Agri-food sector under pressure as climate risks and global shocks intensify

New reports flag rising food costs even as investors stay confident in the Philippines.

The Philippines is emerging as one of the most climate-exposed food systems in Southeast Asia, with rising temperatures and extreme weather increasingly shaping what ends up on kitchen tables.

Food Industry Asia (FIA), a Singapore-based non-profit organization of multinational food and beverage companies, said the country stands out among major ASEAN economies as one of the most vulnerable to heat stress, typhoons, and flooding, all of which directly affect agricultural output and supply chains.

The multi-billion dollar vulnerability

An Oxford Economics study commissioned by the FIA and the ASEAN Food and Beverage Alliance found that climate change has added around 6% to food prices in the country over the past decade. It also warned that climate-related shocks, combined with energy transition costs, could push food prices up by as much as 59% in the coming years if structural gaps remain unaddressed.

The same report pointed to the country’s exposure to external pressures, including changes in United States trade policy and global energy volatility, which could further strain a net-import-dependent food system.

Unshaken investor faith 

Despite these risks, investor confidence in the national food and beverage sector remains steady. FIA said foreign firms continue to view the country as a key market for expansion, with ongoing plans for hiring and growth despite geopolitical uncertainties.

Overall, the sector contributed $164.4 billion to the gross domestic product last year and currently supports millions of jobs, underscoring its weight in the national economy.

 

 

Eating is getting pricier. A new Oxford Economics report warns climate change could trigger a 59% food price spike in the Philippines.