Agriculture plays an important role in the Philippine economy: 24.3% of the country's population is employed in this sector. Taking into account the established traditions and a large number of farms, the country has a high agricultural potential and has already established itself on the world market as a reliable producer and supplier of food. Modernization of the country's agriculture is one of the key tasks facing the Government.
The basis of agricultural production in the Philippines is cereals, the total production of which in 2022 amounted to 28.0 million tons, which is 0.8% less than in 2021. Grain production has grown by 1.1% per year on average since 2018. Most of the production (about 70.5%) is occupied by rice, the production of which in 2022 amounted to 19.7 million tons (-1.0% by 2021). Next in the production structure is corn, which in 2022 was grown 8,255.6 thousand tons, which is 0.4% less than 2021. The CAGR for the period under review was 1.5%. The reduction in production is due to the negative impact of a series of natural disasters in 2022, in particular tropical storm Nalji, which hit the Philippines at the end of the year.
Sugar cane is the second largest producer after cereals in the Philippines. Adverse weather conditions also led to a significant reduction in volumes by 10.7%, production in 2022 amounted to 23,455.4 thousand tons.
In 2022, 16 941.1 thousand tons of fruits and berries were produced. The largest share falls on bananas — 5,899,7 thousand tons (-0.7% by 2021). The production of other banana crops in 2018-2022 was at the level of 3.1–3.2 million tons. Pineapples also occupy a significant share in the structure of crop production, the production of which in 2022 amounted to 2,914.4 thousand tons, which is 1.9% more than in 2021.
In 2022, the Philippines produced 30.3 thousand tons of raw milk, which is 15.2% higher than in 2021. The production of meat and offal in 2022 also increased by 1.9% and amounted to 3,153.2 thousand tons, but its dynamics until 2021 showed mainly negative growth rates, which is associated with a significant decrease in pork production. The reason for the decline was the spread of African swine fever in the country, as well as in the Asia-Pacific region as a whole. The first cases of infection in the country were recorded in 2019, and already in 2020. the volume of manufactured products decreased to 1,499.9 thousand tons. In 2021, 1,187.3 thousand tons of pork were produced, while in 2018 the figure was 1,623.8 thousand tons. To meet consumer demand for pork, imports were significantly increased. Nevertheless, in 2022, production volumes began to recover, amounting to 1,216.0 thousand tons (+2.4% by 2021).
As a result of a significant reduction in pork production, poultry meat has taken a leading position since 2021. In 2022, poultry meat production in the Philippines reached 1,437.3 thousand tons, which is 7.0% more than in the previous year.
Fish and seafood production in 2022 amounted to 4,339.9 thousand tons, which is 2.2% more than in the previous year. More than half of the production in this sector is occupied by aquaculture, which accounted for 2,349,3 thousand tons of products. The volume of catch in 2022 amounted to 1,990.6 thousand tons.
In 2022, the turnover of agricultural products of the Philippines increased to 28.4 billion US dollars, which is 19.9% higher than in 2021. According to ITC Trade Map, imports of agricultural products of the country in 2022 amounted to 20.9 billion US dollars, an increase of 23.6% (+4.0 billion US dollars) compared to 2021. The average annual growth rate of imports for 2018-2022 was 11.9%.
The Philippines imports a wide range of agricultural products. The main share is made up of cereals, which accounted for 20.7% of imports in value terms in 2022. By the end of 2022, wheat (12.3%), soybean meal and meal (9.2%), palm oil (6.3%), rice (6.1%), as well as pork and pig by-products (4.9%) prevailed in the supply structure.
The highest growth rates among the main positions of Philippine imports in value terms in 2022 were demonstrated by palm oil, the supply of which increased by more than 2.2 times compared to 2021. Imports of powdered milk (+44.8%) and soybean meal and cake (+40.2%) also showed a significant increase. The main exporting countries of agricultural products to the Philippines by the end of 2022 were the USA (20.3%), Australia (9.2%), Indonesia (9.1%) and China (8.4%). Collectively, the top 10 countries accounted for 76.8% of the value of imports of agricultural products of the Philippines. Over a five-year period, the Philippines has significantly increased the volume of supplies from Brazil (4.2 times), Australia (2.6 times), Argentina (2.2 times), Vietnam (2.1 times) and India (1.8 times).
Grain imports
The Philippines is among the top 10 rice-producing countries in the world. Rice is a staple food in the Philippines, its production is widespread throughout the country. In addition to rice, over 8 million tons of corn were produced in the country in 2020-2022. However, domestic production is not able to meet consumer demand, so the Philippines annually buys from 9 to 11 million tons of grain.
In 2022, the Philippines imported 11,349.2 thousand tons of grain worth 4,328.5 million US dollars. Import volumes increased relative to 2021 by 15.0% (+1,478.5 thousand tons) in physical terms and by 25.5% (+880.5 million US dollars) in value. The average annual growth of Philippine grain imports was 4.7% by weight and 12.5% by value.
