Cebu offers prospects for US agricultural exporters

MANILA, Philippines —  Cebu offers strong opportunities for direct shipments of US agricultural exports, driven by the feed and food manufacturing, food service and food retail sectors, according to the United States Department of Agriculture (USDA).

“As the economic center of the Philippines’ central Visayas region, Cebu offers strong opportunities for US meat, potato, dairy products, and animal feed ingredients,” the USDA- Foreign Agricultural Service (FAS) said in a report.

The FAS said  the Cebu Port serves as a key distribution hub in the Philippines, citing international and domestic shipments in Cebu which reached 66.3 million metric tons with seven percent growth from 2021 to 2022.

The USDA cited opportunities in feed manufacturing, food service and food retail sectors.

“Animal feed producers located in Central Visayas, one of the top hog producing regions, present opportunities for animal feed ingredients, especially soybean meal, the top US agricultural export to the Philippines in 2022,” the USDA said.

Other US export products for animal feeds include meat and bone meal, bakery meal, millet, soya protein, oats, whey powder and distiller’s dried grains with soluble.

“Some food and beverage manufacturers based in Manila have established factories and distribution centers in Cebu to supply the Visayas and Mindanao regions,” the USDA said.

It added that meat processing plants purchase mechanically deboned chicken meat as fillings for meat by-products and dumplings, while milling companies buy wheat, dairy manufacturers import white cheddar cheese, whey powder and skim milk powder.

The USDA also highlighted opportunities brought by the opening of five-star hotels and resorts, high end restaurants, and international restaurant chains which feature US ingredients on their menus, such as premium beef cuts, pork cuts and duck.

“Most restaurants in Cebu buy fresh produce and grocery items from wet markets and retail stores, while some restaurant and hotel chains purchase food and beverages directly from importers to reduce costs,” the USDA noted.

It added that quick-service restaurants buy large volumes of chicken leg quarters, chicken drumsticks and frozen potato fries.

Moreover, the report emphasized that while grocery stores in Cebu sell mainly local products, most also sell imported meat, fruits, canned goods, snacks, sauces, condiments, cheeses and wines.

“Warehouse clubs offering a wider selection of imported food and beverages experience a growing demand for American brands, with plans to expand in the Visayas region,” the USDA said.

“With 40 percent of the population 14 years old and below, some grocery stores have powdered milk, cheeses, ice cream, snacks and frozen fries as their top-selling products,” the USDA said.

It added that some of the more popular US products found in retail stores are beef, pork, chicken, turkey, apples, oranges, lemons, strawberries, condiments, soups, non-alcoholic beverages and wines.