Urgent need to boost our agri-food sector

Two announcements made last week by officials of foreign governments are threatening to upend efforts to pull down food prices in the Philippines. The first happened in Russia on July 17, when Kremlin Spokesman Dmitry Peskov announced his nation’s decision to halt a wartime deal that allows grain to flow from Ukraine to countries in Africa, the Middle East and Asia. (See, “Russia halts wartime deal that allows Ukraine to ship grain in a hit to global food security,” in the BusinessMirror, July 17, 2023). A few days after, New Delhi ordered a ban on exports of non-basmati white rice to prevent prices from rising further, according to a report published by Reuters on July 20.

Russia’s decision to stop allowing the shipment of grains from Ukraine immediately caused wheat and corn prices to rise. BBC News reported last week that wheat prices on the European stock exchange soared by 8.2 percent on July 19 while corn prices went up 5.4 percent. Meanwhile, United States wheat futures jumped 8.5 percent, their highest daily rise since Russia attacked Ukraine in February 2022.

As for India’s decision to ban the export of non-basmati white rice, New Delhi made the announcement after its retail prices climbed 3 percent in a month. What compounded the supply situation for India is the significant damage to crops caused by heavy monsoon rains. India is regarded as the world’s largest rice exporter and its decision to limit its exports of non-basmati white rice would put pressure on supplies and prices of rice offered by other major exporters of the staple.

These developments would only mean more expensive commodities for countries that purchase huge volumes of imported food like the Philippines. (See, “PHL at risk in Russia-Ukraine grain deal halt,” in the BusinessMirror, July 19, 2023). Limited wheat supplies could make other grains like rice and corn more expensive, particularly if wheat-consuming nations shift to other alternatives if the product becomes more expensive. Apart from higher grain prices, products that make use of wheat, such as animal feeds, could become more expensive.

The Philippines is more partial to rice, which it also imports to plug the perennial gap in domestic production. While the country sources most of its imported rice requirements from Vietnam, the government must prepare for the eventual reduction of rice supplies from our Southeast Asian neighbor. This is because Vietnam announced in May that it will limit its exports of low-quality grains by 2030.

Unfortunately for countries like the Philippines, there is little they can do to stop exporters from putting caps on their shipments or from halting trade deals. What’s compounding the problem of nations dependent on food imports is that farms in exporting countries, like Vietnam, are shrinking due to climate change, while other planters are leaving their farms altogether.

The global food security challenge is partially made worse by the growing number of food trade restrictions put in place by countries that want to ensure domestic supply to manage surging prices. It would do well for authorities to strengthen the country’s food security by helping boost the capability of the local agri-food sector. This is the best way to shield the Philippines from surging food prices caused by export bans and geopolitical conflicts.

US military power display jars with Australia’s diplomacy

By Ben Westcott

Australian and US forces on Saturday begin two weeks of drills as part of “Exercise Talisman Sabre.”

It will be the largest version of the regular military exercises yet, with 30,000 personnel from about a dozen countries participating, including in livefire drills and amphibious landings off Australia’s northeast coast.

At the same time, the US will officially commission a new vessel in Sydney, the USS Canberra, one of just a handful of warships to be commissioned outside of American waters.

The ship is named after Australia’s capital city.

The show of unity and strength highlights the new level of US-Australia ties as Washington aims to assemble a coalition of like-minded states to discourage potential Chinese aggression. Australia’s position between the Indian and Pacific Oceans, its proximity to the region and its eight-decade alliance with Washington make it a perfect partner.

Yet Australia is also in a complicated spot. Not only is China its largest

Australian and US forces on Saturday begin two weeks of drills as part of “Exercise Talisman Sabre.” trading partner and the key driver of its prosperity over the past 20 years, but the center-left government has sought to forge a more independent foreign policy stance since taking office in May 2022 to avoid being seen as a US proxy.

The high-profile military exercises might suggest otherwise to a skeptical regional audience.

Melissa Conley Tyler, executive director of the AP4D foreign policy think tank, said while the government under Prime Minister Anthony Albanese had softened its diplomatic rhetoric and language in the past year, the US alliance would always be a cornerstone of Australia’s foreign policy.

“I think for a lot of Southeast Asians they do find it hard to understand the closeness of Australia’s relationship with the US,” she said.

