The government does not expect the war in Israel to have any deep or lasting impact on agricultural production but acknowledged fuel prices could suffer.
“The government of Israel has been a long-time partner in various initiatives, particularly in water management and fertilization, and so we hope for the immediate resolution of the conflict in the Middle East,” said Arnel de Mesa, DA assistant secretary for operations.
According to him, the Philippines imported $3.28 million worth of fertilizer from Israel in 2022 and from January to October this year, 4,555 metric tons of muriate of potash were imported, based on data from the Fertilizer and Pesticide Authority.
Israel has also been buying desiccated coconut, pineapple juice and concentrates and other mixtures from Filipino producers as part of the trading agreement between the countries.
The Philippines imported various processed products from Israel, including orange and grape juice as well as other fructose.
DA said Israel last year purchased various Philippine products reaching 3,441,855 kilos but that in the first six months this year those purchases already reached 3,366,963 kilos.
At the Department of Energy (DOE), officials said the war is not expected to have a long-term effect on fuel prices.
“We do not expect the effects of the attacks on Israel to oil and gas pricing to be long term, unless the conflict escalates. We do not directly source supply from Israel but its neighbors in the Middle East, almost all of them are our sources of crude oil,” said Rodela Romero, assistant director of the Oil Industry Management Bureau.
Romero said the price of crude has increased by $3 to $4 but ruled out an immediate increase in fuel prices.
He noted the global outlook is a supply deficit of crude oil until yearend which may be tempered by central bank interest rate adjustments, a stronger US dollar and weaker growth of the world’s top economies.
