Agriculture trade declines at slower pace in Q3

MANILA, Philippines — Trade of agricultural goods declined at a slower pace in the third quarter in line with the easing of mobility restrictions, the Philippine Statistics Authority (PSA) reported.

The country’s total agricultural trade declined by 3.3 percent to $4.97 billion, slower than the decline of 20 percent in the second quarter when total trade reached $4.74 billion.

This, however, was still a reversal of the pre-pandemic growth rate of 3.2 percent in the same quarter last year when total trade reached $5.14 billion.

As a significant slowdown was seen in agricultural imports during the quarter, the deficit in agricultural trade widened to $1.94 billion in the third quarter coming off a deficit of $1.17 billion in the second quarter.

Exports contracted at a slower pace of 9.4 percent to 1.52 billion in the third quarter from 20.6 percent in the second quarter when exports reached $1.45 billion.

The bulk of outbound shipments comprised of fruits and nuts, animal and vegetable fats, preparations of fruits and vegetables, preparations of meat, fish and crustaceans. as well as tobacco.

Agricultural exports to ASEAN countries amounted to $184.61 million. Malaysia was the top destination of exports worth $54.72 million or a share of 29.6 percent to the total farm exports to ASEAN countries.

Exports of agricultural goods to European Union member countries were valued at $227.09 million. Netherlands was the country’s top buyer of agricultural commodities worth $86.89 million or 38.3 percent of the total agricultural exports to EU.

Imports of farm products continued to decline but at a significantly slower pace of 0.4 percent in the third quarter to $3.45 billion from a contraction of 19.6 percent in the second quarter when inbound shipments of farm products reached $$2.62 billion.

The bulk of the country’s farm imports were cereals, animal fodder, dairy and honey; as well as meat and offal.

In ASEAN, Indonesia was the top source of imports while in the EU, Netherlands was likewise the largest source of imports of farm products.