The Department of Agriculture (DA) announced on Tuesday that the government intends to break ground for the Philippines' first fertilizer plant within the year, aiming to provide a long-term solution to the surging global fertilizer prices exacerbated by tensions in the Middle East.
Government Approval and Timeline
In a press conference, DA Undersecretary Roger Navarro confirmed that President Ferdinand R. Marcos Jr. and Executive Secretary Ralph Recto have authorized the exploration of domestic fertilizer production. "We have a plan to construct a manufacturing plant for fertilizer, and this was already approved by the President during one of the Cabinet meetings," Navarro said. He added that if the feasibility study is completed by August or September, groundbreaking could occur in November or December 2026, with construction potentially finishing by 2027. "By 2027, we'll be able to put up the plant, and before the end of 2027, we will have our own urea fertilizer plant," he stated.
Feasibility Study and Funding
The DA is seeking a USD 1 million grant from the Asian Development Bank (ADB) to conduct the feasibility study, according to DA spokesperson Assistant Secretary Arnel de Mesa. The project proposal approval is expected within two weeks. Meanwhile, the DA is in talks with ASEAN partner governments, including Malaysia, Indonesia, and Brunei Darussalam, to source fertilizers in the interim.
Current Fertilizer Prices and Support
The agency has utilized PHP 500 million from its quick response fund to procure biofertilizers for farmers. According to the Fertilizer and Pesticide Authority, current prices are PHP 1,926.56 to PHP 2,748.44 per 50-kilo bag for urea-prilled, PHP 2,438.67 for urea-granular, and PHP 1,806.76 for complete (14-14-14) fertilizer. The planned plant aims to stabilize these costs and reduce dependence on imports.
