PHL in talks with China to obtain more fertilizer

By Kenneth Christiane L. Basilio, Reporter

THE PHILIPPINES is in talks to source more fertilizer from China, agriculture officials told Congress, citing the need to sidestep supply disruptions arising from the Iran war.

Other possible suppliers are being sounded out, Agriculture Undersecretary Roger V. Navarro said on Tuesday.

The Philippines sources nearly one-fifth of imported fertilizer from Persian Gulf suppliers, Fertilizer and Pesticide Authority Executive Director Glenn DC. Estrada said.

Mr. Estrada said the Philippines imports 108,000 metric tons of fertilizer from Qatar and 33,000 metric tons from Saudi Arabia, accounting for 15% and 4% of inbound shipments respectively.

Such types of fertilizer depend on natural gas as a raw material for producing ammonia and urea. Saudi fertilizer is less exposed to Gulf disruptions because the kingdom has ports on the Red Sea.

“We need to diversify our sources of international fertilizer,” Mr. Navarro told legislators at a congressional hearing. “We need to explore government-to-government talks in areas where there are supplies for fertilizer.”

Mr. Estrada said other major Philippine fertilizer suppliers are Indonesia (24%) and Vietnam (6%). China currently accounts for 18% of Philippine fertilizer imports.

The Philippine dry-season harvest is coming up, with the ongoing Iran war threatening to disrupt the agricultural yields of import-dependent nations.

“As a country that imports a significant volume of key food commodities and agricultural inputs, disruptions in international markets can directly affect domestic production costs, food availability and consumer prices,” Mr. Navarro said.

More than one-third of global fertilizer exports and raw materials must transit the Strait of Hormuz at the mouth of the Persian Gulf. Iran has attacked merchant shipping seeking to use the Strait.

The Philippines has about 86,300 metric tons of urea-based fertilizer in stock, and traders are expected to begin searching for supplies soon, Mr. Navarro said.

“Since we are approaching the harvest season, our industry stakeholders are only now bringing in supplies because they do not stockpile large volumes,” he said. “What they practice instead is just‑in‑time arrival.”

Mr. Navarro said the Department of Agriculture plans to partner with local governments to stretch out the fertilizer supply by providing bacterial cultures that can be mixed and distributed directly to farmers.

He added that authorities are watching fertilizer prices closely to detect instances of overpricing. A bag of fertilizer currently costs P1,500.