Philippines may import more agricultural products from US

MANILA, Philippines — The United States is seeing high growth potential for the export of its agricultural products to the Philippines mainly driven by soybean meal and wheat.

In a report by the Foreign Agricultural Service, the United States Department of Agriculture (USDA) said soybean meal and wheat have long been the United States’ top agricultural export products to the Philippines and in 2021 accounted for   more than half of all shipments.

“They will likely remain top performers for many years,” the USDA said.

Last year, US soybean meal exports to the Philippines grew by seven percent to $960 million, while exports of wheat also increased by five percent to $871 million.

The USDA said exports of consumer-oriented products also have a high potential for growth such as meat and poultry, dairy and pet products, among others.

It pointed out that US meat and poultry product exports increased significantly in recent years to make up for shortfalls in domestic pork production related to African swine fever (ASF).

“Future growth will be driven by rising disposable incomes and a shift in protein preferences away from seafood,” the report said.

In 2021, US exports of pork and pork products to the Philippines surged by 79 percent to $204 million from $114 million.

During the year, the Philippines imposed lower tariffs for both in-quota and out-quota pork imports, in a bid to stabilize the price and supply of pork in the country. The said reduced tariffs have since been extended until the end of this year.

Similarly, poultry imports also jumped by 130 percent last year to $147 million from $64 million in the year before.

Meanwhile, the USDA said dairy product exports to the Philippines, particularly milk powder used in food manufacturing, will always be strong prospects, because the Philippines relies on imports for around 99 percent of its dairy consumption.

Last year, US dairy product exports to the Philippines increased by seven percent to $437 million from $409 million in 2020.

The USDA pointed out that pet food exports have recently surged worldwide, especially to markets in Asia.

“Exports to the Philippines rose by 38 percent to $51 million in 2021 and will likely continue to rise as pet ownership increases,” the USDA said.