Philippines still net importer of US farm products

MANILA, Philippines — The Philippines continued to import more agricultural products from the US last year, recording a nine percent growth to $3.2 billion, the United States Department of Agriculture (USDA) said.

In its 2020 United States Agricultural Export Yearbook, the USDA- Foreign Agricultural Service said last year’s total agricultural exports were slightly higher than the $3.1 billion it projected in December.

According to the USDA, dairy products, wheat, and soybean meal registered the largest export increases to $137 million, $118 million, and $111 million, respectively.

Dairy product exports grew 50 percent to $410 million while wheat exports rose 17 percent to $826 million.

“This could be attributed to strong demand for milling wheat, as Filipino consumers stocked up on wheat-based food items such as bread throughout the pandemic,” the USDA said.

The United States has nearly 100 percent market share for milling wheat.

“Despite a 2020 decline in livestock and poultry production, soybean meal exports rose 14 percent from 2019,” the USDA said.

The USDA identified aquaculture and layer production as well as hog producers switching from swill to commercial feed as among the possible drivers for the increase.

The US also exported more pork and pork products last year, translating to a 23 percent growth to $115 million.

“Increased demand for US pork can be attributed to the decline in domestic Philippine pork production due to African swine fever,” the USDA said.

Meanwhile, the US saw a decline in exports of poultry and beef products as well as snack foods, largely due to the collapse of the quick-service restaurant industry due to COVID-19.

Nevertheless, the USDA expects food and beverage exports to the Philippines to improve.

“The Philippines has a young, fast-growing, and highly urbanized population with strong preference for US food and beverage products. With a population of 109 million, opportunities for imported food and beverage products offer strong potential for growth into the future,” the USDA said.

The USDA, however, emphasized that the country’s current tariff rate quota system for certain agricultural products, such as corn, chipping potatoes, pork, and poultry products, could pose a challenge to US food and agricultural exports.

A more liberalized Philippine trade policy would provide better prospects for US agricultural products, the USDA said.