Inputs such as fertilizers and pesticides typically account for 20-30 percent of total production cost while livestock and poultry feeds account for as much as 70 percent. As such, any variability in prices directly translates to an increase or decrease in the prices of agricultural commodities, especially at the farm level. The increase in international prices of commodities and the fuel price spike in 2008 contributed to the high prices of domestic fertilizer and corn. The price of fertilizer rose by as much as 135 percent in 2008 compared to 2007 and contributed to a decrease of 2.2 percent in palay production in the fourth quarter of 2008.