Philippines agricultural trade deficit up 33% in 2022

• Apr 26, 2023

THE Philippines’ agricultural trade deficit widened substantially last year as imports again outstripped exports, the Philippine Statistics Authority reported on Tuesday.

Agricultural trade totaled $26.8 billion in 2022, 19 percent higher compared to the previous year’s $22.5 billion. Imports comprised nearly three-fourths or P19.3 billion while exports accounted for $7.5 billion.

The resulting $11.8-billion deficit was 32.8 percent higher compared to 2021’s $8.885 billion.

Cereals, at $3.98 billion, accounted for biggest share of agricultural imports, followed by food residues and waste/prepared animal fodder ($2.47 billion), meat and edible meat offal ($2.04 billion), animal or vegetable fats and their cleavage products, prepared edible fats and animal or vegetable waxes ($1.899 billion), and miscellaneous edible preparations ($1.891 billion).

Meanwhile, animal or vegetable fats and oils and their cleavage products; prepared edible fats and animal or vegetable waxes valued at $2.20 billion were the Philippines’ biggest farm goods exports last year.

Edible fruits, and nuts and citrus fruit melon peel was second at $1.9 billion. Rounding out the top five were preparations of vegetables, fruits, nuts or other plant parts ($874 million); tobacco and manufactured tobacco substitutes ($510 million); and preparations of meat, fish or crustaceans, mollusks and other aquatic invertebrates ($482 million).

Among the Association of Southeast Asian Nations (Asean) member countries, Malaysia was the top buyer of Philippine agricultural goods at $438.54 million. In the European Union, the Netherlands was the top destination with $940.5 million in purchases.

The Philippines, meanwhile, got most of its Asean-sourced agricultural imports from Indonesia ($1.78 billion). The top European Union source was Spain at $1.87 billion.

Sought for comment, Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that higher world prices resulting from the fallout of the Russia-Ukraine war had contributed to the rise in both agricultural exports and imports.

Source: https://www.manilatimes.net/2023/04/26/business/top-business/ph-agricultural-trade-deficit-up-33-in-2022/1888736