Shortages in key food stocks seen by yearend By Jasper Emmanuel Y. Arcalas @jearcalas
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HE Philippines could end the year with thin or deficit stocks in key commodities like pork, fish, corn and onion as overall supply falls short of the country’s total demand. The country may suffer shortages in corn, onion and fish while it could face a thin supply of pork by the end of the year, according to the Department of Agriculture’s (DA) presentation during a House Committee on Agriculture and Food hearing. The DA’s presentation showed that the country would have a 712,206 metric tons (MT) deficit in corn supply
intended for feed consumption at the end of the year, which is equivalent to 31 days of stocks. The country’s total corn supply, which takes into account both local production and imports, is estimated at 7.667 million metric tons (MMT), 8.5 percent lower than the 8.379 MMT overall estimated demand of the feed industry. Broken down, 5.379 MMT would come from local corn production while the remaining 2.287 MMT would be imported feedstock, a combination of both yellow corn and feed wheat. The country is estimated to import 505,195 MT in yellow corn and
1.782 MMT in feed wheat this year to somehow fill the gap in its shortfall of feed supply, according to the DA. The DA presentation indicated that the country could face a 38-day shortfall in fish supply. Based on the department’s estimates, total fish supply this year is pegged at 3.267 MMT, insufficient to meet the 3.625 MMT estimated total demand. The DA’s presentation pegged local production at 2.928 MMT while imports could reach 338,798 MT. For onion, the country is expected to suffer a three-day shortage as total supply of 285,781 MT falls short of meeting the 288,018 MT total es-
timated demand, DA presentation showed. The country’s estimated onion supply deficit is at 2,237 MT. For the first time in history, the Philippines suffered an “onion crisis” late last year until earlier this year due to “insufficient” stocks, causing retail prices to shoot over P500 per kilogram. Meanwhile, the country’s pork supply would just be ample to meet the population’s total demand, ending the year with a surplus of 4,907 MT or good for one day stock. Based on the DA’s estimates, total pork supply this year is around 1.624 MMT while demand is at 1.62 MMT.
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PHL OCT BOP POSITION POSTS $1.5-B SURPLUS w
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Tuesday, November 21, 2023 Vol. 19 No. 41
P25.00 nationwide | 2 sections 24 pages |
By Cai U. Ordinario
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@caiordinario
OREIGN borrowings by the national government and higher remittance inflows were among the drivers of the country’s Balance of Payments surplus in October, according to the Bangko Sentral ng Pilipinas (BSP). The BSP said the country’s overall balance of payments (BOP) position posted a surplus of $1.5 billion in October 2023, higher than the $711- million BOP surplus recorded in the same month last year. This is the highest since the $3.081-billion surplus recorded in January 2023. This makes the October surplus the second highest for the year and one of only three months when the country recorded a surplus this year. “Largely brought about by the proceeds of the national government’s retail dollar bonds [RDBs] worth $1.26 billion during the month; so higher national government foreign debt partly led to the latest increase in the BOP and in the gross international reserves or GIR; as well as some investment income from abroad,” Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said. See “PHL,” A2
COMMUTER WOES Monday morning commutes in Parañaque City turned chaotic due to a transport strike, leaving passengers anxiously awaiting public transportation to reach their workplaces and appointments. In a desperate turn, some passengers even resorted to hanging on to jeepneys, putting their safety at risk. Responding to the three-day strike by transport groups, the Metropolitan Manila Development Authority (MMDA) took proactive measures by deploying light-duty trucks and buses to provide complimentary rides to those affected. NONIE REYES
PBBM LOOKING TO U.S. AS PHL CRAFTS OWN POLICIES ON A.I. By Samuel P. Medenilla
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@sam_medenilla
RESIDENT Ferdinand R. Marcos Jr. said his administration will look at the United States experience in crafting the country’s policy on Artificial Intelligence (AI). The chief executive said he wants to study the US experience as it implements the Executive Order signed by President Joe Biden last month containing guidelines to balance the needs of AI developers with national security and consumer rights. “So we will continue to look to the United States...to provide the guidance and the lessons... And hopefully apply that in the Philippines,” Marcos said during his participation at the foMARCOS rum organized by the Asia-Pacific Center for Security Studies in Hawaii last Monday. See “PBBM,” A2
Price hikes not seen to slow, India rice export ban is key
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S the year of high inflation comes to a close, Filipinos may not be able to see price increases slow down next year, especially with the recent decision of India to extend its rice export ban to 2024. Rice, the country’s food staple, could remain expensive next year given the ban on exports of the commodities. The ban imposed by India could make the international prices of rice elevated, at least by the middle of 2024. Philippine Institute for Development Studies (PIDS) Senior Research Fellow Roehlano Briones said, however, that this
is not considered a major shock since current prices have already incorporated this. “This was expected owing to the timing of their election. The high price limits imports which domestic production has been unable to compensate for. Rice prices will remain elevated and temporar ily boost inf lation,” Briones told BusinessMirror on Monday. “Nothing much to do except perhaps [provide] targeted food safety net for the poor such as food stamp. In the long run, pursue productivity growth in rice industry,” he added. See “Price,” A2
PESO EXCHANGE RATES n US 55.6450 n JAPAN 0.3719 n UK 69.3615 n HK 7.1386 n CHINA 7.7140 n SINGAPORE 41.4180 n AUSTRALIA 36.1637 n EU 60.7310 n KOREA 0.0430 n SAUDI ARABIA 14.8379 Source: BSP (November 20, 2023)