DEPARTMENT of Agriculture Secretary Francisco Tiu Laurel warns that rising fuel costs could translate to about two million metric tons in reduced production, as higher oil prices continue to drive up farm inputs and transport costs. The agency has begun rolling out financial assistance but Tiu Laurel said there would be a need for additional funding if the MidEast crisis is prolonged.  PHOTOGRAPH courtesy of Philippine News Agency
BUSINESS

Tiu Laurel warns of triple global shocks

Mico Virata

Agriculture Secretary Francisco P. Tiu Laurel Jr. sounded the alarm over a convergence of global disruptions now testing food systems, saying climate volatility, geopolitical conflict, and disease outbreaks are simultaneously straining agricultural production and policy response.

Speaking after the 14th World Trade Organization (WTO) Ministerial Conference at a workshop in Pasay City, Tiu Laurel described the current environment as unusually difficult for policymakers managing food supply and trade.

“I guess we started in a negative note. In a sense, we are in the wild, wild west at this moment,” he said. “I think it’s also the worst time to be the secretary of agriculture.”

The agriculture chief pointed to increasingly erratic weather patterns linked to climate change, including repeated El Niño and La Niña cycles that disrupt planting and harvest cycles. These are compounded by ongoing threats such as African swine fever and avian influenza, which continue to affect livestock supply and drive price pressures.

He also cited geopolitical tensions, including the Russia-Ukraine war, as well as lingering pandemic effects that have unsettled global supply chains and triggered periodic export restrictions on key commodities.

“As a businessman before, this is kind of normal,” he said. “Sometimes exports are cut, there is ASF here, bird flu there, supply chains are disrupted. So I kind of see this as normal, but a little bit extreme this time.”

Tiu Laurel said the overlapping nature of these risks signals a shift from isolated disruptions to a more persistent pattern of global instability, requiring governments to adopt more flexible and market-oriented strategies.

For the Philippines, he identified production cost inefficiencies as a major constraint, citing gaps in infrastructure and logistics that undermine competitiveness.

“What we have to tackle is the low cost of producing products, which would involve infrastructure and logistics,” he said.

While noting that the country remains competitive in product quality and marketing, he stressed that cost structures will ultimately determine the resilience of both domestic supply and export performance.

Despite the challenges, Tiu Laurel underscored the continued relevance of the World Trade Organization as a platform for dialogue in an increasingly fragmented global trade environment.

“As a venue alone, it is already important,” he said. “A place where people can talk and meet always helps, especially in situations like this.”