In the value structure of grain imports of the Philippines, the largest share was occupied by wheat supplies with a share of 59.7%. Also in the top 3 were rice (29.4% of imports) and corn (8.2%). In total, the top 3 categories accounted for 97.3% of grain imports in value terms.
The most significant increase was in corn imports — shipments increased 2.0 times (+466.0 thousand tons) and by 99.2% (+175.8 million US dollars) in value terms. At the same time, the supply of barley decreased by 20.4% by weight and by 11.3% in value terms.
Among the grain exporting countries to the Philippines in 2022, Australia took the leading position, accounting for 31.2% (1,348.9 million US dollars). In 2022, Australia increased grain exports to the Philippines by 54.2% (+1,250.2 thousand tons) and by 92.0% (+646.4 million US dollars) in value. Australia mainly supplies wheat and barley. The second largest supplier is the United States (25.6%), which in 2022 supplied 2,385,500 tons of grain to the Philippine market for 1,108.9 million US dollars (mainly supplied wheat, as well as corn and millet in insignificant volumes).
In 2022, grain shipments from Brazil and Indonesia were launched (by 85.9 million US dollars and 39.8 million US dollars, respectively). The main imported item from these countries was corn.
Import of legumes
In 2022, imports of legumes from the Philippines amounted to 126.7 thousand tons by 92.1 million US dollars, which is 8.8% (+10.3 thousand tons) and 7.9% (+6.8 million US dollars) in value above 2021. The volume of imports of legumes increased annually by an average of 5.2% by weight and 11.9% by value.
In the structure of imports of legumes in 2022, the main share fell on beans (53.4% of value imports) and peas (44.3%). The remaining insignificant part of imports fell on dried chickpeas (1.3%), fodder beans (0.8%) and lentils (0.1%).
Myanmar was the leader in terms of leguminous supplies to the Philippines in 2022, accounting for 28.7% of supplies. The top 5 also included Canada (23.5%), Argentina (14.7%), the USA (11.7%) and Australia (7.5%). In total, the top 10 countries accounted for 98.0% of the value of imports of leguminous Philippines.
Import of vegetable oils
The Philippines is a world leader in the production and export of coconut oil. According to the USDA, in 2021/22, about 1,668 thousand tons of coconut oil were produced in the Philippines, of which 1,288 thousand tons were supplied to foreign markets.
In addition, after the approval of the Roadmap for the development of the coconut industry in the Philippines, coconut production in the country is expected to increase by 9% from 2025, which in turn will increase the production and export of coconut oil in the long term. In addition to coconut oil, the country also produces small volumes of palm (more than 100 thousand tons), soy (about 18 thousand tons) and palm kernel (13 thousand tons) oils.
Most of the consumption of vegetable oils in the Philippines is generated by imports. According to the USDA, the country annually consumes more than 1.3 million tons of palm and palm kernel oils, 80 thousand tons of soy, 30 thousand tons of rapeseed and 10 thousand tons of sunflower oils.
In 2022, the Philippines imported 1,180.4 thousand tons of vegetable oils for 1,617.7 million US dollars, which is 71.6% (+492.4 thousand tons) and 2.0 times (+815.9 million US dollars) in value more than 2021. The average annual growth in imports of vegetable oils of the Philippines was 28.0% by weight and 44.6% by value.
The main share in the import of vegetable oils of the Philippines in value terms in 2022 was occupied by palm oil (81.8%). Soybean oil accounted for a relatively smaller share (6.7%). In total, the share of these two categories amounted to 88.5% of imports in value terms.
The most significant increase was observed in the import of palm oil — by 86.6% (+471.8 thousand tons) and 2.2 times (+725.1 million US dollars) in value. Soybean oil imports also showed positive growth rates of 27.6% by weight and 65.6% by value.
The main exporting countries of vegetable oils to the Philippines in 2022 were Malaysia and Indonesia, which accounted for 54.0% (US$ 874.3 million) and 37.8% (US$ 611.7 million) of imports, respectively. The share of vegetable oil supplies from other countries in 2022 was less than 1%, except for the supply of products from Thailand (3.0% or 47.9 million US dollars).
The most significant increase in supplies occurred in the main exporting countries: Malaysia increased exports to the Philippines by 72.9% (+263.4 thousand tons) and 2.1 times (+471.9 million US dollars) in value. Indonesia, in turn, increased the supply of vegetable oils by 82.5% (+218.6 thousand tons) by weight and by 95.5% (+298.9 million US dollars) by value.
Import of fish and seafood
The Philippines is among the top 30 world importers of fish and seafood. Due to its availability and lower prices, fish is the most consumed animal protein in the Philippines, with an annual per capita consumption of about 40 kg.
By the end of 2022, the Philippines imported 463.0 thousand tons of fish and seafood worth 756.6 million US dollars, which is almost equivalent to the volume of 2021 and 20.9% higher (+131.0 million US dollars) in value. On average, imports of fish and seafood from the Philippines increased annually by 1.9% by weight and by 7.9% by value.