Next week, the Biden administration’s top defense and foreign affairs officials jet into Australia for an annual meeting with their local counterparts. Secretary of State Antony Blinken and Secre- tary of Defense Lloyd Austin are expected to meet with Foreign Affairs Minister Penny Wong and Defense Minister Richard Marles in Brisbane.

It will be the largest version of the regular military exercises yet, with 30,000 personnel from about a dozen countries participating, including in livefire drills and amphibious landings off Australia’s northeast coast.

“Australia’s defense cooperation with the United States is unprecedented in scale, scope and significance,” Marles said in a statement ahead of the visit. “Australia will continue to work with our partners, including the United States, to build a region that is peaceful, stable and prosperous.”

Under former center-right Prime Minister Scott Morrison, diplomatic and military ties between Australia and the US grew closer than ever, including the AUKUS partnership that was signed by Morrison. Under the deal, Australia will purchase a fleet of nuclearpowered submarines from the US, among other technological partnerships.

Global space spending projected to grow 41 percent over the next five years

By Loren Grush & Tyler Kendall

Th E global space economy grew 8 percent to $546 billion in 2022 and is projected to climb another 41 percent over the next five years, according to a leading space nonprofit.

The sector is expected to show resiliency in the coming years, despite uncertainty about the global economy and a recent slowdown in space investment.

Companies are seeing continued revenue growth from commercial space assets and governments around the world boosting expenditures, according to a report from the Space Foundation, a Colorado Springs, Colorado-based space flight advocacy group. The analysis considered spending from 51 governments, as well as commercial revenue from companies in 11 space industry sub-sectors.

“Commercial space is the vital growing sector of the overall space economy,” Lesley Conn, director of research and digital programming at the Space Foundation, said in an interview. “Within five years, certainly you’re going to see a real acceleration and an expansion of space and space assets.”

Companies in the space industry grew revenue to $427.6 billion in 2022, up from a revised $396.2 billion the year before. One-third of that flowed from infrastructure and support for activities in space, such as ground stations used for satellite communication. The remaining came from space-based products— namely satellites. The single biggest business was the sale of position, navigation and timing, or PNT, satellite data, which made up 39 percent of all commercial revenue.

That resilience reflects in part the long development lead times of space programs and the prevalence of public-private partnerships, the report said. Those attributes help sustain funding, even when the economy is uneven.

Companies in the space industry grew revenue to $427.6 billion in 2022, up from a revised $396.2 billion the year before. One-third of that flowed from infrastructure and support for activities in space, such as ground stations used for satellite communication. The remaining came from spacebased products—namely satellites. The single biggest business was the sale of position, navigation and timing, or PNT, satellite data, which made up 39 percent of all commercial revenue.

The growth in 2022 came despite venture capital volatility as markets reacted to rising interest rates and access to funding grew scarce for many startups. Private

But since the change of government 14 months ago, Labor Prime Minister Anthony Albanese and his team have sought to pivot Australia back to a more centrist foreign policy. In speeches earlier this year, senior Australian ministers emphasized the importance of regional powers and played down the need for a binary choice.

The Asia-Pacific region is not an “arena for the ambitions of others,” Albanese said in Singapore last month, adding that major powers had a responsibility to maintain stable relations with each other.

It was an unsubtle message to both China and the US. “I can assure you, that when Australia looks north, we don’t see a void for others to impose their will,” the Australian leader said.

Herve Lemahieu, director of research at the Sydney-based Lowy Institute, said there was a risk that Australia could be seen as speaking one way in Southeast Asia and then later behaving differently when talking to the US.

He said the government was trying to “have your cake and eat it” but there was a tolerance for Australia’s closeness with the US in Southeast Asia. “There is a window of opportunity here to try and seize that moment to nuance in our diplomacy,” he said. bloomberg investment flows into space ventures slowed to $20 billion last year, down from a record $47.4 billion in 2021, according to a separate report from Space Capital, a venture capital firm that invests exclusively in space-based technology.

SpaceX setting pace

COMMERCIAL revenue grew handin-hand with a surge in orbital launches. A total of 186 launches were attempted in 2022, up from 145 the previous year, the Space Foundation said. Commercial launches accounted for 81 of those, 50 of which were conducted by Elon Musk’s industry-leading SpaceX. The company’s launch cadence has increased substantially in recent years as it launches batches of its own Starlink satellites into space to provide global broadband internet coverage to Earth.

Spending by governments on space programs grew 8 percent to a combined $119 billion last year,