Preliminary data from the Philippine Statistics Authority (PSA) indicates an increase in the trade deficit of the Philippines, despite an 8.6 percent decline in the value of the country’s agricultural trade during the first quarter.
This decline can be attributed to a reduction in both exports and imports.
The total agricultural trade of the country reached $5.9 billion from January to March this year, showing a decrease compared to the corresponding period last year when it amounted to $6.46 billion.
These figures demonstrate a decline in contrast to the previous quarter’s 5.1 percent growth and the 30.7 percent expansion observed a year ago.
During the quarter, agricultural imports, accounting for 73.8 percent of the total agricultural trade, decreased by 3.3 percent, resulting in a value of $4.36 billion.
These imports constituted 13.9 percent of the country’s overall imports.
On the other hand, agricultural exports, which accounted for 26.2 percent of the total trade, experienced a significant drop of 20.8 percent, amounting to $1.55 billion.
The value of agricultural exports represented 9.2 percent of the country’s total exports.
These statistics for the first quarter led to a trade deficit of -$2.81 billion, reflecting a 10.2 percent increase compared to the deficit of $2.55 billion recorded last year.
The primary agricultural products exported by the Philippines include edible fruits and nuts, animal or vegetable oils, preparations of vegetables, fruits, and nuts, tobacco and substitutes, as well as preparations of meat, fish, crustaceans, and other related items.
In a text message, Nicholas Mapa, senior economist at ING Bank, indicated that coconut and banana products, along with shrimp and tuna, constitute a significant proportion of the country’s agricultural exports.
However, these specific subsectors encountered challenges in production during the fourth quarter of 2022 and the first quarter of 2023, potentially resulting in an overall decline in exports.
In terms of agricultural imports, the major commodities consisted of cereals, residues, and waste from the food industries, miscellaneous edible preparations, animal or vegetable fats and oils and their cleavage products, as well as meat and edible meat offal.
Among the member countries of the Association of Southeast Asian Nations (ASEAN), Malaysia maintained its position as the primary destination for exports, accounting for 31.8 percent of the share valued at $52.58 million.
Meanwhile, Indonesia emerged as the leading supplier of agricultural products, contributing $412.51 million, which represents a 28 percent share.
Furthermore, the Netherlands remained the predominant recipient of the Philippines’ agricultural exports among European Union member countries, with a value of $180.77 million, representing a 47.5 percent share.
Conversely, Spain served as the largest source of agricultural imports from the EU, with a total import value of $93.93 million, equivalent to 22.8 percent of the country’s imports from EU nations.
Mr. Jaycee de Guzman is a self-taught agriculturist and the patriarch of Alpha Agventure Farms, the number one backyard farm in the Philippines. His experience in livestock farming is rooted back in the early 90s. Mr. de Guzman is a computer scientist, a digital marketing strategist, an equity analyst for more than 20 years.