US agri expert sees upward trend in Phl export sales

CEBU, Philippines - With Philippines as the largest market in Southeast Asia for United States, the US Department of Agriculture - Foreign Agricultural Service (USDA-FAS) remains bullish of a buoyant market in the country for food and beverage products and foresees an upward trend of export sales in the years ahead.

If USDA-FAS agricultural counselor Philip Shull were to describe, Philippines and US share the “model” agricultural trade schemes in the world.

“The volume for food exports doubled in the last three years. US is the Philippines’ top supplier of food and beverage products while US is the largest Philippine market for food and agricultural products except for fish since we only rank second to Japan,” he said.

US food and beverage exports to the Philippines reached record sales of $859 million in 2012.

Shull said that among the top US exports include dairy products, snack foods and processed fruits and vegetables.

He added that US meat and poultry products also pose strong market demand for imports in the Philippines since they can be used as a double commodity by processing industries.

“Philippines is bigger than Brazil and India combined. This market is very big and is growing fast,” he said.

He cited that such positive development could be attributed to the migration of people into the cities from the countryside and the increasing number of supermarkets being built in the key areas of the country.

US food and beverage products are usually sold in supermarkets, restaurants, hotels and convenience stores in the Philippines.

Shull also noted that the continued importation of US products in the Philippines is primarily fuelled by the good reputation of the US in terms of production quality and safety, historical ties of the two countries and manageable entry barriers to the Philippines which could be further improved.

The agency also foresees a potential strong market for products classified as “healthy”, “gourmet” and “convenient”.

“USDA-FAS expects the US will remain as the Philippines’ top supplier of food and beverage products in 2013 and forecasts export sales will approach $1 billion,” Shull stated.

Philippines, on the other hand, exports a huge supply of agricultural products to United States such as coconut, coconut oil, snack goods and dried mangoes.

According to Shull, US recently opened its market for Philippine bananas while the latter started to trade in US potatoes.

He also shared that the Philippines has a rich potential for its locally-produced chocolates in the global market with the country’s cacao production.

Optimistic with the growing momentum of the market, Shull said that USDA-FAS aims to promote a stronger two-way trade with the Philippines and negotiate with the agricultural development authority to increase the production of agricultural products such as rice, coconut and cacao and improve the livestock raising in both countries.

US has an estimate number of three million farmers to date, Shull cited.

USDA-FAS recently conducted the 2013 U.S. Fine Foods Show last September 25 to 26 at SM City Cebu with its aim to promote the availability and application of US food, beverage and ingredient products to the Philippine market. /JOB (FREEMAN)