MANILA, Philippines — The United States sees high growth potential for its agricultural exports to the Philippines, driven primarily 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 main agricultural export products from the United States to the Philippines and account for in 2021 more than half of all shipments.
“They will likely remain the top performers for many years to come,” the USDA said.
Last year, US soymeal exports to the Philippines rose 7% to $960 million, while wheat exports also rose 5% to $871 million.
The USDA said exports of consumer products also have strong growth potential, such as meat and poultry, dairy and pet products, among others.
He pointed out that US exports of meat and poultry products have increased significantly in recent years to offset domestic pork production shortfalls linked 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, U.S. pork and pork product exports to the Philippines jumped 79% to $204 million from $114 million.
During the year, the Philippines imposed reduced tariffs on in-quota and over-quota pork imports, in an effort to stabilize the price and supply of pork in the country. Said reduced rates have since been extended until the end of this year.
Similarly, poultry imports also jumped 130% last year to $147 million from $64 million the previous year.
Meanwhile, the USDA said exports of dairy products to the Philippines, especially powdered milk used in food manufacturing, will still be a good prospect, as the Philippines depends on imports for around 99% of its their consumption of dairy products.
Last year, U.S. dairy exports to the Philippines rose 7% to $437 million from $409 million in 2020.
The USDA pointed out that pet food exports have recently increased around the world, particularly to Asian markets.
“Exports to the Philippines increased 38% to $51 million in 2021 and will likely continue to increase as pet ownership increases,” the USDA said.