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The Role of Mineral Fertilizers in Transforming Philippine Agriculture

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  • Briones, Roehlano M.

Abstract

Fertilizer policy in the country has evolved from pervasive interventionism in the 1970s to today`s market-oriented regime. Government has abandoned price policies and subsidies, focusing rather on standard setting, quality regulation, and training. Over the same period domestic demand for fertilizer has continually been increasing, though recently resurgent fertilizer prices have reduced total utilization. Evidence suggests that farmers are under-applying fertilizer, thereby forfeiting efficiency gains at the margin. On the supply side, imports have in the past few decades emerged, as the main source of fertilizer as domestic production has dwindled. With deregulation, numerous private sector players have taken over the distribution of fertilizers; analysis of the supply chain points to low marketing margins. Integration analysis fails to find systematic arbitrage opportunities between the domestic and world markets. Within the domestic market, however, there remain large disparities in prices across regions. Priorities for research and policy are therefore understanding the behavior of farmers in terms of fertilizer application and addressing internal price disparities, perhaps by improved transport infrastructure and logistics.

Suggested Citation

  • Briones, Roehlano M., 2014. "The Role of Mineral Fertilizers in Transforming Philippine Agriculture," Discussion Papers DP 2014-14, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2014-14
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    References listed on IDEAS

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    1. repec:phd:pjdevt:jpd_1981_vol__viii_nos__1&2-b is not listed on IDEAS
    2. Abedullah, & Pandey, Sushil, 2004. "Risk and Fertilizer Use in the Rainfed Rice Ecosystem of Tarlac, Philippines," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(1), pages 241-250, April.
    3. N/A, 1985. "Asia," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 80-87, January.
    4. Richard T. Yao & Gerald E. Shively, 2007. "Technical Change and Productive Efficiency: Irrigated Rice in the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 21(2), pages 155-168, June.
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    Cited by:

    1. Weerahewa, Jeevika & Senaratne, Athula & Babu, Suresh, 2021. "Reforming Fertilizer Import Policies for Sustainable Intensification of Agricultural Systems in Sri Lanka: Is there a Policy Failure?," PRCI Policy Research Notes 320705, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.
    2. Keiichi Hayashi & Lizzida P. Llorca & Iris D. Bugayong & Nurwulan Agustiani & Ailon Oliver V. Capistrano, 2021. "Evaluating the Predictive Accuracy of the Weather-Rice-Nutrient Integrated Decision Support System (WeRise) to Improve Rainfed Rice Productivity in Southeast Asia," Agriculture, MDPI, vol. 11(4), pages 1-13, April.
    3. Galang, Ivory Myka R., 2014. "A Spatial Integration Analysis of the Regional Fertilizer Markets in the Philippines," Discussion Papers DP 2014-36, Philippine Institute for Development Studies.
    4. Briones, Roehlano M. & Dela Pena, Beulah, 2015. "Competition Reform in the Philippine Rice Sector," Discussion Papers DP 2015-04, Philippine Institute for Development Studies.

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    Keywords

    competition; Philippines; market integration; fertilizer policy; fertilizer demand;
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