Taal eruption threatens pork, chicken from Calabarzon: PNB research

ABS-CBN News

Posted at Jan 15 2020 12:21 PM

Meat is arranged at a public market stall in Antipolo City. PNB research warns Taal Volcano's explosion on Jan. 12, 2020 could disrupt chicken and pork supply. Jonathan Cellona, ABS-CBN News/file

MANILA -- Food prices could spike because of the Taal Volcano eruption, which affected one of the country's top sources of chicken and hogs, Philippine National Bank said in a research note Wednesday.

The Calabarzon region, south of Manila, is the country's second largest producer of both live chickens and hogs, PNB said.

Coupled with a strong typhoon at the close of 2019, the volcanic eruption could "take its toll on inflation rather than on domestic demand that could undermine GDP prospects," PNB said.

However, food price shocks due to natural disasters usually don't last once imports are brought in and businesses normalize operations, it said.

"Significant" government and private sector spending on rebuilding and recovery will help compensate for the downside risks, the bank said.

"Post-disaster, domestic demand prospects in the affected regions can easily recover with a strong fiscal response," it said.