Abstract

The Philippines, as a net importer of fertilizer, is vulnerable to the rising fertilizer prices due to Covid 19 pandemic causing fertilizer shortages around the globe, higher input costs and fuel prices, disruption of production and trade, including geopolitical disputes (Russia and Ukraine). The study was aimed to analyze fertilizer import prices and dealer prices to provide proposals for importation, marketing, pricing, and other policy recommendations.

Results reveal that import prices vary from country to country and started to increase in early 2021. From February to April 2022, the lowest average import price of Prilled Urea is from Uzbekistan ($648.00/MT), Granular Urea from China ($602.00/MT), Ammosul from Japan ($296.58/MT), Complete fertilizer from Korea ($608/MT), Ammophos from Korea ($490/MT), MOP from Jordan ($570.37/MT), and DAP from China ($900/MT), thus automatically affecting regional dealers prices due to archipelagic situation that entails additional logistical cost. Prilled Urea had the highest price in Region VI (Php 2,814.83) and the lowest in Region XIII (Php 2,536.11); Granular Urea was high in Region V (Php 2,826.33) and low in Region VII (Php 2,430.00); Ammosul was high in CAR (Php 1,533.65) and low in Region XI (Php 1,302.31); Complete fertilizer was high in CAR (Php 2,220.37) and low in Region XII (Php 1,793.50); Ammophos was high in Region V (Php 1,948.55) and low in Region XII (Php 1,583.54); MOP was highest in Region IX (Php 2,054.51) and lowest in Region II (Php 1,749.20); and DAP was highest in Region VII (Php 2,944.30) and lowest in Region VIII (Php 1,883.33). This indicates that average prices of different fertilizer grades are generally lower in nearby seaports (i.e. Regions III, XI, XII, and XIII).

Likewise, variation in dealer’s prices is influenced more by the company, brand and logistical cost hence, the incorporation of Suggested Retail Price (SRP) and Maximum Retail Price (MRP) should be calculated based on the source of origin and be institutionalized by the Department of Agriculture (DA) and Department of Trade and Industry (DTI) centered on the location where the fertilizers are locally sold, and the government should open up bilateral agreement with countries (G2G) producing fertilizers for lesser acquisition cost.

1 Deputy Executive Director – Fertilizer and Pesticide Authority; National Program Director – Special Area for Agricultural Development (SAAD) Program; *Corresponding Author; email: dedfmyer.fpa@gmail.com 

2 Economist II – Fertilizer and Pesticide Authority, Department of Agriculture