By Kenneth Marcos Escalating geopolitical tensions in the Middle East are expected to push global urea
fertilizer prices sharply higher once again, renewing pressure on the Philippines’
import-dependent agriculture sector and prompting renewed calls for a decisive shift
toward locally developed biofertilizers.
In a formal letter submitted to President Ferdinand R. Marcos Jr., farmer and science
groups warned that renewed instability in major fertilizer-exporting regions—particularly
Iran and nearby gas-producing states—could trigger another surge in nitrogen fertilizer
prices similar to the 2022 spike that sent urea costs to nearly ₱3,000 per bag.
The letter stressed that the Philippines imports about 90 percent of its fertilizer
requirements, leaving farmers vulnerable to global supply shocks, export restrictions,
sanctions, and armed conflict. Urea production is highly dependent on natural gas,
much of which is sourced or transported through politically sensitive areas in the Middle
East.
“Any disruption in gas supply or shipping routes in the region immediately translates into
higher urea prices worldwide,” the letter noted, adding that current tensions could
reverse recent price easing and force government to spend billions more on fertilizer
subsidies.
The groups pointed out that while the government has historically responded to fertilizer
crises with subsidies for imported urea, this approach deepens dependence on volatile
foreign markets. They instead urged Malacañang to mandate the use of locally
developed biofertilizers, particularly Bio N, a nitrogen-fixing microbial input developed by
scientists at the University of the Philippines Los Baños (UPLB).
Bio N uses naturally occurring Azospirillum bacteria to fix atmospheric nitrogen and
reduce the need for synthetic fertilizer. According to decades of field validation cited in
the letter, the technology can replace 30 to 50 percent of chemical nitrogen
requirements for rice and corn, improve yields, and significantly lower production costs
for farmers.
The appeal highlighted Brazil’s experience as a cautionary comparison. Brazil has
widely adopted similar microbial fertilizers and now reportedly saves up to $25 billion
annually by reducing dependence on chemical nitrogen inputs. The Philippines, by
contrast, continues to spend billions of pesos each year subsidizing imported urea
despite having comparable homegrown technology.
Signatories argued that the current global situation—marked by renewed Middle East
instability, lingering export controls from major suppliers, and sanctions affecting
fertilizer trade—makes inaction increasingly risky.
“The next urea shock is not hypothetical,” the letter said. “It is a question of when, not
if.”
The groups urged the President to issue an executive order directing the Department of
Agriculture to prioritize Bio N and other vetted “Tatak Pinoy” biofertilizers for rice and
corn production, integrate them into the fertilizer voucher system, and reduce reliance
on imported chemical inputs.
They also emphasized that production capacity already exists locally, noting that a Bio
N manufacturing facility is operational and ready to supply nationwide demand if backed
by clear government policy.
With planting seasons approaching and global fertilizer markets once again on edge,
the letter framed the decision as both an economic and food security imperative—one
made more urgent by unfolding events far beyond Philippine borders.