Agricultural food exports seen flat this year

MANILA, Philippines — The country’s agricultural food exports will likely be flat this year, but are expected to recover starting 2019.

“We don’t expect any significant increase in our food exports due to concerns on competitiveness and availability of raw materials,” Philippine Food Processors and Exporters Organization Inc. president Roberto Amores told reporters yesterday.

Last year, export sales of agriculture and food reached $5.6 billion.

“We have to work on how to improve our exports and  the manufacturing sector by partnering with ASEAN since most of our raw materials  are also available in our neighbors,” he said.

PhilFoodex is the leading food industry association in the country composed of micro, small, medium and large scale food manufacturers and exporters.

“We are way, way below the ASEAN level. Others are experiencing positive trade growth, but we are experiencing a negative trade balance,” Amores said.

Agriculture trade in major ASEAN countries  is valued at $23 billion in Thailand, $12 billion in Indonesia, $10 billion in Vietnam and $6 billion in Malaysia.

“What we do now is benchmark ourselves with ASEAN. We expect growth by at least three percent starting 2019 since interventions introduced will likely take effect,” Amores said.

Amores said the Philippines is expected to import less rice next year as local production improves through technology and hybrid.

Mango exports are expected to see some improvement next year as the expected production of 500,000 metric tons (MT) will likely increase by up to 15 percent.

“Mango production has been declining from 850,000 MT to 550,000 MT over the past three years. This will further go down to 500,000 MT this year, but will recover in 2019,” said Amores, who is also the president of the Philippine Mango Exporters Foundation Inc.

PhilFoodex is hosting the 14th Philippine Food Expo on April 20 to 22 which will gather some 300 leading firms involved in food manufacture, growing, export, equipment, packaging, ingredients and additives.