US Agriculture Exports to the Philippines: A Flourishing Trade

The trade relationship between the United States and the Philippines in agricultural products is experiencing a significant upswing. This year, U.S. agricultural exports to the Philippines are anticipated to achieve a record-breaking high of $3.1 billion, representing a 7% increase from the previous year. This surge is largely attributed to the growing Filipino demand for high-quality food and beverage products from the U.S. The Philippines, cementing its position as a key market for American agricultural exports, has risen to become the ninth-largest global market and the top market in Southeast Asia for U.S. consumer-oriented products.

The array of top U.S. exports to the Philippines is diverse, encompassing soybean meal, wheat, dairy products, prepared food, and processed vegetables. Despite challenges posed by the Covid-19 pandemic, U.S. agricultural exports to the Philippines grew by 12% through September 2020, with a forecast to surpass 2019 figures by the year’s end. This growth trend is supported by the Filipino consumers’ strong affinity for U.S. culture, including a preference for food and beverage products perceived as safe and of high quality. The Philippine market’s inclination towards healthy, organic, gourmet, and convenient food options presents an advantageous opportunity for U.S. suppliers.

In an optimistic outlook, the USDA-FAS projects that U.S. agricultural exports to the Philippines will grow by 8% this year, reaching a new high of $3.834 billion from last year’s $3.55 billion. The reliability and perceived quality of U.S. products have been key factors in maintaining and expanding this trade relationship, even amid global challenges such as the pandemic and supply chain disruptions. The U.S. has consistently been the Philippines’ largest supplier of agricultural products, holding a 28% market share. In response to these trends, U.S. officials and agribusiness representatives have been actively engaging in trade missions to explore and expand export opportunities in the Philippine market.

The Philippine market’s growing demand for imported foods, driven by rapid economic growth outpacing agricultural productivity, has also played a significant role. This demand is further bolstered by the expansion of modern supermarket chains and quick-service restaurant franchises, increasing access to imported foods. Notably, the top 10 high-value consumer-oriented food and beverage products from the U.S. with promising prospects for future export growth include pork, cheese and cheese products, frozen and powdered eggs, fresh fruits and vegetables, processed fruits and vegetables, prepared food, wines, craft beer, seafood products, and pet food​​​​​​.