2022

QUEZON CITY, February 2, 2022  – The Fertilizer and Pesticide Authority (FPA) Executive Director Wilfredo Roldan explains the basis for global fertilizer price shoot-up and the Agency’s actions in addressing current market conditions in the Department of Agriculture’s (DA) 165th Virtual Presser IATF Task Group on Food Security on January 31, 2022.

With the Spokesperson and Assistant Secretary (ASec) for Strategic Communications Noel Reyes, FPA Executive Director Roldan eased the public’s wariness and raised awareness regarding global-political reasons for fertilizer price hikes. The two officials also discussed the status of actions taken by the Agency to mitigate the situation.

During the exchange, Director Roldan pointed out the shortage of supply in the global scene as the primary reason for price movement. As COVID-19 progresses, fertilizer supply has greatly declined as countries halt their international exportation to strengthen their local food production. 

The Philippines’ absence of raw materials for fertilizer production leads to its great reliance on importation and even the tagged locally-produced agri-inputs are made from imported raw materials.

Complementary factors are traced back to the sudden increase of demand for Urea, increase in agricultural lands in Canada, and an increase in livestock in Brazil.

The DA and the FPA in immediate response have negotiated with other fertilizer-producing countries such as China, Indonesia, Malaysia, and Iran. The Agency is now in coordination with China, while Indonesia started releasing stocks for our local distribution, however, Iran’s banned status imposed by the United States prevents direct negotiation with the country. Currently, the Philippines have 200,000 metric tons of fertilizer available for the coming cropping season

For the agencies’ stronger and longer-term measures, the adaption of the Balance Fertilization Strategy (BFS) aims to utilize both organic and inorganic fertilizers to protect soil health and aid in maximization of crop yield potentials has been in the position to be implemented. As directed by the DA, the FPA took the lead in studying and promoting the utilization of BFS along with other bureaus and agencies such as the Bureau of Animal Industry (BAI), Bureau of Soils and Water Management (BSWM), Agricultural Training Institute (ATI), Bureau of Agricultural Research (BAR), Bureau of Plant Industry (BPI), among others. The project aims for continuous innovation of production, and utilization of technologies and strategies on fertilizer use practice to halt the country’s dependence on inorganic and imported fertilizer.

When asked if a price freeze for fertilizer products is possible, Director Roldan responded that such a proposal would be difficult as the global market scene dictates the actual price accumulated from the importer down to the sellers. (For a more detailed explanation, read Rising Fertilizer Prices: A Reality: http://bitly.ws/ofZd)

FPA chief also laid down an option for cooperatives and groups in the Philippines to a direct import negotiation to cut fertilizer price, however, with the global supply shortage, only one group in Isabella managed to get through. Further, ASec Reyes commented that the Isabella cooperative can be a model for future agricultural federations' direct facilitation of fertilizer importation. This way, local distributors have wider control over the distribution and marketing of imported fertilizer.

The FPA chief concluded the presser with a call to look at the situation from a more proactive perspective saying, “The difficulty we experience today is an opportunity in fact for the innovation of the agricultural sector.” This is in relation to a multi-sectoral collaboration for more resilient and sustainable measures to diminish import reliance and improve the agroecosystem in the country.

He added, “[To the farmers,] Trust in your government because the government is trying everything to increase your production and your income as far as agricultural products are concerned.”

The virtual presser was released on PTV4, RTVM DA Facebook page on February 1, 2022, and is still viewable on DA’s Facebook page. ###

Source: Department of Agriculture Facebook Page, https://fb.watch/aVQiFxlzex/