In his foreign trips abroad, the President has made it a point to include discussions about the possibility of expanding Philippine exports, particularly agricultural products. During his trip to Russia in November last year, for instance, reports indicated Moscow had committed to import more farm goods from the Philippines. Among the products that Russia wants to buy from us are bananas, pineapples, cacao, mango, shrimps and milkfish.
The President has shown how savvy a salesman of Philippine products he is after he visited China in 2016. Following his state visit to China, Filipino farmers were again allowed to access the Chinese market. This after Beijing eased the import restrictions on local bananas and other Philippine fruits. Producers view China as an attractive export market because of its proximity to the Philippines and its huge population.
This year the Duterte administration jump-started efforts to increase the shipments of Philippine products, including agricultural goods, to nontraditional markets like Hungary and Turkey. In February the Department of Trade and Industry pushed for the expansion of Philippine farm exports to Hungary, including banana, mango and processed fruit products, as well as carrageenan, canned tuna, marine products, electronics, automotive parts and aerospace parts.
The latest data released by the Philippine Statistics Authority underscored the urgent need for the government to continue searching for new markets for local fresh farm produce and processed food products. Figures from the PSA showed that export receipts from coconut oil—the country’s top farm export—declined by 42.7 percent to $192.51 million in January to February, from the previous year’s $335.95 million. Earnings from the shipments of fruits and vegetables, pegged at $193.14 million, grew by only 0.3 percent compared to the figure recorded a year ago.
Other agro-based products also did not fare well in the first two months of the year. Data from the PSA showed that, on an annual basis, earnings from shipments of canned pineapple and pineapple juice declined by 46.3 percent and 98.3 percent, respectively. Receipts from mangoes also went down by nearly 30 percent to $36.15 million, from $51.17 million a year ago. Earnings from shipments of all agro-based products, according to the PSA, declined by nearly a fifth to $581.17 million, from $713.72 million in the first two months of 2017.
Clearly, Filipino farmers and food manufacturers are in need of government assistance, especially in finding new business opportunities. Selling these products alone via state visits are not enough. Negotiations to open up markets or expand shipments must be complemented by other efforts, such as allowing local producers to join trade fairs where they can establish linkages with potential foreign distributors.The government can consider emulating the Taiwan External Trade Development Council, or Taitra. Founded in 1970, Taitra is Taiwan’s foremost nonprofit trade promoting organization. Sponsored by the government and industry organizations, it assists Taiwanese firms to expand their global reach. The council has a team of 1,300 specialists and operates five local offices in Taoyuan, Hsinchu, Taichung, Tainan and Kaohsiung, as well as 60 branches worldwide. Its goals are: to assist Taiwanese businesses in developing international market; collaborate closely with the Taiwanese government in trade-policy implementation; provide business-consultation service and connect international firms with Taiwanese partners; and assume the role of “Smart Integrator”—complement government policies, facilitate industry needs and develop new business opportunities around the world.