Imports of US agricultural products hit $3.55 billion in 2021

MANILA, Philippines — The Philippines continued to import more agricultural products from the US last year, recording an 11 percent growth to $3.55 billion, according to the United States Department of Agriculture (USDA).

In its 2021 United States Agricultural Export Yearbook, the USDA-Foreign Agricultural Service said the Philippines was its eight largest buyer of agricultural products.

“The Philippines was the largest export destination for US soybean meal, second largest for wheat, fourth largest for dairy products, and seventh largest for pork,” the USDA said.

It said the US is the Philippines’ top supplier of agricultural goods, supplying an estimated 21 percent of the total import market by value.

The USDA attributed the double-digit exports growth to the 79 percent increase in exports of pork and pork products.

US pork and pork product exports grew to $204 million from only $114 million in the previous year.

“ASF (African swine fever)’s continued decimation of local pork production, inflationary pressures accompanied by a spending rebound, and an on-again-off-again opening of the economy were key drivers in 2021,” it said.

Meanwhile, the USDA said the Philippine’s economic growth last year also contributed to the increased levels of food and agricultural imports.

“Exports of most major agricultural products to the Philippines increased in 2021. Some products such as poultry, beef, and processed vegetables have bounced back from a slow 2020, while others like wheat, dairy products, and food preparations have been consistently rising annually,” the USDA said.

Apart from pork, exports of poultry meat and products also registered a significant increase of 130 percent to $147 million from $64 million in the year before.

Soybean meal, which remained the top export to the Philippines, posted a seven percent increase to $960 million from $900 million in 2020.

Similarly, wheat exports to the Philippines grew by five percent to $871 million from $827 million in the previous year.

Dairy exports also grew by seven percent to $437 million from the previous year’s $409 million.

Other top agricultural exports to the Philippines include food preparations, processed vegetables, and beef products, among others.

“With a total population of 110 million, the Philippines remains a young, fast-growing, and highly urbanized market, although the economy remains a laggard in the region with respect to COVID recovery. A traditionally strong preference for US food and beverage products continues to offer strong potential for growth despite continuous erosion of US market share in favor of trade partners with preferential tariff treatment (e.g., Australia and China),” the USDA said.

In 2021, US agricultural exports hit a record $177 billion, 18 percent higher than the $149.7 billion in 2020.

“Exports of soybeans, corn and beef led the way as the top three American exports with all three setting records last year. Pork, dairy products, soy meal, distillers’ grains, and pet food also set records,” it said.

China remained the top destination for US agricultural exports, posting a 25 percent increase to $32.98 billion. This was followed by Mexico and Canada with $25.5 billion and $25.05 billion worth of agricultural exports, respectively.