The Samahang Industriya ng Agrikultura (SINAG) sees prices of agricultural commodities increasing in the coming weeks.
The projection followed the United Nations Food and Agriculture statement Friday that world food prices hit an all-time high in March as Russia’s invasion of Ukraine sent “shocks” through markets for staple grains and vegetable oils.
The disruption in export flows resulting from the Feb. 24 invasion and international sanctions against Russia has spurred fears of a global hunger crisis, especially across the Middle East and Africa, where the knock-on effects are already playing out.
Russia and Ukraine, with vast grain-growing regions that are among the world’s main breadbaskets, account for a huge share of the globe’s exports in several major commodities such as wheat, vegetable oil and corn.
“World food commodity prices made a significant leap in March to reach their highest levels ever, as war in the Black Sea region spread shocks through markets for staple grains and vegetable oils,” the FAO said in a statement.
Interviewed on Dobol B TV during the weekend, SINAG president Rosendo So said, “We expect the prices of agricultural products to increase because the prices of raw materials are going up.”
However, So said the price hikes would not be sudden but gradual.
In particular, the harvest price of corn rose by P0.50 per kilo, according to the SINAG chief.
With this, So said that in the coming week “the production cost of farmers increased, thus the price of produce will also go up.”
He added the price of fish and vegetables would also increase.
For fish, So said that the price of bangus rose to P135 per kilo from P85 per kilo while the price of tilapia increased by P30.
The price of chicken, while there is no supply issue in the meantime, is also expected to increase.
He added the country might face a bigger problem if the avian flu would spread.
Price of pork is seen at P330 to P340 per kilo in Luzon, according to So.
For rice, So said that the group is not seeing an additional increase for now.
The FAO’s food price index, which had already reported a record in February, surged by 12.6 percent last month, “making a giant leap to a new highest level since its inception in 1990”, the UN agency said.
The index, a measure of the monthly change in international prices of a basket of food commodities, averaged 159.3 points in March.
