Food manufacturers and retailers are warning of potential long-term shortages as rising fuel costs and geopolitical tensions disrupt the steady flow of raw materials and finished goods into the Philippines.
At a House hearing, Philippine Chamber of Food Manufacturers Inc. (PCFMI) representative Steve Piczon flagged mounting global supply pressures, saying higher input costs and unstable supply chains are threatening the availability of key materials such as wheat, edible oils, and packaging.
The group cautioned that prolonged disruptions could gradually erode inventories, particularly for producers reliant on imported agricultural inputs, packaging materials, and energy-intensive processing.
While consumer demand remains steady, upstream supply has grown increasingly volatile due to geopolitical tensions, elevated freight costs, and tighter global market conditions.
Meanwhile, Philippine Retailers Association director Paul Santos said extended instability could ripple across supply chains, potentially leading to shortages of both raw materials and finished goods.
“On the long term, the effects would be the shortage of either finished goods or raw materials,” Santos told lawmakers, pointing to vulnerabilities in essential supply lines.
He added that rising fuel and logistics costs, coupled with possible shipping disruptions, may slow deliveries and constrain the availability of imported inputs needed for local production.
Retailers warned that sustained supply constraints could eventually translate into higher prices, reduced product variety, and tighter margins, particularly for essential goods.
Industry groups are urging the government to strengthen supply chain resilience by diversifying sourcing, boosting local production of critical inputs, and improving trade facilitation measures, including faster customs clearance for imported goods.
They said such steps will be crucial to mitigating risks and ensuring stable food supply as global uncertainties persist.