Frozen fish occupied the largest share (73.2%) in the structure of value imports of fish and seafood of the Philippines in 2022. The remaining part of Philippine imports was represented by fish fillets and other fish meat (14.0%), shellfish (9.9%) and crustaceans (2.8%).
In 2022, there was a decrease in natural indicators of imports of frozen fish by 2.9% and shellfish by 5.2%, while in value terms, deliveries of these categories increased by 18.7% and 3.2%, respectively.
The largest supplier of fish and seafood to the Philippines in 2022 It was China, which accounted for 37.2% of the value of imports. Vietnam (15.7%) and Papua New Guinea (15.4%) were also major exporters. In total, the three countries accounted for 68.3% of imports. In total, the share of the top 10 countries amounted to 89.7% of the value of fish and seafood imports of the Philippines.
Import of meat and meat products
The meat processing industry in the Philippines is actively developing, as investments are attracted, companies' activities are expanding and their own production is increasing. The main type of meat consumed in the Philippines since 2019 is poultry meat, according to the latest USDA estimates, in 2022 consumption of which increased by 8.7% to 1,934 thousand tons.
Pork is the second most popular type of meat in the country. However, in 2020-2021, the level of pork consumption decreased, which is primarily due to a reduction in supply as a result of the spread of ASF and a high level of retail prices. According to the USDA, in 2022, pork consumption in the Philippines is estimated at 1,484 thousand tons (+1.6% by 2021). In 2023, pork production and imports in the Philippines are expected to decline due to recent outbreaks of ASF (in Cebu Province) and high pork prices on the world market.
Finished meat products in the Philippines are produced at meat processing plants, of which there are about 175 in the country, while the local industry imports about 85% of raw materials for processing.
In 2022, imports of meat and meat products from the Philippines amounted to 1,443.4 thousand tons for 2,359.5 million US dollars. Imports of this category of products increased relative to 2021 by 20.2% (+240.6 thousand tons) and by 21.8% (+422.1 million US dollars) in value. The average annual import growth was 13.5% by weight and 16.1% by value.
The basis of imports of meat and food by-products of the Philippines in 2022 was pork and food by-products with a share of 43.5% (1,025,6 million US dollars). Beef and edible offal of cattle (28.5%) and poultry meat (22.4%) also entered the top 3 imported types of meat. In total, these categories accounted for 94.3% of Philippine imports of meat and meat products in value terms.
In the structure of exporting countries of meat and meat products to the Philippines in 2022, Brazil and the United States were the leaders, accounting for 27.9% (658.8 million US dollars) and 15.1% (357.0 million US dollars) of supplies, respectively. The top 5 countries also included Spain (13.0% of the value of imports of meat and meat products), Canada (9.5%) and Australia (6.8%).
Brazil increased meat supplies the most: by 72.4% (+167.6 thousand tons) and by 72.0% (+275.7 million US dollars) in value. In addition to Brazil, Spain has significantly increased its export volumes (by 59.1% by weight and by 52.6% by value).
Import of dairy products
The volume of raw milk production in the Philippines is insignificant and only slightly exceeds 30 thousand tons per year (according to data for 2022), which is why the production of dairy products from local raw materials in the country is also insignificant. They are mainly engaged in local farmers' cooperatives that do not have opportunities for national expansion, or small independent farmers who position their products as fresh, natural and try to sell them under their own brand.
The needs of the domestic market are covered mainly by imports, most of the dairy products in the country are produced from imported milk powder.
The Philippines is one of the world's largest importers of dairy products (the country is in the top 10 importers of dairy products in value terms, excluding EU countries). Following an increase in the population, a gradual increase in income and an increase in consumption of dairy products, import volumes are steadily growing.
By the end of 2022, the Philippines imported 621.0 thousand tons of dairy products worth 1,690.3 million US dollars, which is 13.7% higher than 2021 (+75.0 thousand tons) and 36.2% (+449.3 million US dollars) in value. The volume of imports of dairy products for 2018-2022 increased annually by an average of 3.2% by weight and by 13.7% by value.
In the structure of imports of dairy products of the Philippines, the largest share by the end of 2022 fell on milk powder — 45.1% of imports of dairy products in value terms or 762.8 million US dollars. The remaining part was the supply of cheeses (13.0%), fermented milk products (11.1%), butter and other milk fats (10.3%), whey ingredients (7.5%) and other dairy products (13.0%).
In terms of the volume of dairy products supplied to the Philippines, the first place in 2022 was taken by the United States, which accounted for 32.8% of the value of imports. The second place was occupied by New Zealand, which supplied $446.4 million (26.4%) of dairy products to the Philippine market. Other dairy exporters were Belgium (5.4%), Australia (4.4%), Indonesia (3.9%), Germany (3.5%) and Ireland (3.4%)
