US agriculture exports to Philippines hit record $3 billion

MANILA, Philippines — The Philippines continues to increase its dependence on agricultural products from the US as imports are expected to reach a record $3 billion this year, the United States Department of Agriculture (USDA) said.

According to the latest report of the USDA Foreign Agricultural Service (FAS), US agricultural exports to the Philippines are expected to reach $3 billion, up 3.4 percent from the $2.9 billion in 2018.

“Despite slowdown in the first three quarters, sales of US agricultural products to the Philippines will reach a record $3 billion by yearend as shipments arrive in time for the holiday season,” the USDA said.

“American culture and trends continue to have strong influence on Filipinos, supported by our shared history and people-to-people exchanges,” the USDA said.

The US continues to be the Philippines’ largest supplier of agricultural products, with a 28 percent market share. Soybean meal, wheat, dairy,  pork and pork products, and poultry are the top five commodities.

The Philippines, in turn, is the US’ 11th largest global market. It is also the largest market in Southeast Asia for US consumer-oriented food and beverage products.

The USDA said Filipino consumers have a strong preference for US culture, as well as food and beverage products. There is also a growing demand for “healthy, organic, gourmet, and convenience foods.”

Another factor is the rapid expansion of modern supermarket chains and quick service restaurant franchises in key provincial cities, which brings increased access to imported foods and beverages.

“The economy as a whole is growing faster than agricultural productivity, creating increased demand for imported foods and beverages. And real steps are being taken to improve the regulatory environment, including through the Ease of Doing Business Act,” the USDA said.

The top 10 high-value consumer-oriented food and beverage products with best prospects for future export growth are pork, cheese and cheese products, frozen and powdered eggs, fresh fruits and vegetables, processed fruits and vegetables, prepared food, wines, craft beer, seafood products, and dog and cat food.