Joint Statement by AFBA, ASEAN-BAC, and FIA on Food-System Stability Under Potential Hormuz Disruption

The ASEAN Food and Beverage Alliance (AFBA), ASEAN Business Advisory Council (ASEAN-BAC) and Food Industry Asia (FIA) call on the ASEAN Secretariat, ASEAN Member State governments, and key partner states to take immediate, time-bound action over the next six months to keep ASEAN’s food system stable in the event of renewed or extended disruption in the Strait of Hormuz and wider energy markets.

A Hormuz shock would not remain only an energy issue. In ASEAN it would move quickly into food manufacturing and food service through fuel, electricity, freight, insurance, fertilizer, packaging, imported ingredients, cold chain and working capital. If left unmanaged, these pressures could reduce production runs, disrupt procurement from farmers and fisheries, weaken SME distributors and operators, and raise food prices for consumers.

We therefore urge five priority actions:

First, keep trade open and friction low for critical food-system goods. ASEAN governments should avoid new export bans, non-automatic licensing delays and inconsistent border treatment on food, feed, fertilizer, packaging materials, additives, sanitation chemicals and other essential processing inputs. Customs authorities should activate crisis green lanes, pre-arrival processing and risk-based clearance for perishables and priority food-system cargoes.

Second, protect energy continuity for food manufacturing, cold chain and distribution. Member States should treat food factories, cold storage, warehousing, fisheries handling, reefer logistics and staple distribution as priority users for electricity and fuel continuity during acute stress. Temporary, transparent and time-bound measures to prevent spoilage and production stoppages are justified where the alternative is physical shortage.

Third, mobilise emergency finance, foreign-exchange access and insurance support. Food manufacturers, contract processors, farmer-linked aggregators, distributors and food-service operators cannot absorb simultaneous shocks in freight, energy and inventory costs without liquidity support. Governments, central banks, development finance institutions and partner states should therefore establish short-term working-capital lines, credit guarantees, supplier-credit support and risk-sharing tools that help preserve trade finance and cover exceptional insurance costs for essential food-system imports.

Fourth, provide temporary regulatory agility without compromising food safety. Food safety must remain non-negotiable, but regulators should allow faster handling of low-risk administrative changes that support continuity, including approved supplier switches, origin changes, alternative packaging formats, pack-size adjustments and temporary label transition periods, provided traceability, documentation and recall readiness are maintained. The objective should be continuity inside a science-based framework, not deregulation.

Fifth, establish a standing ASEAN public-private resilience mechanism for the next six months. This mechanism should connect the ASEAN Secretariat, relevant economic, agriculture, energy and finance tracks, and industry bodies, with a simple operational mandate: share market intelligence, identify bottlenecks, flag emerging shortages, and coordinate fast responses before national problems become regional disruptions. It should also protect farmer-manufacturer linkages by supporting continuity of procurement and prompt payment where commercially feasible.

We also call on key partner states with leverage over energy, shipping, fertilizer, insurance, and trade finance to support safe and reliable transit of essential cargo, maintain export reliability, expand trade-credit and reinsurance support, and accelerate practical recognition of electronic certificates and other paperless trade procedures where possible.

AFBA, ASEAN BAC, and FIA are ready to do our part. Industry will share supply-chain intelligence where feasible, identify chokepoints early, support efficient loss-reduction measures, maintain responsible sourcing from farmers and fisheries where commercially viable, and work with regulators on safe and traceable substitution when needed.

This is not a request for permanent protection or broad market intervention. It is a request for targeted, transparent and time-bound measures that keep food moving, preserve farmer-manufacturer linkages, protect consumers, and prevent an external chokepoint shock from becoming a deeper affordability and availability crisis in ASEAN.

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Annexed Prioritized Action List