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Philippine agricultural trade to sustain growth
MANILA, Philippines — Philippine agricultural trade will sustain growth for the third straight year this year, as the El Niño phenomenon is seen to trigger higher imports.
Latest data from the Philippines Statistics Authority (PSA) showed the value of the country’s agricultural trade expanded for the second straight year in 2022.
It said agricultural trade rose by 19 percent to $26.8 billion last year from $22.53 billion in 2021.
This is compared to the seven percent contraction in 2020 to P18.78 billion.
The country’s agricultural trade will continue for the third straight year since 2020 – the height of the COVID-19 pandemic – due to the need to secure food supply, ING Bank senior economist Nicholas Mapa said in a text message.
“We do see agricultural trade increasing again this year as domestic supply faces challenges due to the projected El Niño episode later in the year,” he said.
The El Niño phenomenon is projected to start in the latter part of the year, with various groups warning of possible production cuts in the agriculture sector.
This means the country will need to source more food supply from other countries, Mapa said.
Last year, agricultural imports grew 22.9 percent to $19.3 billion, accounting for the bulk of agricultural trade at 72 percent.
Exports rose 10 percent to $7.5 billion, accounting for the remaining 28 percent.
Total balance of trade in agricultural goods reached $11.8 billion, reflecting a deficit with an annual increase of 32.8 percent.
The country’s top export products include animal or vegetable fats, edible fruits and nuts, preparations of vegetables, fruits, nuts and other parts of plants, tobacco and manufactured tobacco substitutes, and preparations of meat, of fish or of crustaceans.
For imports, cereals were the top import product with a 20.6 percent share valued at $3.98 billion.
Rounding off the top five import products are residues and waste from the food industries, meat and edible meat offal, animals or vegetable oils, and miscellaneous edible preparations.
Exports to the Association of Southeast Asian Nations (ASEAN) region reached $1.01 billion, or 7.5 percent of the total. On the other hand, imports from neighboring countries reached $6.47 billion or 16.1 percent of the total.
Among ASEAN partners, Malaysia was the top buyer of Philippine agricultural products with a 43.2 percent share valued at $438.54 million, while Indonesia was the top supplier of agricultural products with $1.78 billion or a 27.6 percent share.
Exports to European Union (EU) member countries amounted to $1.71 billion, which made up 17.3 percent of the country’s total.
On the other hand, imports from EU states accounted for 21.8 percent valued at $1.87 billion.
Netherlands was the country’s top destination of agricultural commodities worth $940.52 million or 54.9 percent of the total agricultural exports to EU members.
Spain was the top source of agricultural commodities cornering 24.5 percent with a value of $458.25 million.
Source: https://www.philstar.com/business/2023/04/26/2261589/philippine-agricultural-trade-sustain-growth