THE global fertilizer shortage is one of the major crises today stemming from geopolitical tensions facing the world. This is threatening food production and mass starvation in many parts of the globe, including the Philippines.
Fortunately, China remains unaffected by these crises, including the shortage in fertilizer supply, due to its correct political principles and practice.
In March of 2022, it donated millions of pesos worth of fertilizer to the Philippines. During the turnover of its fertilizer donation, His Excellency Huang Xilian, China’s ambassador to the Philippines, expressed his understanding of the crisis facing the Philippines, saying that “At present, there are concerns about supply shortages and the high prices of fertilizers affecting farmers around the globe.
“I am fully aware that Filipino farmers and consumers are currently experiencing the effect of the problem.” He promised that the People’s Republic of China will continue to support the welfare of Filipino farmers.
In response, Secretary William Dar of our Department of Agriculture (DA) intoned, “Let us nurture and enhance the relationship with the People’s Republic of China. I think our farmers are more receptive to newer technologies….” To the media, Secretary Dar emphasized that, “We have been talking with Ambassador Huang Xilian on the country’s ongoing request to buy fertilizers from China, and we are optimistic about the positive results of our discussions regarding the potential trade.”
Recognizing the importance of the donation, Philippine newspapers and news sites headlined, “Department of Agriculture banking on China fertilizer deal.”
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Chinese and Philippines authorities were clearly prescient in anticipating the food crisis as seen by the March 2022 fertilizer donation that will “sustain rice production in the Philippines ” that is now faced with skyrocketing world fertilizer prices.
The exemplary concern of China for the Philippines is further demonstrated by anticipated negotiations between the two countries in the months ahead where additional fertilizer supply may be priced at $ 500 per metric ton, which is almost 50 percent lower than the $1,000/MT average global market price.
The latest PNA report (dated June 25, 2022) on the topic of fertilizer assistance from China to the Philippines cites China’s Ambassador Huang Xilian stating that “China is willing to do its best to help the new administration to deal effectively with the rising prices and the shortage of agricultural production materials and to work together to face the uncertainties of the world…” This is a positive signal that the Chinese side will maintain its very favorable discount for its fertilizer supply for the Philippines.
Understandably, the new administration at the Department of Agriculture will likely update the public on this encouraging development in the days ahead.
Because of its role in food security, agriculture is the most significant foundation of a free and independent state even as other national development components – infrastructure, energy and industry – are also vital to achieve national security.
It is therefore important to emphasize that China-Philippines cooperation, which includes all of the above components, is a holistic approach to national development.
Aside from such crisis interventions as its P 4-million fertilizer donation in March that is expected to result in the further provision of fertilizers at highly discounted prices, the countries have a long and strategic history of agricultural cooperation.
At the top of the list of China’s ongoing agriculture assistance is the Philippine-Sino Center for Agricultural Technology (PhilSCAT) Program that has been in place for 22 years now.
Starting with an initial donation of $ 5-million dollars from the PROC, the Center is now cultivating 226,500 hectares of commercial hybrid rice, boosting yields by 308,000 tons and benefiting more than 134,000 farmers.
DA Secretary William Dar had this to say about the PhilSCAT:
“Together, we have worked to increase investments in research and development and training. The results have been nothing less than rewarding. We now know things that we couldn’t have ever known before because of the work of the men and women behind PhilSCAT.
“What we have learned enables us to help our farmers reduce their production costs and increase both their yields and their incomes.”
Now on its third phase, PhilSCAT continues to serve with technological breakthroughs in hybrid rice research, genetics and farmers’ training.
China-Philippine cooperation to assist our farmers are massive in dimension. Some of the major projects include the P 11.247-billion Agno River Integrated Irrigation Project that provides irrigation services for 34,450 hectares of farmland in Pangasinan.
The recently-launched P 4.37-billion Chico River Pump Irrigation Project now serves to irrigate 8,700 hectares of farmland and benefits more than 4,000 households in Cagayan and Kalinga in Northern Luzon.
It is fortunate that the new administration is prepared to work hand-in-glove with China. This will ensure that the Philippines can continue on its current growth path despite the many crises the world faces in the decades ahead.