Since its start back on Feb. 24, 2022, the conflict has affected the economic recovery of most countries, including the Philippines, still reeling from effects of the Covid-19 pandemic.
In Cebu, business leaders said the conflict exacerbated an already worsening situation as Cebuanos were not only recovering from the pandemic but also from Typhoon Odette (Rai).
Cebu Chamber of Commerce and Industry (CCCI) president Charles Kenneth Co told SunStar Cebu that the conflict led to the sudden increase in fuel and oil prices which eventually led to an increase in the prices of other commodities.
“Businesses tried to pass on higher costs to consumers. Delivery charges were imposed, (while) bakers adjusted their bread size or prices, and half lechon baboy and manok (roasted pig and chicken) became a fad,” Co said, adding that food sellers had to come up with new promotions to attract customers but at the same time, cut down expenses.
Mandaue Chamber of Commerce and Industry (MCCI) president Kelie Ko recounted that Cebu’s food and manufacturing industry were struggling during the first six months of the war.
“Everything was more expensive, and it was very hard to buy things. At that time, restaurants were very affected. Customers were often coming back to their places, but they (restaurant operators) could not serve due to the shortage of ingredients caused by the hardship in logistics,” Ko said in a mix of Cebuano and English.
Despite the struggle, the MCCI president said businesses understood that they have to shoulder the rising prices of raw materials and operational costs without passing these on to their customers.
“Though our margins and profits didn’t increase, we also understand that people are struggling and we cannot 100 percent pass the input cost to our customers,” Ko said.
Separately, Philippine Retailers Association (PRA) – Cebu Chapter chairman Robert Lim Go said although the minimum wage in Cebu increased from P404 to P435 last year, Cebuanos still struggled as the war brought about continuing inflation and a food crisis.
Go added that the war also affected retailers like him as it affected the cost of shipping and logistics.
“Some retailers and traders closed shop,” he said, adding that most businesses are now shifting their operations to digital and online as a way to cut costs.
Import bans on Russian gas and oil imposed by Western countries in response to Russia’s aggression has restricted their supply in global markets, pushing up prices.
Positive outlook
Despite the effects of the war, business leaders remain optimistic that the economy can still bounce back.
Ko said one way for the country to bounce back this year is for people to buy local products that are not affected much by logistical challenges and inflation.
“We just have to accept that what’s happening outside the country is affecting us, but it’s how we navigate those challenges and I suppose that the rest of the global economy has found a way to get around it,” Ko added.
Ko said that this year, MCCI plans to bring back its “Bakery World” exhibit to entice entrepreneurs and business owners in the Visayas and Mindanao to invest in locally made food.
Ko said he plans to tap different suppliers from the National Capital Region to help in their initiative.